The standalone net sales for the quarter ended June 2010 registered marginal degrowth of 1% to Rs 303.50 crore and other operating income clocked at Rs 27.43 crore (compared to Rs 3.01 crore in the corresponding previous period) led total income from operations up by 7% to Rs 330.93 crore. Operating profit margins rose by 430 bps to 25.3% boosting operating profit to increase by 29% to Rs 83.78 crore. Net profit stood at Rs 21.61 crore as against net losses of Rs 29.76 crore in the corresponding previous period.

• Excluding revenues from sold Injectable business in the Q1 FY'10, the total income from operations on like to like basis rose by 35%. The break up of revenues from APIs: formulation is around 70%:30% during the quarter. Despite of higher revenues from API business, the operating profit margins is higher on yoy basis due to supplying of higher margins Meropenem to Hospira.
• Other operating income of Rs 27.43 crore is mainly due to payments/licensing fees received from the partners of the company.
• On consolidated basis, total income from operations rose by 10% to Rs 364.57 crore and net profit stood at Rs 23.53 crore as against net loss of Rs 27.29 crore.
• Orchid has started supplying APIs to Hospira as they signed contract for supplying APIs when it sold its Injectable business. It also started supplied API for Meropenem as Hospira received approval for Meropenem formulations.
• Hospira Inc has launched supplying Meropenem injection in both US and EU markets and Imipenem only in EU market. Orchid expects Hospira to receive approval for Imipenem from US FDA during the quarter under review (Q2 FY'11). Thus, orchid expects to start supply Imipenem API to Hospira shortly.
• In Q1, it entered into an out-licensing and distribution agreement with Alvogen for marketing 8 of Orchid's oral non-antibiotic generic formulations in US markets. Orchid will develop and manufacture the drugs and licensed to Alvogen. The company receives dossier license fees, regulatory milestones and share profits arising from marketing.
• The company acquired US based marketing and sales services company Karalex Pharma. It expects to generate USD 20 million (run rate) from Karalex deal every year. For FY'11, it expects only USD 10 million revenues. The integration will be completed by end of August 2010.
• Revenues from branded domestic formulation for the year ended March 2010 are Rs 104 crore. It expects revenues from domestic formulation to increase to Rs 150 crore.
• Planning to file 18 ANDAs for US market in the current fiscal.
• Developing 73 products for EU regions and expects to file Dossiers in the next 3 years.
• Lupin has filed citizen petition on the company related to product Cefixime. So the launch of Cefixime will not be witnessed in the current fiscal.
• Consolidated debt as on 30 June 2010 is Rs 1600 crore. Of which Rs 600 crore are FCCBs and Rs 1000 crore are secured loan.
• Capex for FY'11 would be around USD 10 million.
• Upgraded revenues target for FY'11 from USD 320 million to USD 350 million due to various factors like (i) already started supplying Meropenem API and expects to start Imipenam API to Hospira (ii) integration of Karalex Pharma with company (iii) will start supplying one oral cephalosporin to MNC
• Expects to maintain EBIDTA margins of 22% for FY'11.