Despite the stringent approval norms in the highly regulated markets, companies from Maharashtra are in the fore-front of getting larger and larger numbers of product approvals, especially in the last couple of years. They are filing increasing number of ANDAs and DMFs with international regulatory bodies and their export earnings are jumping every year.
An analysis of 40 leading companies show that their net sales increased by 17.4 per cent to Rs 22,004 crore during the year 2006-07 from Rs 18,748 crore in the previous year. Out of these, 15 companies recorded net sales of over Rs 500 crore during 2006-07 with strong improvement in bottom line. The net profit of 40 companies went up by 21 per cent to Rs 4,101 crore from Rs 3,390 crore in the previous year. With better growth in business operations, these companies are taking better care of their investors by announcing handsome returns. Further, the pharma shares are also in lime light with significant growth in market capitalisation during the last decade.
Cipla's margins in '06-07 impacted with rising overheads
Cipla Ltd, the third largest pharmaceutical company in India, has reported net profit growth of 8.8 per cent during the year ended March 2007 on account of increase in material cost and overheads significantly in the fourth quarter. The company's net profit amounted to Rs 660.82 crore as compared to Rs 607.64 crore in the previous year. Its net sales increased by 19.6 per cent to Rs 3572.14 crore from Rs 2985.88 crore. The operating profit margin worked out to 22.4 per cent during 2006-07 as against 21.8 per cent. However, the net margins stood at 18 per cent as compared to 19.5 per cent in the last year. The earning per share, after considering enhanced equity capital resulted from the bonus issue and allotment of share in respect of GDRs, worked out to Rs 8.52 as against Rs 8.11 in the last year.
The company's exports went up by 17.6 per cent to Rs 1780.74 crore from Rs 1513.64 crore in the previous year. Its formulations exports amounted to Rs 1297.82 crore as compared to Rs 1029.81 crore and export of APIs declined slightly to Rs 482.92 crore from Rs 483.83 crore. Exports contribute over 50 per cent to its sales. The company's subsidiary at Jebel All, Dubai did not undertake any business operations during 2006-07.
Glenmark Pharmaceuticals, a research-led company, has achieved impressive performance during the year ended March 2007. Its consolidated net profit has taken a quantum jump of 254 per cent to Rs 311.16 crore from Rs 87.98 crore in the previous year. The company's consolidated net sales crossed Rs 1000-crore mark and reached at Rs 1242 crore from Rs 695.23 crore, registering a strong growth of 64 per cent.
Glenmark's US business earned revenues of Rs 221 crore with a total of 13 product launches with a growth of 286 per cent for the FY07. Its Latin American business posted revenues of Rs 142 crore for the year FY07 reflecting an increase of 86 per cent over the last year. Revenues from the India formulations segment grew by 9 per cent to Rs 429 crore.
The API business registered an increase in revenues by 34 per cent to Rs 131.84 crore as against Rs 98.10 crore in the previous year. The international API business, registered a growth of 43 per cent to Rs 70.19 crore and the Domestic API business, registered a growth of 24 per cent.
During the last quarter of the financial year, Glenmark introduced a number of new molecules and combination products along with line extensions to its top selling brands to complete its therapy basket. Glenmark launched 5 new products including Farozet, Gemez, Miliiclav and Vocarb. Another newly launched product, Halovate, a new topical corticosteroid was launched for the first time in India. During FY07, Glenmark has launched 36 new products, out of which 6 products have been launched for the first time in India.
The new Baddi plant achieved a production of Rs 230 crore during 2006-07. In addition the plant was upgraded with a lotion line and an additional ointment line during the year. It also commissioned its facility in Kundiam, Goa for manufacturing oncology solid dosage products during the year. The oral dosage facility of the company's manufacturing plant for regulated markets in Colvale, Goa was expanded in line with US FDA guidelines and GMP requirements.
Wockhardt operating profit soars by 68% Q1
Pharmaceutical and biotechnology major Wockhardt Ltd reported a net profit at Rs. 66 crore for the first quarter ended March 31, 2007. Consolidated sales, at Rs. 523 crore, showed a 49 per cent growth over the corresponding quarter of 2006. Wockhardt has improved its margins by 260 basis points to 22.2 per cent.
"Wockhardt's first quarter results is a demonstration of our significant upsurge and turnaround in sales and profit. Our recent Irish acquisition has also been accretive to Wockhardt's profit," Wockhardt chairman Habil Khorakiwala said. "Besides, our research efforts have shown remarkable success, a classic example of which was our filing of over 40 patents and the five approvals that we received in the past few weeks alone."
