Orchid Chemicals and Pharmaceuticals achieved impressive performance during the third quarter ended December 2005 and its net profit has taken a quantum jump of 402.8 per cent to Rs 28.96 crore from Rs 5.76 crore in the similar period of last year. The net sales also went up to Rs 237.60 crore as against Rs 172.26 crore, registering a growth of 37.9 per cent. The earning per share for the quarter, after considering the rise in equity capital on account of bonus shares, touched Rs 4.71 as compared to Rs 1.19 in the last period.

K Raghavendra Rao, managing director of the company, said, "Our third quarter earnings confirm the higher performance trajectory which is propelled by our entry into the US generics markets. The growth momentum of the second quarter has been sustained with the ramp-up of ceftriaxone injection and introduction of cfprozil tablets and suspension in the US market. With more products getting approved by the US FDA, we anticipate continued growth."

Orchids turnover and operating income for the nine months period ended December 2005 stood at Rs 647.18 core as compared to Rs 509.89 crore, registered during the corresponding period of last fiscal. Operating profit before interest, depreciation and tax stood at Rs 190.49 crore compared to Rs 121.58 crore, a growth of 56 per cent. Net profit increased by 340 per cent to Rs 63.52 crore from Rs 14.41 crore. EPS for nine months stood at Rs 10.33 compared to Rs 2.97.

"On the regulatory front, we have stepped up the filings of DMFs and ANDAs and expect further approvals to flow in periodically. Filings in the non-penicillin, non-cephalosporin segment have also begun and we expect this process to pick up speed in the quarters to come. Lower interest rates, strong generics foray would support a healthy top line and bottom line performance in the subsequent quarters," Rao added.

The US generics business is yielding good revenues to the company. The company filed 5 DMFs and 2 ANDAs during the third quarter. It has filed 26 DMFs and 21 ANDAs so far in the US. The company received approval for 9 ANDAs. Orchid entered into an exclusive distribution alliance with Mayne Pharma for marketing Orchid's select life-saving injectable antibiotic formulations in identified regulated markets.