Alembic & Alembic Pharma

Yes I was surprised to get the first question. I thought everyone would anyway ask about Abilify, so asked some other questions.

Thanks for the comprehensive notes. I have few points to add

• Commercial prodn in Sikkim partially started. Full production in December15
• Q2 results capture the Abilify sales and profits of May and June. So the actual full quarter numbers will come in Q3 but as pointed out, the company has lost almost half of its share and some price erosion has happened.
• Of the approved ANDAs, company is in process of launching some products. Some may not be launched because their market doesnt look good.
• Abilify ODT has a small market size of 15-20mn, but Alembic is the only player.
• Pristiq is under settlement. Management declined to comment on the launch or partner.
• Management clearly said that for R&D spend they dont have a percentage of sales number in mind. they invest based on the requirements. The absolute spend on R&D will continue to grow.
• Celebrex has been launched with a partner. Sales havent reflected in Q2
• API numbers show a good growth but at plant level, activities are flat. In some quarters, captive use is more. In this quarter they clubbed some external orders so the recognized sales for APIs show an increase.
• Long term guidance remains 30-35% growth in international generics sales, 15% growth in domestic sales and margin expansion from 20% to 23%.

I am happy to see the management walking the talk.

Discl. Invested