My noted points in Q3 FY17 conf call of alembic (mostly focused on US generics).
revenue degrew 17% ebidta 19% margins NP 86cr for the 3QFy17
India branded formulations 294cr was flat - impacted due to price reductions in azithral impacted 6-8cr and demonetisation had impact in trade
international Operations:
R&D continued investing heavily. 111cr R&D -15% of sales for q3
Full year expected 400cr R&D expenses, FY18 similar numbers for R&D costs
4 ANDA filed in this qtr, Totally 15-20 ANDA filings targeted in fy17
new capex:
Oncology orals and injectables - facility will be ready in first half of fy18 will file exibit batche after that
general injectable and derm - facility will be ready second half in fy18 and then will start filing exhibit batches
new oral facility construction will start in fy18
Received for EIR for formulation and API facilities - all facilities compliant with FDA - US FDA inspections happened in 2016 ( Management expects FDA to visit once in every two years - unless there are observations etc)
cumulative approvals 52, 3-4 new product launches in q4fy17, only one new launch in fy17 is so far
API business grew by 64% - surprising
aripiprazole downtrend continues
margins will be under pressure in fy18 due to pricing pressure in abilify
6-8 new launches in fy18 which should bring in some growth
gross margins will go down due to apriprazole sales tapering
janaushadi stores - impact not known currently, not accessed by the management
next year 20+ new ANDA filings
Out of 400cr R&D expenses - 15-20% is outsourced injectables and complex molecules
external r&d filings- some with Alembic facilities, some with CMO facilities - filed couple of products already with CMO (contract manufacturing)
Pristiq - Alembic will be in first wave of launches - there may be lot of companies will be launching in first wavethough
rizhen is mererly financial investment - rhizen R&D costs not included in alembic R&D expenses
Long term launches:
will file 6-8 filings from the current facility every year (which is oral solid)
New capacities built up for onco, injectables, derma - file exhbiti batches in fy18, then will start filing ANDAs, commercial launches happen 2-3 year later
fy19 filings will start from new facilities
40 products in derma being worked on
opthamalogy under consideration
26 new products with alembic label. Front end has been successful as per the management.
11 approved not yet launched - 3-4 launches this quarter in q4fy17, one of them may be day one
My summary: Company is investing heavy in R&D and building new facilities/capabilities. fruits for which will be available FY19 onwards (pains today, gains tomorrow).
Disclosure: invested