I listened to the concall of alkem q1 fy 21 results.
First of all the management articulation to all questions is superb, trying to honestly answer all questions and not trying to hide anything at all.
US business was the star of the show with tremendous growth. Half of their approved ANDA are yet to be commercialised. They plan to launch new products on a consistent basis in the US markets.
R&D costs at around 5.9 % of sales which is a big variation from the high teens of alembic like companies.
Company has become net debt free.
3.5 million USD (nearly 25 crores ) was a one time outlicensing R&D income. Company can expect such incomes in future too but as I understood, there would be lumpiness.
Some spillover of sales from March to June quarter. But similar spillover happens in subsequent months too. July for domestic markets has performed well.
Traditionally because of antibiotic predominance in the portfolio, q2 and q3 are the best quarters for the company. So need to watch next 2 quarters on how company performs.
The Trump executive order was discussed. Company says its meant mainly for big pharma companies. It has manufacturing facilities in US too. No definite answer on the question but the tone suggested that it is not a cause for concern.
Company is not a predominant API player and does not intend to be.
All in all the company has performed very well and the q1 results atleast for me was an unexpected postive surprise.
disc: no investments but under watchlist.