Alembic Pharmaceuticals: The pharma company has registered a 29 percent year-on-year decline in consolidated profit at Rs 122 crore for quarter ended December FY23, impacted by weak operating performance and lower other income. However, revenue from operations at Rs 1,509 crore increased by 19 percent YoY in the same period with growth across verticals as US business grew by 10 percent to Rs 432 crore and India segment reported a 12 percent growth at Rs 545 crore.
Indian pharma company Alembic Pharmaceuticals rebounded on Monday, gaining 4 percent after hitting a 52-week low last week.
The company received approval for its colon cancer injection, Fluorouracil Injection USP, 2.5 g/50 mL (50 mg/mL) Pharmacy Bulk Vial, from the US Food & Drug Administration (USFDA). The injection is indicated for the treatment of adenocarcinoma of colon and rectum, adenocarcinoma of the breast, gastric adenocarcinoma, and pancreatic adenocarcinoma.
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According to IQVIA, Fluorouracil Injection USP, 2.5 g Vial, has an estimated market size of US$5 million for twelve months ending December 2022.
Alembic Pharma has received a cumulative total of 182 Abbreviated New Drug Application (ANDA) approvals from USFDA, comprising of 159 final approvals and 23 tentative approvals.
Also Read: Alembic Pharma falls 5% after board nod to Rs 1,150-cr impairment charges
Last week, the company announced that it will be accounting for an impairment charge of Rs 1,150 crore for three of its under-construction manufacturing facilities, which caused its share price to drop by 5 percent on Friday, March 3, 2023, hitting a fresh 52-week low of Rs 476 apiece on the BSE. The company's total write-off now stands at Rs 1,490 crore, which includes Rs 340 crore of write-off due to the buyout of its partner stake Aleor Derma in March last year.
In Q3FY23, the pharma company witnessed a 29 percent year-on-year decline in net profit at Rs 122 crore, impacted by weak operating performance and low other income. However, its revenue from operations grew by 19% YoY to Rs 1,509 crore with growth across verticals, with the US business growing by 10 percent to Rs 432 crore and India segment reporting a 12 percent growth at Rs 545 crore.
The share price of Alembic Pharma has declined by 15 percent in the last three months. Moreover, it has dipped over 50 percent from its all-time high in December 2020 driven by stress and margin pressures in the US generics business.
As of 12:21 a.m., the stock was trading 4.07 percent higher on the BSE at Rs 521.95 apiece, while peers Sun Pharma and Granules were trading 0.73 percent and 1.94 percent higher at Rs 973.80 and Rs 291.25 apiece, respectively. The S&P BSE healthcare was trading 0.68 percent higher at 21,839.58 points.