Alembic & Alembic Pharma

Hi Rohit,

We should also look at the company from forward valuation perspective and not just trailing. On trailing basis, yes it does look expensive but on forward basis it might not . I think Q2 results will give us a fair idea about how the earnings will look like in FY16. For FY17, it all depends on the product approvals and off course how the competition pans out in Abilify. I am banking on two things in Alembic:

• Their superior pipeline and R&D: I think the kind of R&D spent company has been doing is really commendable given its size.
• Establishment of front end in US markets: I think we can clearly see how Torrent has been able to leverage more from Abilify as compared to Alembic as it doesnt share its profits with the partners. Front end gives you more leverage on supply chain, pricing etc. They have hired three very experienced pharma executives for the US markets. Lets see how the execution is on that front.