Orchid was founded in 1992, with a focus on the manufacture of cephalosporin bulk drugs. Since then, the company has evolved into a composite pharmaceutical firm. In FY2003 the company clocked a turnover of $115mn, 80% of which was from exports, mostly to developing markets. The companys promoters and affiliates own 17% of its equity, but the largest shareholder is Schroders, with 32.9%, followed by IFC with 10.9%. Orchids first decade of operations ( 1994-2004) has been of intense challenge and achievement. Orchid is now set to be positioned on the global pharmaceutical map as a differential enterprise, with high-technology products, robust marketing alliances and international joint ventures. Several strategic initiatives of the past decade will now start yielding immense returns to the company in the next two years. Orchid is one of the few pharmaceutical companies in India with a substantial programme of drug discovery. It has complete in-house infrastructure and capability, which can develop new drugs from in-silico design through synthesis, optimization and formulation and pre-clinical evaluation. Two of Orchids manufacturing units (for sterile and oral cephalosporin bulk actives) have already been approved by the US FDA. New production units have also been commissioned, and US FDA inspections for these are expected in 2004. Orchid has also commissioned a formulations unit, which would cater to the US generics market. ANDA filings from this unit will begin in early 2004. We expect Orchid to file 15 ANDAs based on 10 molecules in the next 24 months, addressing a market worth $3bn. Similar filings are likely in Europe, and the products will be sold through alliances.TECHNICALs : On the technical front, the stock has consolidated for almost three months between Rs.217 and Rs.245 and during this period the stock has witnessed volumes which none of the pharma stocks has seen in the past decade. This factor alone speaks volumes about the fact that bigger players are interested in this counter. Any positive announcement from the company will take the stock price into a new orbit.