Cadila Health net up 60 pc

AHMEDABAD | MUMBAI: Driven by its US performance, Ahmedabad-headquartered Cadila Healthcare has posted a 60% rise in net profit at Rs 199.2 crore for the first quarter ended June 30. The flagship company of the Rs 3,700-crore Zydus Group posted a 25.5% revenue growth during the year-ago period. The company’s domestic formulations business grew by 17% year-on-year with the launch of 30 new products, while its US sales grew 51% to Rs 223 crore.

The quarter was significant for the company as it launched India’s first H1N1 vaccine — VaxiFlu-S, and announced setting up of a new Vaccine Technology Centre near Ahmedabad to develop vaccines against viral, bacterial and protozoal infections.

However, the company’s US strides that have been noted by the industry. Though formed in 1992, after a split from the parent Cadila, Zydus Group has been a late entrant in the US market. The company that forayed into the world’s largest pharma market in 2005, has clocked Rs 671.5 crore sales in that market by FY10.

The company’s growth pace in the US market has led analysts to draw comparisons with the growth trajectory of Ranbaxy witnessed a decade ago. Ranbaxy, now acquired by Daichii Sankyo, was the first Indian generic company to tap the US market in a big way.
While Ranbaxy’s US business grew to $100 million between 1998 and 2001, thus becoming the fastest generic company in the US to cross that figure, Zydus’ American revenues grew to $140 million (as per current exchange rates) between 2005 and 2010. In FY10, Zydus grew at 69% CAGR in the US market.