Neuland Laboratories, a Hyderabad-based Rs 200 crore plus pharmaceutical company, has suffered a setback during foreign exchange loss and higher interest costs. The company's net profit declined by 54.6 per cent to Rs 1.94 crore from Rs 4.05 crore in the corresponding period of last year. Its net sales for the quarter increased by 45 per cent to Rs 83.39 crore from Rs 57.52 crore. The earnings per share nosedived to Rs 3.41 from Rs 7.50 in the last period. The company's exports sale has taken quantum jump and touched to Rs 73.91 crore from Rs 44.50 crore during the third quarter of 2007-08.

For the nine months period ended December 2008, Neuland's net sales went up by 44 per cent to Rs 221.14 crore from Rs 153.52 crore in the similar period of last year. However, its net profit declined sharply by 53.8 per cent to Rs 3.73 crore from Rs 8.07 crore on account of foreign exchange loss of Rs 4.52 crore as against a gain of Rs 3.66 crore. The company's exports increased by 62.4 per cent to Rs 185.54 crore from Rs 114.27 crore in the last period.

Meanwhile, Neuland is entering into peptides. The foray into peptides will be in two phases. While the first phase will see Neuland developing a non-GMP facility for synthesis of peptides both for generic API and contract research opportunities, the second phase will offer contract manufacturing of peptides at commercial scale under GMP environment for both generic and innovator companies.

Dr Rao, chairman and managing director, said, "Neuland's objective is to become an end to end services provider for the pharmaceutical industry. From our current capabilities of API manufacturing and contract research services, we want to expand our capabilities into areas of clinical research and subsequently other areas of drug discovery support services and the foray into peptides is just another step towards achieving the same."

"Advances in drug delivery technologies are opening up the avenues for peptides and other niche market segments, and Neuland sees a potential high growth area here, thus this new business initiative. It's a niche opportunity which has a synergy with both our contract research and API business," he added.

Sucheth Rao Davuluri, COO, said, "Our foray into peptides, PMDA approval for both our manufacturing facilities and the impressive results is a reflection of our focused plans of being profitable and giving more value to our investors, besides growing our client base. The approval from PMDA of Japan will see a fast paced growth in our Japanese operations. Over the next two years the company will integrate the peptide value chain by leveraging on the existing expertise in API and contract manufacturing. Thus creating a niche opportunity for itself in this segment."