Indian drugmaker Alembic Pharma posts Q1 profit rise on strong US sales, ET HealthWorld

Bengaluru: Indian drugmaker Alembic Pharmaceuticals reported a 12 per cent rise in first-quarter profit on Thursday, led by strong demand for its generic drugs in its key market of North America.

The company’s consolidated profit rose to 1.35 billion rupees ($16 million) for the quarter ended June 30, while revenue rose 5 per cent to 15.62 billion rupees.

Sales in the U.S. climbed 18 per cent, pushing the market’s contribution to Alembic’s overall revenue to 29 per cent from 26 per cent a year ago.

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KEY CONTEXT

Indian generic drugmakers earn a significant share of their revenue from the U.S., which is the world’s biggest pharmaceutical market. Alembic’s larger rivals Cipla, Dr Reddy’s and Sun Pharma all beat their June quarter profit estimates on strong demand in the U.S.

However, these generic drugmakers have also been grappling with lower prices of their drugs in key U.S. markets amid stiff competition.

(Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman)