The Hindu Business Line : Matrix Labs net profit drops for full year, Q4

Hyderabad May 24 Matrix Laboratories Ltd (MLL), the Hyderabad-based pharma company which sold out a majority stake of 71 per cent to Mylan Laboratories of US, has registered a drop in net profit both for the fourth quarter and full year of 2006-07, compared to the earlier year.

The net profit for the last quarter ended March 31, 2007 stood at Rs 27.5 crore (Rs 36.2 crore). Net sales of Rs 437.4 crore (Rs 392.8 crore) for same period was a growth of 11 per cent, according to a press release from MLL.

For the full year, the company recorded net sales of Rs 1,648 crore (Rs 1,158.6 crore), a jump of 42 per cent, while the net profit at Rs 76.3 crore (Rs 199.2 crore), dropped substantially.

Reason for slide

The lower-than-expected earnings from its subsidiary Docpharma, increased R&D spend, higher interest, depreciation and taxes were identified as important reasons for this slide in profits by the company.

During fiscal 2007, Docpharma's results were lower than expected due to price erosion for key products in the pharmaceutical business, initial costs incurred for the entry into new markets as well as lower margins in the hospital business, the release said.

The CEO of MLL, Mr Rajiv Malik, said: "Becoming a subsidiary of Mylan has opened up new opportunities for Matrix and the recent acquisition of Merck's Generic business by Mylan provides additional opportunities for the company. These developments would provide global scale for achieving very efficient utilisation of R&D, manufacturing and other resources of the company".

Filings

During FY07, the company has made 28 Regulatory Filings. Of this, 12 ANDAs (Abbreviated New Drug Applications) have been filed with USFDA (US Food & Drug Administration), six with the European regulatory agencies and 10 with WHO (World Health Organisation).

During the year under review, 25 US Drug Master Files (DMFs) and 12 EU DMFs were filed. As on March 31, 2007, the total US DMF filed by Matrix Laboratories and its subsidiaries and associates is at 111.

During FY07, the company filed 22 patents taking the total tally of patents filed to 76.

US FDA audits of API manufacturing facilities — Unit VIII at Visakhapatnam, Unit I at Kazipally, and FDF manufacturing facility at Nashik — were completed. With this, all API plants of the company located in India are approved by USFDA

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