Shares of Alembic Pharmaceuticals Ltd. fell by 5% after touching a day’s high of Rs 1,225 on 9th August. The company is preparing for over 20 product launches in the US during FY 24-25, aiming to expand its presence in the competitive US market.

Although only two new products were launched during the first quarter, 11 new approvals set the stage for a faster product rollout.

The company estimates over 20 launches, which can be achieved in the financial year, and 10 to 12 more in the offing in the next quarter of products.

In the US pharmaceutical market, the company continues to experience a continuous decline in pricing, which is double-digit, though it has improved slightly compared to past years.

The company reported Rs 1,561 crore in revenue for Q1 FY25, a 5% increase, with margins at 15.2% and a profit after tax of Rs 134 crore. Its animal health business grew by 23%.

It also reported a 5% increase in net revenue, with the US market growing by 18% and the Indian market by 9%.

The company’s animal health business grew by 23% in the latest quarter, with a CAGR of around 28% over the past 5-7 years, making it one of the top-performing segments in India.

It aims to improve its EBITDA margins, currently under pressure, to the 18-20% range over the next few years.

The plan includes reducing R&D spending from 14-15% to 7-8% and scaling up new facilities, which are expected to boost margins as they come online.

The market capitalisation of the company fell to Rs 23,464.72 crore.

At 2:05 PM, the shares of Alembic Pharmaceuticals were trading 5.86% lower at Rs 1,143 on BSE.

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