BackHCQ hype in pandemic leads to ₹259 crore additional sales for Ipca Lab in Q1
During April-June, the drugmaker recorded strong growth in sales globally as leaders like US president Donald Trump and his Brazilian counterpart Jair Bolsonaro endorsed HCQ's covid-19 treatment capacities
PremiumNEW DELHI: Ipca Laboratories Ltd, among the world’s largest manufacturers of hydroxychloroquine, garnered ₹259 crore in additional sales from the drug in the April-June quarter, given talks about the anti-malarial drug’s effect in treating covid-19.
“Overall, hydroxychloroquine and chloroquine business related to covid what we have done in Q1 is almost around ₹259 crore on consolidated basis and that has also contributed significantly to margins overall for the company. This is the incremental business from last financial year particularly on account of covid," Ipca Laboratories' managing director A.K. Jain said in an investor conference call.
During April-June, the Mumbai-based drugmaker recorded strong growth in sales globally as world leaders like US president Donald Trump and his Brazilian counterpart Jair Bolsonaro endorsed the anti-malarial drug's covid-19 treatment capacities.
The resulting stellar sales of HCQ helped Ipca Laboratories’ consolidated net profit for the quarter soar three-fold to ₹454 crore, while its topline grew 45% to ₹1,497 crore. The surge in revenue was largely seen in formulation export and active pharmaceutical ingredient sales.
The hype was also fueled by a research led by Didier Raoult of the University of Marseille and published in the International Journal of Antimicrobial Agents. The journal is run by the International Society of Antimicrobial Chemotherapy, which had criticised the research later, citing lack of randomization of patients and the process followed to ensure their safety.
Due to the promise shown by hydroxychloroquine, the US Food and Drug Administration in March had issued an emergency use authorisation for the drug to treat covid-19. It had also partially lifted the over three-year import ban on the Ipca Lab’s plants at Ratlam and Pithampur in Madhya Pradesh which were manufacturing the active pharmaceutical ingredients and formulations of chloroquine and its safer derivative hydroxychloroquine.
However, since then, various other studies have proven that the drug was not effective in treating the viral disease, and could potentially even increase the risk of heart attack for patients who had cardiac issues, especially when used with antibiotic azithromycin. The reason was also cited when US FDA retracted its EUA on the drug in mid-June and then last month reimposed its import alert on the company.
Jain said HCQ sales were a one-time boost for the company. With the hype waning, after various clinical trials showed the drug did not provide any significant benefit, the company now expects sales to ease to earlier levels.
“We have not seen that kind of incremental business related to that (covid) coming from Europe and other geographies, except some business is currently happening in Latin American market. Also, people bought higher quantities in the first quarter itself and they are still carrying the stock. So I don’t foresee any additional business in these geographies," Jain said.
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