Matrix Laboratories has incurred a consolidated net loss during the third quarter ended December 2006 as against net profit in the similar period of last year, mainly due to adverse performance of Docpharma N.V, a wholly owned subsidiary. The consolidated net loss amounted to Rs 0.90 crore as com pared a net profit of Rs 15.9 crore. The company's sales increased by 5.9 per cent to Rs 395.30 crore from Rs 373.2 crore. The profit before interest, depreciation and taxation declined by 11.7 per cent to Rs 41.60 crore from Rs 47.10 crore. The figures are not strictly comparable mainly due to acquisitions at different points of time during the last year.

In conjunction with company's decision to realign its business, the lower operating profit in the current quarter is primarily the result of lower than expected earnings by Docpharma N V a 100 per cent subsidiary of the company, as well as increased R&D spend. Docpharma recorded revenues of Rs 86.2 crore as against Rs 92.2 crore. In the last period.

Docpharm's results were impacted by initial costs incurred as the company look to expand its operations into France and Italy. Revenues from sales in these countries are expected to contribute to earnings in future quarters. Additionally, unfavourable variances resulted from the deferment of certain out licensing contracts, a price decrease for a key product in the Netherlands, a one time inventory provision and a restructuring charge taken with respect to the hospital business.

Rajiv Malik, CEO of Matrix, said, " We are extremely exited about the progress we are making to realign and adjust our company's focus as we prepare to be a global source of API, finished dosage forms and other product opportunities. During the pas quarter we have begun this process and, now with the closing of the transaction with Mylan, we are in a position to accelerate this realignment further. We continue to look forward to the future where all o our shareholders will realize he benefits of a fully integrated company."

The generic API business contributed Rs 142 crore to the consolidated net sales in third quarter of 2006-07, which represents a sequential growth of 13 per cent. The growth in generic API business is attributable to supply of certain generic APIs which are scheduled for launch in the US market during the coming quarters. The consolidated net sales of the Anti-retro virals portfolio stand at Rs 92 crore which represents a growth of 30 per cent on sequential basis.

Matrix's revenues in the CRAM business declined to Rs 15.3 crore for the quarter under review from Rs 30.8 crore primarily due to deferment in shipment of certain key intermediates as the intended manufacturing facilities were utilised for strategic filings in FDF space.