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Sun Pharma Q4 profit declines 14% Rs1,223.71 crore on weak US sales

LiveMint logoLiveMint 26-05-2017 Isha Trivedi

Mumbai: India’s largest drug maker Sun Pharmaceutical Industries Ltd reported a 13.6% on-year drop in its consolidated net profit to Rs1,223.71 crore in the quarter ended March, missing analysts’ estimates, due to lower sales in the US, its biggest market.

Net sales of the company fell 8% to Rs6,825.16 crore during the quarter from Rs7,415.98 crore in the corresponding period a year ago.

According to a Bloomberg poll of 24 brokerages, the company’s net profit was estimated at Rs1,506.30 crore and net sales at Rs7,800.50 crore.

Sales in the US were $381 million in the March quarter, down 34% from a high base of last year when Sun Pharma had accrued benefits from launch of cancer drug Gleevec generic under six-month marketing exclusivity.

Expectations over Sun Pharma’s fourth quarter’s earnings had toned down after its subsidiary Taro Pharmaceutical Industries Ltd reported a disappointing set of numbers earlier this week due to pricing pressure in the US market.

“Our Q4 performance reflects the impact of the challenging generic pricing environment in the US. Despite this, we continue to invest our strong cash flows in enhancing our specialty pipeline,” Dilip Shanghvi, managing director of the company said in a press release.

In other markets, the company registered growth in revenue. India sales were up 10% at Rs1,916 crore, while sales in emerging markets rose 46% to $181 million. Sales in rest of the world markets grew 38% to $109 million.

Sun Pharma filed 14 abbreviated new drug applications (ANDAs) with the US Food and Drug Administration (FDA) in the March quarter. Spending on research and development (R&D) was Rs600 crore, accounting for 8.8% of sales.

On Friday, shares of Sun Pharma ended down 3.9% at Rs568.55 on the BSE, while benchmark Sensex index closed up 0.9% at an all-time high of 31028.21 points. The company’s results were declared post market hours.

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