MIRA
INFORM REPORT
|
Report Date : |
15.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
ORCHID CHEMICALS AND PHARMACEUTICALS LIMITED |
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Registered
Office : |
‘ |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
01.07.1992 |
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Com. Reg. No.: |
18-022994 |
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Capital
Investment / Paid-up Capital : |
Rs.704.421
Millions |
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CIN No.: [Company Identification
No.] |
L24222TN1992PLC022994 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHEO03079G CHEO00121C |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Seller of Pharmaceutical Products and Bulk Drugs. |
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No. of Employees
: |
4500 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 45361000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered/ Corporate Office : |
‘ |
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Tel. No.: |
91-44-28251532/ 28251547/ 28284776/ 28211000/ 28230000 |
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Fax No.: |
91-44-28284983/ 28211002 |
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E-Mail : |
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Website : |
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Head Office : |
‘ |
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Factory 1 (API Facilities) : |
Alathur
Works Plot Nos.85-87, 98-100, 126-131, 138-151 and 159-164, SIDCO Industrial
Estate, Alathur, Kancheepuram District – 603110, Tamilnadu, India |
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Tel. No.: |
91-44-27446402/ 403/ 205/ 206/ 320 |
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Fax No.: |
91-44-27446321 |
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Factory 2 (API Facilities) : |
L-8 and L-9, MIDC Industrial Area, Waluj, Aurangabad District – 431136, |
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Tel. No.: |
91-240-2554992/ 993/ 994 |
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Fax No.: |
91-240-2554968 |
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Factory 3 (Formulations) : |
B3 and B4, B11 to B14, B-77 SIDCO Industrial Estate, Alathur,
Kancheepuram Dist. – 603 110, |
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Tel. No.: |
91-44-27156793/ 94 |
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Fax No.: |
91-44-27156816 |
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Factory 4 (Engineering Markets)
: |
Plot Nos. A-10, A-11, SIDCO Industrial Estate, Alathur, Kancheepuram
Dist. – 603 110, |
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Tel. No.: |
91-44-27446909 |
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Fax No.: |
91-44-27446657 |
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Factory 5 : |
Plot Nos. B3-B6, B11 and B14 |
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Factory 6 : |
Vinay Bhavya Complex, No.159A, I Floor, ‘A’ Wing, C S T Road, Kalina, Santacruz,
Mumbai – 400 098, Maharashtra, India |
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R and D Centre 1 : |
Plot No. 476 / 14, |
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Tel No.: |
91-44-24503137/ 1474/ 1477/ 2246 |
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Fax No.: |
91-44-24501396/ 1650 |
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R and D Centre 2 : |
Plot No. B21-B23 and B31-B33, |
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Marketing Office : |
Orchid
Helathcare |
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Tel. No.: |
007495-5141032/ 33 |
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Fax No.: |
007495-5141034 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. K.
Raghavendra Rao |
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Designation : |
Chairman and
Managing Director |
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Qualification : |
B.Com., PGDM
(IIM-A), ACS, AICWAI |
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Date of Appointment : |
13.07.1992 |
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Name : |
Mr. S. Krishnan |
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Designation : |
Executive Director and Chief Financial Officer |
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Name : |
Dr. M R Girinath |
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Designation : |
Director |
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Name : |
Dr. I. Seetharam
Naidu |
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Designation : |
Director |
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Name : |
Mr. Deepak Vaidya |
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Designation : |
Director |
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Name : |
Mr. T. A. Ganesh |
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Designation : |
Director (IDBI Nominee) |
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Name : |
Mr. Bharat D. Shah |
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Designation : |
Director |
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Name : |
Mr. R. Sankaran |
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Designation : |
Director |
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Name : |
Prof. Bala V Balachandran |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mrs. Bhoomijha Murali |
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Designation : |
Company Secretary |
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MANAGEMENT TEAM: |
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Name : |
Dr. B. Gopalam |
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Designation : |
Chief Scientific Office |
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Name : |
Ms Edna Braganza |
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Designation : |
Chief Operating Officer - API |
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Name : |
Mr. Madhusudan Rao |
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Designation : |
Chief Operating Officer – Global Generics |
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Name : |
Mr. M S Rangesh |
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Designation : |
Chief Human Resources Officer |
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Name : |
Mr.
S Mani |
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Designation : |
Head API - Process Research |
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Name : |
Dr.
R Buchi Reddy |
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Designation : |
Senior Vice President – Process Research |
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Name : |
Mr. P N Deshpande |
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Designation : |
Senior Vice President - Manufacturing |
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Name : |
Mr. K C Pathak |
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Designation : |
Senior Vice President - Manufacturing |
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Name : |
Dr. U P Senthil
Kumar |
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Designation : |
Senior Vice President – Process Research |
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Name : |
Dr. Shashank
Narayanrao |
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Designation : |
Senior Vice President – Quality Lulay Assurance (Formulations) |
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Name : |
Mr.
S Sridharan |
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Designation : |
Senior Vice President – IT and IE |
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Name : |
Dr.
J Surya Kumar |
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Designation : |
Senior Vice President-Formulation Development |
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Name : |
Mr. Deepak M B
Nayyar |
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Designation : |
Vice President - Domestic Formulations |
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Name : |
Mr. C R Dwarakanath
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Designation : |
Vice President – SH and E |
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Name : |
Mr. Gurmeet Singh |
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Designation : |
Vice President - Commercial |
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Name : |
Mr. V C Nagaraj |
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Designation : |
Vice President - Human Resources |
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Name : |
Mr. V S Padalkar |
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Designation : |
Vice President - Projects and Maintenance |
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Name : |
Mr.
K V V Raju |
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Designation : |
Vice President - Technical Operations |
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Name : |
Mr. Sampath
Parthasarathy |
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Designation : |
Vice President - Domestic Formulations |
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Name : |
Mr.
