Alembic Pharma – Margins To Remain Under Pressure: Nirmal Bang


BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

We hosted the management of Alembic Pharmaceuticals Ltd. at our Annual Investor Conference to discuss the company’s business outlook and the current pricing environment in the U.S. market.

In Indian and rest of world markets, the company continues to expect double-digit growth on a normalised base. However, in the U.S., it continues to face acute pricing pressure due to the only oral solid dosage portfolio.

Alembic has reiterated $45-50 million quarterly U.S. sales guidance in the near term. However, this run-rate may increase once injectable approvals start contributing meaningfully next year onwards.

Despite aggressive spends on capex and research and development for the U.S. market, we do not see any meaningful visible large launches.

Also, margins are expected to remain under pressure due to ~Rs 2 billion of addition cost incurred on new plants, which are likely to start reflecting in profit and loss Q4 FY23 onwards.

Therefore, we remain cautious about the company’s outlook in the near to medium term.

Click on the attachment to read the full report:


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.


Source link

What is your reaction?

In Love
Not Sure

You may also like

Comments are closed.

More in:Business