Alembic Pharma reports 52% growth in Q3 PAT; US generic biz falls flat

US generics business too posted a marginal increase during quarter; company launched two products in US market

Vadodara headquartered Alembic Pharmaceuticals Ltd reported a 52 per cent year on year (YoY) rise in net profit for the third quarter of the 2017-18 fiscal to Rs 1.3 billion riding on the back of a 14 per cent y-o-y growth in the India formulations business while the US generics business saw flat growth.

The company's consolidated net sales for the quarter stood at Rs 8.4 billion, up 8 per cent YoY, while the Ebitda margin came in at 22 per cent compared to 19 per cent in the same quarter last year.

Pranav Amin, managing director, Alembic Pharmaceuticals said that India branded business recovered showing a good growth. "The US generics business continues to do well as we pick up market share leading to higher volumes. Aleor, our joint venture for dermatology products, filed its first abbreviated new drug application (ANDA)."

During the quarter under review, the company's international generics business posted revenues of Rs 3.1 billion as against Rs 3 billion in the corresponding quarter last year. The US generics business revenue was up marginally to Rs 2.3 billion in Q3FY18 as against Rs 2.2 billion in the previous year.

The company has received one ANDA approval during the quarter taking the number of cumulative ANDA approvals to 70. Four ANDA filings happened during the quarter and two products were launched in the US market.

Alembic's R&D spend stood at Rs 980 million (12 per cent of net revenue) down from Rs 1.2 billion (16 per cent of net revenue) last year.

As for the India formulations business, the company reported a 14 per cent y-o-y growth in revenues to Rs 3.4 billion. Alembic said that the numbers are not strictly comparable due to GST treatment.