Zydus Cadila, the Ahmedabad-based Rs 1500-crore pharmaceutical giant, achieved impressive performance during the fourth quarter of 2005-06 and its net profit went up sharply by 377 per cent to Rs 30.6 crore. Its net sales surged by 47 per cent to Rs 336.4 crore as compared to Rs 229.7 crore in the corresponding period of last year.
The company entered US generics market and posted consolidated gross sales of Rs. 1508 crore for the year 2005-06, up by 18 per cent. The topline growth was driven by 15 per cent growth in domestic formulations sales and 114 per cent growth in formulation exports. The growth in exports was buoyed by 78 per cent growth in sales in the French market, start up of sales in US and Brazil and 29 per cent growth in exports to other emerging markets.
Taking stock of the company's growth in operations, the Board of Directors have recommended an issue of bonus shares in the ratio of 1:1 (1 equity share of Rs 5 each for every equity share held) and a dividend of 120 per cent (Rs 6 per share of Rs 5 each) subject to approval.
The company notched up several achievements during the year. US operations clocked sales of Rs 50 crore with launch of just 5 products in a short span of 7 months. The operations became profitable in the very first year. The French business operations have also received a boost with the signing of a distribution agreement with Evolupharm, the 2nd largest group of pharmacies in France, representing 2250 pharmacies.
To bring in greater focus on the pure generics business, the branded business of Zydus France SAS was sold for 7mn Euros. This non-core asset comprising OTC and mature brands had been acquired for 3.7 million Euros.
Strengthening its regulatory pipeline, the Company filed 12 ANDAs and DMFs during the year taking the cumulative to 36 ANDA filings and 40 DMFs. It has so far received 13 ANDA approvals.
Making brisk progress in its research programme, the Company's NME ZY H1 entered Phase II clinical trials. Additionally, two more INDs have been filed for NMEs ZYI1 and ZY H2.
Extending its equity in the health lifestyle segment, the company acquired 30.7% stake in Carnation Nutra-Analogue Foods Ltd., the manufacturers of Nutralite, India's largest selling margarine with a market share of 60%. Nutralite, which is free from cholesterol, is a healthier substitute for butter. It adds value to the product offerings of the company's Consumer Products Division which markets India's largest selling sweetener - Sugar Free.
Opening new revenue streams for the company, the Global Contract Manufacturing Cell registered an income of Rs. 9.2 crore in the first year of operations.