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Piramal Pharma’s Bold Exit from Prescription Drugs Announced on May 17, 2025
Piramal Pharma made headlines on May 17, 2025, at 03:53 PM IST, revealing its decision to pivot away from the prescription drug market in India. This strategic move underscores the company’s new focus on consumer healthcare and CDMO (Contract Development and Manufacturing Organization) sectors, aiming to capitalize on emerging opportunities in the pharmaceutical industry.
Why Piramal Pharma Is Exiting Prescription Drugs in India
Piramal Pharma, a key player in the pharmaceutical industry, is redirecting its efforts in India, stepping away from prescription drugs to focus on consumer healthcare and CDMO segments. Chairperson Nandini Piramal announced the company’s emphasis on organic growth in the OTC (over-the-counter) market, with plans to potentially acquire OTC brands to bolster its India-focused healthcare business, valued at ₹1,000 crore in FY25.
Piramal Pharma’s Strategic Pivot to OTC and Global CDMO Growth
The company previously sold its domestic formulation business to Abbott for ₹3.8 billion in 2010. Now, Piramal Pharma is aiming to solidify its position in the OTC market while expanding its global CDMO services. With 69% of its revenue generated from markets like the US, UK, and Europe, the company is advancing with 31 products in phase 3 clinical trials and 177 in phase 1, showcasing its commitment to global pharmaceutical innovation.
Financial Performance and Challenges in FY25
Despite facing global headwinds and biotech funding uncertainties impacting order placements, Piramal Pharma remains optimistic. The company reported an 8% year-on-year revenue growth in the fourth quarter of FY25, primarily driven by its CDMO business. Its net debt-to-EBITDA ratio stands at 2.7x, a notable improvement from 5.6x in FY23, while managing a capex of $100-125 million.
Explore More Pharmaceutical Insights and Opportunities
For deeper insights into pharmaceutical trends and CDMO opportunities, visit PharmaTimes or Outsourcing-Pharma.