Bangalore, India, Oct 27, 06: Strides Arcolab Limited [NSE: STAR, BSE: 532531] today announced its
unaudited financial results for the third quarter ended 30th September 2006.
Key Revenue Highlights
- Consolidated sales increased to Rs.1826 million; 2% over corresponding year Q3FY05 at
Rs.1387 million and 9% on a sequential quarter basis.
This is the highest revenue base the company has achieved in any quarter.
- EBITDA margins at 18.18% moved from 13.21% in the previous quarter.
While EBITDA margins grew, margins were affected due to the following attributable factors:
- Adverse forex impact of Rs.28 million;
- Increase in R&D expenditure over income due to accelerated clinical and regulatory strategy;
- US operations slowed down due to plant upgrades resulting in loss of Rs.45 million.
- On a positive note the Mexican operations turned around smartly in the quarter consequent to launch of its first generic approval for Pravastatin – a cholesterol lowering drug.
Outlook
Commenting on the results, Arun Kumar, Vice Chairman and Group CEO of Strides Arcolab, said “the
financial performance for Q3 FY06 shows a significant upswing in our core businesses while challenges
identified in the earlier guidance are being addressed.
The capacity constraints have since been addressed and the company has geared up significantly to
meet increasing demand from its Oral Dosage Form facilities.
Corporate Developments
- Board approves acquisition of 33% residual interest in Strides Latina
The Board has approved a recommendation to acquire 33% residual interest in Strides Latina
from its local partners at US$ 66.67 million. This will amount to a maximum payment of US$ 17
million in cash over 3 years and the balance US$ 49.67 million in fully convertible bonds that will
convert at Rs.400 per share at the end of 5 years and is subject to shareholders and other
regulatory approvals.
- We strongly believe that the proposal to acquire the residual interest in our Latin American
operations (while partners continuing to play a significant role in its day to day operations), will
enable Strides to increase its business in a very significant market where it is already India’s
largest pharmaceutical company.
- Strides completed the acquisition of Drug House of Australia (Asia) Private Limited, Singapore
[DHA]
- ANDA Approvals
The company received two ANDA approvals for Stavudine and Nevirapine under the expedited
review provisions of the President’s Emergency Plan for Aids Relief [PEPFAR] program from the
USFDA.
- ANDA Fillings
The company filed 10 ANDA / NDA’s with the USFDA in Q306 taking its total filings with the FDA
to 21.
- The company concluded a strategic Anti Retro Viral voluntary licensing deal with Gilead Sciences
Inc. This agreement provides for the manufacture and distribution of a new generation first line
therapy in over 90 countries under the Gilead Access Program.
About Strides Arcolab Limited
Strides, listed on the Bombay Stock Exchange Limited (532531) and National Stock
Exchange of India Limited (STAR), is one of India’s largest exporters of branded
generic pharmaceutical products. Strides manufactures pharmaceuticals formulations
in various dosage forms, including capsules, tablets, liquid injectables and is one of
the world’s top five manufacturers of softgel capsules. Strides also has the only
globally dedicated soft gel facility for hormones. In addition, Strides undertakes
contract research and the manufacturing of specialty chemicals for various
multinational companies. Strides has a major presence in various developing
countries such as Africa, Latin America and Asia as well as in developed markets
such as the US, Canada and part of Europe. Strides is one of the largest Indian
supplier of institutionally funded aid projects and is an approved supplier to the
Global Drug Facility, UNICEF, and MSF amongst others.
Strides has 13 manufacturing plants spread across the US, Brazil, Mexico, Italy,
Poland and India. This broad manufacturing network facilitates partnering with
global organizations ranging from UNICEF and WHO-Global Drug Facility to
European and American pharmaceutical multinationals and also private labelers
and distribution chains. Strides has product registrations in over 37 countries around
the world and has earned ISO 9001, ISO 14001 and GMP accreditations including
USFDA. Strides employs approximately 1,700 people across the globe. Strides also
has a marketing presence in over 50 countries.
For further information, please contact
Mr. Arun Kumar
Vice Chairman and Group CEO
or
Mr. K R Ravishankar
Executive Director
Strides Arcolab Limited
Tel : 080-6658 0110
Fax : 080 6658 0200
Adfactors PR, Mumbai
Tel : 022-2281 3565
Fax : 022 – 2281 35
DHA is a wholly owned subsidiary of Haw Par Healthcare Limited, [Haw ParHealthcare] and is a leading player of branded generic pharmaceutical products in Singapore with presence in Malaysia and Hong Kong.
DHA will spearhead Strides AsiaPac and China entry strategies and offers anexcellent opportunity to create a regional brand in Asia and China in thelong term.
Transaction is EPS accretive on acquisition.
