Bombay Stock Exchange Healthcare (BSE HC) index of 17 major pharmaceutical and healthcare companies surged ahead by 39 per cent during the January-October 2014 and touched to 13,929.77 as at the close of October 27, 2014 with better financial performance, higher approvals from highly regulatory bodies and filings of new products. Investments in research & developments and launch of new products assisted well to garner investors confidence.
The Indian pharma players received strong support from investors as well as foreign financial institutions. Despite warning letters in respect of quality problems for few major companies, the overall working of pharma entities displayed strong fundamentals during the first quarter of 2014-15 and likely to continue same trend in the current quarter also. With implementing of world class manufacturing standards these companies have established strong presence in lucrative western market.
BSE HC index touched to highest level at 14457.31 on October 1, 2014. Major scrips like Sun Pharmaceutical, Lupin, Aurobindo Pharma, Dr Reddy's Laboratories, Divi's Laboratories, Ranbaxy Laboratories and Wockhardt moved ahead. Few companies like Lupin, Ranbaxy, Alembic, Indoco Remedies announced satisfactory financial performance during the second quarter ended September 2014 aided by higher filings and approvals. The same trend is likely to exist for other major players. Biocon's growth remained flat during second quarter.
Lupin, the fourth largest Indian pharma company, has posted strong growth in bottom line during the second quarter ended September 2014 with higher sales and lower taxation. Its consolidated net profit went up by 55.1 per cent to Rs. 630 crore from Rs. 406 crore in the similar quarter of last year. Its revenue expenditure on R&D stood at 9.1 per cent of net sales at Rs. 284.80 crore as compared to Rs. 217.2 crore in the last period. Its capital expenditure stood at Rs. 211 crore. The company received two approvals from the US FDA and its cumulative ANDA filings stood at 200 and it received total 105 approvals. It filed 1 MAA and received 2 approvals during the quarter.
Nilesh Gupta, managing director, said, “We have had a great first half driven by strong growth in US, India, Japan and our API business. Our research pipeline is evolving well and we expect significant developments in the dermatology and inhalation space in the quarters to come.”
Ranbaxy Laboratories, which is likely to merge with Sun Pharmaceutical in the current year, has registered strong financial performance during the second quarter ended September 2014 due to exclusivity sales of Valsartan in the US and higher growth in Western Europe and India. It has posted consolidated net profit of Rs. 478 crore as against a net loss of Rs. 454 crore in the corresponding quarter of last year. Its consolidated net sales also moved up by 17 per cent to Rs. 3,218 crore from Rs. 2,750 crore. EPS worked out to Rs. 11.27 as against negative Rs. 10.74.
Biocon, a Rs. 2,850 crore plus pharma major, has posted flat growth in consolidated net profit during the second quarter ended September 2014 as its net sales improved only by two per cent. Its net profit remained same at Rs. 102 crore and EPS worked out to Rs. 5.1. The company's consolidated net sales increased by 2.2 per cent to Rs 750 crore from Rs. 734 crore in the corresponding period of last year. The Malaysia insulin facility remains on track and likely to commission in second half of 2015. The commercialisation of products from Malaysia will commence post validation and regulatory approvals from respective countries.
Alembic Pharmaceuticals, a Rs. 1,850 crore plus pharma major, has posted satisfactory financial performance during the second quarter ended September 2014 and its consolidated net profit moved up by 25.4 per cent to Rs. 77.27 crore from Rs. 61.64 crore in the corresponding period of last year. Its consolidated net sales improved by 12.4 per cent to Rs. 546.25 crore from Rs. 485.90 crore. EBDITA went up by 16.7 per cent to Rs. 108.40 crore from Rs. 92.91 crore.
Alembic filed one ANDA during the second quarter ended September 2014 and cumulative ANDA filings reached at 65. It also filed 2 DMFs, taking cumulative DMF filings of the company to 68.