Indoco Remedies, a Rs.475 crore plus Mumbai based pharma major, has received minor setback during the second quarter ended September 2011 due to higher interest burden, higher staff and marketing cost. Its net profit declined by 9.5 per cent to Rs.13.81 crore from Rs.15.26 crore in the similar period of last year. However, its net sales increased by 9.4 per cent to Rs.144.74 core from Rs.132.34 crore. Its external sales moved up by 15.6 per cent to Rs.46.60 crore from Rs.40.35 crore and its domestic sales improved by 6.6 per cent to Rs.98.08 crore from Rs.91.99 crore.


The formulation exports improved by 23.6 per cent and its sales in regulated market touched to Rs.36 crore from Rs.27.1 crore. Countries like UK, Germany and South Africa were the top contributors. There were four new products registered in Eastern Europe. The company is working closely with Aspen Pharmacare Ltd and are adding up new products/projects. Its sales in emerging markets declined marginally to Rs.7.6 crore from Rs.8.2 crore. It commercialized 5 new products.


The major field staff additions in the marketing divisions – Task force, Spera, Xtend and Eterna have increased the staff cost. Strengthening of field force in Tier II and III cities is one of the corporate strategies to boos the revenues. The commercialization of Goa Plant III has also increased the staff cost.


Indoco launched three new products viz., Fevorit CV, Telmichek AH and Osteoflam P during the quarter under review in domestic markets. The company's Goa plant I was audited by German Authority successfully and II plant was audited by Colombia authority. The company is in the process of signing agreements with one of the EU customers for the complete ophthalmic range. It is evaluating 10-15 products for in-house development which will make pipeline of dossiers ready for licensing in 2013.


The company's net sales for the first half ended September 2011 increased by 10.9 per cent to Rs.270.29 crore from Rs.243.72 crore in the similar period of last year. Its net profit, however, declined by 15.1 per cent to Rs.25.55 crore from Rs.30.08 crore. Exports sales moved up by 18.5 per cent to Rs.90.30 crore from Rs.76.19 crore.