Alkem Laboratories , a leading Indian pharmaceutical company, has reported strong financial results for the first quarter, demonstrating solid growth across its domestic and international markets.

Financial Highlights

Alkem Laboratories delivered impressive quarterly results with total revenue growing 11.2% year-over-year to INR 33,711.00 million. The company's performance was driven by strong top-line growth and improved gross margins, resulting in a better EBITDA profile.

Key financial highlights for Q1 include:

• India sales grew by 12% to INR 22,656.00 million
• U.S. business expanded by 8.8% to INR 6,982.00 million
• Non-U.S. international operations increased by 9.1% to INR 3,556.00 million
• EBITDA rose by 21.4% to INR 7,391.00 million, with a margin of 21.9%
• Net profit increased by 21.8% to INR 6,643.00 million

Market Performance and Strategic Focus

Alkem's India business outperformed the Indian Pharmaceutical Market (IPM) growth of 8.5% by registering a 9.7% growth. The company maintained its strong position in key therapy areas, with notable performance in:

The company achieved a strong overall volume growth of 2.9%, outperforming the IPM volume growth of 1.5% by 140 basis points.

Product Launches and Pipeline

Alkem Laboratories continues to strengthen its product portfolio and expand into new areas:

• Launched sacubitril/valsartan
• Filed BLA for denosumab biosimilar in the U.S.
• Introduced Olesoft Trucera, an advanced ceramide-boosting moisturizing lotion for skin barrier repair

Strategic Initiatives

The company is actively pursuing growth opportunities in various segments:

• MedTech Business: Commenced revenue generation in Q1
• CDMO Operations: Facility expected to be operational by Q3/Q4
• Biosimilars: Focusing on the development and commercialization of biosimilar products

Management Commentary

Dr. Vikas Gupta, Chief Executive Officer of Alkem, commented on the company's performance and strategic direction: "Q1 marked a strong start to the year with healthy growth across both our domestic as well as international markets. Our performance was driven by strong top line growth and an improved gross margin, which resulted in a better EBITDA profile. These results reflect the disciplined execution of our strategy, focused investments and a deliberate pivot towards value-accretive products and markets with a sharper focus on EBITDA."

Future Outlook

Alkem Laboratories maintains its guidance for the full year, with management expressing confidence in potentially exceeding targets:

• Gross margin guidance of 64%
• EBITDA margin guidance of 19-20%

The company remains focused on strategic growth initiatives, including expanding its presence in high-potential non-U.S. markets and capturing new opportunities aligned with its long-term growth ambitions.

With a strong foundation in place and a clear strategic direction, Alkem Laboratories is well-positioned to capitalize on future opportunities in the pharmaceutical industry.

Alkem Laboratories , a leading Indian pharmaceutical company, has announced strong financial results for the first quarter, demonstrating significant growth across key metrics.

Financial Highlights

• Total Revenue from Operations reached ₹33,711.00 million, marking an 11.2% year-over-year growth
• EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) stood at ₹7,391.00 million, with a margin of 21.9%, up from 20.1% in the same quarter last year
• Net Profit (after Minority Interest) increased by 21.8% to ₹6,643.00 million
• Earnings Per Share (EPS) rose to ₹55.56, compared to ₹45.60 in the same quarter last year

Domestic Market Performance

Alkem's domestic business showed robust growth:

• India sales reached ₹22,650.00 million, a 12.0% increase year-over-year
• Domestic revenue contributed 68.3% to total sales, up from 67.6% in the same quarter last year
• The company outperformed the Indian Pharmaceutical Market (IPM) growth rate of 8.5% by achieving a 9.7% growth

Alkem demonstrated strong performance across multiple therapy areas:

International Business Performance

The company's international business also showed positive results:

• International sales grew by 8.9% to ₹10,539.00 million
• US sales increased by 8.8% to ₹6,982.00 million, contributing 21.0% to total sales
• Non-US sales rose by 9.1% to ₹3,556.00 million, accounting for 10.7% of total sales

Research and Development

Alkem continued its commitment to innovation:

• R&D expenses were ₹1,184.00 million, representing 3.5% of total revenue from operations
• The company filed its first Biologics License Application (BLA) in the US market
• Received 5 ANDA approvals, including 2 tentative approvals
• Launched 3 new products in the US market

Management Commentary

Dr. Vikas Gupta, CEO of Alkem, commented on the results: "This quarter marked a strong start to the year, with healthy growth across both our domestic and international markets. Our performance was driven by strong topline growth and an improved gross margin, which resulted in a better EBITDA profile. These results reflect the disciplined execution of our strategy, focused investments, and a deliberate pivot toward value-accretive products and markets with a sharper focus on EBITDA."

Future Outlook

Alkem Laboratories is strategically accelerating its focus on the non-US business segment by strengthening its presence in high-potential non-US markets and capturing new opportunities that align with its long-term growth ambitions.

The company's strong performance this quarter, coupled with its strategic initiatives and robust product pipeline, positions it well for continued growth in the pharmaceutical sector.