Orchid Chemicals and Pharmaceuticals, a Chennai based Rs 1300 crore plus pharma company, has posted better financial performance during the first quarter ended June 2010 and earned a consolidated net profit of Rs 23.53 crore as against a net loss of Rs 27.29 crore in the similar period of last year. Its consolidated net sales increased by 9.6 per cent to Rs 364.57 crore from Rs 332.79 crore.
K Raghavendra Rao, managing director, said, “Orchid's performance in Q1 FY11 reflects the start of a strategic and robust growth journey. We have put in place a three-pronged growth strategy comprising ramp-up of existing business verticals, front-end acquisitions and entry into new niche product segments to propel growth over the next 3 years. With a significantly de-leveraged balance sheet and a well-diversified product basket targeted at the regulated and emerging markets, we are confident of posting strong double-digit growth year-on-year going forward.”
The company commenced supplies of its API to Hospira based on the contract entered into by both the companies as par of the business transfer. Steady ramp up in the API quantities based on the order book will augur well for Orchid going forward. It is also ramping up its oral formulations business in the regulated markets based on a strong product pipeline and launch calendar.
The company increased its cumulative filings of its US DMF to 82. This includes approval for 30 in the cephalosporin segment, 39 in NPNC segment, 2 in the betalactam segment and 11 in the carbapenems segment. The cumulative filings of CoS (Certificate of Suitability) for the European market stood at 20 which includes 13 in cephalosporin segment, 6 in NPNC segment and one in the betalactam segment. It cumulative ANDA filings for the US market stands at 36 including the recently filed ones for rasagiline and pantoprazole tablets.
The completed the acquisition of of Karalex Pharma, LLC, a US-based generic marketing and sales services company in New Jersey, USA through an all-cash deal. The company also entered into an out-licensing and distribution agreement with US-based pharma major Alvogen for marketing 8 of Orchid's oral non-antibiotic generic formulation in the US market.
The company's standalone net sales declined marginally to Rs 303.50 crore during the first quarter ended June 2010 from Rs 305.82 crore in the similar period of last year. It posted a net profit of Rs 2.61 crore as against a net loss of Rs 29.76 crore.