Q3 FY24 Earnings Conference Call of Alembic Pharmaceuticals Limited February 05, 2024
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Specialty therapies performed better than the market. Gynecology, gastro, antidiabetic, and ophthalmology therapies outpaced the market growth
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We performed relatively better than the market in antibiotics and respiratory segments on a higher basis in the previous year’s Q3
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New launches continue to do well with promising future launches across key segments
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Animal Health had a fantastic quarter and this is a business that’s been doing very well for us. It grew by 32% during the quarter
INTERNATIONAL BUSINESS:
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We had a very satisfactory quarter with exceptional growth in the ex-US generics. The US business also grew 9% on the back of 11 launches. The US business is looking better right now with new facilities already commercialized. As they ramp up, we will get a lot of operating leverage, and cost improvements are also on track
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There is no further large CAPEX needed for the international business and we will have only maintenance CAPEX as well as some API expansion, including in therapies such as GLP-1 and debottlenecking
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The API business has been very strong for us over the last couple of years. The de-growth this quarter was due to lower offtake from a few select customers since it’s getting lumpy. I expect another quarter or two maybe weaker, and then we should be back to our regular growth rate that we demonstrated in the past
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R&D expense was at 7% of sales at Rs. 114 crores for the quarter.
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We filed 5 ANDAs during the quarter and cumulatively ended up filings at 257. We also received seven approvals and launched 11 products. We should launch about 5 products in the next quarter as well.
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The U.S. generics business grew 9% to Rs. 474 crores for the quarter. The ex-US grew by 32% to Rs. 272 crores, and the API business grew by 11% to Rs. 289 crores.
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