(Photo Courtesy: www.exhibitionworld.co.uk)
Commenting on the results, Mr Arun Kumar, founder and group CEO of Arcolab's stated "We had a steady quarter across our businesses with strong US filings of our niche products. We are particularly delighted with the ramp-up of Anti-Malarial business and our recent partnerships with Gilead."
Corporate Updates
• Scheme of Amalgamation with Shasun Pharmaceuticals Ltd.
o Received No Objection from NSE and BSE
o CCI and FIPB approvals awaited
o Application filed with the Hon'ble High Courts of Bombay and Madras seeking directions to convene a Shareholders' meeting
• Singapore's Economic Development Board grants International Headquarter Status to Strides Pharma Global Pte. Ltd., Singapore
Performance Highlights
• Adjusting for one time revenues in Oct-Dec FY13-14, Q3 FY15 Revenues grew by 19%
• Revenue growth driven by:
o First full quarter of Raricap in our Brands India business
o Commencement of Anti-Malarial supplies
• Q3 FY15 EBITDA grew by 10% to INR 664 Mn against INR 605 Mn in Oct-Dec FY13-14
o Increase in R&D spend with 4 US filings during the quarter
o Significantly lower Profit Share recognized on Vancomycin, pending reconciliation of chargebacks and other costs with the partner
• YTD Dec FY15 Revenues grew by 10% and EBITDA grew by 32%
Pharma R&D and Regulatory Update
• Continued US FDA approval status for Oral Dosage Facility at Bangalore
• 4 Product Filings with USFDA during Q3 FY15
• Received USFDA Product approval for Calcitriol Softgel Capsules (Market Value ~USD 50 Mn)
• Continued niche product approvals in Europe
• Net R&D spend at INR 109 Mn during Q3 FY15, against INR 57 Mn in Q2 FY15
• Net R&D spend at INR 204 Mn during YTD Dec FY15, against INR 120 Mn in Apr-Dec FY13-14
Biotech
• Net R&D Spend for Q3 FY15 at INR 10 Mn and at INR 53 Mn during YTD Dec FY15
• Commenced construction of Multi Product Biologics facility at Bioxcell Biotechnology Park, Johor, Malaysia
• Revenue Composition by Business - Global Pharma
Regulated Markets
• Revenues at INR 966 Mn in Q3 FY15, representing 30% of the total revenues
• Revenues decreased to INR 966 Mn against INR 1,093 Mn in Q2 FY15, on account of lower profit share recognized during the quarter
• Successfully launched 2 new products in the US - Buspirone Hydrochloride Tablets and Tacrolimus Capsules
Institutional Business
• Revenues at INR 1,284 Mn in Q3 FY15, representing 39% of the total revenues
• Revenues increased by 58% to INR 1,284 Mn against INR 813 Mn in Q2 FY15, driven by Anti-Malarial supplies in the quarter
• Collaboration with Medicines for Malaria Venture (MMV) for the development of rectal artesunate for pre-referral treatment of children with severe malaria
• Partnership with Gilead Sciences Inc. to manufacture and distribute Tenofovir Alafenamide (TAF) based HIV treatments in 112 developing countries
• Licensing Agreement of Hepatitis C with Gilead expanded to include Investigational Pan-Genotypic Agent
Emerging Markets
• Revenues at INR 1,011 Mn in Q3 FY15, representing 31% of the total revenues
• Revenues steady at INR 1,011 Mn against INR 1,022 Mn in Q2 FY15
• Successful integration of the Raricap business enabling pan India presence
