Zenotech Laboratories has successfully turned the corner and earned a net profit of Rs 3.62 crore for the year ended March 2007 as against a net loss of Rs 0.74 crore in the previous year. The company's net sales improved by 5.2 per cent to Rs 13.02 crore from Rs 12.37 crore. Besides, Zenotech received Rs nine crore as license fee during 2006-07. The company reported positive earning per share of Rs 1.29 as against negative EPS of Rs 0.35 in the last year.

The company's subsidiary in Brazil is yet to commence commercial operation. The company has two more subsidiaries one in Nigaria and one in the USA.

During February 2007, Zenotech Lab has signed a global clinical development and marketing agreement with Ranbaxy Laboratories Ltd for its first biosimilar product, G-CSF (filgrastim). The agreement involves unfront licensing fees and profit sharing after launch.

G-CSF is used to prevent infections from cancer chemotherapy-induced neutropenia (decrease in the number of a type of white-blood cells). The worldwide market for neutropenia treatment is in excess of $ 4 Billion, while the global G-CSF market is about $ 1.6 billion.

Ranbaxy has taken a strategic decision to commit resources to introduce the G-CSF product for global marketing beginning with markets in the EU where regulations for biosimilars are in place.