<article><a style="color: #000080;" href="http://www.alkemlabs.com/" target="_blank">Alkem Laboratories Ltd</a> on Wednesday said it expects the contribution of US sales as a share of overall revenue to double in the next five years, just as it has doubled in the last five years.</article>

<a style="color: #000080;" href="http://www.alkemlabs.com/" target="_blank">Alkem Laboratories Ltd</a> on Wednesday said it expects the contribution of US sales as a share of overall revenue to double in the next five years, just as it has doubled in the last five years.
International revenue, which was just 12.6% of overall revenues in FY11, rose to 25.3% by FY15, the company management said. The US accounts for 90% of Alkem’s international revenue.
India’s fifth-largest drug maker, which is launching its maiden public offering in December, is planning to expand its generic portfolio.
Today, the US contributes just under a quarter of its overall revenue. Out of its Rs3,783-crore revenue for FY15, the domestic market accounted for 74.7%, while the international market contributed 25.3%. Its US subsidiary, ThePharmaNetwork LLC, notched up a revenue of Rs646 crore in the fiscal.
“The US is the most important market for us. From $10 million revenue in FY11, the revenue from the that market comes in at $100 million today and we expect the same growth to continue. Commercialisation of more ANDAs (abbreviated new drug applications) will boost US revenue,” said Prabhat Agrawal, chief executive officer at Alkem Labs.
In India, the company is growing at 17%, he added.
As of 30 June, Alkem has filed 66 ANDAs in the US, of which 18 have been approved and two have received tentative approvals. Of the 66 ANDAs, 29 were paragraph IV filings including first-to-file (FTFs). The generics industry in the US grew to an estimated $67.6 billion in fiscal year 2014-2015.
Currently, Alkem holds 3.6% share of Indian pharmaceuticals market, behind Sun Pharmaceutical Industries Ltd (8.4%), Abbott India (6.5%), Cipla (4.9%) and Mankind Pharma (3.7%).
According to a draft prospectus filed with the capital market regulator in August, Alkem will offer 12.85 million equity shares, constituting 10.75% of its paid-up capital. The company plans to raise $210-220 million (Rs1,400-1,450 crore) through its IPO.
“Though we are a cash-rich company, we are floating the IPO due to demand for liquidity from certain shareholders. No primary money comes to the company after the IPO,” said Sandeep Singh, joint managing director, Alkem Labs.
At present, promoters hold 54%, the promoter group holds 16% and relatives and friends hold the rest of shares in Alkem.
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<h4>This article was first published on <a style="color: #000080;" href="http://www.livemint.com/Companies/ze93IFa4flb19eFZE0WLSP/Alkems-IPO-to-hit-in-December-plans-to-double-US-revenue-b.html" target="_blank">Livemint.com</a></h4>

Alkem Laboratories Ltd on Wednesday said it expects the contribution of US sales as a share of overall revenue to double in the next five years.

India: Alkem Labs eyes $220m from December IPO

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