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India's top 25 drugmakers' profits soared 180% last year
 
 
  19 May 2010 pharmatimes.com
 
Overall profits at India's top 25 pharmaceutical companies soared 180% in the year ended March 2010, as they largely recovered from the big foreign exchange losses which they had experienced during the previous year.
 
Combined net profit at the 25 firms (defined as those with annual sales of more than 4 billion rupees) totaled just under 56 billion rupees during the 12 months, compared to nearly 20 billion rupees the year before, and their net sales rose 11.1% to 564.6 billion rupees, according to a new analysis from Pharmabiz.com of India.
 
The firms' foreign exchange loss adjustment declined from 42.4 billion rupees to 750 million rupees, although net profits ahead of these adjustments fell 3.5% because of the massive rise, of more than 340%, in taxation during the year. As a result, the group's taxation provisions increased 343% and has taken up much of their profits.
 
Profit before tax and adjustment (PBTA) for the firms rose 23% overall in the year ending this March, and this was despite the global economic problems, curbs on drug prices and other cost-cutting measures in a number of markets, plus tougher generic competition, legal problems and quality issues in the USA, notes Pharmabiz.com.
 
Earnings before depreciation, interest, taxation and adjustments (EDBITA) for the 25 drugmakers increased 15.1%, aided by a 10.3% drop in interest burden plus manageable increases in expenses, such as rises in costs of staff and raw materials of 14.8% and 13.1%, respectively.
 
The 25 companies accounted for over 50% of sales by India's pharmaceutical industry last year, and sales at 15 of the firms reached more than 10 billion rupees, notes the report.
 
Meantime, research firm RNCOS forecasts that India's domestic market for drug formulations will grow 17% this year, driven by the fast-growing middle-class and urban populations and boosted by the wider availability of health insurance and growing incidence of "lifestyle" diseases.
 
These factors have resulted in the increasing usage of high-priced drugs in the country, it says.
 
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AstraZeneca settles with Teva over Entocort copy
 
18 May 2010
 
AstraZeneca has reached a settlement with Teva Pharmaceutical Industries which will allow the Israeli drugmaker to sell a generic version of the Crohn's disease treatment Entocort.
 
Under the terms of the agreement, the Anglo-Swedish drugmaker has granted Teva a licence to enter the US market with its copycat version of Entocort EC (oral budesonide) on February 15, 2012, subject to regulatory approval "or earlier in certain circumstances". No financial details have been disclosed.
 
As part of the settlement, Teva has conceded that two US patents on Entocort are valid and enforceable and would be infringed by the manufacture or sale of its products. It was also noted that Merck & Co, which gets royalties on certain AstraZeneca drugs, has also entered into the settlement agreement.
 
Teva noted that Entocort capsules had annual sales of approximately $265 million in the USA.
 
Teva Lou Gehrig's disease drug fails News of the deal came just after Teva presented disappointing results from a Phase II trial designed to assess talampanel in reducing disease-related functional deterioration in amyotrophic lateral sclerosis (ALS) patients.
 
Moshe Manor, Teva's head of global branded products, said that despite the firm's hopes to advance the treatment of this debilitating condition, also known as Lou Gehrig's disease, "talampanel did not succeed in demonstrating the required efficacy, although safety was established".
 
 
 
 
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