Alembic Pharma Q3 Results Review - Efforts Underway To Sustain Margin Revival: Motilal Oswal

Alembic Pharma has guided for a 15-20% YoY reduction in R&D expenses in FY24 on account of portfolio optimisation.
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Motilal Oswal Report

Alembic Pharmaceuticals Ltd. delivered a better-than-expected performance in Q3 FY23, driven by improved sales growth in the domestic formulation/active pharma ingredient segment and controlled employee/research and development expenses.

We raise Alembic Pharma's FY23 earnings estimates by 4% to factor in higher API sales and off-take of flu-related products. While R&D spending is expected to drop YoY in FY24, it would be offset to some extent by opex related to new manufacturing facilities. Hence, we maintain estimates for FY24/FY25.

With abbreviated new drug application launches likely to pick up pace over the medium term as facilities become compliant, we expect earnings to revive over FY23-25.

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Motilal Oswal Alembic Pharma Q3FY23 Results Review.pdf
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