Panacea Biotec, one of India's frontline research-driven health management companies, received major setback during the third quarter ended December 2004 and its net sales and net profit declined sharply by 36 per cent and 90 per cent respectively. Its net sales for the quarter ended December 2004 fall down to Rs 66.09 crore from Rs 103.31 crore in the corresponding period of last year mainly due to drop in sales of vaccines to Rs 35.47 crore from Rs 73.46 crore. The sales from formulation also declined to Rs 29.56 crore from Rs 30 34 core.
The net profit for the quarter under review went down sharply to Rs 2.86 crore from Rs 27.69 crore mainly due to lower sales. Its earning per share nosedived to Rs 0.27 from Rs 4.82 in the last quarter.
However, Panacea Biotec has recorded a remarkable performance during the 9 months period ended December 2004 and achieved record net sales of Rs 240 crore, a growth of 47 per cent as compared to previous year's 9 months net sales of Rs 164 crore. Operating profit during the period was Rs 49 crore as against Rs 29 crore during corresponding period in previous year, up by 71 per cent. Profit before tax & exceptional items during the period rose to a record high of Rs 37 crore as against Rs 22 crore during corresponding period in previous year, recording a spectacular growth of over 69 per cent.
Net profit after providing for appropriations & tax during nine months of the current year, was also higher at Rs 23 crore up by 42 per cent as against Rs 16 crore during corresponding nine months period.
During the third quarter of 2004-05, Panacea Biotec has entered into a strategic joint venture with UK-based Chiron Vaccines, the world's fifth largest group in vaccine business. The new joint venture company, viz. Chiron Panacea Vaccines Pvt. Ltd., is focusing on providing new breakthrough vaccines in India. This strategic alliance will provide India with a key competitive advantage in providing new generation combination vaccines to help prevent life threatening infectious diseases.
The Company has also added two new brands to its basket in this quarter, namely Lower for Intensive Cholesterol Management and Takeaway Injection for short term management of high fever & acute pain.
In the first half of FY05, Panacea Biotec will be commissioning an ultra-modern formulation plant at Baddi, Himachal Pradesh, meeting US FDA and UK MCA requirements, involving a total project cost of around Rs.44 Crore.
Meanwhile, the company has informed BSE that the Board of Directors decided to redeem 23,30,720 - 12% Redeemable Cumulative Preference Shares (RCPS) (Series II) due for redemption on February 19, 2005 and payment of dividend @ 12% (pro-rata) for the financial year 2004-05 as interim dividend on Redeemable Cumulative Preference Shares (Series II), which will be paid simultaneously with the redemption of Shares on or after February 19, 2005.