Novartis India, a Rs. 845 crore MNC, has posted lower net profit of Rs. 13.45 crore during the first quarter ended June 2015 as compared to Rs. 14.31 crore in the corresponding period of last year and EBDITA by 1.2 per cent to Rs. 21.48 crore from Rs. 21.73 crore. Its net sales improved only single digit by 6.9 per cent to Rs. 215.99 crore from Rs. 202.06 crore. With lower net profit, its EPS declined to Rs. 4.23 from Rs. 4.48 in the last period.
Though its pharmaceutical sales increased to Rs. 168.94 crore from Rs. 150.61 crore, its generic sales declined to Rs. 11.15 crore from Rs. 12.29 crore in the similar quarter of last year. OTC sales also declined to Rs. 19.47 crore from Rs. 22.83 crore. However, animal health segment improved its sales to Rs. 24.49 crore from Rs. 23.02 crore.
As a part of its global portfolio transformation, Novartis AG, Basel, Switzerland agreed to divest its global animal health business to Eli Lilly. Novartis India agreed to transfer animal health division to Elanco India Pvt Ltd, affiliate of Lilly, for a consideration of Rs. 86.68 crore during November 2014. However, Foreign Investment and Promotion Board (FIPB), Government of India has not approve the transaction due to the existence of the restrictions on competition. Elanco India has submitted the Non-Compete Amendment letter to FIPB. Similarly, Novartis AG entered into agreement with GSK Consumer Healthcare for a new joint venture for consumer healthcare business and transferred its OTC business to GSK Consumer Pvt Ltd for a consideration of Rs. 109.73 crore after certain approvals. Novartis India has not accounted total Rs. 196.41 crore for the quarter ended June 2015 due to pending legal and regulatory approvals.