Sun Pharma posts Rs 1276 cr loss in Q1 on Pfizer settlement

Moneycontrol Bureau

Sun Pharmaceutical Industries today reported a consolidated net loss of Rs 1,276.1 crore in April-June as the company wrote-off Rs 2,517 crore on settlement of patent litigation with US-based Pfizer Inc.
 
Adjusted net profit after exceptional item stands at Rs 1,241 crore, a growth of 56 percent over same quarter last year. The company had posted a consolidated net profit after taxes of Rs 795.55 crore for the corresponding period previous fiscal.

Drug major’s consolidated revenue however surged 31.8 percent on year to Rs 3502.7 crore in quarter ended June.

Analysts on average had expected the company to report a net profit of Rs 1,035 crore, up 30 percent year-on-year, while revenue was seen rising 23 percent to Rs 3,287 crore in the first quarter, according to a CNBC-TV18 poll.

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The company's consolidated operating margin which contracted to 44.3 percent from 46 percent in a year ago quarter were in line with market expectations.

During the quarter, the company provided Rs 2,517 crore (previous year Rs 583.58 crore) being amount payable in terms of the settlement agreement entered on June 11, 2013, with Pfizer Inc USA, Wyeth LLC USA and Nycomed GmbH Germany with respect to patent infringement litigation related to generic versions of 'Protonix', Sun Pharma said in an earnings statement
 
Total income of the company rose to Rs 3,502.73 crore for the quarter under consideration from Rs 2,683.47 crore for the same period year ago.

Segment wise performance

The company said its branded generic sales in India grew by 44 percent over Q1 last year to Rs. 849 crores. While US finished dosages sale was USD 364 million, a growth of 28 percent on year. International formulation sales rose 19 percent to USD 81 million.

In the June quarter, Sun Pharma filed four Abbreviated New Drug Applications (ANDAs). 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, the company said in a release. The total number of patent applications submitted now stands at 791, with 503 patents granted so far.