ALKEM - Alkem Laboratories Limited Share Price

Question 1: Damayanti Kerai: "Sandeep, you clearly mentioned this could be generic too in terms of growth opportunities which are available. And from Alkem's perspective, I just want to understand what kind of scale you want to build over the next 3 to 5 years? And then what kind of investment or cost will be required to build that scale?"

Answer: I believe that in the next 3 to 5 years, revenue could reach INR 1,000 crores with an EBITDA margin of 20%-25%. The required investment will be around INR 200 to 300 crores over the next 3-4 years, most of which has already been made.

Question 2: Saion Mukerji: "If you can provide some more color on this acquisition of Occlutech... What is the EBITDA margin for the company, whether it will be earnings accretive or not?"

Answer: Occlutech has a strong profile, currently EBITDA positive with an expected margin rise from 10% in FY '27 to 23%-24% in three years. It serves a niche cardiology segment with significant revenue potential in the U.S. and Western Europe.

Question 3: Neha M: "Sorry, I missed the number for what is the incremental investment that we are planning on growing the assets?"

Answer: The initial investment will be around INR 1,100 crores, plus an additional INR 100 to 200 crores over the next two years to fund and accelerate R&D. The business is already cash flow positive, so we foresee no operational challenges there.

Question 4: Nitin Agarwal: "When speaking of the acquisition... what would be the payback period based on your initial assessment?"

Answer: The payback period for this acquisition is about 10 years without considering additional product launches. However, new product introductions like our LA could significantly shorten that timeline.

Question 5: Sandeep: "Could you please provide insights about the denosumab biosimilars in the U.S.? When will the Xgeva biosimilar be submitted?"

Answer: Currently, we are undergoing FDA inspection for denosumab in the U.S. Entry is projected for late 2026, with Europe launching in the next couple of months. The submission timelines and results are underway.

Question 6: Kunal Dhamesha: "On the domestic formulation business... What is happening that continues to grow at a lower level, much lower than the IPM level?"

Answer: I disagree; our YTD growth is around 10%. We had headwinds in our generic sector, now a separate entity. If we exclude that, domestic growth is actually early-to-mid double digits. We're optimistic for future trajectory.

Question 7: Bharat Celly: "So, from a company's perspective, what do they expect, what we will be adding as value to them overall?"

Answer: We aim to increase their operational strength by making substantial investments and utilizing Alkem's global infrastructure. This maximizes R&D efficiencies and reduces administrative costs, enhancing overall operations.

Question 8: Chirag Dagli: "When you think about the acquisition... is it a lot of products in similar markets or similar products in newer markets?"

Answer: Growth will come from three main areas: new product introductions, geographical expansion, and deepening our market share in existing territories. We estimate a conservative 14% CAGR over the next five years from existing products.