Novartis India has posted lower net sales during the quarter ended June 2014 to Rs.202.06 crore as against Rs.219.03 crore in the similar period of last year due to reduction in the selling prices of some key products arising out of the notification of the DPCO. Further depreciation of rupee also impacted adversely. The company's net profit improved marginally by 3.2 per cent to Rs.14.31 crore from Rs.13.87 crore. EPS worked out to Rs.4.48 as against Rs.4.34 in the last period.
The pharmaceutical business recorded total income for operations of Rs.150.6 crore as against Rs.162.8 crore in the previous corresponding quarter. The generics business registered income of Rs.12.3 crore as against Rs.14.9 crore. The sales of animal health segment declined to Rs.23 crore from Rs.25.6 crore. Its OTC business, however, improved to Rs.22.8 crore from Rs.19.9 crore.
The company registered a loss from operations of Rs.4.02 crore as compared to profit from operations of Rs.1.74 crore during the corresponding quarter of the previous year.
During April 2014, Novartis AG, Switzerland and GlaxoSmithKline plc, UK have agreed to create a consumer healthcare business through a joint venture between Novartis OTC and GSK consumer healthcare. Upon completion, Novartis will own a 36.5 per cent share of the JV and will have four of eleven seats on the joint venture's Board. The transaction with GSK is subject to approval by GSK shareholders and other closing condition, including anti-trust approvals. The transaction is expected to close during the first half of 2015.
Further, Novartis AG has agreed to divest its animal health business to Eli Lilly and Company and the transaction is likely to close by the end of the first quarter of 2015.