The Hindu Business Line : Dabur Pharma profits up on global cancer drug sales

Advertisement

New Delhi Jan. 23 Higher sales in the overseas markets, which account for half of Dabur Pharma's profits, have helped the company to achieve a net profit growth of 18 per cent.

Declaring its results for the quarter ending December 31, 2006, the company announced a net profit of Rs 8.93 crore against Rs 7.56 crore for the corresponding period in the previous year.

The growth comes primarily from its oncology or anti-cancer drugs business in overseas markets, making the company clock a net turnover increase of 17.7 per cent, to Rs 83.6 crore for the third quarter against Rs 71 crore for the corresponding period the previous year. Operating margins grew at 16.7 per cent for the quarter.

However, domestic business grew only at 8.5 per cent — a figure that the Chairman, Dr Anand Burman, claims is reflective of the market trends, which have been on stable growth rate for the last few quarters.

For the nine months ended, the company's net profit grew by 22.78 per cent to Rs 22.5 crore and sales rose by 20.71 per cent growing to Rs 262.5 crore.

Overseas product launch

For 2007, expanding business in the US and the UK would be priority for the company, said Dr Burman announcing the launch of Dabur's second product for the US market in February.

The company was also open to R&D and in-licensing associations, and has approval for three products that it hopes to launch in the US and Europe this year.

While preferring to sell its products on its own everywhere else, Dabur's strategy for France is slightly different.

According to Mr Ajay Vij, COO, regulations have created an environment different from the rest of Europe, forcing Dabur to possibly seek out a French partner.

During the quarter, Dabur Pharma also launched a novel nano-technology based drug delivery system for paclitaxel, which it plans to use in the development of other drugs, and which will soon undergo trials for the Thai market.

It had also acquired a sales and distribution company, Biosciences Co in Thailand strengthening its position in the South-East Asian markets.

While maintaining that focus would primarily remain on oncology, Mr Burman said that the company had no plans to sell its non-oncology business.

During the year, the company had launched only three new non-oncology products.