Sun Pharmaceuticals Ltd, India’s largest drugmaker, reported a 14% decline in its revenue for the December quarter, led by a 35% fall in revenue from the sales of dosages in the US.
Net profit fell 75% to Rs 365 cr from Rs 1,472 cr last year and Rs 912 cr in the preceding quarter.
Total Revenue from operations were at Rs 6,598 crores for the quarter, flat on quarter.
The company said the year-on-year fall in revenue was due to a one-time deferred tax adjustment of Rs 513 crores related to changes in US tax rates.
Adjusted for this, net profit for the quarter was at Rs 878 crores.
“The decline (in revenue) is primarily driven by the US business,” the company said.
Sales in the US were US$ 328 million for the quarter, a de-growth of 35% over same period last year.
The market accounted for 32% of the company’s total sales.
“This decline was driven by the overall pricing pressure in the US generics market and the YoY reduction in sales of generic Imatinib and Olmesartan authorized generics,” Sun Pharma said.
The company had lost generic exclusivity on Imatinib in July-2016.
The company’s US subsidiary Taro Pharma posted Q3 FY18 sales of US$ 156 million, down 30% over Q3 last year. Taro’s net profit for Q3 was US$ 18 million, down by 87% over Q3 last year.
“All other businesses have grown for the quarter. India sales was at Rs. 2,085 crores, growth of 6% over Q3 last year,” the company said.
Emerging Markets sales were at US$ 189 million, up by 10% over Q3 last year.
Rest of World sales were at US$ 120 million, a growth of 6% over Q3 last year.
R&D investments for the quarter were at Rs 473 crores or 7.2% of sales, compared to Rs 613 crores or 8% of sales for Q3FY17.
EBITDA at Rs. 1,398 crores, resulting EBITDA margin of 21.2%.
“Our Q3 performance reflects a gradual improvement in profitability over the first half of this year, despite a challenging US generic pricing environment,” said Dilip Shanghvi, Managing Director.
India
Sale of branded formulations in India for Q3FY18 was Rs 2,085 crores, up 6% and accounting for 32% of total sales.
“While there is a gradual recovery post the implementation of GST in India; the underlying growth remains robust,” it said.
Sun Pharma is ranked No. 1 and holds approximately 8.5% market share in the over Rs 116,000 crore Indian pharmaceutical market as per December-2017 AIOCD-AWACS report.
Sun Pharma sales in emerging markets were at US$ 189 million for Q3; a growth of 10% compared to the same quarter last year. The division accounted for 19% of total sales.
“While the growth was broad-based across various markets, it was partly boosted by the consolidation of the Biosintez acquisition in Russia,” the company said.
Formulation sales in Rest of World (ROW) markets excluding US and Emerging Markets were US$ 120 million in Q3FY18, a growth of 6%.
The division contributed 12% of the total revenues.
The company also makes drug ingredients, known as API, primarily for captive consumption. For Q3FY18, external sales of API were at Rs 370 crores, flat over Q3 last year.