Shares of this midcap company jumped around 2 percent in Thursday’s trading session after receiving final approval from USFDA. The shares have delivered around 70 percent to its shareholders in one year.
With a market capitalization of Rs. 18,616 crores, the shares of Alembic Pharmaceuticals Ltd started Thursday’s trading session on a higher note at Rs. 943.10 compared to its previous close of Rs. 947.05. During the trading session, the shares hit a high of Rs. 974.75, gaining around 2 percent and are currently trading at Rs. 945 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had received final approval from the US Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Sacubitril and Valsartan Tablets, 24 mg/26 mg, 49 mg/51 mg, and 97 mg/103 mg.
The tablets are indicated to reduce the risk of cardiovascular death and hospitalization for heart failure in adult patients with chronic heart failure. It is also indicated for the treatment of symptomatic heart failure with systemic left ventricular systolic dysfunction in paediatric patients aged one year and older. Refer to our label for detailed indication.
According to IQVIA, the Sacubitril and Valsartan Tablets have an estimated market size of USD 5.3 billion for twelve months ending March 2024.
Coming onto the company’s financial statement, the revenue decreased by 7 percent from Rs. 1,630.57 crores during the December quarter to Rs. 1,516.98 crores in the March quarter. On the other hand, the net profits decreased by 1.2 percent from Rs. 180.45 crores to Rs. 178.21 crores during the same period.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.82 percent during FY 22-23 to 12.78 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 9.58 percent to 13.80 percent during the same timeframe. Furthermore, the net profit margin increased from 6.59 percent during FY22-23 to 9.90 percent during FY23-24.
Alembic has a cumulative total of 202 ANDA approvals (174 final approvals and 28 tentative approvals) from USFDA.
Moreover, the company is expecting a better outlook for the U.S. business in the upcoming year with new facilities and operations scaling up and focusing on optimizing R&D costs, improving operational efficiencies, and capitalizing on new growth opportunities.
Headquartered in Gujarat, Alembic Pharmaceuticals was incorporated in 2010. The company is in the business of development, manufacturing, and marketing of pharmaceutical products i.e. Formulations and Active Pharmaceutical Ingredients.
Written By Vaibhav Patil
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