Profit beats Street view on strong domestic, US sales, ET HealthWorld

Vadodara: India’s Alembic Pharmaceuticals reported a bigger-than-expected third-quarter profit on Monday, driven by higher sales in the domestic and U.S. markets.

The generic drugmaker reported a consolidated net profit of 1.80 billion rupees (nearly $22 million) for the three months ending Dec. 31, beating analysts’ average estimate of 1.46 billion rupees, as per LSEG data. It had reported a profit of 1.22 billion rupees in the year-ago period.

New product launches and easing price erosion in the United States have benefitted generic drugmakers such as Alembic and also larger rivals, including Cipla, Dr Reddy’s and Sun Pharmaceutical Industries, all of which beat their third-quarter profit estimates on strong U.S. sales.

The waning impact of high-cost inventories have also boosted profits for drugmakers.

Alembic Pharmaceuticals’ revenue from operations rose 8 per cent in the December-quarter, led by a 9 per cent rise in its India and U.S. businesses each.

India and U.S. segments constituted about 37 per cent and 29 per cent of its total revenue, respectively.

The company, which makes drugs like Azithral, used to treat bacterial infections, and anti-ulcer medicine Deltone, said its profit margin expanded to 11.1 per cent from 8.8 per cent a year earlier.

Its active pharmaceutical ingredients (API) business, which contributed 19 per cent to the total, fell 11 per cent to 2.89 billion rupees.

Alembic Pharma makes APIs used in drugs to manage diseases such as diabetes, osteoporosis and depression.

Its shares rose more than 8 per cent after the results. They fell 3.2 per cent during the December quarter.

($1 = 83.0475 Indian rupees)

  • Published On Feb 5, 2024 at 04:39 PM IST

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