Srinivasa Rao Prerepa |
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Designation : |
Vice President - RA and QA (API) |
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BOARD
OF COMMITTEES : |
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Audit Committee : |
·
Mr. Deepak Vaidya, Chairman · Prof. Bala V Balachandran · Mr. Bharat D Shah · Mr. T A Ganesh · Dr. M R Girinath · Dr. I Seetharam Naidu |
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Compensation
Committee: |
· Mr. K Raghavendra Rao, Chairman · Mr. S Krishnan · Mr. A Ganesh |
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Share Transfer
and Investor’s Grievance Committee: |
·
Mr. R Sankaran, Chairman · Mr. S Krishnan · Mr. K Raghavendra Rao |
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Remuneration
Committee: |
·
Mr. Deepak Vaidya, Chairman · Mr. Bharat D Shah · Mr. A Ganesh · Dr. M R Girinath · Mr. R.Sankaran · Dr. I Seetharam Naidu |
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Allotment
Committee: |
· Mr. K Raghavendra Rao, ·
Chairman · Dr. M R Girinath · Mr. S Krishnan · Mr. R.Sankaran · Dr. I Seetharam Naidu |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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19,194,457 |
28.56 |
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3,646,324 |
5.42 |
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22,840,781 |
33.98 |
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Total shareholding of Promoter and Promoter Group (A) |
22,840,781 |
33.98 |
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(B) Public Shareholding |
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|
97,500 |
0.15 |
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63,880 |
0.10 |
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3,134,960 |
4.66 |
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9,181,598 |
13.66 |
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12,477,938 |
18.56 |
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13,342,559 |
19.85 |
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11,873,272 |
17.66 |
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6,038,145 |
8.98 |
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642,693 |
0.96 |
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627,393 |
0.93 |
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300 |
- |
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15,000 |
0.02 |
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31,896,669 |
47.45 |
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Total Public shareholding (B) |
44,374,607 |
66.02 |
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Total (A)+(B) |
67,215,388 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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3,226,688 |
- |
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|
3,226,688 |
- |
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Total (A)+(B)+(C) |
70,442,076 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 million BUSINESS DETAILS
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Line of Business : |
Manufacturer and Seller of Pharmaceutical Products and Bulk Drugs. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Regd/ Licensed |
Installed |
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Bulk Drugs and
Intermediates |
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Oral and Sterile |
MT |
1.025 |
1.016 |
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Dosage Forms |
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Vials |
Nos. Millions |
-- |
-- |
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Tablets |
Nos. Millions |
1579 |
576 |
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Capsules |
Nos. Millions |
225 |
225 |
|
Dry syrups/Powders |
Nos. Millions |
13 |
13 |
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Particulars |
Unit |
Actual Production |
|
Drugs - Oral and Sterile |
(in MT) |
1025 |
|
Electricity |
(Rs lakhs per
MT) |
5.02 |
|
Furnace Oil |
(Rs lakhs per
MT) |
1.54 |
|
Coal |
(Rs lakhs per
MT) |
0.95 |
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Others |
-- |
Nil |
GENERAL INFORMATION
|
No. of Employees : |
4500 (Approximately) |
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Bankers : |
· Allahabad Bank · Andhra Bank ·
Bank of ·
Bank of · Canara Bank ·
Central Bank of · ICICI Bank Limited · IDBI Bank Limited · Indian Bank · Punjab National Bank ·
State Bank of ·
Union Bank of ·
State Bank of · The Federal Bank Limited · Standard Chartered Bank · State Bank of Travancore |
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Facilities : |
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Banking Relations
: |
-- |
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Auditors : |
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Name : |
Statutory Auditors SNB Associates Chartered Accountants No. 12, 3rd Floor, Gemini Parsn Complex, 121,
Anna Salai, Chennai – 600 006,
Cost Auditors V. Kalyanaraman Cost Accountants No. 4 (Old No. 12), |
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Subsidiaries : |
·
Orchid Europe Limited, ·
Orchid Pharmaceuticals Inc., ·
Orgenus Pharma Inc., ·
Orchid Pharma Inc./ Karalex Pharma ·
Orchid Research Laboratories Limited, ·
Orchid Pharmaceuticals SA (Proprietary)
Limited, ·
Bexel Pharmaceuticals Inc., ·
Diakron Pharmaceuticals Inc., ·
Orchid Pharma |
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Joint Venture : |
·
NCPC Orchid Pharmaceuticals Company Limited,
(NCPC, |
CAPITAL STRUCTURE
As on 29.07.2011
Authorised Capital : Rs.1500.000 millions
Issued, Subscribed & Paid-up Capital: Rs.704.421
millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 Millions |
|
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|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
70442076 |
Equity Shares |
Rs.10/- each |
Rs.704.421
Millions |
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|
|
|
|
NOTE:
Of the above:
17376940 Equity shares of Rs10/- each were allotted as fully paid bonus
shares by capitalisation of reserves.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
704.421 |
704.421 |
704.420 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10635.825 |
9091.928 |
5997.730 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
11340.245 |
9796.349 |
6702.150 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13215.963 |
10217.592 |
16950.100 |
|
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2] Foreign Currency Convertible Bonds |
5235.848 |
6077.446 |
9017.440 |
|
|
TOTAL BORROWING |
18451.811 |
16295.038 |
25967.540 |
|
|
DEFERRED TAX LIABILITIES |
1945.557 |
2038.094 |
1294.920 |
|
|
Foreign Currency Monetary Items Translation difference Account |
0.000 |
176.147 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
31737.613 |
28305.628 |
33964.610 |
|
|
|
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|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
16065.358 |
14634.141 |
18663.470 |
|
|
Capital work-in-progress |
3198.294 |
2514.313 |
5457.860 |
|
|
Advance for Capital Items |
2798.121 |
2170.053 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1304.183 |
1235.652 |
1223.680 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5802.633
|
4025.273
|
7436.880 |
|
|
Sundry Debtors |
4811.061
|
7162.325
|
6590.360 |
|
|
Cash & Bank Balances |
2099.639
|
3249.090
|
415.200 |
|
|
Other Current Assets |
0.000
|
