Caraco Pharma places $1.6 million privately
By We are optimistic about the second | 16 May 2002
Chennai: Caraco Pharmaceutical Laboratories has completed a private-placement offering of 635,000 shares of restricted common stock, raising $1.692 million. In April 2002 the company added $2.5 million in standby, unsecured credit to its $10-million credit facility at Bank of Nova Scotia. The credit facility will be used for manufacturing and marketing activities.
As reported earlier, Caraco Pharma, in which the Mumbai-based Sun Pharma holds sizeable stakes, has received Food and Drug Administration (FDA) approval for five generic drugs over the past three quarters. All five are being manufactured and marketed.
These are: metformin hydrochloride, a generic form of Bristol Myers Squibb's Glucophage; oxaprozin, a generic form of GD Searle's Daypro; carbamazepine (chewable), a generic form of Novartis' Tegretol; clonazepam, a generic form of Roche's Klonopin; and flurbiprofen, a generic form of Pharmacia's Ansaid.
Caraco Pharma has also received an FDA letter of approvability for tramadol hydrochloride, a generic form of RW Johnson Pharma Research Institute's Ultram. The company has five additional generic drugs pending FDA approval.
For the first quarter the company's sales rose 250 per cent and its net loss dropped 69 per cent, says Caraco Pharma CEO Narendra N Borkar. “With the introduction of five new generic drugs, the net sales for the first quarter of 2002 touched $3,301,959, from $942,778 for the first quarter of 2001. The Q1-2002 sales nearly eclipsed 2001's nine-month sales of $3,372,686 and set the stage for the company to ramp-up 2002 sales between $16 million and $18 million, as forecast.“
Significant improvement was also seen in the net loss, which was reduced 69 per cent to $519,241 from $1,653,491 a year ago, he says. “The first quarter was outstanding, with older drugs continuing to sell well and new drugs clocking good sales. Noteworthy among the five new drugs is metformin hydrochloride, which has year-to-date sales of nearly $1 million since its approval in January 2002.
“We are optimistic about the second quarter and second half. Our plant, which underwent extensive renovation in 2001, is running very smoothly. We are able to secure raw materials at competitive prices and anticipate substantial quarter-to-quarter sales growth of both new and existing products, along with continued improvement in the bottomline. We also expect to receive FDA approval of one or two additional drugs by yearend,“ says Borkar
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