US Price Erosion Dents Alembic
Site Re-Inspection Springs Fresh Challenge As Company Remains Bullish Overall On US
Challenging phase for Alembic as continued price erosion in the US hurts earnings, while a compliance re-inspection by the FDA at an injectables site results in 10 observations. Investors believe US sales may have bottomed out at current levels but can the Indian firm bounce back quickly?
You may also be interested in...
India’s Alembic has reported a 38% drop in its US generics business in the first quarter of its FY22 financial, due to price erosion stemming from increased competition. The company plans to launch four generics in the US in the coming quarter.
Alembic moved fast and seized supply opportunities for valsartan, the hypertension drug that has seen shortages in the US, though management maintains that fundamental changes to the US market are there to stay given the backdrop of buying power of distributors.
Nandini Piramal, executive director of Piramal Enterprises, discusses how things have shaped the group's pharma business, its continuing appetite for acquisitions, efforts to de-risk the supply chain for key starting materials and the outsourcing “framework” deployed by industry.