Sun Pharmaceutical Industries, the India's leading pharmaceutical company with net sales of Rs.16,000 crore plus, has posted strong growth in consolidated net profit of 15 per cent during the second quarter ended September 2014 to Rs.1,572 crore as against Rs.1,362 crore in the similar quarter of last year. EBDITA grew by 18 per cent to Rs.2,161 crore which resulted in EBDITA margin of 45 per cent compared to 44 per cent in last period. Earnings per share improved to Rs.7.6 from Rs.4.6 in the last period.
Its consolidated net sales increased by 13.3 per cent to Rs.4,751 crore from Rs.4,192 crore. Its sales of branded generic in India improved by 21 per cent to Rs.1,152 crore The company's sales of finished dosage in US went up by 15 per cent to US$ 481 million and its international formulation sales outside US moved up by 12 per cent to US$ 89 million. Overall international revenues accounted for approximately 75 per cent of total revenues for the quarter under review. Taro Pharma recently posted net sales of US$ 251 million, up by 22 per cent from the last period.
The company increased the API supply for captive consumption significantly for key products which enabled it to enjoy the benefits of strategic vertical integration. However, its APIs sales remained flat at Rs.210 crore.
Its consolidated R&D expenditure reached at Rs.312 crore which worked out to 6.6 per cent of sales. The company has a comprehensive product offering in the US market with approved ANDAs for 354 products while filings for 130 products await US FDA approval, including 11 tentative approvals. The total number of patent applications submitted stands at 576 with 346 patents granted so far. Sun Pharma and Merck & Co entered into an exclusive worldwide licensing agreement for Merck's investigational therapeutic antibody candidate, tildrakizumab (MK-3222).
The company received necessary approvals from stock exchanges in India, shareholders and from competition authorities in all applicable markets excluding India and the US for acquisition of Ranbaxy Laboratories.
Dilip Shanghvi, managing director, said, “ Our Q2 performance was strong and continued to achieve high level of profitable growth, in-line with our expectations. We remain focused on strengthening our existing businesses and developing a differentiated and specialty product basket as well as planning for the Ranbaxy integration. We also continue to review opportunities to expand and strengthen our global footprint.”
For the first half ended September 2014, Sun Pharma has registered net sales growth of 13.1 per cent to Rs.8,677 crore as compared to Rs.7,674 crore in the similar period of last year. Its Indian branded generic sales improved by 19 per cent to Rs.2,144 crore and that of finished dosage sale in US increased by 11 per cent to $870 million. International formulation sales improved by 7 per cent to $171 million. Its net profit improved to Rs.2,963 crore from Rs.862 crore mainly due to a provision of Rs.2,517 crore towards the generic Protonix litigation in the US. Its R&D spending moved to Rs.569 crore and worked out to 6.6 per cent of sales.
Meanwhile, the Board of Sun Pharmaceutical has approved the scheme of merger of Sun Pharma Global Inc., a wholly owned foreign subsidiary, into the company without any consideration with effect January 1, 2015.