Q1 2025 Alkem Laboratories Ltd Earnings Call Transcript
Key Points
- EBITDA margin improved by 700 basis points from 13.1% to 20.1% year-over-year.
- Successful resolution of US FDA Form 483 at the Baddi facility, demonstrating regulatory compliance.
- Strong performance in domestic business with growth in large brands and bridging portfolio gaps.
- Outperformed the IPM in six therapies, including anti-diabetic, neuro and CNS, GI, dermatology, and VMN therapy.
- Significant reduction in API pricing for key products like dapagliflozin and sitagliptin, contributing to improved profitability.
- Mirabegron product launch delayed due to ongoing litigation and settlement agreements, impacting near-term opportunities.
- US business experiencing single-digit price erosion, affecting overall profitability.
- Supply chain issues in Australia led to lower sales in the non-US market for the quarter.
- Increased operational expenses expected in the coming quarters due to investments in new business opportunities like CDMO and medical devices.
- Employee costs increased by INR1 billion sequentially, impacting overall cost structure.
Ladies and gentlemen, good day, and welcome to the Alkem Lab Q1 FY25 earnings call hosted by Motilal Oswal Financial Services Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Tushar Manudhane from Motilal Oswal. Thank you, and over to you, sir.
Thanks, Siddhant. Good evening, and a warm welcome for 1Q FY25 earnings call of Alkem Laboratories. So on the management side, we have Dr. Vikas Gupta, CEO; Mr. Nitin Agrawal, CFO; and Ms. Purvi Shah, Head of Investor Relations. Over to you, Vikas, sir, for the opening remarks.
Thank you, Tushar. So good evening, everyone. Earlier in the day, we have released our financial results, press release and investor presentation, which are also posted on our website. We hope you all had the opportunity to review it.
Before we proceed with this call, we'd like to remind everyone that this is being
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