### **Overview** Themis Medicare Ltd (TML), established in 1969 and headquartered in Mumbai, India, is a vertically integrated pharmaceutical company with over five decades of expertise in complex generics, critical care therapeutics, and active pharmaceutical ingredients (APIs). The company has evolved from its legacy as Themis Chemicals and operates through a diversified business model spanning B2B, domestic B2C, and international export markets. With a strong foundation in innovation, manufacturing excellence, and strategic partnerships, TML is positioning itself for sustained long-term growth with a core focus on the hospital pharmaceutical segment. --- ### **Core Business Segments** TML operates through two primary business verticals: 1. **Formulations (Finished Dosage Forms)** – focused on hospital, trade, and institutional markets. 2. **Active Pharmaceutical Ingredients (APIs)** – serving both internal consumption and commercial export. The company also leverages its subsidiary structure, including **Themis Chemicals Private Limited** (formerly for API operations) and **Artemis Biotech** in Hyderabad, to enable focused growth and operational synergies. --- ### **Strategic Focus (Nov 2025 Update)** #### **1. Hospital Business Expansion** - The **hospital segment is the cornerstone of TML’s growth strategy**, contributing **38.25% of total revenue in FY24–25** and growing steadily. - TML is among the **top three players in India’s anesthesia market**, with a comprehensive product portfolio and a dedicated sales force of over 305 field personnel. - Strategic expansion into **Critical Care, Intensive Care, Oncology, Nutrition, Renal Care, and Medical Devices** is underway to broaden hospital engagement beyond anesthesia. - The company leverages its deep understanding of the hospital ecosystem—linking hospitals, physicians, and distribution—to deepen market penetration. #### **2. API Development & Commercialization** - APIs are being developed for both **internal backward integration** and **external commercial sale**, supporting margins and reducing dependency on third-party suppliers. - Key API products include **Simvastatin, Ketamine, and Fumagilline**, with a robust R&D pipeline of 10 new molecules. - The API business, now housed in a wholly owned subsidiary, contributes ~35–36% of revenue and generates nearly all sales from exports. - TML is capitalizing on the global **"China plus one" sourcing trend**, positioning itself as a reliable supplier of high-quality APIs. #### **3. Geographical Expansion** - **Phase 1 (0–3 years):** Target entry into **CIS, Latin America, and GCC** markets. - **Phase 2 (3–5 years):** Strategic entry into **EU and US regulated markets**, supported by EU GMP certifications and dossier filings. - TML already exports to **44+ countries**, with key markets in **Germany, Brazil, Uruguay, Nigeria, and Latin America**. - The company filed **over 75 product dossiers** in international markets in FY24–25, with plans to file **100+ by year-end**, underscoring a strong export push. #### **4. Growth Targets** - **35% compound annual growth rate (CAGR)** targeted over the next three years. - Maintain **EBITDA margins above 25%**, driven by operating leverage, cost rationalization, and high-margin product launches. - Hospital business aims for **leadership in corporate hospitals and nursing homes** across India. --- ### **Manufacturing & R&D Capabilities** #### **Facilities** TML operates **three advanced manufacturing units**: - **Haridwar (Uttarakhand):** Finished dosage formulation (FDF) plant with annual capacity: - 520 million tablets - 36 million ampoules - 12 million vials - 6 million pre-filled syringes - 9 million ointment tubes ✅ **EU GMP-certified** for tablets and gels; **Philippines FDA-approved** - **Vapi (Gujarat):** API and WHO-GMP-certified facility with **191 metric tons** annual capacity; undergoing upgrades for EU GMP. - **Hyderabad (Telangana):** Synthetic API and biotech facility via **Artemis Biotech**, specialized in TB and severe malaria APIs; **EU GMP, CDSCO, and GMP-certified**. #### **R&D Strength** - **Dedicated R&D teams** across APIs (5 R&D groups, ~30 scientists) and Formulations (3 groups, ~12 