Alembic Pharmaceuticals posts strong Q2 results

Vadodara-based Alembic Pharmaceuticals has posted a 69 per cent year-on-year (YoY) jump in net profit for the second quarter of this fiscal year to Rs. 207-crore. Mr. Pranav Amin, the company’s Managing Director, said, “A one-time supply opportunity arising due to a product shortage in the US market has resulted in higher profits”.

The revenues grew 43 per cent to Rs. 1,127-crore. The company’s international revenues posted robust growth of 124 per cent for the quarter under review to Rs. 587-crore. “If the valsartan sales were taken out, then the US revenue growth would be upwards of 20 per cent,” Mr. Amin clarified. “Growth in sales in the rest of the world (RoW) has been above 100 per cent,” he added.

Alembic plans to launch 10-15 products in the US this year. It launched one product during the quarter and filed eight abbreviated new drug approvals (ANDAs). The R&D cost for the quarter came in at Rs. 145-crore or around 13 per cent of sales. Alembic has one of the highest R&D spends amongst its peers.

The company’s domestic formulations business was flat at Rs. 385-crore for the quarter, and the company claimed this was not comparable due to GST implementation last year. The company, however, expects 14-16 per cent growth in the domestic business.

For the first half of the year, the company posted a 15 per cent rise in its India formulations business to Rs. 716-crore, while the international revenues grew 73 per cent to Rs. 939-crore. Overall revenues for H1FY19 grew 38 per cent to Rs. 1,990-crore while net profit grew 63 per cent to Rs. 30-crore.