Orchid Pharma soon to file ANDA from its new plant

Chennai: The city-based cephalosporin bulk drug major, Orchid Chemicals & Pharmaceuticals Limited, will soon file an abbreviated new drug application (ANDA) with the US Food and Drug Administration (USFDA) from its Irrugattukottai formulations plant. Though not formally inaugurated, the company has started commercial operations at this Rs60 crore facility.

Announcing this at the company's extraordinary general meeting (EGM) held on 10th April, 2004, chairman, R Narayanan said that Orchid Chemicals' performance for the last quarter of the previous fiscal would be in line with that of the third quarter. For the quarter ended 31st December 2004, the company has logged a turnover of Rs170 crore and a net profit of Rs8.4 crore.

The EGM passed necessary resolutions to enable Orchid Chemicals to raise its authorised capital to Rs45 crore from the present Rs34 crore; to place $75 million foreign currency convertible bonds (FCCB); enhancing the borrowing powers and preferential allotment of 20 lakh convertible warrants of Rs10 each at a premium of Rs202.18 to the promoter, K Raghavendra Rao, managing director and promoter groups.

Out of the ninety shareholders (mostly employee shareholders) and 22 proxies who attended the EGM, some members wanted the company to go in for rights or bonus issue. When questioned about the likelihood of the company's equity being bloated as a result of the authorised equity being raised, Narayanan said that the funds were required to enable Orchid Chemicals to build up its intellectual property rights.