0.000
|
50.880 |
|
|
Loans & Advances |
4407.196
|
2889.279
|
1544.990 |
|
Total
Current Assets |
17120.529
|
17325.967
|
16038.310 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
3032.832
|
3064.782
|
7288.770 |
|
|
Other Current Liabilities |
2425.404
|
2911.375
|
|
|
|
Provisions |
3290.636
|
3598.341
|
965.730 |
|
Total
Current Liabilities |
8748.872
|
9574.498
|
8254.500 |
|
|
Net Current Assets |
8371.657
|
7751.469 |
7783.810 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
835.790 |
|
|
|
|
|
|
|
|
TOTAL |
31737.613 |
28305.628 |
33964.610 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
16633.449 |
22651.375 |
11914.400 |
|
|
|
Other Income |
76.011 |
98.000 |
901.540 |
|
|
|
TOTAL (A) |
16709.460 |
22749.375 |
12815.940 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials Cost |
7879.583 |
|
10332.830 |
|
|
|
Manufacturing, Selling and Other Expenses |
4649.635 |
6472.847 |
|
|
|
|
TOTAL (B) |
12529.218 |
14225.467 |
10332.830 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4180.242 |
8523.908 |
2483.110 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1157.650 |
2412.331 |
1551.860 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3022.592 |
6111.577 |
931.250 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1284.543 |
1511.038 |
1299.730 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
1738.049 |
4600.539 |
(368.480) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
143.213 |
1287.143 |
153.270 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
1594.836 |
3313.396 |
(521.750) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
585.915 |
283.222 |
815.750 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Excess provision of dividend and tax thereon of earlier year written
back |
(217.429) |
(24.735) |
NA |
|
|
|
Transfer to General Reserve |
1500.000 |
2000.000 |
NA |
|
|
|
Proposed Dividend |
255.752 |
887.959 |
NA |
|
|
|
Tax on Dividend |
41.489 |
147.479 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
600.939 |
585.915 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
7258.533 |
9762.036 |
NA |
|
|
|
Export of Services (Net of TDS) |
609.206 |
289.843 |
NA |
|
|
TOTAL EARNINGS |
7867.739 |
10051.879 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
4715.756 |
3099.750 |
NA |
|
|
|
Stores & Spares |
273.276 |
73.289 |
NA |
|
|
|
Capital Goods |
784.127 |
613.916 |
NA |
|
|
TOTAL IMPORTS |
5773.159 |
3786.955 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) (before
Extraordinary Items) |
|
|
|
|
|
|
-
Basic |
22.64 |
(78.82) |
NA |
|
|
|
-
Diluted |
18.71 |
(78.82) |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) (After
Extraordinary Items) |
|
|
|
|
|
|
-
Basic |
22.64 |
47.04 |
NA |
|
|
|
-
Diluted |
18.71 |
37.31 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3835.890 |
4194.920 |
4707.790 |
|
Total Expenditure |
2966.140 |
3135.830 |
3421.280 |
|
PBIDT (Excl OI) |
869.750 |
1059.090 |
1286.510 |
|
Other Income |
0.000 |
0.130 |
0.000 |
|
Operating Profit |
869.750 |
1059.220 |
1286.510 |
|
Interest |
307.470 |
400.670 |
494.530 |
|
Exceptional Items |
(10.730) |
(864.470) |
(490.680) |
|
PBDT |
551.550 |
(205.920) |
301.300 |
|
Depreciation |
353.050 |
359.760 |
373.610 |
|
Profit Before Tax |
198.500 |
(565.68) |
(72.320) |
|
Tax |
43.080 |
0.000 |
28.930 |
|
Profit After Tax |
155.420 |
(565.680) |
(101.250) |
|
Extraordinary Items |
0.000 |
800.000 |
0.000 |
|
Net Profit |
155.420 |
234.320 |
(101.250) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
9.54
|
14.56
|
(4.07) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.45
|
20.31
|
(3.09) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.24
|
14.39
|
(1.06) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.47
|
(0.05) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.40
|
2.64
|
5.11 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.96
|
1.81
|
1.94 |
LOCAL AGENCY FURTHER INFORMATION
|
Case Status: |
Pending |
|
Status of: |
APPLICATION |
|
Case No.: |
381 |
|
Year: |
2012 |
|
Petitioner: |
WOCKHARDT LIMITED |
|
Respondent: |
ORCHID CHEMICALS |
|
Pet’s Advocate: |
M/S. SHIVAKUMAR & SURESH |
|
Res’s Advocate: |
-- |
|
Category: |
NO CATEGORY MENTIONED Last Listed on: No Date Mentioned |
|
Case Updated on: |
January 31, 2012 |
|
Case Status: |
Pending |
|
Status of: |
WRIT APPEAL |
|
Case No.: |
88 |
|
Year: |
2012 |
|
Petitioner: |
UNION OF |
|
Respondent: |
M/S. ORCHID CHEMICALS |
|
Pet’s Advocate: |
M/S. T. CHANDRASEKARAN |
|
Res’s Advocate: |
M/S R. RAGHAVAN |
|
Category: |
NO CATEGORY MENTIONED Last Listed on: No Date Mentioned |
|
Case Updated on: |
February 17, 2012 |
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of
Establishment |
Yes |
|
2) Locality of
the firm |
Yes |
|
3) Constitutions
of the firm |
Yes |
|
4) Premises
details |
No |
|
5) Type of
Business |
Yes |
|
6) Line of
Business |
Yes |
|
7) Promoter’s
background |
Yes |
|
8) No. of
employees |
Yes |
|
9) Name of person
contacted |
No |
|
10) Designation
of contact person |
No |
|
11) Turnover of firm
for last three years |
Yes |
|
12) Profitability
for last three years |
Yes |
|
13) Reasons for
variation <> 20% |
-- |
|
14) Estimation
for coming financial year |
No |
|
15) Capital in
the business |
Yes |
|
16) Details of
sister concerns |
Yes |
|
17) Major
suppliers |
No |
|
18) Major
customers |
No |
|
19) Payments
terms |
No |
|
20) Export /
Import details (if applicable) |
No |
|
21) Market
information |
-- |
|
22) Litigations
that the firm / promoter involved in |
Yes |
|
23) Banking
Details |
Yes |
|
24) Banking
facility details |
Yes |
|
25) Conduct of
the banking account |
-- |
|
26) Buyer visit
details |
-- |
|
27) Financials,
if provided |
Yes |
|
28) Incorporation
details, if applicable |
Yes |
|
29) Last accounts
filed at ROC |
Yes |
|
30) Major
Shareholders, if available |
No |
HISTORY
Subject is a globally recognized, integrated pharmaceutical
company with core competencies in the development and manufacture of Active Pharmaceutical
Ingredients (APIs) and Finished Dosage Forms as well as in drug discovery,
which was incorporated on 1st July 1992 as a 100% Export Oriented Unit (EOU).
Subject has two manufacturing sites for APIs (at Alathur near Chennai and at
Aurangabad, near Mumbai) and three manufacturing sites for Dosage forms (at
Irungattukottai and Alathur in Chennai), besides two R and D centres (at
Sholinganallur and Irungattukottai, Chennai), all are state-of-the-art and have
several international regulatory approvals, including the US FDA and UK MHRA.
Subject's API facilities are ISO certified for their quality, environmental
management and operational health and safety systems. Subject has a Joint
Venture in
The Company commenced its operation in the year 1994, also in the same year;
Subject had entered into an agreement with SBD Laboratories Italy for
technology for keeping production in sterile condition. Subject became the
youngest Indian pharmaceutical company to be awarded the ISO 9002 certification
in 1997. During the same year of 1997, the company made a tie-up with
Technology Innovative Industry of Italy and also launched a range of new
products in the steriles category. In 1998, Subject, along with Cipla and
Ranbaxy, had received approval from the Drug Controller of India (DCI) for the
manufacture and export of sildenafil citrate, the main ingredient in Viagra,
the drug developed by Pfizer to treat human male erectile dysfunction; by the
way it had entered into the formulation market.
