Alkem Laboratories (ALKEM) Investor Day Presentation summary

Strategic direction and market opportunity

• Expansion into MedTech aligns with sector growth, targeting a $680B global market projected to reach $870B by 2030, with India’s market expected to nearly double by 2030.

• Focus on high-growth, high-margin segments: orthopedics (knee and hip implants) and cardiovascular devices, leveraging innovation and cost-competitive manufacturing.

• Government policies and rising insurance penetration in India support sector growth and localization, reducing import dependency.

• Emphasis on recurring revenue through strong customer loyalty and a consolidated industry structure.

Business development and execution

• Hybrid approach in orthopedics: organic growth via tech transfer and asset acquisition, with state-of-the-art manufacturing and a five-year vision to reach 250,000+ implants and 10% market share in India.

• Cardiovascular entry driven by acquisition and portfolio expansion, targeting structural heart and closure devices, with a focus on global market access.

• Acquisition of a 51-55% stake in Occlutech Holding AG for €180.7M, funded by internal accruals, expected to close by June 2026.

• Occlutech brings a strong global presence, robust R&D, and a complete portfolio of minimally invasive cardiac devices, with 200,000+ implants sold and 14% CAGR (2021-25).

Financial guidance and future outlook

• Acquisition expected to enhance global reach, operational excellence, and product innovation, leveraging synergies for value creation.

• High EBITDA margins anticipated for scaled Indian players operating globally, with continuous management initiatives to optimize the business model.

• Regulatory approvals for new products (knee, hip, and cardiac devices) targeted between Q4 FY27 and Q4 FY28, supporting international expansion.

• Commitment to building a comprehensive, high-quality MedTech portfolio and a strong ecosystem through vertical integration and skill development.