Factors responsible for growth of IPO of

Alkem laboratories
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Alkem is a socially responsible organization that’s actively involved in the
betterment of the society.

We have adopted many villages across the country. . Alkem regularly works
with an NGO for awareness, detection and treatment of cancer. We also fund
treatment for epilepsy and support the 'I Hear' foundation for treatment of
underprivileged deaf children. Alkem is also involved with the Swami
Vivekananda Trust.

Public Health
Alkem has established Primary Healthcare Centres at two different places in
Himachal Pradesh and Sikkim. Alkem has joined hands with several NGOs to
increase public awareness about life-threatening diseases, such as cancer,
neurological disorders and hearing impairment. The primary target are women
residing in rural areas and slum-dwellers in urban regions. We also, provide
free check-up and treatment facilities for these diseases.

Education
In different parts of Himachal Pradesh and Sikkim, Alkem has adopted many
schools. Alkem has constructed and modified 4 Angandwadi Centres into
Modern Anganwadi Centers. This is done in a partnership with government as
part of the integrated child development services program to combat child
hunger and malnutrition.

Rural Development
To help this cause, Alkem is providing hygienic drinking water, building toilets
and developing primary health centres in hilly areas of Sikkim, Maharashtra,
Gujarat and Himachal Pradesh. This move is to help in improving the health of
villagers and reducing spread of water-borne diseases. Alkem has joined hands
with ‘Fulora Foundation’ to provide vocational training for youngsters.

Alkem believes in the conservation of natural resources and use of renewable

energy resources. To further this cause, we have installed solar light on the
streets of Gujarat.

Alkem, which has a portfolio of 705 brands in the domestic market as on

September 30, plans to expand its footprint internationally.

More than 37.66 lakh shares were allotted to anchor investors at a price of Rs
1,050 apiece. This would be worth Rs 395.47 crore, according to a regulatory
filing made by the company.

Market experts have mixed views on Alkem Laboratories IPO. Here are key
takeaways from 2 brokerage houses on the Alkem laboratory IPO:

Hem Securities:
Company with its market leadership in various therapeutic areas has extensive
sales, marketing and distribution network in India. Also, it is fast growing and
has established international operations. Looking after bright future prospects
of company investors should ‘Subscribe’ the issue for short as well as long term
investment horizon.

ICICI :
International revenues of Alkem grew at 45.7 per cent CAGR to Rs 957 crore in
FY11-15 mainly due to strong growth in US sales (accounts for 65-70 per cent
of international revenues). The company has filed 69 ANDAs (including 30 Para
IV/FTF filings and one NDA) of which it has received 21 final approvals and
three tentative approvals. The company markets its products in the US through
its subsidiary Ascend. Ascend currently sells 18 products out of which 13 are
own products and five are in-licensed. The company has successfully litigated
four Paragraph IV challenges in the past and is currently active in four
litigations. It has also filed 14 DMFs in the US.
Apart from the US, the company has also filed 22 dossiers in Australia, 16 in
Europe and 1,166 dossiers in other export markets. Competition and pricing
issues in domestic markets and litigation/compliance issues in international
markets are some of the key concerns for Alkem. At the IPO price band of Rs
1,020-1,050, the stock is available at 26-27x on FY15 EPS of Rs 38.7. Investors
can ‘Subscribe’ to the issue.