The Trophy for Excellent Performance in Exports was awarded to the company as
part of the National Export Awards Programme for the year 1998-99. The initial
range of products was launched by the company in 1999, which includes three injectable
cephalosporin formulations and two coprescription analgesics of the NSAID
category. These are Tax-O-bid (Cefotaxime injection), Cefogram (Ceftriaxone
injection), Orzid (Ceftazidime injection), Orchidol (Tramadol tablets) and
N-Limited (Nimesulide dispersible tablets. In the year 2000, Orchid had signed
a Memorandum of Understanding (MoU) with the Mumbai-based Ajanta Pharma Limited
to acquire the latter's bulk drugs manufacturing plant located at
During the year 2003, the company had acquired Mano Pharmaceuticals for a
consideration of Rs.260 millions and also in the same year received a formal
approval from US Food and Drug Administration for Cephalaxin. Subject signed a
pact with Par Pharmaceuticals Inc in 2004 to market oral cephalosporin
formulations in
In April 2008, Subject formed a wholly owned subsidiary Orchid Pharma Japan K K
(Orchid Japan) to foray into the high potential Japanese generics market and in
August of the same year 2008 received approvals of its marketing authorization
(MA) for piperacillin and tazobactam for injection for marketing in the EU
countries. The Company made a strategic research collaboration and license
agreement with Merck and Co in September 2008 focused on the discovery,
development and commercialization of novel agents for the treatment of bacterial
and fungal infections.
PERFORMANCE
During 2010-11,
The Company achieved a turnover and operating income of Rs.16633.400 Millions
compared to Rs 12498.300 Millions in 2009-10. The gross earnings before interest,
depreciation and taxes stood at Rs 4180.200 Millions for the current financial
year. The gross earnings for the previous year included the profit on sale of
undertaking and thus not comparable. After providing for interest expense of Rs
1157.600 Millions (Rs 2412.300 Millions previous fiscal) and depreciation of Rs
1284.500 Millions (Rs.1511.000 Millions previous fiscal), the profit before tax
of the Company was Rs 1738.100 Millions. The net profit after tax stood at
Rs.1594.800 Millions, compared to the net profit after tax of Rs 3313.400
Millions in the previous fiscal. However, figures for the previous year ended
March 31, 2010 are not comparable as they include the sale consideration
received by the Company on account of sale and transfer of its Injectable
formulation business to Hospira in March 2010.
PHARMACEUTICALS
BUSINESS
The key highlight
of their performance was the change in the business strategy where they moved
away from a supply push approach to a demand pull business model. This is
reflected in growing number of long-term contracts with large global
pharmaceutical companies. These long term business agreements provide clear
revenue visibility and allowed for improved business planning and management
which strengthened business profitability and liquidity. The API-supply
arrangement performed significantly well, registering higher than expected
business volumes. The newly acquired front-end marketing Company, Karalex
Pharma, LLC, in the
They expanded their
contractual business with Hospira to supply API for their Add Vantage vials
(patented technology) which will generate superior returns for the Company over
the medium term. They settled five Para IV products, out of which four are FTF
applications, which will allow them to market products in the
AWARDS
The Company was conferred with the following
awards.
• Greentech Gold
award 2011 in Pharmaceutical sector for outstanding achievement in safety
management given by the Ministry of Health and Family Welfare, Government of
India and Greentech Foundation for Orchid’s Alathur facility.
• Good Green
Governance (G3) award by the Ministry of Water Resources and Minority Affairs,
Government of India.
• Outstanding
Achievement in Environment Management in the Chemical Sector was conferred by
Greentech Foundation with a Silver Award 2010.
• Siemens
Ecovatives – IBN Live Award 2010 conferred in recognition of the Company’s
commitment to the environment.
• Bureau of Energy
Efficiency (BEE) Certificate of Merit on Energy Efficiency was received by the
Company’s Alathur API facility from the Ministry of Power, Government of India,
• Excellent Energy
Efficient Unit was conferred on the Company at the 9th Energy Efficiency Summit
2010 by the Confederation of Indian Industries.
• Southern Region
excellence award from Confederation of Indian Industries for meritorious
achievement in Environment, Health and Safety (EHS) for the year 2010.
• Dr R J Rathi
award for Environmental Pollution Control for the year 2010 in Industries in
Maharashtra for Orchid’s
OVERSEAS JOINT VENTURES
NCPC Orchid
Pharmaceuticals Company Limited,
The Company’s
50:50 joint venture in
SUBSIDIARIES
·
Orchid
Research Laboratories Limited,
The Company’s
Indian subsidiary, ORLL is engaged in proprietary, novel drug discovery
research in the following therapeutic areas namely, anti-infectives,
anti-inflammatory, anti-cancer, metabolic disorders and Central Nervous System
(CNS). New drug discovery and development activities are conducted in
state-of-the art laboratories spanning expertise in analytical research,
bio-informatics, medicinal chemistry, molecular biology, pharmacology, drug
metabolism and Pharmacokinetics, intellectual property management and quality
assurance.
The subsidiary
company has a robust pipeline of drug development projects to address unmet
medical needs. During the year, regulatory documents were filed for four
clinical candidates in
ORLL has built a
successful partnership with Merck and Company,
.
·
Bexel
Pharmaceuticals Inc.,
During the year,
Bexel conducted advanced basic studies on the lead molecule BLX-1002 internally
and has filed documents seeking consent to conduct expanded phase 2 clinical
trials with the regulatory authorities. Though, the molecule has exhibited
potential for multiple indications, the envisaged clinical trial will test
efficacy for a select indication. Further, basic mechanistic studies in animal
models conducted at a leading research institute have presented insights to
understand the mechanism of this molecule. Additional advanced studies in
animals and later in select patients is being planned to generate scientific
data backed mechanistic rationale for the molecule. The referred studies are
being planned in the subsequent quarters, while approval to conduct clinical
trial is awaited.
·
Orchid
Pharmaceuticals, Inc.,
Orchid
Pharmaceuticals, Inc., is a wholly owned
Orgenus Pharma,
Inc., is the entity that provides all business development and operational
services for the parent Company including the initiation of marketing alliances
with partner companies, filing of the Company's Drug Master Files (DMFs) and
Abbreviated New Drug Applications (ANDAs) as the Importer of record for the
Company with the FDA. It continues to represent the Company for all matters
relating to the review and approval of such filings by the FDA, and handling of
logistics and product importation into the
The Company formed
a new subsidiary namely Orchid Pharma, Inc., in the
·
Diakron
Pharmaceuticals Inc.,
The Company increased
its stake in Diakron Pharmaceuticals Inc. and holds 64.55% in the Company.
Orchid’s stake in Diakron has been a part of the original transaction which
includes direct investment and Master Services Agreement (MSA). The Company has
completed most of its MSA obligations to develop and supply clinical quantities
of API and extended release formulation. At present, phase 1 clinical studies
in patients have commenced in
·
Orchid Europe
Limited,
The Company’s
subsidiary in Europe namely Orchid Europe Limited (OEL) provides liaising
support to the parent Company and its customers in Regulatory,
Pharmacovigilance, Testing and Release, Retention of samples, Service Providers
and Business Development in
·
Orchid
Pharmaceuticals (
The Company’s
wholly owned subsidiary, Orchid Pharmaceuticals (
·
Orchid
Pharma
The subsidiary
Company in
A major
achievement was to commence the supplies to one of the top 5 Japanese innovator
Companies for their global business partners. Business discussions are on with
various Japanese Companies for supply of new products and the Company is
expected to make good progresses on both business and Regulatory fronts during
the current year.
