Nicholas Piramal India (NPIL) has strengthen its financial performance during the year ended March 2007 on account of acquisition and integration of Pfizer's manufacturing facility at Morpeth, UK and Avecia Pharmaceutical. The company's consolidated net profit increased by 80.7 per cent to Rs 218.05 crore from Rs 120.65 crore in the previous year. Its consolidated net sales went up by 55 per cent to Rs 2471.93 crore from Rs 1594.42 crore. The earning per share worked out to Rs 10.3 as against Rs 5.8 in the previous year.

The operating profit before interest, depreciation, taxation and exceptional items improved by 83 per cent to Rs 383.47 crore from Rs 209.57 crore in the 2005-06. With acquisition and integration of new units, the company's staff cost went up sharply by 118 per cent to Rs 420.01 crore from Rs 192.67 crore. Similarly, its R&D expenditure increased to Rs 126.46 crore from Rs 77.53 crore. The interest burden also moved up significantly by 76.4 per cent to Rs 30.51 crore from Rs 17.30 crore.

NPIL's pharmaceutical sales increased by 55.6 per cent to Rs 2462.27 crore during 2006-07 from Rs 1582.90 crore in the previous year. Its international sales increased by 214 per cent from Rs 338.93 crore to Rs 1064.67 crore. Custom manufacturing revenue relating to contracts from Indian facilities were Rs 22.72 crore during the last quarter ended March 2007.

On the research and development front, NPIL continued to invest and build its program. R&D expenditure during the year was up 63 per cent. Its discovery research pipeline has expanded to thirteen new chemical entities. Of these, three molecules are in human phase I/II trials. The company also signed a drug development agreement with Eli Lilly & Co for development of a novel, patented, late pre-clinical drug candidate in the metabolic disorders segment. NPIL will design and execute the global clinical development program of this optimised lead, and take it up to beginning of phase III. In return, NPIL will receive milestone payments unto US$ 100 million. If the molecule is successfully launched, NPIL will also get commercialisation rights for select markets and royalties on global sales.

NPIL has achieved turnaround of its acquired company - Avecia Pharmaceuticals during 2006-07, and it earned a net profit from both its Canadian and UK operations. Further, NPIL has fully integrated Morpeth's UK facility with its global custom manufacturing operations.

NPIL's standalone net sales increased by 15.5 per cent to Rs 1637.90 crore from Rs 1418.21 crore in the previous year and its net profit increased by 10.5 per cent to Rs 188.28 crore from Rs 170.35 crore.