Stock Watch

By Laxmi P, Myiris.com

Cadila Healthcare has been in the news recently for several reasons. The stock rose 25 percent in one month from Rs 527.75 in February 2006 to Rs 662.35 in March 2006 and 30 percent in one year from Rs 508.65 in March 2005 to Rs 662.35 in March 2006. Cadila Healthcare acquired 14.96 percent stake in Carnation Nutra-Analogue Foods, the manufacturers of Nutralite, India`s largest selling margarine, currently enjoying a market share close to 60 percent.

The company also received tentative approval from the USFDA to market Carvedilol Tablets and Sertraline Hydrochloride Tablets in the US market. The current sales of Carvedilol Tablets in the US market as per NDC Health, is estimated at USD 1.24 billion. So far, the group has filed 30 ANDAs and 35 DMFs.

Zydus Cadila has also received permission from Drug Controller General of India (DCGI) to conduct Phase II clinical trials on its new molecular entity—ZYH1, after successfully completing Phase I clinical trials.

Coming to financials, the company`s Q3 net profit was up at Rs 39.6 crore from Rs 28.1 crore in the same period last year. Its Q3 net sales was up at Rs 369.5 crore from Rs 305.1 crore. Its Q3 operating profit margin was up at 17.59 percent from 16.91 percent. Its nine-month EPS stood at Rs 19.40.

Cadila Healthcare, under the aegis of the Zydus Group was set up in the year 1995. In its very first year, the group launched 23 new products. Cadila Healthcare entered the capital market in February 2000. It acquired formulation business of Recon, in May 2000. This strategic move boosted the growth of the formulation business further consolidating the group's strengths in the southern markets. The company signed a joint venture agreement with Mayne Pharma, a leading injectable specialty pharmaceuticals company in Australia, to set up a 50:50 manufacturing JVC in India to manufacture injectables and APIs for the global markets.