Sun Pharmaceutical Industries reported financials for the first quarter ending June 30, 2013. Net sales/ income from operations stood at Rs 3482 crores, a growth of 31 per cent over same quarter last year which include the impact of one-time sales recorded in the domestic business in Q4FY12, which lowered Q1FY13 sales. Net sales grew by 23 per cent over Q1FY13.
The company reported a net loss at Rs 1276 crores, on account of a provision of Rs 2517 crores towards settlement for patent infringement litigation related to generic versions of ‘Protonix’. During the quarter, Sun Pharma’s subsidiary received a favourable verdict from the US Federal Circuit Court regarding its on-going patent litigation with Novo Nordisk for generic Prandin.
Dilip Shanghvi, Managing Director, Sun Pharma said, “All our businesses continue to perform in-line with our expectations. We remain focused on strengthening our existing businesses and developing a differentiated and speciality driven product basket. We also continue to review opportunities to expand and strengthen our global footprint.”
Branded branded prescription formulations in India, at Rs. 849 crores, grew by 44 per cent over Q1 last year, accounting for 24 per cent of total sales. Adjusted sales growth of the domestic formulation business is 11 per cent for the quarter. The company has completed the process of transferring its domestic formulations business to Sun Pharma Laboratories, a wholly owned subsidiary.
Finished dosages sales in the US is $ 364 million recording a growth of 28 per cent (in US $ terms) over Q1 last year. Taro recently posted overall sales of $ 153 million for Q1FY14, a decline of 4 per cent from the corresponding quarter last year. Excluding the one-time charge related to price adjustments on contractual obligations, sales would have been higher by 10 per cent YoY. Taro’s net profit for Q1 was $ 59 million.
Growth traction in the rest of the world (ROW) markets continued, with international formulation sales at $ 81 million, growing by 19 per cent (in US$ terms) over the same quarter last year. Excluding ex-US Taro sales, underlying sales growth in US$ terms for Sun Pharma’s business in these markets was 23 per cent for Q1FY14.
EBITDA at Rs 1531 crores grew by 26 per cent YoY while EBITDA margins were at 44 per cent, down two per cent from Q1 last year. Recurring net profit at Rs 1241 crores witnessed a growth of 56 per cent over Q1 last year; resulting in a margin of 36 per cent.
External sales of API, accounting for a fraction of the total API production, reached Rs 193 crores in Q1FY14 with marginal decrease of 4 per cent over the same quarter last year.
Consolidated R&D expense for Q1FY14 was Rs 205 crores, at 6 per cent of sales.
In the first quarter, ANDAs for four products were filed. After counting these, and adjusting for filings that were dropped, cumulatively ANDAs for 453 products have been filed by Sun Pharma and Taro with the USFDA (as on June 30, 2013). ANDAs for nine products received approvals in the first quarter, taking the total number of approvals to 320 (as on June 30, 2013). ANDAs for 133 products now await USFDA approval, including 19 tentative approvals. The above ANDA statistics exclude the discontinued/ withdrawn products of URL. The total number of patent applications submitted now stands at 791, with 503 patents granted so far.
EP News Bureau – Mumbai
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