Shasun Chemical reports net profit for year
The Chennai-based company is seeking to build on its two active pharmaceutical ingredient (API) plants in India and one in the United Kingdom as it bids to head up India’s foray into biotechnology.
For the quarter ended March 31 2010 the company posted a net profit of Rs 10.06 crore ($2.1m). This is compared to the same period last year where a net loss of Rs 45.25 crore was reported. Shasun attributed these figures to improvements in its active pharmaceutical ingredients (APIs) and finished dosage businesses.
This figure translated into a consolidated net profit for the year ended March 31 2010. Shasun posted a gain of Rs two crore that compared favourably to the net loss of Rs 141.39 crore in 2009.
Business units
Net sales were buoyed by the company’s continued efforts in contract & custom pharmaceutical manufacturing. Its offerings in custom synthesis and impurity profiling demonstrate where its strengths lie as it posted consolidated net sales of Rs 784.07 crore for the year ended March 31, 2010.
The corresponding period of last year saw the company post net sales of Rs 750.83 crore, an increase of 4.2 per cent.
Shasun has previously stated that on a consolidated basis, API and its intermediate business contributed 50 per cent of the turnover of the company. On a standalone basis, they contributed 70 per cent of the total sales.
Indian biotech
The figures and business strategy reflect a marked growth in the company and are indicative of the events occurring in India. With an abundance of government initiatives and biotech parks under construction in cities like Hyderabad, Bangalore, and Pune, India aims to be the hub of biotechnology activity in a similar vein to that of Singapore.
Shasun’s current API portfolio consists of ibuprofen, ranitidine, nizatidine and gabapentin among others.
In July 2009, Shasun launched streptokinase, a fibrinolytic drug, used for the treatment of heart attacks. Streptokinase, a biosimilar, is the first line of defense in almost all cases of heart attacks.
Currently, the biotech division has made considerable investments in doubling its capacity and will be able to manufacture Streptokinase bulk API equivalent to approximately 200,000 vials a year.
Two other biosimilars are in the pipeline and are expected to be launched in the next financial year.
