Caraco Pharmaceutical Laboratories Ltd. posted its third consecutive quarter of profitability and record sales for the third quarter and the nine months ended September 30, 2003, Jitendra Doshi, Chief Executive Officer, reported.
The net income for the quarter ended September 30, 2003 rose 540% to $4.54 million, from year-earlier net income of $0.7 million, or $0.03 per share. The strong earnings growth came from a rise in sales. Net sales for the quarter ended September 30, 2003 rose 108% to a record $12.3 million, from $5.9 million for the corresponding period in 2002.
The gross profit for the quarter ended September 30, 2003 was $7.84 million, significantly better than the $2.86 million recorded for the corresponding period in 2002. Operating income similarly improved, rising 337% to $4.74 million in the quarter ended September 30, 2003, from $1.09 million for the corresponding period in 2002.
The nine-month results were equally positive. Net income for the nine months ended September 30, 2003 rose to $11.07 million or $0.44 per diluted share, from a net loss of $1.72 million or $0.08 per diluted share for the corresponding period in 2002.
Net sales for the nine months ended September 30, 2003 rose 122% to a record $32.9 million, from $14.83 million for the corresponding period in 2002. Gross profit for the nine months ended September 30, 2003 reached $19.79 million, from $7.38 million for the corresponding period in 2002.
Operating income for the nine months ended September 30, 2003 was $12.08 million, versus an operating loss of $0.6 million for the corresponding period in 2002. However, the operating loss for the nine months ended September 30, 2002 included non-cash research and development expenses of approximately $2.8 million relating to 1,088,000 shares earned by Sun Pharmaceutical Industries Limited in connection with two products transferred to the Company by Sun Pharmaceutical pursuant to its then existing products agreement with the Company. In comparison, there were no non-cash research and development expenses for the nine months ended September 30, 2003.
The Company has not filed any new ANDAs with the FDA for approval during the nine months ended September 30, 2003. In addition, the Company does not expect to file any new ANDAs with the FDA for approval during the fourth quarter of 2003.
The Company received approval last month from the U.S. Food and Drug Administration (FDA) to manufacture and market tizanidine hydrochloride, a generic form of Elan Pharmaceutical's Zanaflex. Tizanidine is a short-acting muscle relaxant prescribed for the management of spasticity and has a U.S. market of approximately $240 million. The Company's formulary now stands at 17 drugs. Two additional drugs are pending FDA approval.