Indoco Remedies Q1 profit up 118%; to file 10 ANDAs in FY15

Indoco Remedies Ltd, an integrated, research-oriented pharma company, today reported over two-fold growth in net profit at Rs 20 crore for the June quarter as compared to Rs 9.2 crore in the same period last year.

Net revenues for the first quarter under review grew by 33.7% to Rs 198 crore as against Rs 148 crore for the same period last year, a company statement said here.

Commenting on the quarterly performance, Aditi Kare Panandikar, Managing Director, Indoco Remedies said, "The rise in the net profit is attributed to the 59% growth in the high-margin international business coupled with robust growth in domestic business."

Compared to industry average growth rate of 8.8%, the company's domestic formulation business registered a 24.4% revenue growth, aided by legacy brands as well as new launches, Panandikar said.

Indoco Remedies continues to focus on chronic segment and geographical penetration in North and East regions of India to drive its domestic revenue growth.

Indoco Remedies is planning to file 10 Abbreviated New Drug Applications (ANDAs) from its site during the current year, of which three have already been filed during the first quarter of current financial year.

With the USFDA nod received for its Sterile facility (Plant II) and Solid Dosages facility (Plant III) located in Verna, Goa. Indoco expects a few more of its ANDAs to be approved this year, the release said.

In the domestic market, the company will maintain its track record of launching a minimum of 25 new products annually through its 8 marketing divisions. The first quarter has seen seven products launched across five divisions.

Indoco will not be significantly impacted from the National Pharmaceutical Pricing Authority (NPPA) order in July 2014 that brought 39 formulations under price-control. The order impacts the ceiling prices of molecules falling in chronic segment, Indoco Remedies Chairman Suresh G Kare told shareholders at the 67th Annual General Meeting of the company,

The company intends to expand its R&D activities in Goa for which acquisition of land is in the final stage. Indoco Remedies has recently added 20,000 sqft of space to its existing 1,00,000 sqft R&D facility at Rabale in Navi Mumbai, Kare said.