Moving forward consistently
Your wholehearted trust and support has always been the single most important factor inour growth journey for all these years. Our performance for this year is yet again avindication of that trust in our vision and capabilities.
It is a pleasure to share with you our performance for 2019-20. The year saw stellarperformance on all fronts as we accomplished the highest-ever revenue as well as profitin our history. This feat was achieved on the back of strong double-digit growth in the USbusiness. In a largely volatile operating environment our unflinching commitment todeliver quality products maintain highest levels of compliance drive manufacturingexcellence and augment our supply chain underscored this performance.
Steady increase in medicine spending
Global medicine spending is projected to increase by 2-5% annually and exceed $1.1trillion in 2024 (Source: IQVIA Outlook to 2024 March 2020) with pharmerging markets(including India) leading the way. India's pharma spends are estimated to reach $31-35Billion by 2024 growing at a CAGR of 8-11% between 2020 and 2024.
India is likely to become one of the top 10 countries in terms of medicine spendingover the next few years. Favourable government policies to ensure access to qualityaffordable medicines to the masses along with rising instances of chronic therapies arethe key growth drivers of domestic pharma sector.
Government initiatives such as the National Health Protection Scheme (NHPS) to provideinsurance cover to the underprivileged (50 Crores individuals) will enhance reach ofmedicines across the country. At Alembic Pharma we are committed to play a more expansiverole in facilitating the access of good quality reasonably-priced medicines andhealthcare support across all sections of society in India. We also leverage our expertiseand experience to strengthen our presence across key global markets.
Delivering on our commitments
We strive to live up to our rich legacy to help improve healthcare with innovationcommitment and trust. Our diversified product suite strong customer value propositionimpeccable track record on compliance best-in-class R&D capabilities differentiate usin highly competitive markets - both in India and outside India.
In 2019-20 we continued to fortify our research capabilities and spent about 14% ofour revenue towards R&D activities. Our team of about 1200 R&D talent empowers usto develop complex products across general injectables oncology injectables oncologysolids and ophthalmology. Some of these experts are focused on developing niche specialtyproducts to strengthen our branded product offerings.
Continued investments in R&D have accelerated the pace of Abbreviated New DrugApplications (ANDAs) filings as well as approvals in the US over the past five years. Ourfilings as well as approvals have grown by three times between 2015-16 and 2019-20; and weare confident of accelerating our pace further.
During the year we filed 25 ANDAs in the US to achieve cumulative filings of 183 ANDAsand launched 22 new products in the US up from nine in 2018-19. We continued to gainshare and trust of our customers through our distinct products and best- in-classservices.
During the year we gained substantial ground on our capacity expansion and are ontrack to get approvals for them in 2020-21 as planned. This expansion will enhance ourcapability to manufacture complex products. Domestic business remained under pressure formost part of the year as the supply chain staggered back to normalcy. This businessthough showed early signs of turnaround during Q4 which appears to be sustainable. Duringthe year Aleor our joint venture company for dermatology products filed 11 ANDAs andreceived five approvals.
Consistent and flexible approach
Yes that is how we respond to emerging opportunities and remain future-ready. We mayhave course- correct strategies as we move forward but we will continue to enhance ourefficiency and capacity curve to realise our full potential.
I would like to extend my sincere gratitude to each and every member of Team Alembicfor their relentless efforts who have responded beyond their call of duty during thenationwide lockdown. Our teams have demonstrated a strong sense of responsibility and haveensured that we continue with business as usual despite the hardship. We implemented ourappraisal cycle in April itself and that in turn has also helped to keep our team moralehigh. I am confident that the event is unlikely to have any significant impact on ourbusiness in the medium- term to long-term.
We have always followed good corporate governance practices while conducting ourbusiness. Owing to our ethical transparent and fair practices we have earned the trustand respect of all our stakeholders. We cherish the long-lasting and time-testedrelationships with our customers employees regulators business partners governmentlenders and other stakeholders.
In conclusion I would like to thank our business partners and other stakeholders fortheir continued faith in our abilities and their constant support. We will continue tocreate long-term sustainable value for all by being consistent and flexible.
Chairman & CEO