Strides Arcolab, the Bangalore-based generics and OTC company, has reported sales of Rs.55.40 crore, a growth of 12.4 per cent during the first quarter ended December 2003 as against Rs.49.29 crores during the corresponding quarter last year. The net profit has grown to Rs.3.69 crores against Rs.1.04 crores during the same period.
The strategic initiatives undertaken by the company – focus on regulated markets, change in product mix from low margin-high volume business to high margin-lower volume business, corrective measures post the Brazilian currency devaluation, entry into Japanese, South African, European and Australian markets, have started yielding positive results.
A turnaround of the US operations, which entered positive territory and a shift in focus from nutritionals to OTC and Rx products have helped improve results. Strides Inc’s ANDA pipeline is now ready for submission in 2004.
During the year under review, in accordance with the scheme of arrangement approved by the High Court of Mumbai dated October 14 2003, the company transferred the Contract Research & Manufacturing Division (CRAM) to its wholly owned subsidiary with effect from April 2002.
During the current year, the company has commenced shipments to the highly regulated markets of Japan, Australia, South Africa and UK. The company also entered into Joint Venture with Ribbon SRL of Italy to manufacture and market cephalosporin formulations for the regulated markets and grant priority access to its Beta-lactum products. The plant being set up in Bangalore at an outlay of USD 7 million is on schedule.
Arun Kumar, Group CEO, Strides Arcolab said “corrective measures in our global strategy and significant progress in our US strategy, stabilization of currency in Brazil have started yielding positive results. With core strengths in R&D and new drug delivery technology, Strides is already emerging as a priority global manufacturer to leading global pharmaceutical companies”.