According to the company spokesperson the fall in the profit was due to write-offs in the fourth quarter on account of new product development costs. Part of the decline in profit was also due to some decline in the US sales, through the company crossed the $100 million sales in that market, which it had entered only three years back.
The company's board has recommended 30 per cent dividend for the year. While net profit for the last quarter fell, Orchid has reported a 91 per cent increase in the net profit for the full year 2007-08 to Rs 185 crore. Sales and operating income during the year rose by 36 per cent to Rs 1239 crore against Rs 913 crore reported in the year before that.
At the beginning the current fiscal, the company's stock witness some hectic activity with market reports about another drug maker Ranbaxy attempting a hostile bid to control the Chennai-based company. While Ranbaxy did manage to garner nearly 14 stake in Orchid through open market operations, it also ended in the two companies agreeing to work together in approaching new markets and developing diverse therapeutic remedies.
