Indoco Remedies, a Rs 400 crore pharma major from Mumbai, has posted satisfactory financial performance during the year ended March 2010. Its net profit went up by 33.9 per cent to Rs 42.09 crore from Rs 31.44 crore in the previous year. Its net sales increased by 13.6 per cent to Rs 398.34 crore from Rs 350.64 crore. With improvement in bottom line, its earnings per share moved up to Rs 34.26 from Rs 25.59 in the last period.
Its domestic formulation sales recorded growth of 13 per cent to Rs 239.49 crore. However, its domestic sales of API declined almost by 19 per cent to Rs 8.83 crore. The gross domestic sales worked out to 71.4 per cent of total net sales. Its formulation exports increased by 15.1 per cent to Rs 109.09 crore from Rs 94.81 crore and its APIs exports increased by 79.3 per cent to Rs 9.75 crore from Rs 5.44 crore in the previous year.
For the fourth quarter ended March 2010, Indoco's net profit jumped by 110 per cent to Rs 8.23 crore from Rs 3.92 crore in the corresponding period of last year. Its net sales increased by 28.1 per cent to Rs 108.87 crore from Rs 84.99 crore. Its formulation exports increased by 34.2 per cent to Rs 31.22 crore. The revenue form anti-infective segment increased by 46.35 per cent to Rs 16.53 crore during the quarter under review and that of Respiratory & anti-allergy moved up by 33.07 per cent to Rs 12.52 crore from Rs 9.41 crore in the similar period of last year. The company launch new products like Apispur, Cyclochek and Oxipod-CV during the quarter.
Indoco has signed two major contracts during the fourth quarter. It signed deal with Watson Pharmaceutical Inc to develop and manufacture six sterile products on a cost/profit sharing basis. The second contract was signed with Aspen, South Africa. The deal encompasses seven ophthalmic products, extending to 30 countries from emerging markets. Indoco will offer these products for registration and supply the same from the US FDA & EU approved manufacturing facilities. Aspen will market and distribute these products immediately on obtaining regulatory approval.
Suresh G Kare, chairman and managing director, said, “We are currently working on a dual strategy of going with partners in USA and also filing a basket of ANDAs on our own. During the next couple of years, we will have over a dozen ANDAs filed in Indoco's name. We are also contemplating implementation of our plans to register our own dossiers in Europe through DCP (Decentralised Procedure) and MRP (Mutual Recognition Procedure) routes. This will enhance our margins and give us a sustainable business, since the marketing authorization will be controlled and owned by Indoco.”
To increase production capacity & accommodate more products, the company has successfully expanded its formulation plant at Baddi and has commenced construction on a war footing of the new tablet manufacturing plant in Goa. Baddi plant has started dispatches of various products to UK and Germany. The company's R&D expenditure during the year ended march 2010 increased by 10.7 per cent to Rs 10.22 crore from Rs 9.23 crore. The company is working on new drug delivery system projects including mix miceller solutions, sustained release dosage forms and micro emulsions. Further, it is involved in contract research where Indoco's research centre develops the products for other organizations for both domestic and international business markets and prepare the dossiers for submissions to the various regulatory agencies.