Mumbai: Bangalore-based drugmaker Strides Arcolab expects to commercialise 25 new products in the US and Europe in 2011 that could boost its consolidated revenue by 25%, its group financial officer said on Monday.
“We have (US FDA) approval for 35 products of which ten were commercialised last year. The rest would happen this year,” T.S. Rangan told Reuters in a telephone interview.
The US FDA has issued its approval for the company’s new manufacturing facility for sterile injectables in Bangalore, the company said on 18 April.
“Since the Bangalore facility has received approval, its utilisation will significantly improve...leading to recovery of fixed costs,” he said.
Strides has a joint venture agreement with the world’s top drugmaker, Pfizer , to sell 22 products globally while it is developing 40 products in partnership with Sagent Pharmaceuticals .
“With the new facility getting approved, our US FDA-approved capacity will go up five times,” he said.
Earlier in the day, the drugmaker reported a 2.2% rise in consolidated net profit for January-March to Rs 40.7 crore on net sales of Rs 487 crore.
Strong growth ahead
“We expect to improve profit margins as our interest costs are going to reduce in the subsequent quarters,” he said, adding the Jan-March profit was hit because it consolidated its Brazilian operations on its books for the first time.
The company had said in February, its consolidated revenue for the financial year ending December 2011 was seen at Rs 2,200 crore.
Strides Arcolab signed agreement with BioChimico of Brazil in January to set up a joint venture company in Brazil for the Brazilian hospital market.
In March 2010, Strides acquired a penems and penicillin factory in Brazil from South Africa’s Aspen Pharmacare .
Strides expects approval from shareholders of Ascent Pharmahealth to buy out the Australian company by May, he said.
In December 2010, Strides Arcolab offered A$ 0.4 per share to buy the outstanding minority shares in Ascent Pharmahealth valuing the Australian company at A$100 million.
Shares of Strides Arcolab closed at Rs 395.50 on Monday, down 0.32% in a flat Mumbai market.