North India based pharma companies have significantly improved operations during 2009 with clear focus on new markets, research-based new products, CRAMS and new tie-ups. The leading 10 pharma companies with registered office and plants in North India have stepped up their sales as well as profits and are now gearing up to tap new opportunities in domestic and international markets. Besides, several other pharma players from other regions have also set up their operations in this region owing to government support. The investment in R&D, expansion and CRAMS operations will be the key factors for the growth. Despite stiff competition and volatile foreign exchange fluctuations, these companies are set to consolidate their position in the coming years.
The 10 North India based leading pharma companies viz, Ranbaxy Laboratories, Jubilant Organosys, Surya Pharma, Nectar Lifesciences, Panacea Biotec, Ind-Swift Laboratories, Fresenius Kabi Oncology, IOL Chemicals and Pharmaceutical, Venus Remedies and Morepen Laboratories posted better financial performance during the quarter ended December 2009. The foreign exchange gains during the quarter had pushed their net earnings significantly to Rs 686 crore as against a net loss of Rs 964 crore in the similar period of last year. The net sales of these companies went up by 37.7 per cent to Rs 3,792 crore from Rs 2,754 crore in the last period. For the full year ended March 2009, these companies achieved net sales of Rs 14,658 crore and they earned a net profit of Rs 605 crore. Based on curent performance, these companies are well set to achieve better growth in current year.
Ranbaxy Laboratories, a leading pharma company in India and subsidiary of Daiichi Sankyo of Japan, has turned the corner successfully and earned a standalone net profit of Rs 488.23 crore during the fourth quarter ended December 2009 as against a huge net loss of Rs 819 crore in the corresponding period of last year. The turnaround is mainly due to foreign exchange gain of Rs 416.73 crore in respect of mark-to-market as compared to loss of Rs 1232.45 crore in the last period. Further, strengthening of the Indian rupee also assisted improvement. The earning per share worked out to Rs 11.61 for the fourth quarter as against negative Rs 21.90.
Commenting on the business results for the quarter, Atul Sobti, CEO and managing director, said, “We realized various opportunities while continuing to manage key challenges. Good revenue growth in most key geographies, launch of two first-to-file in USA and continued cost containment has ensured consistent quarter -on-quarter improvement in performance. The company ended the year with strong business and financial performance and over achieved on the guidance given for the year.”
Jubilant Organosys, a Rs 3,500 crore plus largest custom research and manufacturing services company, has improved its working during the third quarter ended December 2009 and earned a consolidated net profit of Rs 101 crore as against a net loss of Rs 87.57 crore in the corresponding period of last year. Its net sales increased by 5.7 per cent to Rs 961.48 crore from Rs 909.64. Its pharmaceutical sales increased by 13.1 per cent to Rs 859.57 crore from Rs 760.11 crore. However, its sales of agri & performance polymers declined by 31.2 per cent.
Its Pharmaceutical and Life Sciences Product & Services (PLSPS) division contributed 89.28 per cent to its total net sales as against 83.5 per cent in the last period. In line with the continued strategy of enhancing Jubilant's focus as a pharma and life sciences company, the board has in principle approved the demerger of its agri and performance polymer business into a separate company for pursuing the growth prospects of both the businesses independently and efficiently. The company is now planning to raised fresh capital by way of equity/equity linked instruments upto Rs 1,000 crore.
Panacea Biotec has successfully turned the corner and reported a net profit of Rs 7.34 crore during the third quarter ended December 2009 as against a net loss of Rs 18.87 crore in the corresponding period of last year basically due to provision for unrealised exchange fluctuation loss. Its net sales increased by 29.7 per cent to Rs 228.10 crore from Rs 175.91 crore. The domestic pharmaceutical formulations segment grew by 24 per cent and its formulation segment recorded a growth of 17.9 per cent to Rs 64.04 crore from Rs 54.31 crore. The vaccines segment improved by 37.5 per cent to Rs 166.84 crore from Rs 121.31 crore. Says Dr Rajesh Jain, join managing director “Our performance this quarter is in line with our forecasts and indicative of encouraging trends for coming quarter.”
Surya Pharma, a Rs 700 crore plus pharma giant from Himachal Pradesh, has announced all round performance during the third quarter ended December 2009. Its net profit went up sharply by 61 per cent to Rs 21.42 crore from Rs 13.31 crore in the corresponding period of last year. The EBDITA also increased by 55.7 per cent to Rs 46.76 crore. The company's net sales increased by 52.5 per cent to Rs 298.08 crore from Rs 195.45 crore.
During the quarter, Surya has launched its branded formulation division 'Alexus' and diagnostic division 'Altair'. The subsidiary of the company, Surya Healthcare Ltd, has extended its presence in pharmacy retail business by launching itself in Tricity of Chandigarh, Mohali and Panchkula. Total numbers of operative stores has gone up to 20.
Venus Remedies has posted a net profit growth of 10.2 per cent during the third quarter ended December 2009 to Rs 10.93 crore from Rs 9.92 crore in the corresponding period of last year. Its net sales increased by 17.4 per cent to Rs 76.48 crore from Rs 65.12 crore. The earning per share worked out to Rs 12.91 as against Rs 11.74 in the last period.
The company added another product patent for Potentox in its strong IPR basket from South Africa. It has submitted 49 product dossiers for registration in 30 countries across the globe and received 32 product registrations. Currently its products are present in 22 countries of LAC, South East Asia, Africa and Middle East. Venus has submitted another 26 CTD dossier for registration in European Union for its product Carbapenem and anti - cancer which has handsome market in Europe. Venus Remedies has received a Good Manufacturing Practices (GMP) approval from Ethiopia’s Drug Administration and Control Authority (DACA) for four of its facilities which manufacture oncology liquid, oncology lyophilized, dry powder cephalosporin and dry powder carbapenem.
Nectar Lifesciences, a Rs 725 crore Punjab - based pharmaceutical company, has posted impressive growth in topline as well as bottomline during the third quarter ended December 2009. Its net sales went up by 93.4 per cent to Rs 259.78 crore from Rs 134.31 crore in the corresponding period of last year. Its net profit moved up to Rs32.14 crore from Rs 5.65 crore. With better profits, its earning per share reached at Rs 2.11 as compared to Rs 0.37 in the last period. The company has entered the regulated market of API by adding a major MNC in western Europe as its customer. It expects to add more clients in the regulated market in the near future.
Nectar Lifesciences has raised Rs 252 crore through preferential allotment of equity shares and Global Depository Receipts (GDR). Consequent to the preferential and GDR issue, the paid up capital of the company has increased to Rs 22.61 crore comprising 22,42,60,970 equity shares of the face value of a rupee each. The funds raised through this issue will be deployed towards expansion of the generic pharmaceutical business, including construction of new manufacturing plants, filling of regulatory approvals, R&D and other associate expenditures apart from strategic alliances and acquisitions.