Novartis India has received minor setback during the third quarter ended December 2014 due to impact of DPCO 2013 and it incurred a net loss of Rs.1.18 crore as against a net profit of Rs.15.23 crore in the similar period of last year. Its net sales also declined by 2.5 per cent to Rs.213.02 crore from Rs.218.54 crore. With net loss, its EPS worked out to negative Rs.1.11 as against Rs .4.77 in the last period.
Its pharmaceutical sales improved marginally to Rs.149.60 crore from Rs.142.91 crore in the corresponding period of last year. However, its sales of generics and OTC products declined to Rs.12.66 crore and Rs.35.73 crore respectively from Rs.14.88 crore and Rs.37.68 crore. The sales of animal health declined to Rs.24.21 crore from Rs.28.06 crore.
Novartis has decided to divest its OTC and animal health businesses to GlaxoSmithKline and Eli Lilly & Company after certain approvals for a consideration of Rs.109.73 crore and Rs.86.68 crore respectively. The consideration to be received by the company in relation to the slump sales totaling to Rs.196.41 crore has not been accounted in the results due to certain approvals.
For the nine months ended December 2014, Novartis' net sales declined to Rs.643 crore from Rs.647 crore in the same period of last year. Its net profit declined sharply by 63.6 per cent to Rs.27.17 crore from Rs.74.65 crore. The pharmaceutical sales improved by 2.8 per cent to Rs.455.45 crore from Rs.442.90 crore and that of animal health business improved to Rs.100.77 crore from Rs.91.06 crore. However, OTC sales declined to Rs.38.45 crore from Rs.43.89 crore.
Novartis has filed a Writ Petition in May 2014 before the Delhi High Court challenging the move of the National Pharmaceuticals Pricing Authority (NPPA) to include Voveran 50 GE tablets, marketed by the company, under price control in terms of the Drug Price Control Order 2013. The High Court issued a notice to the NPPA on May 16, 2014 directing to the Writ Petition filed by the company. Meanwhile, the NPPA has issued a Demand Notice dated October 18, 2014 directing the company to pay Rs.18.18 crore by November 15, 2014. This demand has been challenged before the Delhi High Court which was pleased to grant a stay on the demand. The matter is posted for further hearing on February 9, 2015.