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Sun Pharma Q1 net loss narrows to Rs425 crore

LiveMint logoLiveMint 11-08-2017 PTI

New Delhi: Drug major Sun Pharmaceutical Industries on Friday reported a consolidated net loss of Rs424.92 crore for the quarter ended 30 June, impacted mainly by one- time exceptional item regarding Modafinil settlement.

The company had posted a net profit after taxes, share of profit/loss of associates, joint ventures and non-controlling interests of Rs2,033.71 crore for the same period year ago, Sun Pharmaceutical Industries said in a filing to the BSE.

“Net profit for the quarter was adversely impacted by settlements with certain plaintiffs related to the Modafinil antitrust litigation in the US, with the settlement amounting to Rs 950 crore. Excluding the Modafinil settlement, our adjusted net profit for the first quarter of FY2017-18 was at Rs 526 crore,” it added.

Since this event relates to the conditions that existed at the end of the reporting period, the corresponding Indian rupee liability at Rs950.50 crore has been provided in the consolidated unaudited financial results and disclosed as an exceptional item, Sun Pharma said.

Consolidated total revenue from operations of the company stood at Rs 6,208.79 crore for the quarter under consideration as against Rs8,256.26 crore for the corresponding period of the previous fiscal, it added.

“Our Q1 performance was not good and not in line with our past performance due to the combined impact of increasing investments in our global speciality business, temporary disruption in our India business due to GST implementation, a challenging US generic pricing environment and the Modafinil settlement”, Sun Pharma MD Dilip Shanghvi said.

The company expects its performance to gradually improve in the second half of this year, he added. Its India sales stood at Rs 1,761 crore, down by 5% over Q1 last fiscal, Sun Pharma said. US finished dosage sales were at $351 million (over Rs 2,251 crore) down by 42% over Q1 last fiscal year. US sales for Q1 last included the benefit of the 180-day exclusivity for Imatinib which expired in July-2016, it added.

Consolidated R&D expense for the first quarter was Rs522 crore, or 8.5% of sales compared to Rs 531 crore or 6.6% of sales for Q1 of last year, Sun Pharma said.

This R&D expenditure includes investments on account of funding the clinical development of the company’s global speciality pipeline, it added.

The company has a comprehensive product offering in the US market consisting of approved ANDAs for 433 products while filings for 151 ANDAs await USFDA approval, including 16 tentative approvals, Sun Pharma said.

For the quarter, 5 ANDAs were filed and 8 approvals were received, it added.

Shares of Sun Pharmaceutical Industries on Friday closed at Rs 451.30 per scrip on the BSE, down 1.92% from the previous close.

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