Strides Arcolab drops after Q1 results

Strides Arcolab lost 0.28% to Rs 819 at 13:48 IST on BSE after the company reported net profit of Rs 32 crore in Q1 March 2013, as against net loss of Rs 28 crore in Q1 March 2012.

The company announced Q1 results during trading hours today, 25 April 2013.

Meanwhile, the S&P BSE Sensex was up 123.29 points or 0.64% at 19,302.65.

On BSE, 1.10 lakh shares were traded in the counter as against average daily volume of 73,000 shares in the past two weeks.

The stock hit a high of Rs 837.25 and a low of Rs 813 so far during the day.

Strides Arcolab's revenue jumped 45% to Rs 193 crore in Q1 March 2013 over Q1 March 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) surged 161.11% to Rs 47 crore in Q1 March 2013 over Q1 March 2012. Strides Arcolab said it has opted to report standalone financials for Q1 March 2013 which captures the pharma business. The management opted out of reporting consolidated financials as the Agila business is in transition consequent to the sale of Agila business to Mylan Inc., as announced in February 2013.

Strides Arcolab said its Pharma business is scaling up and is in line with guidance for 2013. Consolidated pharma revenue grew 47% at Rs 235 crore in Q1 March 2013 over Q1 March 2012. Consolidated pharma EBITDA surged 165.21% to Rs 61 crore in Q1 March 2013 over Q1 March 2012.

Coming to the company's Biotech business, Strides Arcolab said that it has closed the agreement with Bio-Xcell, Malaysia for establishing a customized biotech facility located in the Bio-Xcell ecosystem in Nusajaya, Johor, Malaysia. During the quarter, the company announced the joint venture (JV) with Pfenex Inc. This JV will develop, manufacture and commercialize an initial pipeline of six biosimilar products for the global market. The company also acquired incremental stake in Inbiopro making it a wholly owned subsidiary.

Commenting on the company's Q1 performance, Arun Kumar, Vice Chairman and Group CEO, Strides Arcolab said, "Year 2013 has started on a promising note and we continue to be upbeat about our pharma business which is currently tracking ahead of guidance. The quarter also witnessed focused effort on growing the biotech business through new exciting partnerships".

The company has 47 filings as on date with United States Food and Drug Administration (USFDA) with 19 pending approvals. The company expects 3 to 4 key approvals during second half of 2013.

Strides Arcolab is a global pharmaceutical company headquartered in Bangalore. The company develops and manufactures a wide range of IP-led niche pharmaceutical products with an emphasis on sterile injectables. The company has 14 manufacturing facilities across 6 countries with presence in more than 75 countries in developed and emerging markets.

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