Alembic Pharma posts stellar Q3FY16 results; stock zooms 7 per cent

Generic pharmaceuticals company Alembic Pharmaceuticals came out with a stunning set of Q3FY16 numbers boosted by a successful launch of Aripiprazole generic along with three other products in the US markets and a solid growth in Indian markets.

Alembic Pharma’s third quarter revenue increased by 80 per cent Y-O-Y (year on year) to Rs 921.73 crore compared to Rs 511.78 crore achieved in the previous year. Total sales was strong attributed to Aripiprazole generic drug in an all-important US markets. On the operational front company reported a robust quarter as EBITDA grew by 275 per cent in Q3 to Rs 384.6 crore from Rs 102.48 crore in the previous year. Company was successful in magnifying its margins as it increased to 42 per cent from a  figure of 20 per cent a year ago, aided by solid growth witnessed in the international business segment. Company's profit after tax jumped more than 2.8 times in Q3FY16 to Rs 269.49 crore from Rs 70.66 crore in the same period last fiscal.

Formulation business accounts for 86 per cent of revenues, out of which International business contributes 50 per cent; and India business 36 per cent. Indian Branded formulation business was propagated by 15 per cent Y-O-Y to Rs 288 crore from Rs 249.97 crore; whereas, International business shot up by 248 per cent on a yearly basis to Rs 521 crore for the quarter in review. Alembic’s API ( Active Pharmaceutical Ingredient) business saw a growth of 24 per cent. Company enjoys 1.74 per cent market share in Indian formulations market as per IMS MAT data.

Alembic Pharma received nod for 2 ANDAs (Abbreviated New Drug Applications), with that the company has received  a total of 11 ANDA approvals, 9 being received in the previous year. Company's cumulative ANDA filings reached 74 with 3 ANDA filings made in the quarter in review. Total R&D spend for the quarter was Rs 74.5 crore, which is 8 per cent of total net sales. R&D spend was up 139 per cent Y-O-Y.

According to the company, Alembic would continue to focus on complex products and expects to launch 7-9 products every year for next few years in US markets. Company would file for ANDAs in other international markets in order to diversify its revenue base in the coming future.

Reacting to a stupendous set of numbers, Alembic Pharma’s share surged more than 7 per cent in trade to hit an intra-day high of Rs 631 before closing the day at Rs 625.65 on BSE.