Alkem Laboratories Ltd. is one of India’s leading pharmaceutical companies, headquartered in Mumbai. Founded in 1973, the company is engaged in the development, manufacturing, and marketing of pharmaceutical products in both domestic and international markets.
Alkem Laboratories Ltd announced on Tuesday that it will sell its manufacturing facility in Pithampur, Madhya Pradesh, to Rubicon Research Ltd for ₹149 crores, along with all rights, title and interest in the leasehold land, factory building, assets and liabilities etc on a slump sale basis.
The company entered into a business transfer agreement with Rubicon Research Ltd on 6 January 2025 to sell the facility on a slump sale basis, as stated in a regulatory filing. Rubicon is involved in the development, manufacture, distribution, and sale of pharmaceutical formulations, according to the company.
The divestment underscores Alkem Laboratories’ focus on optimising its operations and sharpening its strategic priorities. The deal is anticipated to further enhance the company’s financial health, aligning with its long-term growth aspirations.
Alkem Laboratories Ltd. reported a 14% YoY increase in Q2 FY25 net profit to ₹702 crore, driven by a twofold rise in other income to ₹134 crore. Revenue from operations declined slightly by 0.7% YoY to ₹3,415 crore, while EBITDA grew 0.9% to ₹753 crore, improving the EBITDA margin to 22% from 21.7%.
Domestic sales rose 5.7% YoY to ₹2,461 crore, making up 72.8% of total sales, though slightly trailing the Indian Pharmaceutical Market growth rate of 7.6%. However, international sales fell 12.9% YoY to ₹918 crore, with U.S. sales down 22.1% to ₹598 crore. Alkem launched one new product and secured five USFDA approvals, including one tentative approval, during the quarter.
Alkem Laboratories Ltd. closed at ₹5,551.55 in the NSE intraday trading session on January 8, 2024.
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Published on: Jan 8, 2025, 5:30 PM IST
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