The company reported net profit of Rs 2235 crore in the same period of previous year. Revenues declined 19.5 percent to Rs 6650 crore compared to Rs 8260 crore in the year ago period.
Sun Pharma, India's largest drug maker on Tuesday, reported 59 percent decline in net profit to Rs 912.1 crore in the second quarter ended September as the company faces pricing pressure in US generics market.
The company was benefited last year by an extending limited competition for generic blood cancer drug imatinib in US market.
The company reported net profit of Rs 2235 crore in the same period of previous year. Revenues declined 19.5 percent to Rs 6650 crore compared to Rs 8260 crore in the year-ago period.
The total expenses rose 6.24 percent to Rs 579 crore. While the net profit came in above the analysts estimates, revenues were lower than expectations.
CNBC TV18 Poll estimated the net profit at Rs 802 crore and revenues at Rs 6861 crore.
“A challenging US generic pricing environment coupled with continued investments in building our global specialty business has impacted our Q2 performance," said Dilip Shanghvi, Managing Director of the Company said in a earnings release.
"We expect our performance to gradually improve in the second half of this year," Shanghvi said.
Sales in the US fell 44 percent to USD 309 million in the second quarter. US generic sales accounts 30 percent of Sun Pharma's revenues.
Sale of branded formulations in India for Q2FY18 was Rs. 2,221 crores, up 11 percent and accounted for 34 percent of total sales.
"While there is a gradual recovery post the implementation of GST in India; the underlying growth remains robust," the company said.
Sun Pharma is ranked No. 1 and holds approximately 8.5 percent market share in the over Rs. 114,000 crore Indian pharmaceutical market as per September-2017 AIOCD-AWACS report. For Q2FY18, the company launched 14 new products in the Indian market.
The emerging market sales rose 16 percent to USD 196 million for Q2 led by broad-based growth across various markets, and was also partly boosted by the consolidation of the Biosintez acquisition in Russia.
Rest of World (ROW) markets excluding US and Emerging Markets were USD 111 million in Q2FY18 registering a growth of 40 percent - led by consolidation of revenues from the acquisition of 14 brands from Novartis in Japan.
Active Pharmaceutical Ingredients (API) business largely meant for captive consumption rose 6 percent to Rs 388 crores.Consolidated R&D expense for Q2FY18 was Rs. 511 crores, or 7.7% of sales compared to Rs. 570 crores or 7.4%
of sales for Q2 last year.
"This R&D expenditure includes investments on account of funding the clinical development of our global specialty pipeline." the company said.Sun Pharma has 422 ANDAs approved in US market. while
filings for 136 ANDAs await approval, including 15 tentative approvals. For the quarter, 4 ANDAs were filed and 3 approvals were received. Additionally, the pipeline includes 37 approved NDAs while 4 NDAs await US FDA
approval.Shares of Sun Pharma dropped 1.19 percent to close at Rs 526.15 on BSE, the benchmark Sensex declined 0.28 percent to 32,941.87 points.