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Sun Pharma incurred heavy net loss of Rs.323 crore in Q1, sales declines by 23%

Our Bureau, Mumbai
Friday, August 11, 2017, 17:10 Hrs  [IST]

Sun Pharmaceutical Industry, a No. 1 pharma company in India with consolidated net sales of Rs.30,000 crore plus, has suffered heavy setback during the first quarter ended June 2017 and it incurred a net loss of Rs.323 crore before non-controlloing interest as against net profit of Rs.2,268 crore. Its consolidated net sales also declined by 23 per cent to Rs.6,167 crore from Rs.8,007 crore. With net loss its EPS worked out to negative Rs.1.8 as compared to Rs.8.5 in the last year.

Sun Pharma scrip declined by Rs.8.85 and closed at Rs.451.30 on BSE. The scrip to reached to its yearly lowest level today at Rs.445.05. It touched to yearly highest level at Rs.825.70 in last August. Its R&D expenditure declined marginally to Rs.522 crore from Rs.531 crore and worked out to 8.5 per cent of sales. Cumulative, it received final approval for 433 products and filings for 151 ANDAs await US FDA approval. It filed 5 ANDAs during the quarter under review and received 8 approvals. Additionally, the pipeline includes 37 approved NDAs while 5 NDAs await US FDA approval.

Dilip Shanghvi, managing director, said, “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 specialty business, temporary disruption in our India business due to GST implementation, a challenging US generic pricing environment and the Modafinil settlement. We expect our performance to gradually improve in the second half of this year.”

The sales of branded formulations in India declined by 5 per cent and these contributed 29 per cent of total sales. Growth was temporarily impacted by GST. It launched 10 new products in the India market. Its US sales declined by 42 per cent to US$ 351 million and accounted for 37 per cent of total sales. Sales for Q1 last year included the benefit of generic Imatinib exclusivity which expired in July-2016. Besides Imatinib, the overall pricing pressure in the US generics market also impacted the YoY growth.

Sun's sales in emerging market increased by 9 per cent to US$168 million and accounted for 18 per cent of total sales. The growth was partly boosted by the consolidation of the Biosintez acquisition in Russia. Its sales in Rest of World market went up by 37 per cent to $115 million due to boosted by consolidation of revenues from the acquisition of 14 brands from Novartis. The company continue to increase the API supply for captive consumption for key products. Its external API sales were at Rs.309 crore, down by 34 per cent.

 

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