CP Pharmaceuticals (Holdings) Ltd is expecting a tougher market for generic
medicines over the next year following the Government’s imposition of lowered
maximum prices.
The company announced on October 2 that its pre-tax profits had risen by 60
per cent to £2.7m for the year to June 30, with sales rising 28 per cent
to £32.2m. However, it added that such growth was unlikely to be repeated
this year. Generic products represent 50 per cent of CP Pharmaceuticals’s
sales.
Mr Charles Savage (chief executive, CP) said that as the generics market had
run short of supply over 1999 and, with market speculation and stock hoarding
going on, prices had risen. CP had increased its tablet manufacturing capacity
by 40 per cent and had produced 985m tablets in the year. Going into 2000, the
shortage situation had unwound. Stock holdings had been off-loaded and the Government
had imposed its price caps.
“Even with annual market growth approaching 15 per cent, in an increasingly
overprovisioned market it will prove difficult to gain volume in 2000-01 at
economic prices,” Mr Savage said.
The company restated its commitment to continue supplying bovine and porcine
insulin products for the foreseeable future.