MANAGEMENT
DISCUSSION AND ANALYSIS
THE PHARMACEUTICAL
SECTOR
Global
Pharmaceutical Market
The global pharmaceutical market was estimated at US$ 875 billion, of
which the
According to IMS Health, the global pharmaceutical market is expected to
grow 5-7% in 2011, compared to 4-5% in 2010. Growth will be driven by low-cost
factors, increasing prevalence of diseases and rising per capita income.
Global generics market: The global generics market was worth about US$
89 billion in 2009-10 and is expected to reach US$ 135 billion by 2015, growing
at a 10% CAGR.
The
The
Currently, Indian companies account for 15.4% (November 2010 IMS data)
of the
European generics market:
European generics represent around 50% in volume and 18% in value terms
of the total European pharmaceutical market. It is noteworthy that generic drug
makers spend over 7% of their turnover on development in the fields of bio-similar
medicines and difficult-to-make molecules (Source: European Generics
Association).
In 2010,
Moreover, with an ageing population and member states’ healthcare
budgets under pressure, generic medicines are now a key element of sustainable
healthcare. They save over 30 billion euros for chemical entities and 1.4
billion euros for bio-similar medicines annually. This not only strengthens the
European healthcare system, but also increases patient access to generic
medicines.
Japanese Generic Market:
This market was valued at more than US$ 7.3 billion in 2009. With low
penetration at about 6% in value terms, it is the world’s third-largest generic
market. Going forward, strong promotional activities and
Global CRAMs
The global pharmaceutical outsourcing market was estimated at US$ 67
billion in 2010 and is expected to grow at a 14% CAGR (2007–2012) to reach US$
85 billion by 2012.
OVERVIEW
• The Indian pharmaceutical
industry ranks third by drug volume (10% of global share) and fourteenth by
value - about US$ 24.8 billion (3% of global sales).
• The industry is
growing at around 1.5-1.6 times the country's GDP growth
• Industry growth
is propelled primarily by exports, expanding 18.7% CAGR to US$ 9 billion in
2009-10 (2005-2010). During the same period, the domestic market grew at 13.5%
CAGR to US$ 13.8 billion.
• Indian drug
makers exported their products to 220 countries, with the majority of shipped
products being formulations (56%), while bulk drugs accounted for just over
40%.
• The Indian drug
retail market surpassed US$ 10.42 billion (Rs 465000.000 Millions) till
November 2010, compared with the last corresponding period.
• The Indian
pharmaceutical market growth continues to be driven by formulations for chronic
therapies; acute therapies are expected to be largely driven by Tier-III cities
and rural penetration.
DEMAND DRIVERS
•
• Per capita
income in rural areas is expected to increase from Rs.19000 at present to
Rs.24000 by 2015, resulting in increased pharma spending.
• Semi-urban and
rural markets are expected to be the key growth drivers. According to McKinsey,
these markets will add 46 million households with high and medium affordability
levels.
• Indian drug
prices increased by only 1-2% annually over the last decade according to the
IMS; per capita income of the average Indian accelerated 16.7% between 2006-07
and 2010-11, making healthcare more affordable.
• Indian
government spending on healthcare increased 20% CAGR over the last four years
(US$ 6.7 billion in 2005-06 to US$ 11.7 billion in 2008-09). The Government of
India plans to cover 45% of
• The government
plans to establish a Rs 20 billion venture capital fund to promote drug
discovery and strengthen infrastructure in the pharma sector to boost local
innovation.
ESTIMATES
• Socio-economic
factors such as rising income levels, increasing affordability, gradual
penetration of health insurance and rise in chronic diseases will see the Indian
formulation market touch US$ 13.7 billion by 2013 based on a 12.2% CAGR.
• There are
immense opportunities for Indian generic firms in the
•
•
Indian CRAMS
sector
The opportunity
for CRAMS in
The Indian
pharmaceutical outsourcing providers possess capabilities to provide late stage
discovery (research chemistry) and drug development services. However, they are
in the process of building research biology skills to facilitate early stage
discovery.
The Indian
contract research industry grew at a 65% CAGR (2007-10) to reach around US$ 1.5
billion in 2010, outpacing the 15% growth in the global contract research
market over the same period (the global market stood at US$ 25 billion in
2010).
Contract
manufacturing operations are the largest contributors (more than 60%) to the
total CRAMS earnings. India has emerged as a master in value engineering
products, which are similar to patented products in a non-infringing manner,
strengthening its expertise to challenge patents in the US FDA, which was
perceived as a threat to global companies. However, the Indian Patent
Protection Amendment Act, 2005 addressed these threats and opened larger
opportunities for contract research operations from regulated markets. Credible
estimates suggest that the Indian CRAMS space is expected to grow at 15% over
the medium term.
INTEGRATED
OPERATIONS
Orchid commenced
its operations in 1994, and is one of the few, fully-integrated,
globally-present Indian pharmaceutical companies.
Orchid’s
state-of-the-art R and D and manufacturing infrastructure received approvals
from global regulatory uthorities and
enjoys marketing alliances with large globe generic majors, distributors and
agencies.
Orchid’s
multi-tier integration captures every dimension of the pharmaceutical value
chain.
• Segments: Active
Pharmaceutical Ingredients (APIs) to Finished Dosage Forms (FDFs)
• Products: Multi-therapeutic
• Markets: Regulated
and Emerging
• Value chain: Drug
discovery to delivery
MANUFACTURING OPERATIONS
API OPERATIONS:
Orchid has three
API manufacturing sites – two in
The API
manufacturing complex located at Alathur, Chennai, is among the largest
integrated antibiotic manufacturing facilities in
The API
manufacturing complex located in
These facilities
provide an ability to produce quality products in a world-class environment,
adhering to safe manufacturing processes and consequently establish a brand in
high-growth countries.
FORMULATION
OPERATIONS:
Orchid has three
facilities in
The oral
non-cephalosporin formulations facility at Alathur, Chennai, specialises in
manufacturing nutraceutical products.
High-value
products like anti-diabetics, cardio vasculars (CVS), anti-depressants and
anti-epileptics are manufactured in this facility, catering to emerging
markets. Built to GMP (Good Manufacturing Practices) standards (under WHO
guidelines), this facility constitutes packaging machinery, full-spectrum
quality control and microbiological services.
