Top 10 pharma cos post 57% increase in Q3 net

Buoyed by overseas acquisitions, the Indian pharma sector has posted a good set of numbers for the third quarter ended December 31, 2006. Top 10 companies in the sector reported an impressive 57.2% growth in consolidated net profit to Rs 966.8 crore, from Rs 614.9 crore in the quarter ended December 2005. Consolidated net sales were up too at Rs 6,983.8 crore, representing a 40.3% over last year���s corresponding quarter.

Dr Reddy���s Labs, Ranbaxy Labs and Nicholas Piramal counted among the better performers this quarter. The acquisition of Germany���s Betapharm in February 2006 and of Roche���s API facility in Mexico in November 2005 contributed to the jump of Dr. Reddy���s Labs consolidated revenues. For the first time Dr. Reddy���s Labs��� sales crossed the $1 billion mark, as consolidated net sales were up 165.3% to Rs 1478.4 crore in the quarter. Net profit recorded a 65.8% growth to Rs 105.6 crore, compared to Rs 64 crore the same quarter last year.

Consolidation of revenues of its businesses acquired in the UK led to a significant increase in revenues for Nicholas Piramal in the quarter. The domestic pharma major reported a consolidated net profit of Rs 55.6 crore for the third quarter ended December 31, ���06 as against Rs 9.7 crore in the same quarter last year. Net sales were up too by 60.1% at Rs 649.5 crore, from Rs 402.6 in the quarter ended December 31, ���05. Nicholas Piramal acquired NPIL Pharmaceuticals (UK) Ltd and Torcan Chemical (Canada) in December ���05 and the Pfizer���s Morpeth facility in June ���06.

Ranbaxy Labs��� consolidated net profit rose 167.2% to Rs 183.3 crore spurred by US sales of its copy of Merck & Co.���s cholesterol-lowering pill Zocor and its acquisition last year of Romania���s Terapia. US revenues were up 20% at Rs 503.77 crore while revenues from the CIS markets, including Romania, rose 161% to Rs 234.23 crore. However, continuing pricing pressure in the UK generic market, and healthcare reforms in France and Germany, have led to a 6% drop in revenues from Europe to Rs 229.79 crore in the quarter.

In spite of a sharp increase in research and development expenses, most likely due to new ANDAs filings in the US, Sun Pharma recorded strong performance in the quarter. Net profit was up 36% to Rs 199 crore, from Rs 146 crore in the same quarter last year, while net sales rose 27% to Rs 565.8 crore, driven by a strong growth in the company���s US business. Relatively smaller companies too such as Cadila Healthcare, Torrent Pharma, Glenmark Pharma, Panacea Biotech and Lupin reported strong growth momentum in the quarter. Panacea Biotech posted a 422.2% growth in net profit to Rs 27.1 crore, while net sales were up 79.2% at Rs 197.1 crore, thanks to a large increase in exports sales.

Glenmark Pharma saw a 24.2% rise in net sales to Rs 201.9 crore, largely due to a jump in revenues in the US generic market. The company���s US business, which kicked off operations in 2004, recorded sales of Rs 83.5 crore, as against to Rs 16.7 crore in the quarter ended December 2005. Finally, Cadila Healthcare reported a 66.4% jump in net profit to Rs 65.9 crore on the back of strong growth of revenues in France and in the US.

However, Orchid Chemicals and Drug saw a marginal decrease in its net profit to Rs 28.3 crore, while net sales were flat at Rs 238.7 crore. Cipla witnessed modest growth too as its net profit rose 5.2% to Rs 184.4 crore and net sales increased 12.4% to Rs 880.5 crore, compared to the same quarter last year. This small increase is, however, from a large base, as the company recorded strong growth in the quarter ended December ���05.