Almost half of Wockhardt's sales which come from Europe shot up by 93 per cent. All the three key markets - UK, Germany and Ireland registered healthy growth. The company launched 10 new products in Europe during the quarter.
Wockhardt's India business recorded a growth of 35 per cent. The company aggressively moved ahead in the in-licensing space in its attempt to introduce newer and better products in India to cater to the unfulfilled needs of Indian patients. It has a total four in-licensing arrangements with companies in US, UK and Italy, two of which were signed in this quarter alone.
Wockhardt USA Inc. now markets 18 products, about one-third of which are injectables. Wockhardt's product portfolio expansion is on a growth trajectory, with 30 more ANDAs in the pipeline.
Nicholas Piramal India (NPIL) has strengthen its financial performance during the year ended March 2007 on account of acquisition and integration of Pfizer's manufacturing facility at Morpeth, UK and Avecia Pharmaceutical. The company's consolidated net profit increased by 80.7 per cent to Rs 218.05 crore from Rs 120.65 crore in the previous year. Its consolidated net sales went up by 55 per cent to Rs 2471.93 crore from Rs 1594.42 crore. The earning per share worked out to Rs 10.3 as against Rs 5.8 in the previous year.
The operating profit before interest, depreciation, taxation and exceptional items improved by 83 per cent to Rs 383.47 crore from Rs 209.57 crore in the 2005-06. With acquisition and integration of new units, the company's staff cost went up sharply by 118 per cent to Rs 420.01 crore from Rs 192.67 crore. Similarly, its R&D expenditure increased to Rs 126.46 crore from Rs 77.53 crore. The interest burden also moved up significantly by 76.4 per cent to Rs 30.51 crore from Rs 17.30 crore.
NPIL's pharmaceutical sales increased by 55.6 per cent to Rs 2462.27 crore during 2006-07 from Rs 1582.90 crore in the previous year. Its international sales increased by 214 per cent from Rs 338.93 crore to Rs 1064.67 crore. Custom manufacturing revenues relating to contracts from Indian facilities were Rs 22.72 crore during the last quarter ended March 2007.
NPIL has achieved turnaround of its acquired company - Avecia Pharmaceuticals during 2006-07, and it earned a net profit from both its Canadian and UK operations. Further, NPIL has fully integrated Morpeth's UK facility with its global custom manufacturing operations.
NPIL's standalone net sales increased by 15.5 per cent to Rs 1637.90 crore from Rs 1418.21 crore in the previous year and its net profit increased by 10.5 per cent to Rs 188.28 crore from Rs 170.35 crore.
Lupin's net profit up by 65.3% in FY07
Lupin Ltd has produced excellent financial results for the year 2006-07 mainly due to significant rise in the other income. The company's standalone net profit increased by 65.3 per cent to Rs 302.06 crore from Rs 182.72 crore in the previous year. The net sales increased by 22.7 per cent to Rs 1970.93 crore from Rs 1606.10 crore. The Board of Directors recommended equity dividend of 50 per cent (65 per cent in the previous year), on increased equity capital resulted from the bonus share issue in the ratio of 1:1. Equity dividend will absorb an amount of Rs 47 crore.
Lupin's other income increased by 157 per cent or Rs 114.14 crore during FY2007 mainly due to income on sale of certain intellectual properties for 'Perindroril'. This largely helped the company to push its profit levels in the year under review.
Lupin share opened at Rs 730 on BSE, but failed to maintain the momentum and reached at its inter-day low at Rs 702 with closing at Rs 709, after the announcement of financial results.
The company's total formulation revenues from the advanced markets increased by 48 per cent to s 331.80 crore from Rs 223.6 crore. Its Lisinopril tablets attained market leadership with 33 per cent market share. Suprax revenue at the US subsidiary Lupin Pharmaceuticals Inc. achieved 73 per cent growth in sales to US$ 24.6 million. The company launched five products in the US.
The API business from the developing markets, including India, improved by 14 per cent to Rs 661 crore during the year ended March 2007 from Rs 577.6 crore in the previous year. The finished dosage revenues from developing markets increased by 31 per cent to Rs 900.90 crore from Rs 687.20 crore. The sales of finished dosage from domestic market grew by 24 per cent to Rs 753.1 crore from Rs 606.40 crore and that from API improved by 11 per cent to Rs 300.6 crore from Rs 271.70 crore.
The consolidated net profit for the year 2006-07 increased by 78.4 per cent to Rs 308.56 crore from Rs 172.99 crore. Its consolidated net sales moved up by 25.1 per cent to Rs 2212.76 crore from Rs 1769.50 crore in the previous year.