scientists), including PhDs. - **Annual R&D investments:** - Rs. 15 crore in API R&D (Nov 2025) - Rs. 4 crore in Formulations R&D - Peak spending of Rs. 11–12 crore in prior periods, reflecting ongoing innovation. - **R&D focus areas:** - Complex injectables - Generic injectables - Novel Drug Delivery Systems (NDDS) - Backward integration - **Pipeline (as of late 2024–25):** - 3–5 API products in development - 31 formulation products in pipeline, including **NDDS innovations** - 31 NDDS projects overall, with **6 having proof of concept**, **2 with validation batches**; expected commercial launch by **Q4 FY25–26**. #### **Backward Integration** - In-house API production is being leveraged for **critical hospital formulations**, improving **cost efficiency and gross margins** (target: 50–80% on new pipeline). - Transfer of API operations to a subsidiary enables **focused investment, funding flexibility, and working capital optimization**. --- ### **Financial & Operational Performance (FY24–25)** - **Revenue:** ₹405.51 crores (**+6.22% YoY**) - **EBITDA:** ₹49.05 crores - **PAT:** ₹29.83 crores - **Debt-to-Equity Ratio:** 0.21 – reflects a **strong, low-leverage balance sheet** - **ROCE & EBITDA Margins:** Consistently improving; historical highs of **>20% ROCE and 24% EBITDA** (FY21–22) - **Gross Margins:** Expected between **40–70% for new formulations and ~50% for new APIs** --- ### **Market Dynamics & Competitive Positioning** - **Hospital Market (India):** Growing, fragmented market with high entry barriers—requires broad portfolio and strong hospital relationships. - TML’s **7–8 years of groundwork in anesthesia** has created a **pan-India network of 4,000+ stockists** and access to major healthcare institutions. - **Key competitors:** Cipla, Neon, Abbott (by therapy); TML differentiates via **product quality, technical expertise, and physician engagement**. - Faces **pricing pressures in API segment** from Chinese and Indian players—countered through **cost efficiency, alternate manufacturing routes, and structural realignment**. --- ### **Recent Launches & Product Milestones** - **REMITHEM® (Remifentanil):** Launched in India as a **rapid-acting narcotic analgesic** for anesthesia and critical care; **USFDA and DCGI approved**; addresses unmet need. - **Lenzetto®:** Transdermal estradiol spray using **NDDS technology** for menopausal symptoms; **FDA/EMA-approved**, manufactured by Gedeon Richter in Europe, launched in India. - **VIRALEX® (Inosine Pranobex):** Immunomodulatory agent for viral infections (influenza, herpes, AVRI); expanded DCGI approval; manufactured in EU GMP facility. - DCGI approvals for **Diclofenac Injection 75mg/ml**, re-entering a market where TML was previously a leader. --- ### **Collaborations & Strategic Alliances** - **Joint Development with Cipla:** For a **WHO-approved anti-TB product**, combining TML’s manufacturing with Cipla’s marketing and distribution. - **Exclusive Marketing Agreement with Novartis:** For **AQUADOL™ PM Gel (Voveran PM Gel)** in India. - **Long-term Global Licensing Partnerships** with major pharma firms, enhancing international reach. --- ### **Intellectual Property & Innovation** - **153 total patents** (9 granted, 37 active applications) - Covers platform technologies, drug substances, polymorphs, and delivery systems. - Early innovator in **non-sterile Vitamin B12 fermentation**, **indigenous Simvastatin**, and **Ethambutol Dihydrochloride production**. --- ### **Operational & Growth Enablers** - **Contract Manufacturing Agreements:** Two new dedicated facilities in Gujarat established to support high-growth brands, institutional sales, and exports—**cost-effective scaling**. - **Merger of Gujarat Themis Biosyn into TML:** Enhances **operational and capital synergies**. - **Capital Expenditure:** - ₹14.65 crore (Haridwar) and ₹11 crore (Vapi) invested in EU GMP upgrades and injectables lines. - Annual capex guidance: **₹40–45 crores** (FY23–25). - **Marketing & Sales Optimization:** - Dedicated teams for **Thrust Brands**, **focused doctors, and GPs**. - Incentive programs for sales force to drive brand growth. - Expansion into **West and South India** for Intensive Care by Dec 2022, now fully operational.