NEWS FLASH

Outlook for the year 2008

Unaudited financial results for the quarter ended 30th June, 2006
 
 
Investor Update

July 30, 2002
 
Ind-Swift Laboratories Net Profit Up 26%
Ind-Swift Laboratories Limited, a significant player in the global bulk actives market, has recorded 22% growth in sales to Rs. 28.35 cr. and 26% growth in net profit to Rs. 0.97 cr. for the first quarter ended June 2002.


Commenting on the performance, Mr. V. K. Mehta, Joint Managing Director said, “Our focus on research-driven bulk actives for new generation drugs has positioned us as one of the partners of choice for sourcing as well as contract research. Our strategy of focusing on selected products would start paying off once the overseas registration of these products are received .”
 
Business Strategy
The global bulk actives business holds enormous promise and there are opportunities to be a dominant player in the expanding global generic business, constrained by patent regime. To corner a pie of multi-billion generics business going off-patent, Ind-Swift has charted out the following goals:

  • Focuson the fastest growing therapeutic segments including life style chronic therapy drugs
  • Early in introducing high-value new generation drugs
  • Transnational presence across high potential global markets
  • Innovation through R&D
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    Globalisation Initiatives
    Ind-Swift has been predominantly operating in non-regulated markets, which have low entry barriers leading to rapid price erosion. The company has taken several steps to gradually migrate to regulated markets with higher entry barriers and lucrative prices.

    The company plans to file the drug master file with USFDA for one of its major products in the near future. Filings for regulatory approvals in the other potential markets have also started. The product selection is based on development of non-infringing processes for the existing products going off-patent while developing actives for latest product introductions.

    Strategic alliances is a part of the globalisation initiatives and discussions are on with companies in Europe and US for alliances.

    Several new customers were added to its list of ever-growing customer base in markets of Latin America, Europe, Middle East and Asia-Pacific. Significant growth in Latin American and Asian business demonstrate our strength in these geographies
    R & D
    Research & development has been and will remain the main stray of company’s growth strategy. Ind-Swift has invested significant resources in setting up of new R&D facility as well as on the ongoing research projects. The aim is to innovate improved chemical entities and novel drug delivery systems on sustained basis.


    Out of the top 20 block buster drugs in the industry today, Ind-Swift is manufacturing 7 molecules within a short span of international introduction viz. Citalopram,Fexofenadine Hydrochloride, Clopidogrel Hydrogen Sulphate, Clarithomycin, Atorvastatin Calcium Pioglitazone and Candesartan.

    Activities undertaken by the R&D department during the past year include:
  • Developed commercially viable and environment friendly process/ know-how for high valuebulk actives involving multi-step, complex chemistry
  • Reduced cost and process time with improved quality.
  • Increased team size of scientists to make it more responsive to the market needs
  • Prepared high quality technical data to support marketing with Drug Master Files and technical packages required by the customers
  • Supported strategic partners for molecules like Fexofenadine Hydrochloride, Clopidogrel Hydrogen Sulphate and Piogiltazone Hydrochloride


    • India has the advantage of scientific skill and capability at lower cost for basic research, clinical studies and data management. The company sees opportunity for co-development of new products and collaborative research with MNCs.

    Products
    The company launched several new molecules through its in-house research, majority of which were launched within a year of their launch by the innovator company. All these drugs are from the top ten therapeutic groups, which account for US $ 100 billion global sales and 33% of the world market. Besides being amongst the earliest manufacturers of Atorvastatin, the company is one of the largest producers of Clarithromycin, Clarithromycin Granules, Atorvastatin, Clopidogrel, Pioglitazone and Fexofenadine HCL. The company has a whole new series of product launches planned for the coming years.

    Moreover continuous supply of these high value new generation molecules to its parent Company Ind-Swift Limited for its formulations is seen as opportunity for the Company. The parent Company has in turn entered into long term Co-marketing and manufacturing agreement with Leading Pharma Companies to supply the finished dosages of the products based on the APIs manufactured by Ind-Swift Laboratories Limited.

    The synergising benefit will start accruing in these molecules from the next quarter onwards.


    Ind-Swift has entered into agreements with eight international pharma companies based in US, UK, Germany, Spain, Greece and Mexico, which would source their requirements of four major products – Clarithromycin, Fexofenadine, Atorvastatin and Candesartan exclusively from Ind-Swift, once these products go off-patent there.

    The company’s manufacturing facility has been designed and is operating as per USFDA guidelines. The necessary alterations are underway for various international regulatory inspections and approvals.
    Conclusion
    Ind-Swift Laboratories has consolidated its base and taken concrete steps to unlock the potential in the coming years. Various initiatives taken in the recent past will result in enhancement of the stakeholder value in the long-term.

    Ind-Swift Laboratories Limited – Overview
    Ind-Swift Laboratories Limited has been promoted by Ind-Swift Limited in joint venture with the Punjab State industrial Development Corporation Limited (PSIDC). The company went public in 1997 and concentrated on the manufacturing of Active Pharmaceutical Ingredients (API). Its strength in organic synthetic chemistry resulted in the company emerging as the pioneer for a number of products both in the national and international markets. Within a short period of time, the company has emerged as a respectable and dependable supplier of bulk actives in more than 35 countries. Exports contributed around 40% to sales.

    Ind-Swift Laboratories Limited reported sales of Rs. 112 cr and net profit of Rs. 4.4 cr. for the year ended March 2002. The company's shares are listed on the Mumbai, National, Ludhiana and Delhi stock exchanges.
    Ind-Swift Group consists of Ind-Swift Laboratories Limited and Ind-Swift Limited, one of the fastest growing formulations companies. OKey strengths of the group are:
    An integrated pharmaceutical group present globally in both APIs & finished dosages form.
     
    As per IMS MAT April 2002 report, the group is recording an overall annual growth rate of 89%.

    The group has scaled to an overall ranking of 73rd position in April, 2002 from 119th position in January, 2001.

    Five manufacturing facilities built to comply cGMP and USFDA standards at a cost of Rs.70 cr.

    Strong capabilities in R&D and regulatory affairs. R&D facilities of both the companies in the group recognised by Government of India.

    Strong R&D team for developing non-infringing processes for products based on NDDS.

    R&D department fully equipped to file dossiers and DMFs for all the key formulations and APIs. · Presence in high-growth therapeutic segments of Gynecology, Diabetology, Neurology, Cardiology, Anti-Aids and Anti-Virals etc.

    Well-established marketing and distribution network throughout India.

    One of the largest producers of Clarithromycin, Clarithromycin Granules, Fexofenadine HCL, Atorvastatin and Clopidogril in international market.

    Among the first set of manufacturers to produce Candesartan and Clopidogrel in Cardiovascular segment, Pioglitazone in Diabetic segment and Citalopram in Neurology segment.

    Recognised Export House; direct exports to over 35 countries.

    Launched 12 new brands in finished dosages and 6 new APIs in 2001 –2002.
    Investor Relations

    Ind-Swift Laboratories Limited is committed to create long-term sustainable shareholder value through successful implementation of its growth plans.
    Safe Harbor

    Certain statements in this release concerning our future growth prospects are forward-looking statements. These statements are based on the current expectations and projections about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such factors include, but are not limited to, changes in local and global economic conditions, our ability to successfully implement our strategy, the market acceptance of and demand for our products, our growth and expansion, technological change and our exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.

    To know about our Formulation Division, please visit us at Ind-Swift Limited, our other group company.
    Copyright©2001 Ind-Swift Laboratories Limited. All rights reserved.