The oral
cephalosporin formulations facility located at Alathur, Chennai, manufactures oral
cephalosporin products, catering to domestic and emerging markets. The facility
has the capability to manufacture different dosage forms like tablets,
capsules, dry syrups and liquid orals. The facility conforms with GMP standards
as per WHO guidelines.
HIGHLIGHTS, 2010-11
API MANUFACTURING
Increased API production in line with supply arrangements entered into
with leading global pharmaceutical majors
• Increased supply of niche APIs to Hospira, based on new product
approvals
• Optimised process chemistry, leading to better yield management
FORMULATIONS
MANUFACTURING
• Introduced new products in the antibiotic and non-antibiotic segments,
based on specific product approvals
• Achieved higher production volumes in formulations, gaining a strong
presence in existing markets and forging an entry into new emerging markets
• Increased throughput of formulations based on a higher penetration in
emerging markets
UNAUDITED
CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER / NINE MONTHS ENDED DECEMBER 31,
2011.
(Rs.
in Millions)
|
Particular |
Three Months
Ended |
Nine Months
Ended |
|
|
31.12.2011 |
31.12.2011 |
|
|
Unaudited |
Unaudited |
|
|
|
|
|
(a)
Net Sales / Income from operations |
4821.032 |
13538.437 |
|
(b)
Other Operating Income |
147.474 |
579.558 |
|
Total
Income |
4968.506 |
14117.995 |
|
Expenditure |
|
|
|
a)
(Increase) / Decrease in stock in trade and work in progress |
(183.940) |
(732.683) |
|
b)
Consumption of raw materials |
2177.037 |
6844.701 |
|
c)
Purchase of traded goods |
92.664 |
349.147 |
|
d)
Employees cost |
490.289 |
1379.882 |
|
e)
Depreciation |
382.894 |
1116.179 |
|
f)
Other expenditure |
1102.171 |
3035.735 |
|
Total |
4061.114 |
11992.961 |
|
Profit
from operations before other income, interest and exceptional Items |
907.391 |
2125.034 |
|
Other
income |
0.000 |
0.130 |
|
Profit
before interest and exceptional Items |
907.391 |
2125.164 |
|
Interest |
495.555 |
1205.788 |
|
Profit after Interest but before
Exceptional Items |
411.837 |
919.376 |
|
Exceptional
Items |
(490.681) |
(815.941) |
|
Profit (+)/Loss(-) from
Ordinary Activities before tax |
(78.844) |
103.435 |
|
Tax
expense |
31.811 |
80.918 |
|
Net Profit (+)/Loss(-) from Ordinary
Activities after tax |
(110.655) |
22.517 |
|
Extraordinary items |
0.000 |
8000.000 |
|
Net
Profit (+) / Loss (-) for the year period |
(110.655) |
822.517 |
|
Paid
up equity share capital (Face value of Rs.10/- per share) |
704.421 |
704.421 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
|
|
|
Earning
per share (EPS) |
|
|
|
(a) Basic and diluted
EPS before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
(1.57) |
0.32 |
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
(1.57) |
0.32 |
|
Public
shareholding |
|
|
|
Number of shares |
47601295 |
47601295 |
|
Percentage of shareholding |
67.58 |
67.58 |
|
|
|
|
|
Promoters
and Promoters group Shareholding- |
|
|
|
a)
Pledged /Encumbered |
|
|
|
Number
of shares |
18260383 |
18260383 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
79.95 |
79.95 |
|
Percentage
of shares (as a % of total share capital of the company) |
25.92 |
25.92 |
|
|
|
|
|
b)
Non Encumbered |
|
|
|
Number
of shares |
4580398 |
4580398 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
20.05 |
20.05 |
|
Percentage
of shares (as a % of total share capital of the company) |
6.50 |
6.50 |
NOTE:
1. The above
unaudited financial results were approved by the Board of Directors at their
meeting held on Wednesday, February 08, 2012.
2. The Statutory
Auditors have conducted the limited review of standalone financial results of
the Company as required by clause 41 of the Listing Agreement.
3. The Company is
operating in single segment (i.e.) "Pharmaceuticals".
4. The Board of
Directors of the Company at its meeting held on 07th January 2012 has approved for
the merger of Company's wholly owned subsidiary viz. Orchid Research
Laboratories Limited with the company, Pending completion of necessary
formalities, no effect has been given in the books for the merger.
5. Exceptional
items for the quarter ended December 31, 2011 represents exchange loss on
FCCB's / FCTL’s of Rs.490.681 millions (Corresponding quarter- Gain of
Rs.36.603 millions). For the nine months ended December 31, 2011, exceptional
items represents FCTL/ FCCB's loss of Rs. 702.970 millions (Correspond nine
months- Gain of Rs.69.661 Millions) and one time closure expenses of Alathur
Plant of Rs. 112.971 millions (Corresponding Nine months- Nil) The Company had
exercised the option provided under the Amendment to the Companies (Accounting
Standards) Amendments Rules, 2006 dated March 31, 2009. The Ministry of Company Affairs vide notification
dated 29th December 2011 has extended the amortization of gains or losses
arising on reporting of Foreign Currency Monetary items over the balance period
of such long term asset / liability. Accordingly Exchange loss on Long term
foreign currency loans have been amortized over the balance period of such
loans. This has resulted in the charge for foreign exchange loss being lower b Rs.210.285 millions and Rs. 766.937
millions for the quarter ended December 31, 2011 and for the nine months ended
December 31, 2011 respectively. The amount remaining to be amortized in the
financial statement as at December 31, 2011 on account of exercising the above
option is Rs.766.937 millions (corresponding Nine months Rs. 115.922 millions)
6. Extraordinary
item -net of tax represents write back of certain provisions made for rebates
and discount as the amounts h.ave been fully realized. During the nine months
ended December 31, 2011.
7. The Company
received 8 complaints during the quarter ended December 31, 2011 from the
shareholders and no complaints were pending at the close of the quarter.
8. Previous period
figures have been regrouped wherever necessary.
FIXED
ASSETS:
·
·
·
Building
·
Plant and
Machinery
·
Factory Equipment
·
Laboratory
Equipment
·
Office Equipment
·
Furniture and
Fitting
·
Vehicles
WEBSITE DETAILS:
PROFILE:
Established in 1992 as an export-oriented unit (EOU), Subject is a vertically integrated company spanning the entire pharmaceutical value chain from discovery to delivery with established credentials in research, manufacturing and marketing. They today rank among the top 15 pharmaceutical companies in India and enjoy a multi-therapeutic presence across segments like anti-infectives, anti-inflammatory, central nervous system (CNS), cardio vascular segment (CVS), nutraceuticals and other oral and sterile products. The pharmaceutical solutions include active pharmaceutical ingredients (API), finished dosage forms, new drug discovery (NDD), novel drug delivery systems (NDDS) and contract research and manufacturing services (CRAMS). They are globally present across 70+ countries through alliances, joint ventures and partnerships with globally reputed majors.