Bangalore, India: Singapore, 31 Aug 2006:
Strides Arcolab and Haw Par Healthcare, Singapore have today entered into ashare purchase agreement, which provides for Strides Singapore Pte Ltd (anindirect wholly owned subsidiary of Strides Arcolab Limited) to acquire 100% ofDHA for a consideration of approximately S$19.7m, which was arrived at on awilling-buyer and willing-seller basis. Transaction is subject to customary closingconditions and is expected to complete within September 2006.
Commenting on the acquisition Arun Kumar, Vice Chairman and Managing DirectorStrides Arcolab said:
“The signing of the share purchase agreement with Haw Par Healthcare is the keystrategic initiative for Strides to continue to grow through regional strategiesalongside global partnerships.
”Established in 1969, DHA is one of the largest generics pharmaceuticalmanufacturer in Singapore. It is also an important pharma player in Malaysia andHong Kong amongst other markets. For the financial year ended December 2005,DHA posted sales revenue of S$16.36 million and PAT of S$2.72 million.
DHA has a GMP certified manufacturing facility in Jurong, the industrial heartlandof Singapore which manufactures a range of pharmaceutical products.About Strides Arcolab Limited
Strides, listed on the Bombay Stock Exchange Limited (532531) and National StockExchange of India Limited (STAR), is one of India’s largest exporters of brandedgeneric pharmaceutical products. Strides manufactures pharmaceuticals formulationsin various dosage forms, including capsules, tablets, liquid injectables and is one ofthe world’s top five manufacturers of softgel capsules. Strides also has the onlyglobally dedicated soft gel facility for hormones. In addition, Strides undertakescontract research and the manufacturing of specialty chemicals for variousmultinational companies. Strides has a major presence in various developingcountries such as Africa, Latin America and Asia as well as in developed marketssuch as the US, Canada and part of Europe. Strides is one of the largest Indiansuppliers of institutionally funded aid projects and is an approved supplier to theWorld Bank, the African Development Bank and UNICEF, amongst others.
Strides has 13 manufacturing plants spread across the US, Brazil, Mexico, Italy,Poland and India. This broad manufacturing network facilities partnering withglobal organizations ranging from UNICEF and WHO-Global Drug Facility toEuropean and American pharmaceutical multinationals and also private labelersand distribution chains. Strides has product registrations in over 37 countries aroundthe world and has earned ISO 9001, ISO 14001 and GMP accreditations includingUSFDA. Strides employs approximately 1,700 people across the globe. Strides alsohas a marketing presence in over 50 countries.
For further information, please contact:
Mr. Arun Kumar
Vice Chairman & Managing Director Or
Mr. K R Ravishankar
Executive Director
Strides Arcolab Limited
Tel : 080-6658 0110 Fax : 080 6658 0200
Ms.Harini Iyengar / Mr.Manish T
Adfactors PR, Bangalore
Tel: 080 4113 3062 / 64Fax: 080 4113 3059
August 29, 2006 Strides Arcolab today announced that it has received tentative approval from the UnitedStates Food and Drug Administration for Stavudine Capsules USP, 30mg and 40mg. This is the company’s second ANDA approval. This application was reviewed under the expeditedreview provisions of the President’s Emergency Plan for Aids Relief [PEPFAR] program.
Arun Kumar – Vice Chairman and CEO, Strides Arcolab said “We are pleased to receive thissecond ANDA tentative approval from USFDA for Stavudine Capsules. This approvalrepresents significant opportunity for Strides to commercialize Stavudine– a key anti-retroviral in the treatment of AIDS”.
Stavudine is in the class of drugs called nucleoside analog reverse transcriptase inhibitors[NRTIs], which helps keep the AIDS virus from reproducing. This ARV drug is used incombination with other ARV agents for the treatment of HIV-1 infection.
The company has 3 applications under review with the US FDA under the same program andanother 4 in the pipeline for submission. The company already has 6 WHO pre-qualifiedARVs which are supplied to more than 37 countries in Africa and Asia.
The company is also partnering with the Clinton Foundation to ensure availability ofaffordable quality generic ARVs in least developed countries.
About Strides Arcolab
Strides Arcolab Limited, listed on the Bombay Stock Exchange Limited (532531) and NationalStock Exchange of India Limited (STAR), has a global presence in more than 50 countries. Thecompany has factories in India, USA, Poland, Italy, Brazil and Mexico. The Company suppliespharmaceuticals to a number of geographic locations including Latin America, Europe, SouthEast Asia, Africa and Australia, amongst other markets. The Indian manufacturing facilities forthe regulated markets are approved by all major regulatory bodies such as USFDA, MHRA,TGA and MCC.
For further information, please contact:
Mr. Arun Kumar Managing Director
Ms.Harini Iyengar / Mr.Manish T
Adfactors PR, Bangalore
Mr. K R Ravishankar
Executive Director
Strides Arcolab Limited
Tel: 080-6658 0110 Fax: 080 6658 0200
Tel: 080 4113 3062 / 64 Fax: 080 4113 3059
