Cadila Healthcare Ltd (Zydus Cadila) on Tuesday said its net profit increased by 15 per cent and sales by 11per cent in the first quarter of 2011-12, ended June 30, compared to the corresponding quarter last fiscal, on account of rise in formulation business abroad.

While the sales were Rs 1,189 crore (Rs 1,068 crore) on a consolidated basis, the net profit stood at Rs 230 crore (Rs 199 crore), a company statement said.

Without considering the dossier income, the growth in net profit was 19 per cent.

In the domestic formulations market, the company launched 20 new products, including line extensions, of which six products were the first to be launched in India.

During the quarter, the formulation business in Europe increased 22 per cent, in Brazil 21 per cent and in Japan 29 per cent.

On Tuesday, the company's share price at BSE closed 2.34 per cent down at Rs 938.25.

US acquisition

Also, Zydus Pharmaceuticals USA, Inc., through its subsidiary Zynesher Pharmaceuticals USA LLC, entered into an agreement to acquire the assets of the US-based pharmaceutical company, Nesher Pharmaceuticals, Inc.

Through this acquisition, the company aims to gain access to a difficult-to-develop product pipeline, expertise and infrastructure that will add value to its operations in the US.

During the quarter, the Group received approval from the USFDA for its IND application of ZYGK1, an orally-administered small molecule glucokinase activator.

The company will now initiate Phase I clinical trials for ZYGK1 as it has received the USFDA approval to conduct the trial.

Bayer Zydus Pharma, the company's 50:50 joint venture with Bayer Schering Pharma commenced commercial operations in India during the quarter, the company added.

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