Another bad set of numbers, revenues de-grew by (5%) and company reported net losses (largely due to Aleor R&D expensing). Ex-of that, margins have been hit and came at around 10% vs 18-20% in last year. Price erosion is mid double digits in US. Concall notes below.
FY23Q1 concall
- US generics sales was flat despite gain in market share in existing products + launch of 5 new products. Will launch 5-6 in Q2 and 15-18 products in FY23
- US base business is $50-55mn. Next quarter it will be close to $50mn as company is seeing lot more price erosion (low double digits) right now vs what they were seeing at end of Q4
- In domestic business, branded business (ex-covid) grew @20%
- R&D write-offs in Aleor worth 115 cr. – 100 cr. was booked in other expenses + 15 cr. in depreciation (40 cr. is residual value)
- Total Aleor R&D spends were ~350 cr. in last 3-4 years. Alembic itself expenses out its R&D
- R&D costs will stay at 650-700 cr. annually
- Of the operational expenses in CWIP, 180-200 cr. will be cash expenses and 150 cr. of depreciation (once the plants are operationalized)
Disclosure: Invested (position size here, bought shares in last-30 days)