RE:Simple Takeaway - Distribution ScaleRandom notes about the margins and the pipeline...
In the Q4/21 earnings call Samira said they're happy with the mid-teen EBITDA margins "for now" which to me implies the expectation is to go higher than that along with scale.
In the latest earnings call she also said they've expanded the pipeline "dramatically." I assume the innovative products in the pipeline will be launched either possibly in late 2023 (Tafasitamab) or in 2024 -- so that's Pemigatinib, Fostamatinib and Tafasitamab, and's that's across LATAM.
On top of that, there are multiple branded products slated for 2024 and 2025.
Furthermore, there are still several innovative products growing within the current portfolio.
So it seems the volume is and will be increasing. This year, though, a lack of launches coincides with an increase in BGx competition which is a revenue hit (even though there will be growth overall) and a relatively more significant effect on margins.
From that perspective, the 14%-15% EBITDA margin is for a year we're taking a hit on the margins, which also implies to me that there will be higher margins going forward.
Samira also keeps reiterating the BD team continues working hard on the pipeline. This earnings call she said "a lot of BD effort" to make sure they strengthen the pipeline going forward. Hopefully we'll see some positive news on this front soon... but we know they're not going to rush into anything.