The integrated business model enables them to cater to business opportunities throughout the value chain, from research to delivery of drugs across therapeutic segments. The niche product basket helps them maintain an edge over their peers in the markets where they are present. In the years to come, driven by a highly competent and motivated team, they will move from strength to strength in the key domains of API, global generics and drug discovery.
HISTORY AND MILESTONES
1992
· Subject is established on 1st July and obtains the Certificate for Commencement of Business.
· The company undertakes to set up a 100% EOU (export oriented unit) for manufacture of 90 TPA of cephalosporin antibiotics.
1993
· Goes public and issues shares, subscribed and paid-up.
1994
· Starts commercial production.
· Receives Good Manufacturing Practice (GMP) Certification.
1996
· Sets up a state-of-the-art formulation facility exclusively for manufacture of sterile cephalosporin formulations.
· Receives ISO Certification for Quality Systems.
· Commissions sterile lyophilisation plant.
1997
· Becomes the youngest Indian pharmaceutical company to receive the ISO 9002 Certification.
· Commissions the R and D Centre.
· Launches a range of new products in the sterile category.
· Becomes country's largest producer of oral and sterile cephalosporin.
· Is ranked among the top five producers of cephalosporin APIs.
1998
· Orchid Healthcare, the formulations division becomes operational.
1999
· Receives ISO Certification for Environment Management Systems.
2000
·
Acquires a manufacturing plant at
· Commissions plant for manufacturing nutraceutials.
2002
· Receives the ISO 9001:2000 Certification.
·
Sets up a joint venture alliance with a US-based
drug discovery research firm Bexel Biotechnology Inc,
·
Sets up an office in
·
Enters into a joint venture with NCPC to set up
a manufacturing joint venture in
2003
· Acquires domestic formulations company, Mano Pharmaceuticals and enters the chronic therapy segment.
·
Sets up an office in
· Inaugurates new Corporate Office.
· Commissions state-of-the-art Good Laboratory Practices (GLP) compliant pre-clinical facility to support drug discovery.
·
Signs an exclusive pact with Apotex to market
select sterile antibiotic dosage forms in
·
Formulation facilities receive the Therapeutic
Goods Administration (TGA) approval. Enables marketing range of cephalosporin
bulk drugs (sterile and non-sterile) and non-cephalosporin formulations in
· European Directorate for the Quality of Medicines (EDQM) and United Kingdom Medicines and Healthcare Regulatory Agency (UK MHRA) successfully inspects API facilities.
· Joint venture with Bexel moves its novel anti-diabetic molecule (BLX-1002) into human clinicals.
· Aurangabad API facility is awarded ISO 14001 and OHSAS 18001 Certification.
2004
· Joint venture with Bexel successfully completes Phase 1 (a) clinical trials on its lead anti-diabetic molecule (BLX-1002).
· Joint venture with Bexel successfully completes Phase 1(b) clinical trials on its lead anti-diabetic molecule (BLX-1002).
·
Signs an agreement with Par Pharmaceuticals to
market oral cephalosporin formulations in
· Enters into an agreement with Apotex Inc. for an exclusive marketing pact in the Canadian market.
·
Joint venture with Bexel successfully completes
Phase 2(a) trials on its lead anti-diabetic molecule (BLX-1002). Molecule
receives patent clearance from
· Enters into a marketing agreement with Par Pharma for non-penicillin and non-cephalosporin (NPNC) products.
·
Enters into an agreement with
2005
· Inks pact with Alpharma to market NPNC dosage forms in US and European markets.
· Enters into a marketing agreement with STADA Pharmaceuticals (USA) for NPNC products.
·
Receives GLP Certification. Becomes fifth
company in
· His Excellency, the then Hon'ble President of India Dr. A.P.J. Abdul Kalam visits Orchid's state-of-the-art formulations manufacturing complex located in the SIPCOT Industrial Estate, Irungattukottai, near Sriperumbudur.
· Medicinal chemistry labs are commissioned in the New Drug Discovery center.
·
Enters into an agreement with Mayne Pharma (now
Hospira) for marketing injectable antibiotic formulations in selected regulated
markets (US,
· Enters into a long-term Master Agreement with Pfizer for certain custom research and manufacturing services (CRAMS).
2006
·
Undertakes structural consolidation of global
discovery research. Acquires 100% of
· Cephalosporin API and FDF facilities receives UK MHRA approval.
· Signs deal with Biovitrum in drug discovery field.
2007
·
UK MHRA approves betalactam API facility located
in
·
Enters into a licensing and distribution
alliance with Actavis to market cephalosporin formulations in
· Forays into the Canadian generic formulations market. Receives Canadian Therapeutic Product Directorate (TPD) approval for two generic formulations.
· Enters into a marketing arrangement with a leading distribution house for oral cephalosporin and non-cephalosporin products.
·
Completes the sterile carbapenem API facility in
2008
·
Formulation facilities that manufacture a range
of cephalosporin and penicillin injections approved by the Medicines Control
Council (MCC),
· Completes the sterile carbapenem dosage form facility at Irungattukottai, Chennai.
· Receives the Piperacillin-Tazobactum dossier and ANDS approvals for Australian and Canadian markets.
·
Sets up a wholly owned subsidiary in
· Undertakes the development of a Novel Anti-coagulant Drug Candidate from Merck and invests in Diakron Pharmaceuticals Inc. (Diakron), a US-based drug discovery and development company, which has an exclusive license agreement with Merck for the compound.
· Enters into a research collaboration and license agreement with Merck to discover, develop and commercialise molecules essential for the treatment of bacterial and fungal infections.
2009
·
· Orchid inks business transaction agreement with Hospira to transfer the generic injectables formulations dosage form pharmaceutical business for USD 400 million.
2010
· Completes business transfer transaction for sale and transfer of its generic injectable finished dosage forms pharmaceuticals business to Hospira.
· Collaborates with Alvogen to license and market its eight oral non-antibiotic generic formulations.
·
Acquires US-based marketing company Karalex
Pharma, to strengthen its presence in the front-end
· Orchid redeems FCCBs aggregating to USD 25.69 million.
2011
· Cephalosporin API manufacturing facility at Alathur was successfully re-inspected by USFDA.
· Orchid received milestone payment from Merck on advancement of their research initiative to discover, develop and commercialize molecules essential for the treatment of bacterial and fungal infections.
·
Orchid Pharma successfully completed in
· Orchid's API Manufacturing facility at Alathur was awarded with OHSAS 18000: 2007 (Occupational Health and Safety Management System) certification.
· Orchid's API Manufacturing facility at Alathur was re-assessed and was certified with ISO 9001: 2008 (Quality Management System) and ISO 14001 : 2004 (Environmental Management System).
