Boosted by strong vaccine sales, Panacea Biotec's revenues soared to Rs 437.82 crore, up by nearly 80 percent growth.
If the year 2004-05 was good for Panacea, then 2005-06 has been fantastic. Its biotech revenues soared by nearly 80 percent and stood at Rs 437.82 crore at the end of the 2005-06 fiscal compared to the 46 percent growth, with Rs 244 crore biotech sales registered during 2004-05. This phenomenal jump in revenue has been due to the brisk business in the vaccine segment. The total revenue grossed by the company was Rs 536.53 crore in FY 06 up from Rs 325.54 crore during the previous year.
Panacea has expanded its presence in the vaccine segment generating about Rs 404.76 crore. Its oral polio vaccine (OPV) has been the main revenue grosser, clocking Rs 393.90 crore, an 84 percent increase as compared to Rs 214 crore in the previous year. This year, in addition to the conventional trivalent oral vaccine, Panacea introduced the monovalent type 1 OPV also. In total, it supplied about 491 million doses of the OPV to UNICEF. The company is one of the 6 WHO pre-qualified suppliers of OPV across the globe and meets most of the Delhi state's requirement of OPV under the pulse polio program in India. Lauding its efforts, Dr David L Heymann, representative of the Director General for Polio eradication, WHO (Geneva) said, "The contribution of Panacea Biotec has brought the world to a polio-free world".
The new innovative combination vaccines namely Ecovac (DPT+HBsAg), Easy Four (DPT+HIB+HepB), Easyfive (DPT+Hib+HepB) introduced last year have also gained strength in the market. In FY 06, the sale of these vaccines fetched about Rs 11 crore as compared to Rs 2 crore in the previous year. Only the sale of rHepB vaccine has dipped marginally from Rs 98 lakh in 2004-05 to Rs 20 lakh in FY06. Its immunosuppressant products-Panimun Bioral, Mycept and Pangraf used in renal disease management did a total business of Rs 33.06 crore during the year.
Panacea is focusing on innovative R&D in a major way. It has invested about Rs 27 crore, about five percent of its revenue into research during the FY06. Several vaccines namely recombinant anthrax, JEV, Meningococcal and chimeric recombinant dengue are in the various stages of development. Its r-Anthrax vaccine has completed phase II human clinical trials while the tissue culture based JEV is in pre-clinical development stage. The company is designing new drug delivery systems related to anti-cancer, HIV, antibiotics, immunomodulators and vaccines.
Capacity building, in terms of infrastructure, has been a major focus at Panacea during this year. The company has three cGMP certified production units for pharmaceuticals and vaccines. Recently its pharmaceutical dosage form facility in New Delhi was shifted to a new location in Baddi,Himachal Pradesh, which complies with regulatory norms of the US FDA, MHRA, MCC, WHO and other regulatory bodies of the world. This plant set up with an investment of Rs 45 crore, will also produce anti-TB formulation in the future. A new Rs 40-crore vaccine plant at Baddi will be operational from April 2007. Overall, Rs 116 crore, about 22 percent of its revenue, has been spent on expanding its infrastructure.
Panacea's future path is clearly defined. Says Rajesh Jain, joint managing director, Panacea, "If a day comes, and there is a healthcare need in every house, the need will be met with a Panacea Biotec brand/service – in support of life."