earnings | IST

Alembic Pharma sees growth across segments; says pricing pressure in US a concern

Alembic Pharma posted its Q1FY22 earnings. EBITDA, margins and profit have all come in below street estimates, the US generics business has seen a steep fall as well. Pranav Amin, Managing Director at Alembic Pharmaceutical, discussed the performance.

Alembic Pharma posted its Q1FY22 earnings. EBITDA, margins and profit have all come in below street estimates, the US generics business has seen a steep fall as well. Pranav Amin, Managing Director at Alembic Pharmaceutical, discussed the performance.
“We hope to outperform the market growth. I think that is what is happening this quarter, going forward, we hope to grow faster than the market,” he said while adding that the company is seeing growth across segments.
“The US business for us has been pretty much a terrible business. The last five years, we have had a CAGR of about 25 percent or so. Part of the growth in the US business was due to the Sartan opportunity, we did pretty well on that. Also there have been a lot of disruptions in the market. Since November or December, we are seeing disruptions, which has led to pricing pressure in the US market. So that is what has broadly caused the dip in the margins for this quarter,” he mentioned.
In terms of guidance, he shared, “Moving forward, we have withdrawn all guidance, we are not giving a formal guidance. As far as the business is concerned, we have seen a very robust growth in the Indian market, hopefully that will continue. We've also seen growth in the API business, which is 6 percent now. The Europe business also grew very well, last year, had a growth of 13 percent. So by and large, all the other businesses are doing okay. It's just the US which is facing a pricing pressure.”
“We have withdrawn the guidance, because the markets been quite dynamic, as we have seen on some of the pricing in the Sartans and some of the other products. So that is one reason. Second is, there's still not no clarity on the FDA inspection of our new facilities. And the third is, as I mentioned, we are seeing competition in some of the other larger products that we have,” he shared.
For full interview, watch the accompanying video.