Unichem Labs

Unichem Laboratories was in the limelight yesterday with the stock price surging into the green. The reason – it announced during market hours that it has received final Abbreviated New Drug Application (ANDA) approval from the United States Food and Drug Administration (USFDA) for Irbesartan tablets USP. This drug is used for treating hypertension. The product will be commercialized from Unichem's Ghaziabad plant. Active Pharmaceutical Ingredient (APIs) will also be made in house at Pithampur API plant. Currently, 35 US ANDAs have been filed so far and 18 of which already approved.

Q2FY16, the company had a flat performance. Total income rose 10% (YoY) at Rs.305 crore where formulations and APIs in international markets fell 28% and 37% respectively. Operating income was up 14% and margins improved from 7.9% to 8.3%. Tax showed a 54% jump and that is what made the bottomline flat – net profit for the quarter was up 3% at Rs.23 crore.

This is one of the oldest pharma companies of India, having been established way back in 1944. And going by its financials, it is going strong. A zero debt company, domestic operations contribute 58% to consolidated revenues and rest comes from international. In current fiscal, this company’s 3 plants had a USFDA surprise inspection and it made no Critical Observations. Around 15% of its domestic portfolio (in value terms) is under NLEM. Major products are: Losartan, Alprozolam, Atorvastatin, Cetrizine, Metoprolol and Tramadol. Under the old DPCO, the coverage was around 13%. Its total R&D spending is in excess of 5% of sales with over 275 scientists engaged in R&D.