Alembic's share of export turnover surges threefold

While the big companies may be struggling with the US drug regulator, the Vadodara-based mid-sized pharmaceutical firm Alembic Pharmaceuticals has managed to grow its share of exports, the bulk of which is to the US, more than threefold in the last five years.

From 15.3 per cent share in revenues (Rs 1,202 crore) in 2010-11 the share of Alembic’s international business has risen to 50 per cent now. Alembic had posted a turnover of Rs 2,056.12 crore in 2014-15, which grew to Rs  2,513.82 crore in the first nine months of this financial year. The company said the formulations business accounted for 86 per cent of its revenues.  

RK Baheti, director, finance, Alembic Pharmaceuticals, said,  “From 42 per cent in 2010-11, the share of speciality drugs rose to 56 per cent in 2014-15, and in the year-till-date it is around 60 per cent.”

The US accounts for 80-85 per cent of Alembic’s international formulations business and it has not received any import alerts from the Food and Drug Administration (FDA) in recent years.

Of its 75 drug filings in the US, 45 abbreviated new drug approvals (ANDAs) have received approvals or tentative approvals. Around 30 are being processed for approval. “We expect to launch at least seven to ten products in the US every year from now on,” Baheti said.

He clarified that while Alembic did have presence in the EU and Australia, the focus would remain on the US for now. The company has launched six drugs in the US so far this year. These include the blockbuster anti-psychotic drug Aripiprazole (Abilify), apart from Celecoxib (Celebrex), Valsartan Amlodipine (Exforge), Aripiprazole ODT (Ablify Discmelt), Memantine and Hydrochloride Tab (Nameda).

With a focus on speciality generics, the company’s investment in research and development (R&D) has doubled from last year, and it will continue to enhance its R&D investments by 25-30 per cent every year.  In the previous quarter, Alembic’s investment in R&D was Rs 74.5 crore, which is up by 139 per cent year on year.

Alembic posted a 281 per cent rise in its consolidated net profit after tax for the quarter ended December 31, 2015, to Rs 269 crore on the back of a 248 per cent jump in revenues from its international business. For the nine-month period till December, revenues soared 61 per cent to Rs 2,513.82 crore while the net profit jumped 66 per cent.

Shaunak Amin, joint managing director, Alembic Pharmaceuticals, had said, “We have seen exceptional growth in all our businesses. The US business continues to outperform on the back of the Aripiprazole generic launch. Our facilities have been in compliance and we have received 11 ANDA approvals this year.”

Alembic has invested close to Rs 200 crore to expand its facilities this year, and plans to invest another Rs 350-400 crore over the next one-and-a-half years. It has commissioned its Sikkim plant this year, and is expanding the Panelav and Karkhadi plants near Vadodara.