Alembic Pharma shares surge 5% on USFDA product approvals

Shares of Alembic Pharma surged over 5 percent on January 2 after the company informed exchanges that it received a host of approvals from the US Food & Drug Administration (USFDA) for tentative or final products during the quarter ended December 31, 2023.

Alembic has a total of 196 ANDA approvals from the USFDA that include 170 final approvals and 26 tentative approvals, according to the regulatory filing.

At 11am, the Alembic shares were trading 5.6 percent higher at Rs 808.90 on the National Stock Exchange (NSE). The stock climbed 3 percent in the previous session as well.

In the last six months, the Alembic Pharma stock has rallied nearly 29 percent, outperforming the benchmark Nifty 50 which has risen nearly 12 percent during this period.

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For the quarter ended September 2023, the pharma company reported a 3.21 percent on-year increase in net profit (PAT) at Rs 136.56 crore attributed to the reduction in depreciation and amortisation expense. Its consolidated revenue from operations rose 8.17 percent to Rs 1,594.93 crore.

Following the positive results, brokerages remained optimistic about Alembic Pharma over its US pipeline.

Brokerages foresee a positive trajectory for Alembic’s US business as new facility launches gain momentum over the coming quarters, which may lead to a healthy operating leverage. The active pharmaceutical ingredient (API) business is also expected to maintain a steady performance, driven by a robust order book.

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Alembic Pharma plans to launch over 20 products in FY24, with focus on oral solids, injectables, and derma segments. The approvals from the USFDA are expected to keep the company on its product launch target.

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