After a long gap, today i am writing about a company called Alembic Pharmaceuticals. Established in 1907, Alembic Pharmaceuticals Ltd. (APL) is based vertically integrated pharmaceutical company. APL is enjoying market leadership in the Macrolides segment of anti-infective drugs in India. APL, the market leader in anti-infective segment and has brands such as Azithral , Althrocin and Roxid .The anti-infectives segment is a moderate-growth segment and is the largest therapeutic category in the domestic market. Returns in this segment are lower due to pricing pressures arising due to high competition. Hence, to diversify its risk and to improve its returns, it entered the chronic segments by the acquisition of Dabur Pharma’s non-oncology business in 2007.
APL's business is spread across branded formulations, international generics and APIs. The Company has a reach over 75 countries and has a presence in both regulated and semi-regulated markets.40% of its revenue comes from export .In API business, the company intends to exit low margin products and graduate to new profitable products with sizeable potential. Alembic Pharma plans to focus on existing branded formulations business through effective pan- India distribution network and therapy based marketing and by pushing ahead acute and chronic segments like anti infectives and cough & cold medications. The company increased its annual production of tablets and capsules from 2.6 billion to 5 billion in 2013-14. Over the next five years, products generating $142 billion are expected to go off patents which present huge opportunity for launching new generic products. Alembic Pharmaceuticals expects a CAGR of 30% in international generics. Over last 2-3 years there has been a contrasting change in the company. The revenues are growing at 20-25%,the operating margin improved from 13% in 2011 to the current 18% and the operating profit is expected to double to 330 cr in fy14 from 160 cr in 2011.
Reason for the change is the shift towards the international generics. This segment is expanding quite quickly for the company – from about 100 odd Cr in 2010 to 235 Cr in 2013. This segment has a potential to scale up to 1000 Cr turnover over the next 2-3 years. APL’s Research and Development is focused on fermentation technology, strain improvement, industrial enzymes, non-infringing process developments for APIs & intermediates, development of innovative formulations. Alembic Pharma has filed 60 ANDAs.
Speciality therapy performance
Segment Industry growth (%) Alembic’s growth (%)
Opthamology 11 39
Cardiology 13 37
Diabetology 23 41
Gastroentology 12 27
Gynaecology 7 21
Nephrology 16 45
Orthopedic 8 9
Net profit of Alembic Pharmaceuticals rose 38.45% to Rs 67.84 crore in the quarter ended December 2013 as against Rs 49.00 crore during the previous quarter ended December 2012. Sales rose 29.02% to Rs 475.82 crore in the quarter ended December 2013 as against Rs 368.80 crore during the previous quarter ended December 2012. The market rewarded the stellar results, the company has been delivering by taking the price from 74 to 230 in the last year. I beleive that at the cmp of 227/- its worth putting some money considering the potential of the industry and the good future numbers that are expected from Alembic
No comments:
Post a Comment