In the three months to June, India’s biggest drug-maker posted a net profit of Rs 1,387 crore, up 16 per cent from the previous year in the same quarter and 31 per cent from the March quarter. Shares jumped over 3 per cent to end at Rs 438.35 on a day the benchmark Sensex lost more than 600 points, or 1.6 per cent.
Sun Pharma reported total revenue from operations at Rs 8,259 crore, or 16 per cent higher. EBIDTA, too, improved 22 per cent at Rs 1,927 crore.
The company beat Street estimates. The revival of Sun pharma comes after two painful years in which the company was battling slow growth in the US markets, regulatory oversight and issues of corporate governance. The US market, which contributes 31 per cent to the company’s business, reported a 12 per cent growth in revenues at $424 million. Sales for the quarter include contribution from a significant business of generic supply to a customer.
“We continue our efforts on building the specialty business and are encouraged by the potential of one of our pre-clinical research molecules, which is likely to enter clinical trials next year,” said MD Dilip Shanghvi.
“The recent out-licensing of Tildrakizumab and Cequa for Greater China market and the regulatory filing of Tildrakizumab in Japan reflects our global aspirations for the specialty business. Ilumya/ Ilumetri is gradually gaining traction in the US and Western Europe.”
Sun Pharma also made changes to its key leadership team. The company said Kalyan Sundaram, who leads the India business, will now look at strategic initiatives and the Japan market, Kirti Ghanotkar will lead India formulation business and Aalok Shanghvi, son of Dilip Shanghvi, will lead the generic business growth. Sun said that it is looking for a person to lead its branded US generic business.
The India business contributed Rs 2,134 crore to overall revenues and emerging markets added $194 million. Although India grew at 8 per cent, the emerging markets business reported flat growth. Sundaram said that Sun is looking to bring new patented products to India through in-licensing opportunities.
Sun said for this quarter, it has filed three generic drug applications and received approvals for 13. Its pipeline includes 52 approved new drug applications, and 6 NDAs await US FDA approval.
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