Orchid Chemicals & Pharmaceuticals Ltd. achieved a turnover and operating income of Rs 172.92 crore for the quarter ended June 30, 2003 as against Rs 106.84 crore registered during the corresponding first quarter of last fiscal, representing an increase of 62 per cent. Gross profit before interest, depreciation and extraordinary items was Rs 33.09 crore as compared to Rs 22.08 crore during the corresponding quarter of last year. Profit before tax was Rs 8.20 crore as against Rs 4.29 crore of the corresponding Q1 of last fiscal despite higher depreciation (Rs 13.80 crore against Rs 10.23 crore) and higher expenditure (Rs 36.82 crore against Rs 23.17 crore) incurred on various expansion initiatives. Net profit after tax stood at Rs 7.57 crore compared to Rs 2.91 crore of Q1 last fiscal registering an increase of 160 per cent.
The API division achieved a turnover of Rs 153.03 crore, 57 per cent higher than the corresponding quarter’s revenues of Rs 97.25 crore.
According to a release from the company, the strategic initiatives of the company such as setting up of new facilities for regulated markets, enhanced product-market penetration, generation of intellectual property and accelerated regulatory submissions are enabling a major business transformation at Orchid. New bulk drug facilities are fully operational and are awaiting US FDA inspection. The new state-of-the-art formulations facility dedicated to the US generics market will also be commissioned during this (Q2) quarter. Many of these new initiatives have also directly contributed to the increased and stronger levels of revenues registered by the company. The company has further consolidated its leadership position in the global API cephalosporin market with increased focus on new generation, high-potential molecules.
“Our focus on entry into the high-growth regulated markets and on future growth drivers like new drug discovery and novel drug delivery systems has given us a good growth platform. The joint venture in China has also progressed well and will start yielding revenues during this fiscal. Most of the capital expenditure that we had planned in terms of setting up new plants and ramping up of existing facilities has been completed and we are confident that we would draw strong revenues from these initiatives in the quarters to come”, said K Raghavendra Rao, managing director, Orchid Chemicals & Pharmaceuticals Ltd.
The overall formulations business generated revenues of Rs 27.82 crore, 134 per cent higher than the revenues generated during the corresponding quarter of last fiscal.
Orchid Healthcare, the formulations division focused on acute therapy products continued on its growth path and has contributed well to the turnover. The introduction of novel, high-potential formulations in the operating segments of anti-infectives and pain management has added to the revenues. Product registrations in several new countries have added greater thrust to the export sales of formulations.
Mano Pharma, the chronic therapy division operating in the segments of CNS, CVS and anti-diabetic drugs as well as nutraceuticals contributed a higher revenue of Rs 12.34 crore during the first quarter as compared to Rs 8.72 crore contributed during Q4 of last fiscal (the first quarter after Orchid acquired Mano in January 2003). The division in the last quarter has also significantly ramped up its coverage of doctors and stockists.
Co-marketing has emerged as a focus area for the company. During the quarter under review, Orchid tied up with several Indian and MNC pharma majors for its premium, new generation formulations. In line with its strategy to penetrate the high-growth market of US, Orchid signed an exclusive marketing agreement with Apotex Corporation. Under this agreement Orchid would supply eight key injectable antibiotic formulations exclusively to Apotex for marketing in the US.