Alembic Pharmaceuticals trades higher after USFDA clearance

On Thursday, the Alembic Pharmaceuticals reacted positively in early trade after its joint venture completed the USFDA inspection without any observation.

Aleor Dermaceuticals is a joint venture (JV) between Alembic Pharmaceuticals and Orbicular Pharmaceutical Technologies’ on 60:40 basis. The press release from company to the stock exchange said that the United States Food and Drug Administration (USFDA) has completed inspecting its formulation manufacturing facility, located at Karakhadi, Gujarat, without any observations. The inspection was carried out from January 6 to 8, 2020.

The JV, in December 2019, has informed about receiving the Establishment Inspection Report (EIR). Looking at Alembics fundamental stability, on cumulative basis, it has 110 ANDA approvals from the USFDA.

Revenue mix as of Q2FY20 stood at API- 16 per cent, Branded- 32 per cent, and Generics- 52 per cent. International formulations business grew 10 per cent YoY to Rs 646 crore. India formulations business for the quarter was Rs 391 crore IN Q2FY20 as against Rs 385 crore for the last year. API business grew 31  per cent to Rs 204 crore in the quarter reviewed as against Rs 155 crore in Q2FY19. The US Generics business grew 25 per cent to Rs 539 crores in the quarter in review.

At 11.30 am, the stock traded at Rs 562, higher by 1.81 per cent on the BSE.