BUSINESS DESCRIPTION
Subject manufactures active pharmaceuticals ingredients (API) as 100%
export oriented unit, and manufactures and sells finished dosage forms
(formulations) in domestic and export markets. The Company’s product portfolio
consists of multiple therapeutic segments namely anti-infective (oral and
sterile), anti-inflammatory, central nervous system (CNS), cardio vascular
system (CVS) and nutraceutical products. The Company has three API
manufacturing sites, two in
BOARD OF DIRECTORS
Mr. K Raghavendra
Rao,
Chairman and Managing
Director
Mr. K Raghavendra
Rao has a Bachelors Degree in Commerce from
Mr. S Krishnan,
Executive Director –
Finance
Mr. S Krishnan has been associated with Orchid for around a
decade and has been heading the finance function in the last few years. He has
a rich and diversified experience of over 24 years in the field of finance and
Accounts. He possesses a degree in Bachelor of Science from the
Mr. T A Ganesh –
Nominee Director,
IDBI
Mr. T A Ganesh joined the Industrial Development Bank of India
Limited in 1978 at Mumbai. Worked in various departments of IDBI both
operations and administration at Mumbai,
Mr. Deepak Vaidya
Mr. Deepak Vaidya holds a commerce degree from the
Mr. R Sankaran
Mr. R Sankaran has a rich and diversified experience in the
area of financial services and business consulting spanning over 40 years
across a wide set of areas in the Capital Markets, Corporate Finance,
Institutional Relationships, Government and Regulatory Management, Corporate
Sector and Policy Influencing Public Forums. Shri Sankaran holds a Masters
Degree in Economics and Diploma in Business Management and Financial Management
from
Mr. Bharat D. Shah
Mr. Bharat D.
Shah is one of the founder members of HDFC Bank. He has served in various
organisations such as Pyrene Company Limited, Bradma India Limited, Technova,
Thomas Cook, Citibank and had been an Investment Advisor for Union Bank of
Prof. Bala V. Balachandran
Prof. Bala V. Balachandran is a PhD in Industrial
Administration and an MBA from
PRESS RELEASES:
ORCHID PHARMA RECEIVES
The Chennai-based global pharma major, Orchid Chemicals and
Pharmaceuticals Limited (Orchid Pharma) today announced that it has received
approval from the US FDA for its ANDA (Abbreviated New Drug Application) for
Naratriptan Tablets in the 1 mg and 2.5 mg strengths.
Naratriptan Tablets are the generic equivalent of GSK’s Amerge tablets.
ORCHID PHARMA RECEIVES
The Chennai-based global pharma major, Orchid Chemicals and Pharmaceuticals
Limited (Orchid Pharma) today announced that it has received approval from the
US FDA for its ANDA (Abbreviated New Drug Application) for Olanzapine Tablets
in the 2.5 mg, 5 mg, 7.5 mg, 10 mg, 15 mg and 20 mg strengths.
Olanzapine tablets are the generic equivalent of Eli Lilly’s Zyprexa®
tablets. For the twelve months ending December 31, 2011 the total sales for
this product in the
ORCHID PHARMA'S STRONG GROWTH TRAJECTORY CONTINUES IN Q3 FY12
HIGHER INTEREST
CHARGES IMPACT PROFITABILITY
Financial
highlights for Q3 FY12 (Earnings on consolidated basis)
· Revenue grows by 4%, Rs.4968.000 millions (US$ 93.6 million) in Q3 FY12 versus Rs.4785.000 millions (US$ 90.1 million) in Q3 FY11
· EBITDA of Rs.1290.000 millions (US$ 24.3 million) in Q3 FY12 versus Rs.1313.000 millions (US$ 24.7 million) in Q3 FY11
· Profit before Tax (before exceptional item loss of Rs.490.700 millions) of Rs.411.000 millions (US$ 7.8 million) in Q3 FY12 compared to Rs.719.000 millions (US$ 13.5 million) during Q3 FY11
· At the net level, the company registered a loss (after exceptional item loss of Rs.490.700 millions) of Rs.110.600 millions (US$ 2.0 million) in Q3 FY12 compared to Rs.566.200 millions (US$ 10.7 million) during Q3 FY11
The net profit of the
company for the 9-months ended December 31, 2011 stood at Rs.82.2 crore
representing a strong performance for the period. The net profit for H1 FY12
stood at Rs.37.65 crore.
Financial highlights
for 9-months ended December 31, 2011 (Earnings on consolidated basis)
· Revenue grows by 13% - Rs.14118.000 millions (US$ 265.9 million) in the 9-months ended December 31, 2011 versus Rs.12456.000 millions (US$ 234.6 million) in the corresponding period of last fiscal
· EBITDA growth of 9% - Rs.3241.000 millions (US$ 61 million) in the 9-months ended December 31, 2011 versus Rs.2963.000 millions (US$ 55.8 million) in the same period of last fiscal
· Profit before Tax (before exceptional item loss of Rs.816.000 millions/ extraordinary item gain of Rs.800.000 millions) of Rs.919.000 millions (US$ 17.3 million) in the 9-months ended December 31, 2011 compared to Rs.1163.000 millions (US$ 21.9 million) during the corresponding period of last fiscal
· Net Profit after Tax (PAT) (after exceptional item loss of Rs.816.000 millions / extraordinary item gain of Rs.800.000 millions) of Rs.822.000 millions (US$ 15.5 million) in the 9-months ended December 31, 2011 compared to Rs.974.000 millions (US$ 18.4 million) registered during the same period last fiscal
From the Chairman and Managing Director
"The operational performance of the company continues to register strong growth. Higher interest charges due to the hardening of interest rates coupled with the exchange loss on outstanding foreign currency loans have impacted the bottomline in the 3rd quarter. The exceptional item loss is a point-in-time restatement and with the rupee strengthening the company will have a write-back on this account", said Mr. K. Raghavendra Rao, Chairman and Managing Director, Orchid Chemicals and Pharmaceuticals Limited.
Performance of Key Business Segments
Global API
business
The Global API (Active Pharmaceutical Ingredients) business of
Orchid continued to witness strong growth backed by the long-term supply
arrangements with key, large global majors.
During Q3 FY12, the API sales of Orchid rose to Rs.3533.000 millions (US$ 66.5
million) as compared to Rs.3296.600 millions (US$ 62.1 million), registered
during the corresponding period of last fiscal.
Global Generics
business (Formulations)
Aided by key launches in the oral formulations space, the
Global Generic formulations business of Orchid maintained its growth momentum.
During the quarter ended December 31, 2011 (Q3 FY12), the formulations division
registered a sale (global, including
* 1
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.71 |
|
|
1 |
Rs.86.34 |
|
Euro |
1 |
Rs.69.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.