Indian drugmaker Alembic Pharma misses Q2 profit view as US sales growth slows

Alembic Pharmaceuticals

07/11/2024 08:10

Nov 7 (Reuters) - Indian drugmaker Alembic Pharmaceuticals  ALEM.NS  reported a smaller-than-expected rise in second-quarter profit on
Thursday, hurt by a slowdown in the U.S. market amid pricing pressure.
    The company's consolidated profit rose 12% to 1.53 billion rupees ($18.1 million) in the quarter ended Sept. 30, but fell short of the
analysts' expectation of 1.55 billion rupees, per estimates compiled by LSEG.
    Revenue from operations, which rose 3.3% to 16.48 billion rupees, also missed analysts' estimates of 17.14 billion rupees, per data compiled
by LSEG. 
    U.S. generics sales grew 5%, but slowed down from an 18% rise in the previous quarter. 
    
    KEY CONTEXT
    Indian generic drugmakers earn a significant share of their revenue from the U.S., the world's biggest pharmaceutical market.
    While Alembic's larger rivals Cipla  CIPL.NS  and Sun Pharma  SUN.NS  beat quarterly profit estimates due to strong U.S. demand, they have
also been grappling with lower prices amid stiff competition.
    For further earnings highlights, click [Full Story]
    
    PEER COMPARISON
    
                                         Valuation (next 12 months)     Estimates (next 12 months)           Analysts' sentiment         
                            RIC        PE     EV/EBI  Price/Sales      Revenue growth  profit growth   Mean     # of      Stock to       Div
                                              TDA                                                      rating   analysts  price target   yield
                                                                                                                                         (%)
 Alembic Pharmaceuticals     ALEM.NS   27.95  17.41   NULL             11.06           20.74           HOLD     9         1.00           0.96
 Zydus Lifesciences          ZYDU.NS   21.32  15.17   4.03             9.94            9.15            HOLD     27        0.87           0.30
 Dr Reddy's Laboratories     REDY.NS   18.46  11.82   3.27             11.02           5.84            HOLD     35        0.97           0.61
 Cipla                       CIPL.NS   25.90  16.39   3.79             8.18            9.91            HOLD     33        0.97           0.82
 
    
    JULY TO SEPTEMBER STOCK PERFORMANCE
    
     -- All data from LSEG
     --$1 = 84.3475 Indian rupees

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
JULY TO SEPTEMBER STOCK PERFORMANCE    https://tmsnrt.rs/4fe4H3z
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Nishit Navin; Editing by Mrigank Dhaniwala)
 ((Nishit.Navin@thomsonreuters.com;))