Panacea Biotech is expanding aggressively in the overseas market through joint ventures in Europe, Africa and the CIS nations. The company has earmarked $10 million for overseas expansion.

Panacea is entering into strategic alliances with four US-based MNCs for setting up genomic and proteomic research centers in India. All the alliances aim at developing genomics solutions for cardiovascular, asthma, diabetes and tuberoclosis. Panacea is acquiring genomic data for these diseases and has set up a research facility for this purpose. It is also developing technology for a number of vaccines in isolation and combination to improve immunisation and delivery systems.

The company has been doing well consistently for last three years. Net sales during the quarter to September 2001 posted an impressive increase of 58 per cent to Rs 68.2 crore. New drugs, vaccines and line extensions of ‘nimesulide’ have helped growth in turnover. ‘Nimesulide’ market size is growing by more than 18 per cent.
Operating profit has increased by 53 per cent to Rs 15.8 crore. However, margins declined slightly from 23.8 per cent to 23 per cent. Net profit has increased by 36 per cent to Rs 6.4 crore.

Panacea’s product portfolio includes a wide range of therapeutic groups like vaccines, pain management, anti-diabetics, anti-osteoporotics, anti- rheumatic, renal transplantation drugs, cardiac emergency drugs, antibiotics, anti-ulcer drugs, drugs for impotence, anti-tubercular, anti-migraine, immuno suppressive and dietary supplements. Vaccines account for 40 per cent of total turnover.

The company signed a licensing agreement with National Research Development Corporation (NRDC) to manufacture as well as commercialise the manufacturing know-how of a formulation for ocular delivery using nanotechnology. This new formulation will provide high and sustained release of drugs to the cornea with an enhanced corneal permeability.

Panacea boasts of introducing first non steroid anti-inflammatory drug (NSAID), "Nimulid" (nimesulide) in the country. The product is patented in 60 countries.

The company will also work for development of novel drug delivery system (NDDS) including osmotically controlled delivery systems, sustained release matrix doses forms, aerosols, transdermals and self-emulsifying micro emulsion delivery systems. The company is targetting Rs 275-crore turnover and a net profit of Rs 40 crore during the current year to March 2002.

Rs crore 30.9.2001 30.9.2000 Equity capital 5.71(5.71) Quarterly EPS (Rs) 11(8.2) Market Cap 203(263)

— Dhruv Rathi