Orchid Chemicals and Pharmaceuticals achieved satisfactory performance during the second quarter ended September 2006. Its standalone net profit increased only by 8.2 per cent to Rs 29.45 crore from Rs 27.22 crore in the corresponding period of last year mainly due to higher raw material and staff cost. The net sales improved marginally by 2.7 per cent to Rs 245.73 crore from Rs 239.32 crore. The earning per share on enhanced capital worked out to s .48 as against Rs 5.22.

The company's net profit for the first half of 2006-07 worked out to Rs 44.04 crore as against Rs 34.55 crore, a growth of 27.5 per cent. Its net sales for the first half moved up by 9.2 per cent Rs 447.44 crore from Rs 409.57 crore in the similar period of last year. Orchid incorporated a wholly owned subsidiary Orchid Pharmaceuticals (South Africa) (PTY) Ltd during the quarter. The company management approved the acquisition of the balance shares in Bexel Pharmaceuticals Inc. USA to make it a wholly owned subsidiary.

K Raghavendra Rao, managing director, said, "The second quarter has been a satisfying one on key strategic fronts. We received 3 USFDA approvals for our ANDAs during this quarter and in October taking the total ANDA approval count to 18. Importantly, both our API and Formulations sterile cephalosporin facilities were approved by the UK_MHRA. This would be a major enabler for our broader entry into the large EU generics space. With more product introductions slated in the ensuing quarters based on progressive approvals, we are confident of achieving a strong performance during the further quarters also."

The company launched 2 more generic cephalosporin formulations based in US. It is also consolidating its position in a key injectable product in the US. With the migration of its API customers to finished dosage supplies, Orchid will have a dominant share of this market, which has of late been on strained by supply shortages. The company filed 4 DMFs and 2 ANDAs during the quarter ended September 2006 taking the cumulative count to 35 DMFs and 32 ANDAs till date. The company filed 8 dossiers for marketing authorisations, of which 4 dossiers were filed in the second quarter of 2006-07.

Meanwhile, the company decided to wind up of Gene Arrays Inc., USA, subsidiary and BchD Biotechnological Chemicals Development Ltd, UK a joint venture company.

The consolidated net profit for the first half moved up by 71.1 per cent to Rs 35.24 crore from Rs 20.60 crore in the corresponding period of last year. The consolidated net sales, however, increased only by 7.6 per cent to Rs 472.83 crore from Rs 439.54 crore.