Panacea Biotec has reduced its net loss during the first quarter ended June 2014 to Rs.23.54 crore from Rs.60.92 crore in the corresponding period of last year due to higher sales of vaccines. Its net sales increased by 25.9 per cent to Rs.131.50 crore from Rs.104.46 crore. Its vaccines sales increased by 86.2 per cent to Rs.52.20 crore from Rs.28.04 crore and that of formulations improved marginally to Rs.83.26 crore from Rs.81.58 crore. Income from R&D activities went up to Rs.15.42 crore from Rs.7.98 crore. The company received advance research fees of Rs.14.99 crore from a party which has been accounted for as income from R&D.
The company's accumulated losses have resulted in erosion of more than fifty percent of its peak net worth calculated as per the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The continuous losses have also adversely affected the cash flows of the company. It has undertaken several measures to mitigate the risk of going concern which include supply to UNICEF/other customers of pentavalent vaccine. It also entered certain strategic alliances with foreign collaborators for supply of vaccines and pharma products. The company has taken shareholders approval to raise funds of Rs.250 crore by way of issue of shares/other securities.
The company submitted proposal for comprehensive debt restructuring with Corporate Debt Restructuring Cell for approvals. SBI, the monitoring institution has finalised the draft restructuring package. The company has stepped its investment in its subsidiary viz., New Rise Healthcare Pvt Ltd to 87.4 per cent from 77.9 per cent during June 2014.