Neuland Laboratories Limited today announced an impressive growth of 30% in its net profit and a 14 per cent jump in its turnover for the 4th quarter (Jan – Mar 2008) of the financial year 2007-08.

The company reported net sales of Rs.64.19 crores for the quarter ended March 31, 2008, as against Rs. 54.8 crores during the same period in the previous fiscal, a growth of 17 percent.Riding on the growth the company announced its thrust on contract research, doubling the capacity for API and foray into Japan. The company plans to double its manufacturing capacity for API. The current production capacity is around 1000 tonnes of API per year

The net profit for the year stood at Rs.11.35 crores up by about 2.32 crores compared to Rs 9.038 crores for the previous year, an increase of 25.58 per cent. The Company’s Gross turnover for the year stood at Rs.230.22 crores as against Rs 217.46 crores last year up by 12.76 percent. The Net Sales improved from Rs.202.17 crores to Rs.217.70 crores. The Board has recommended a dividend of Rs 2.5 per share following in the same line as previous year.

Dr. D R Rao, Chairman & Managing Director, Neuland Laboratories ““The financial results is a reflection of our focused plans of being profitable and giving more value to our investors, besides growing our client base as the company has always had strong business growth initiatives. Our product portfolio, financial strength, and demonstration of superior overall performance is reflected in our results and will continue to do so despite the tough market conditions and the weakening dollar.”

Neuland Laboratories net profit for the fourth quarter ended 31 Mar 2008 was Rs 3.20 crores as compared to Rs.2.47 crores in the corresponding quarter of the last financial year. The company reported a turnover of Rs.64.81crores during the fourth quarter of this fiscal as against Rs. 56.81 crores in the corresponding quarter last year.

The Company achieved earnings per share of Rs.5.93 for the quarter as against Rs.4.57 in the corresponding period of the last financial year an increase of 30 percentage

Dr Rao said “Neuland’s objective is become an end to end service provider for the pharmaceutical industry. From our current capabilities of API manufacturing and Contract Research services, we want to expand our capabilities into areas of Clinical Research and subsequently other areas of drug discovery support services such as Formulation development, Preclinical Research, Bioanalytical studies, etc. Drug Discovery support, by itself is a large initiative. By mid-2008, we may look at new opportunities within this space and also look at building another manufacturing facility, if need be.”

Neuland is currently developing two new businesses-
(i) Contract Research services- this is a Chemistry-based services closely related to the API manufacturing business. The facilities are housed in our R&D center. For this business, Neuland is looking at a diverse range of therapeutic areas (excluding oncology drugs), mostly for customers based in North America and Europe.

(ii) Clinical Research services- this is the business being developed as a JV with Cato Research Inc., to conduct clinical trials (Ph 2 and Ph 3 ) in India for Cato Research worldwide. The therapeutics areas and countries would be diverse, in line with Cato Research’s operations

Mr. Sucheth Rao Davuluri, Chief Operating Officer, Neuland Laboratories Limited, “To capitalize on the opportunities that the company has created over the past several years, Neuland will work towards achieving two objectives- (i) increase its plant capacities for meeting business plan requirements and (ii) develop capabilities in areas of contract research and clinical research”

He also said, “The Clinical trial industry is poised at 45 billion dollar globally and India is fast emerging as the preferred destination for offshoring clinical trials We have lined up plans for emerging as a formidable player in the Clinical trial segment. Our JV with Cato Research US for undertaking their clinical trials in India is a step towards this direction.”

Sourced From: Sampark Public Relations Pvt Ltd

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