alembic q2 fy 16 results seem to be better than expected.
What is more encouraging is the amount of R&d spend.
Some good things coming out of results are:
Launch of own front end marketing in the US market
21% growth of speciality segment in the domestic markets. (this is considered as the big growth driver in domestic markets)
Market reactions can be well wide of our expectations in the short term. e.g One can see the torrent stock price after stupendous q1 fy 16 results. and after a few trading sessions it was business as usual.
With some guys I talked to after results, the big question is what would be normalised earnings in absence of abilify kind of revenues in fy 17. My take is that one can start off by calculating a calibrated growth from eps figures of 15 in fy 15 and put in a 25-35% growth depending upon one’s bullishness.
And with the kind of pipeline alembic has there can be a few other blockbuster opportuniites. And going ahead with its own marketing network, it can milk the opportunity if and when it comes fully.
Another thing they could do would be to sell some existing molecules thru its own marketing network and thus improve margins further.
disc: invested
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