The Chennai-based pharma major, Orchid Chemicals & Pharmaceuticals Ltd (Orchid) registered a turnover and operating income of Rs 934.17 crore for the fiscal year ended March 31, 2007 compared to the previous year’s revenues of Rs 888.76 crore, recording an increase of 5.1%. Gross profit before interest, depreciation and taxes stood at Rs 291.36 crore compared to Rs 260.6 crore last fiscal, higher by 11.8%. After providing for interest of Rs 98.3 crore (Rs 87.01 crore last fiscal) and depreciation and amortisation of Rs 82.46 crore (Rs 82.98 crore last fiscal) the profit before tax of Orchid grew to Rs 110.59 crore as against the previous year’s profit before tax of Rs 90.61 crore. Net profit after tax registered a good growth of 16.6% and stood at Rs 96.63 crore as against Rs 82.9 crore for the last fiscal. Earnings per share (EPS) of the Company stood at Rs 14.70 compared to Rs 14.85 last fiscal.

On a consolidated basis, Orchid registered a turnover of Rs 985.08 crore for the fiscal ended March 31, 2007 compared to Rs 951.94 crore of the corresponding fiscal. Net profit stood at Rs 78.60 crore for the same period compared to Rs 57.30 crore of the corresponding fiscal. 

Orchid’s board met today (May 03, 2007) to adopt the audited financial results for the fiscal ended March 31, 2007 and also recommended a dividend of 30%.

Earnings for the fourth quarter ended March 31, 2007

The company’s turnover for the fourth quarter ended March 31, 2007 stood at Rs 248 crore as against Rs 239.8 crore for the corresponding period of the previous fiscal. Gross profit before interest, depreciation and taxes grew to Rs 76.43 crore compared to Rs 70.11 crore registered during the corresponding quarter of the last fiscal. Net profit increased by 25.2% to Rs 24.27 crore compared to Rs 19.39 crore for the corresponding quarter of last fiscal.

Quote from the Managing Director

Commenting on the result, Mr K Raghavendra Rao, Managing Director, Orchid Chemicals & Pharmaceuticals stated that the company continued to derive an increasing share of business from the regulated markets and dosage forms, thus firmly moving up the pharmaceutical value chain further during the year under review. More importantly, the last fiscal has been another landmark year in terms of international regulatory approvals with the UK MHRA approving the oral and sterile cephalosporin API and dosage form plants as well as the betalactam API and dosage form plants, paving the way for a multi-pronged foray into the European markets. In addition, the betalactam API and non-penicillin, non-cephalosporin API plants have undergone US FDA inspections without any 483’s. These several approvals augur extremely well for the growth of the regulated market business in the future, Mr Rao observed.   

API (Active Pharmaceutical Ingredients) Business

During FY07, Orchid’s API (bulk) business (Oral & Sterile) generated sales of Rs 526.84 crore. This excludes captive sale to the company’s formulations business.

The company has been de-emphasizing its API business in the less-regulated market to service the more lucrative regulated generics foray.

Formulations Business

During the fiscal under review, Orchid’s formulations business registered an overall growth in sales at Rs 407.33 crore largely led by the sustained growth in the US generics business.  

The domestic formulations business (Orchid Healthcare & Mano Pharma) registered a strong growth with a topline of Rs 69.02 crore. All therapeutic groups performed well, with the Critical Care division contributing a leading share of revenues with the sustained performance of Meropenem, injection.

US Generics

During the fiscal under review, Orchid’s US generics continued its sustained growth both in terms of revenue and profitability. Ramp-up in volume market share in key cephalosporin products like Cefoxitin and Cefazolin injections helped power growth. Orchid is currently the sole generic supplier of Cefoxitin and also the only supplier of Cefazolin finished dosage forms to the US. More than 60% of the US generics turnover is derived from sterile products.

Regulatory update

During the fiscal under review, Orchid made a steady progress in its regulatory roadmap. Filings in the newer product groups of non-antibiotics have also begun.

As of FY07, Orchid’s cumulative DMF and ANDA filing count stood at 45 and 39 respectively. Of the DMFs filed, 26 are in the cephalosporin space, 17 in the non-penicillin, non-cephalosporin (NPNC) segment and 2 in the penicillin product area. Out of the 39 ANDAs filed, 27 correspond to cephalosporins, 10 to the NPNC products and 2 in the sterile penicillin area. As of date, Orchid has received approvals for 18 of its ANDAs (Abbreviated New Drug Applications). 

During the last fiscal, Orchid also received approval from the Canadian TPD (Therapeutic Product Directorate) for two of its generic formulations (Cefoxitin and Ceftriaxone) marking the foray of the company into this niche market. Four more ANDS (Abbreviated New Drug Submission) applications are pending approval.

During the fiscal under review, Orchid’s betalactam API facility as well as non-penicillin, non-cephalosporin (NPNC) API facility located in Aurangabad underwent inspection by the US FDA without any 483’s. This inspection will help in the subsequent approval and launch of key products, Piperacillin+Tazobactam and other non-antibiotics in the US.

Orchid’s sterile betalactam facility and oral cephalosporin facility, which successfully underwent the audit by the UK-MHRA received the respective c-GMP plant approvals. These approvals also pave the way for a faster product dossier review. Orchid has cumulatively filed 12 applications for Marketing Authorisations (MA’s) during the year ended March 31, 2007.

During last fiscal, Orchid also received the formal dossier approval for its key betalactam product Piperacillin+Tazobactam from the Australian TGA. The product will be launched in Australia and New Zealand, post the patent expiry. The product will also be introduced in Europe after the approvals of the dossiers under the decentralized procedures.

Sourced From: Orchid Chemicals & Pharmaceuticals Ltd