Caraco Pharmaceutical Laboratories Ltd, a Detroit-based 64 per cent subsidiary of Sun Pharmaceuticals and Industries Ltd, declared record revenues of $603 million and record net cash from operations of $22 million for 2004. After non-cash R&D expense of $244 million, net loss was $ 1 million, Jitendra N. Doshi, CEO, announced here.
"During 2004, we used available cash to fully repay $23.3 million of all outstanding loans, to increase Inventories by $7.5 million and to invest in facility upgrades of $3.9 million," Doshi said adding, "Caraco's outstanding debt as of December 31, 2004 has been totally eliminated, from $33.7 million two years ago."
"We are very pleased to have exceeded our 2004 revenue guidance of 20-25 per cent growth. We expect our sales in 2005 to grow 15 per cent to 20 per cent over sales in 2004. However, increased competition may cause pricing pressures and result in lower prices. This may adversely affect growth rates and gross margins. Management has and will continue to work diligently to counter this through increased sales volumes, better-cost absorption of operational overheads, and cost reductions," Doshi stated.
He added, in December 2004, Caraco selected three additional products for development pursuant to the November 21, 2002 products agreement with Sun Pharma Global, Inc. With this, a total of 18 products have now been selected out of the 25 products to be transferred under this agreement.
Of these 18 products, 8 products have passed bioequivalency studies and 10 are in various stages of development. Of the 8 products, 6 ANDAs were filed with the FDA during 2004. We received approval for two products during 2004. There are currently 6 ANDAs pending FDA approval, he added.
Detroit-based Caraco Pharmaceutical Laboratories, Ltd., develops, manufactures and distributes generic and private-label prescription drugs to some of the nation's largest wholesalers, distributors, drugstore chains, healthcare systems and state and federal agencies.