Sun Pharmaceutical and Industries, a Rs.5,700 crore pharma major from Vadodara, has posted strong performance during the second quarter ended September 2011 on account of inclusion of Taro Pharmaceutical working. Its consolidated net sales increased by 42.4 per cent to Rs.1,895 crore from Rs.1,331 crore in the corresponding period of last year. Its EBDITA went up by 64.3 per cent to Rs.860.58 crore from Rs.520.61 crore and its net profit moved up by 18.7 per cent to Rs.597.74 crore from Rs.503.65 crore. The earnings per share improved to Rs.5.8 as against Rs.4.9 in the last period.
Sales of branded prescription prescription formulations in India registered a growth of 15 per cent to Rs.705 crore and contributed around 37 per cent to total sales. The company holds 4.4 per cent market share in the highly competitive pharma market, as per latest AIOCD report. Its sales in the US of finished dosage products reached at US$ 175 million and accounts for 42 per cent of total sales.
Sales of generic formulations in markets outside of India and US accounted for $56 million during the quarter ended September 2011. Its R&D expenditure reached at Rs.93 crore during the quarter under review. It filed 5 ANDAs and its cumulative total reached at 388 products. It received US FDA approval for 6 products during the quarter taking the total number of approvals to 238 and 150 product are awaiting approval. It filed cumulative 210 DMF/CEP application, with 138 approved so far. The total number of patent applications submitted now stands at 551 with 254 patents granted so far.
Dilip Shanghvi, chairman and managing director, said, “Performance delivered this quarter and in the first half, though partly aided by the exchange rate movement, is a clear reflection of the steady effort made across all parts of our business towards long term sustainable growth and profitability. India business maintains the growth in prescription share with our key customers. In the US and other international market, work continues on enriching the product pipeline and on strengthening the quality and regulatory processes.”
For the first half ended September 2011, Sun's consolidated net sales increased by 30.9 per cent to Rs.3,530 crore from Rs.2,696 crore in the similar period of last year. Its net profit, however, improved only by 2.9 per cent to Rs.1,099 crore from Rs.1,068 crore due to significant higher tax provision and minority interest expenses. Its tax provision went up to Rs.142.37 crore during the first half from Rs.26.91 crore in the last year. Further its minority interest went up to Rs.174.01 crore from Rs.16.88 crore.
Its sales of branded generic in India increased by 14 per cent to Rs.1,343 crore and excluding third party manufacturing business, grew by 18 per cent over the previous half of last year. Its US finished dosage sale reached at $314 million and its international formulation sales amounted to $112 million. The company resolved issues contained in the warning letter received by the manufacturing site of its subsidiary at Cranbury, New Jersey. It is also taking measures to solve problems at the Caraco facility in Detroit.