Nicholas Piramal India Limited (NPIL) registered a net profit of Rs. 37.3 crore for the third quarter ended December 2003, a growth of 76.1 per cent compared to Rs. 21.19 crore, a year ago. Net sales for the same period grew by 19.3 per cent to Rs. 262 crore compared to Rs. 219.5 crore, a year ago.

NPIL’s domestic formulations business grew by 13.4 per cent against an industry growth rate of 5.1 per cent (ORG-MARG MAT Dec-03). Top-10 brands formed 36 per cent of the portfolio.

In the third quarter NPIL delivered impressive growth in therapeutic areas such as Respiratory (19.1 per cent), CVS (23.9 per cent), CNS (13.4 per cent), Anti-Diabetic (34.2 per cent), Dermatology (33.7 per cent) and NSAIDS (17.9 per cent) over the corresponding quarter for the previous year.

During Q3 FY04, NPIL also acquired 100 per cent ownership of Sarabhai Piramal Pharmaceuticals Private Limited (SPPL). This has given NPIL strategic advantages in its brands portfolio, therapeutic area ranking, doctors’ coverage and field force expansion. SPPL has 12 Brands with sales over Rs. 5 crore, forming over 60 per cent of its sales. SPPL’s leading brands include Pentids, Esgipyrin, Tossex, Mazetol, Resteclin and Suganril.

On the market coverage front, NPIL’s field force will now increase to 2,805 up from 2,010 at present - making NPIL the distinct leader in India market reach.

The Board of NPIL has approved merger of SPPL with NPIL with effect from April 1, 2003. The full operational and integration benefits arising from the merger are expected to flow in FY05. NPIL’s R&D expenditure increased to Rs. 19.6 crore for the nine months of FY04 from Rs. 11.31 crore in the corresponding period of FY03.

In line with its exports focus, NPIL’s exports grew to Rs. 28.11 crore in Q3 FY04, resulting in total exports sales for the nine months of FY04 reaching Rs. 76.35 crore (9.1 per cent of total sales). The quarter also witnessed NPIL achieve its first custom-manufacturing contract — a five-year agreement with AMO, USA for the global supply of eye care products.

Announcing the results, Ajay Piramal, chairman, NPIL, said, “NPIL’s differentiated business strategy has now taken deep roots. Our performance is an outcome of that.” “Our efforts will now be towards making the next big leap-forward to achieve excellence and leadership in the global marketplace,” he added.

In the meanwhile, the board of Nicholas Piramal has approved the merger of Hyderabad-based Canere Actives and Fine Chemicals Pvt. Ltd with the company.

Canere is a new API facility, which is all set for US FDA inspection. The Canere facility has capacities to produce 350 tons of high-end API per annum.

The facility is situated in the vicinity of NPIL’s existing US FDA-approved API facility at Digwal, Hyderabad. This will further assist a seamless and swift integration.

Canere’s facility is ideally suited for on-patent, custom manufacturing contracts that NPIL is negotiating with three of the top-20 global innovator Companies. The merger of Canere with Nicholas Piramal will expedite contracts and save time on DMF and regulatory clearances.

NPIL will pay a total consideration of Rs 116.2 crore consisting of an issue of 5 per cent cumulative redeemable preference shares aggregating Rs. 38.37 crore and debt of Rs. 77.83 crore towards the merger of Canere.