Parabolic Drugs - Cephalosporin to drive its Japanese growth story
Shrikant / 01 Nov 2011
Parabolic Drugs (PDL), a well-established name in antibiotics manufacturing has received approval from the Japanese Pharmaceuticals and Medical Devices Agency (PMDA) for the drug Cephalosporin. This accreditation is valid for 5 years, during which the company will be able to manufacture and supply non-sterile Cephalosporin to the Japanese market. Cephalosporin is an antibiotic mainly used for the prevention of bacterial diseases.
The company’s Cephalosporin manufacturing unit is located at Derabassi, which has an annual capacity of over 900 tonnes per annum (TPA). This facility has already received accreditation from EU GMP, which underlines the high quality standards maintained at this unit. The company is also planning to expand this capacity in the future. PDL also manufactures another antibiotic, Penicillin. The Penicillin manufacturing facility is located in Panchkula, and has a capacity of about 720 TPA. In FY11, the company produced about 431 tonnes of Cephalosporin (34% higher than in FY10). This growth in volumes has come after PDL doubled its capacity in FY11.
According to IMS Health, the total global Cephalosporin market is worth about $21 billion, and is growing at the rate of about 20% annually. PDL has filed 38 drug manufacturing files (DMF) so far, of which 3 molecules of Cephalosporin have been filed in the Japanese market. With the new approval in Japan, the company can increase its exports revenues, which currently stand at 37% of its total revenues.
In FY11, PDL reported sales of Rs 675.2 crore as against Rs 559 crore in previous year. Its export revenues grew from Rs 161.1 crore in FY10 to Rs 230.1 crore in FY11, showing 43% growth YOY. The company reported Net Profits of Rs 52.8 in FY11 compared to Rs 34.1 crore in FY10.
The Japanese pharma market is one of the largest in the world, worth about $70 billion as of 2010. An ageing population is the main driver of growth in this sector in Japan. The Japanese government has also changed its laws to allow more companies to enter the market. It is certain that with this approval, PDL could see growth in its revenues. We tried to find out the financial details and the effect on of Cephalosporin sales on the company’s earnings, but the management remained unavailable to comment on the same.
The company’s Cephalosporin manufacturing unit is located at Derabassi, which has an annual capacity of over 900 tonnes per annum (TPA). This facility has already received accreditation from EU GMP, which underlines the high quality standards maintained at this unit. The company is also planning to expand this capacity in the future. PDL also manufactures another antibiotic, Penicillin. The Penicillin manufacturing facility is located in Panchkula, and has a capacity of about 720 TPA. In FY11, the company produced about 431 tonnes of Cephalosporin (34% higher than in FY10). This growth in volumes has come after PDL doubled its capacity in FY11.
According to IMS Health, the total global Cephalosporin market is worth about $21 billion, and is growing at the rate of about 20% annually. PDL has filed 38 drug manufacturing files (DMF) so far, of which 3 molecules of Cephalosporin have been filed in the Japanese market. With the new approval in Japan, the company can increase its exports revenues, which currently stand at 37% of its total revenues.
In FY11, PDL reported sales of Rs 675.2 crore as against Rs 559 crore in previous year. Its export revenues grew from Rs 161.1 crore in FY10 to Rs 230.1 crore in FY11, showing 43% growth YOY. The company reported Net Profits of Rs 52.8 in FY11 compared to Rs 34.1 crore in FY10.
The Japanese pharma market is one of the largest in the world, worth about $70 billion as of 2010. An ageing population is the main driver of growth in this sector in Japan. The Japanese government has also changed its laws to allow more companies to enter the market. It is certain that with this approval, PDL could see growth in its revenues. We tried to find out the financial details and the effect on of Cephalosporin sales on the company’s earnings, but the management remained unavailable to comment on the same.
Parabolic Drugs: Cephalosporin Capacity And Production
| Year | FY11 | FY10 | Growth (%) |
| Capacity (TPA) | 818 | 323 | 153 |
| Production (tonnes ) | 431.17 | 322.41 | 34 |
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