Panacea Biotec has improved its performance during the second quarter ended September 2009 and reported small net profit as against net loss in the corresponding period of last year. Its net sales increased by 14 per cent to Rs 165.81 crore from Rs 145.40 crore. The company earned a net profit of Rs 2.13 crore as against a net loss of Rs 44.08 crore. Its profit before interest, depreciation, taxation and foreign exchange loss was Rs 27.96 crore as compared to loss of Rs 17.63 crore.
During the quarter, the company has received an Award Notification for supply of its EasyFive (pentavalent vaccine) from UNICEF for years 2010, 2011 and 2012. The total value of the award is USD 222.37 million (over Rs 1067 crore).
During the quarter, Panacea has launched new products BorteTrust 2mg vial (for the treatment of multiple myeloma - a form of blood cancer), Fiberforte 90g tablets (for chronic constipation), Oglibo MD 0.2 & 0.3 tablet (for the treatment of diabetes), Vacosteo 5mg 100ml vial (for the treatment of osteoporosis).
Non-provision of proportionate premium on redemption for outstanding portion of US $ 50 million Zero Coupon Convertible Bonds [US$ 36.8 million], the management is of the opinion that since the bonds are redeemable only if there is no conversion of bonds earlier, the probability of which cannot be presently ascertained, hence, the payment of premium on redemption is contingent in nature, the outcome of which is dependent upon uncertain future events. Therefore, the same has been disclosed as contingent liability.
During the quarter under review, 149,000 equity shares of the company held in the name of the company's employees as nominee/trustees were sold and the net proceeds aggregating Rs 299.11 lakh has been received by the company out of which an amount of Rs 297.62 lakh has been credited in Securities Premium Account.
For the first half ended September 2009, Panacea achieved sales of Rs 343.02 crore as against Rs 369.88 crore. It earned a net profit of Rs 16.16 crore as compared to net loss of Rs 10.01 crore. Its sales of vaccines declined to Rs 225.89 crore from Rs 250.59 crore and that of formulation declined to Rs 118.53 crore from Rs 122.91 crore.