Alembic Pharma management had mentioned in Jan14 VP Q&A that setting up front end in US is their next challenge. As per the last concall, typical model with US partners is 50:50 profit share. Thats a huge draw down for the company. Their margins are heavily impacted due to this. They said their front end will be operational in FY17. So till then the performance would not be spectacular.
I want to understand how can Ajanta have so much better margins than Alembic. Any pointers? I dont know whether this has already been discussed. Ajanta always has their own front end, that could be one reason. But apart from that, can one say that their product identification capability is better than Alembic? Or probably the best?
@singhvir…thanks for the calculation. I would assume the “typical 50:50 profit split” as management commented in concall. But even assuming an EPS of 30, it looks cheap on fwd basis.
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