‘Orchid Pharma Reports 71.60% Annual PAT Growth in Q4’

Orchid Pharma Ltd., a prominent pharmaceutical company based in Chennai, recently announced impressive financial results for the fiscal year 2023-2024, with a significant 71.60% growth in Profit After Tax (PAT). This remarkable achievement highlights the company’s dedication to innovation and its strategic approach to tackling global healthcare challenges.

A major milestone for Orchid Pharma has been the successful approval of their innovative drug, Enmetazobactam, by both the US Food and Drug Administration (USFDA) and the European Medicines Agency (EMA). This approval signifies a groundbreaking achievement for Indian technology, as Enmetazobactam is the first drug developed in India to reach this milestone. Not only does this showcase India’s strength in pharmaceutical innovation, but it also addresses the urgent need for affordable and effective solutions to combat antimicrobial resistance (AMR) globally, a pressing issue that contributes to millions of deaths worldwide each year.

It is important to note that Dhanuka Group, through its pharmaceutical arm, Dhanuka Laboratories Ltd, acquired Orchid Pharma through the Corporate Insolvency Resolution Process on March 31, 2020. Despite facing challenges posed by the COVID-19 pandemic, the group’s relentless efforts have resulted in a significant turnaround for the business, leading to profitability within a short period.

Commenting on the fourth quarter results, Manish Dhanuka, Managing Director of Orchid Pharma, expressed satisfaction with the company’s revenue growth over the past year. He attributed this success to maximizing capacity utilization and maintaining strict cost controls. Additionally, with a robust product pipeline and planned capital expenditures exceeding 800 Crore in the coming years, Orchid Pharma looks poised for a promising future.

In the coming months, the implementation of the 7-ACA PLI project is expected to enhance Orchid’s supply chain through comprehensive backward integration. Combined with a strong product launch pipeline and significant investments, Orchid is positioned to establish itself as a key player in the global market for Cephalosporin Antibiotics.

Established in 1992 as an export-oriented unit, Orchid Pharma Ltd. is a vertically integrated company with expertise in research, manufacturing, and marketing within the pharmaceutical sector. Notably, Orchid is the sole Indian pharmaceutical company to have developed a New Chemical Entity (NCE), with the molecule now approved in the US and Europe under a royalty model.

Specializing in the production of high-quality Cephalosporins, particularly sterile products, Orchid boasts the distinction of being one of only three USFDA-approved facilities worldwide and the sole representative from India. Additionally, the company holds approvals from regulatory bodies such as EU GMP, ANVISA, and PMDA, further solidifying its commitment to quality and compliance.

The acquisition of Orchid Pharma by Dhanuka Group has led to a transformative journey for the company, transitioning from negative EBIDTA to positive figures year after year. This evolution underscores Orchid’s resilience and adaptability in the face of challenges, setting the stage for continued success in the dynamic pharmaceutical landscape.