Sun Pharma Q4 net profit declines 14% to ₹1,223 cr on weak US sales
India’s largest drug maker Sun Pharmaceutical Industries Ltd reported a 13.6% year-on-year drop in its consolidated net profit to ₹1,223.71 crore in the quarter ended March, missing analysts’ estimates, because of lower sales in the US, its biggest market.
Net sales fell 8% to ₹6,825.16 crore during the quarter from ₹7,415.98 crore in the corresponding period a year ago.
According to a Bloomberg poll of 24 brokerages, the company had been expected to post a net profit of ₹1,506.30 crore on net sales of ₹7,800.50 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 reaped gains from the launch of a generic version of the cancer drug Gleevec on six months’ marketing exclusivity.
Sun Pharma 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 statement.
India sales were up 10% at ₹1,916 crore, while sales in emerging markets rose 46% to $181 million.
Sales in the rest of the world markets grew 38% to $109 million. Sun Pharma filed 14 abbreviated new drug applications with the US Food and Drug Administration in the March quarter. Spending on R&D was ₹600 crore, or 8.8% of sales.
On Friday, shares of Sun Pharma ended down 3.9% at ₹568.55 on the BSE, while the benchmark Sensex closed up 0.9% at an all-time high of 31,028.21 points. The company’s results were declared after the close of the market.