Indian drugmaker Alembic Pharma posts Q1 profit rise on strong US sales

Alembic Pharmaceuticals

08/08/2024 09:34

BENGALURU, Aug 7 (Reuters) - Indian drugmaker Alembic Pharmaceuticals  ALEM.NS  reported a 12%
rise in first-quarter profit on Thursday, led by strong demand for its generic drugs in its key market of
North America.
    The company's consolidated profit rose to 1.35 billion rupees ($16 million) for the quarter ended June
30, while revenue rose 5% to 15.62 billion rupees. 
    Sales in the U.S. climbed 18%, pushing the market's contribution to Alembic's overall revenue to 29%
from 26% a year ago.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3JV0LW
  
          
    KEY CONTEXT
    Indian generic drugmakers earn a significant share of their revenue from the U.S., which is the
world's biggest pharmaceutical market. Alembic's larger rivals Cipla  CIPL.NS , Dr Reddy's  REDY.NS  and
Sun Pharma  SUN.NS  all beat their June quarter profit estimates on strong demand in the U.S.
    However, these generic drugmakers have also been grappling with lower prices of their drugs in key
U.S. markets amid stiff competition.
    
    PEER COMPARISON
    
                                             Estimates (next 12        Analysts' sentiment         
                                                  months)                                          
                   RIC        PE     EV/EBI  Revenue   Profit    Mean      # of      Stock to      Div
                                     TDA     growth    growth    rating*   analysts  price         yield
                                             (%)       (%)                           target**      (%)
 Alembic            ALEM.NS   31.34   19.40   11.48     16.89    Hold            10      1.30         0.90
 Pharmaceuticals                                                                                   
 Zydus              ZYDU.NS   28.88   20.73   10.84     11.01    Hold            26      1.24         0.24
 Lifesciences                                                                                      
 Cipla              CIPL.NS   25.89   16.15    8.89      9.90    Hold            31      0.97         0.84
 Dr Reddy's         REDY.NS   19.94   12.55   10.34      3.36    Hold            33      1.06         0.58
 Laboratories                                                                                      
 * The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
    APRIL-JUNE STOCK PERFORMANCE   
    -- All data from LSEG
    -- $1 = 83.9280 Indian rupees
    

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 (Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman
)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))