Alkem non-US sales rise 58% while US gains 2.4% in Q2 FY27

Alkem reported non-US international sales growth of 58% year on year to Rs 671 crore in Q2 FY27, while US sales rose 2.4% to Rs 783 crore as volume growth faced mid-teen price erosion from added competition in select products. Non-US sales contribution increased to 15% from 14% a year earlier.

What drove Alkem’s non-US international sales growth?

Alkem’s non-US sales growth reflected Occlutech’s integration from Q2 FY27 and double-digit growth in Latin American, or LATAM, markets. International markets excluding the US generated Rs 671 crore in Q2 FY27, compared with Rs 424.1 crore in Q2 FY26, and accounted for 15% of total sales versus 14% in the previous-year quarter.

The disclosed underlying growth measure indicates that Occlutech was not the only driver. Non-US sales excluding Occlutech grew 29% year on year and 14% quarter on quarter in Q2 FY27, compared with reported growth of 58% year on year and 40% quarter on quarter including Occlutech. The presentation says Occlutech was integrated from Q2 FY27 and its sales were included in the quarter’s MedTech results.

Non-US sales have increased across the five comparable second quarters shown in the presentation. They rose from Rs 225.1 crore in Q2 FY23 to Rs 286.6 crore in Q2 FY24, Rs 320.5 crore in Q2 FY25, Rs 424.1 crore in Q2 FY26 and Rs 671 crore in Q2 FY27. The Q2 FY27 increase was the largest year-on-year rise in that disclosed series.

How did Alkem’s non-US sales compare with US sales?

Alkem’s non-US business grew faster than its US business in Q2 FY27, although US sales remained higher in rupee terms. US sales were Rs 783 crore, or 17% of total sales, while non-US sales were Rs 671 crore, or 15%, leaving a Rs 112 crore difference between the two international businesses.

The change in growth mix was material over the year. US sales increased by Rs 18.1 crore from Q2 FY26, whereas non-US sales increased by Rs 246.9 crore. On a sequential basis, the presentation reported US sales growth of 5.3% in Q2 FY27 and non-US sales growth of 40%, with the latter figure including Occlutech.

Alkem’s total revenue from operations rose 13.8% year on year to Rs 4,552 crore in Q2 FY27 from Rs 4,001 crore. The disclosed 17% US contribution and 15% non-US contribution total 32%, while India sales were Rs 3,027.5 crore and contributed about 68% of Q2 FY27 sales.

Why did Alkem’s US sales grow only 2.4%?

Alkem said US growth was largely led by volumes, but mid-teen price erosion due to additional competition in select products limited the result. US sales reached Rs 783 crore in Q2 FY27, compared with Rs 764.9 crore in Q2 FY26, resulting in the reported 2.4% year-on-year increase.

The presentation’s five-year Q2 series shows variability in the US business. Sales were Rs 604 crore in Q2 FY23, Rs 767.5 crore in Q2 FY24, Rs 597.6 crore in Q2 FY25, Rs 764.9 crore in Q2 FY26 and Rs 783 crore in Q2 FY27. The latest figure was the highest in the series, but its growth rate was below the 58% reported by non-US markets in the same quarter.

Alkem continued investment in its US product pipeline as of September 30, 2026. It had filed 193 abbreviated new drug applications, or ANDAs, and received 170 approvals, including 18 tentative approvals. The company also separately filed two new drug applications, or NDAs, and one biologics licence application, or BLA, and received approvals for two NDAs.

ANDA approvals were uneven during the five disclosed quarters. Alkem received one approval in Q2 FY26, five each in Q3 FY26, Q4 FY26 and Q1 FY27, and none in Q2 FY27. These regulatory figures do not indicate when products may launch or what revenue they may generate.

What does Occlutech add to Alkem’s international business?

Occlutech added MedTech sales to Alkem’s non-US business from Q2 FY27 and was identified as part of the segment’s expansion. Alkem reported about Rs 133.1 crore of Q2 FY27 MedTech sales including Occlutech, while the international-markets presentation described the business as being strengthened through Occlutech.

Alkem’s MedTech operations include three manufacturing facilities across India, Germany and Turkey, and two research and development facilities in Germany and Turkey. Its product portfolio covers knee, hip and structural-heart segments, providing the operating context for the Occlutech integration in Q2 FY27.

The presentation distinguishes MedTech from Alkem’s biosimilars activity. Q2 FY27 biotech sales were about Rs 70.4 crore and declined 35% year on year, while biosimilar products had been commercialized in India, Germany, Spain and Mexico. Alkem also reported European Medicines Agency approval for Denosumab vial presentation and marketing authorization for Denosumab in South Korea.

Conclusion

Alkem’s Q2 FY27 figures show that international growth was led by markets outside the US. Non-US sales rose 58% to Rs 671 crore, supported by LATAM growth and Occlutech’s inclusion, while US sales rose 2.4% to Rs 783 crore amid mid-teen price erosion. The non-US contribution to total sales increased by one percentage point to 15%.

The next disclosures to watch are non-US growth excluding Occlutech, which was 29% year on year in Q2 FY27, and US pipeline execution after no ANDA approvals in the quarter. Alkem had 193 ANDA filings and 170 approvals as of September 30, 2026, but the presentation does not disclose launch schedules or expected sales from pending products.