Orchid Chemicals firms up on US FDA nod for its generic drug:

Orchid Chemicals firms up on US FDA nod for its generic drug: Orchid Chemicals rose 1.77%, to Rs 186.50 on getting an approval from the US FDA for its Cephalexin oral suspension. As many as 2.75 lakh shares were traded on the BSE. The stock has recovered after getting battered in the recent market meltdown. The stock found support at Rs 146.80 on 14 June and rose amid bouts of volatility to close at Rs 183.25 on 11 July 2006. Orchid Chemicals & Pharmaceuticals has received approval from the US FDA for its ANDA (Abbreviated New Drug Application) of Cephalexin oral suspension. Orchid's Cephalexin capsules are already marketed in the US in partnership with Par Pharmaceuticals. With the latest ANDA approval, the number of dosage forms, oral solids and injections distributed by the company in Orchid in the US stands at 12. Orchid Chemicals had planned to raise $ 200-million through a GDR/FCCB issue. A total of $160 million of the funds raised will go towards paying off debt. The company's manufacturing facilities are in place as are marketing arrangements with overseas companies. It has shifted away from selling bulk drugs in non-regulated markets like China, where margins are typically lower, to selling formulations in regulated markets. Last year, as many as five patent-expired cephalosporin-based antibiotics were launched in the US market and the company is set to enter the European market in the current year. During the current year, Orchid Chemicals plans to launch its anti-diabetes molecule (BLX-1002). For Q4 March 2006 net profit of the company rose 16.8%, to Rs 19.39 crore as compared to Rs 16.60 crore in Q4 March 2005. The net sales for the same period under consideration rose 34.7%, to Rs 239.85 crore from Rs 178.10 crore. Orchid has six major exclusive marketing and distribution alliances with global generic majors Apotex, Par, Alpharma, Stada and Teva. These cover 21 antibiotic and 20 non-antibiotic products and represent a consolidated current retail market opportunity of over $ 33 billion. Orchid Chemicals is the largest producer and exporter of Cephalosporin in the country and is among the top five players in this segment across the world. The company had recently signed a long-term research & development agreement with Pfizer International. Under this pact, the company will provide research and development services to Pfizer's animal healthcare business. Best wishes, Suman Mukherjee India. http://sumanspeaks.blogspot.com/