Sun Pharmaceutical Industries has received setback during the second quarter ended September 2012 on account of provision of Rs.584 crore towards potential damages in respect of patent infringement litigation related to generic versions of 'Protonix'. Its consolidated net profit declined by 46.5 per cent to Rs.320 crore from Rs.598 crore in the corresponding period of last year. However, its EBDITA improved smartly to Rs.1,168, resulting EBDITA margin of 44 per cent, compared to 41 per cent in Q2 of last year.
The company's consolidated net sales jumped by 40.2 per cent to Rs.2,657 crore from Rs.1,897 crore. Sale of branded prescription formulations in India improved by 15 per cent to Rs.810 crore. Its sales in US were $244 million, up by 38 per cent, accounting for 49 per cent of total sales. Lipodox sales continued in the current quarter, but are expected to taper following the return of the branded product to the market. During the quarter, Caraco resumed manufacturing at its facilities in Michigan after the US FDA determined Caraco to be in compliance with relevant paragraphs of the Consent Decree.
Formulation sales in ROW market improved by 21 per cent to $68 million. Its API business continues to grow and it filed 229 DMFs application, with 163 approved so far. Consolidated R&D expenditure reached at Rs.145 crore.
Dilip Shanghvi, managing director, said, βAll Sun Pharma business β India, US and ROW β continue to demonstrate good growth, in line with our expectations. As a company with proven development capabilities in complex products and technologies, and with world class manufacturing, we are well positioned to make the best of opportunities in worldwide markets. We shall strive to remain focused on execution and building a business with consistent performance.β
For the first half ended September 2012, Sun Pharma's net sales improved by 50.6 per cent to Rs.5,315 crore from Rs.3,530 crore. Its net profit improved to Rs.1,115 crore from Rs.1,099 crore in the corresponding period of last year.