Sun Pharmaceutical Industries, a third largest pharma company in India with consolidated net sales of Rs.11,625 crore, has incurred a consolidated net loss of Rs.1,276 crore during the first quarter ended June 2013 on account of provision of Rs.2,517 crore for settlement agreement with Pfizer Inc., Wyeth LLC and Nycomed GmbH with respect to patent infringement litigation related to generic versions of 'Protonix'. It posted a net profit of Rs.796 crore in the same quarter of last year.  However, its EBDITA increased by 33.8 per cent to Rs.1,626 crore from Rs.1,215 crore. Its EPS before exceptional items worked out to Rs.6 as compared to Rs.3.8 in the last period.

Its consolidated net sales moved up strongly by 31 per cent to Rs.3,482 crore from Rs.2,658 crore in the corresponding quarter of last year.  Sales of branded prescription formulations in India went up by 44 per cent and accounted fro 24 per cent of total sales. The company launched 10 products during the first quarter under review. It has completed the process of transferring its domestic formulations business to Sun Pharma Laboratories Ltd, a wholly owned subsidiary.

Dilip Shanghvi, chairman and managing director, said, “All our businesses continue to perform in-line with our expectations. We remain focused on strengthening our existing businesses and developing a differentiated and specialty driven product basket. We also continue to review opportunities to expand and strengthen our global footprint.”

The company's sales in US increased by 28 per cent to US$ 153 million and this accounted 58 per cent of its total sales. Taro Pharma's sales declined by 4 per cent to US$ 153 million. Excluding the one-time charge related to price adjustments on contractual obligations, sales would have been higher by 10 per cent on year to year basis. Sun Pharma agreed to pay a lump-sum US$ 550 million as a part of settlement with Pfizer and others. It had already provided Rs.585 crore in second quarter of FY'13 towards settlement. It has made a provision of Rs.2,517 crore towards the difference between total settlement amount and past provision. The formulation sales in Rest of World increased by 19 per cent to US$ 81 million.

Its APIs sales declined by 4 per cent to Rs.193 crore in first quarter of 2012-13. The API business continues to be largely used for vertical integration on key products. It made 243 DMF/CEP applications with 171 approved so far.

Its consolidated R&D expenditure stood at Rs.205 crore during which worked out 6 per cent of sales. It filed 4 ANDAs and its cumulative ANDAs filings reached at 453 products with US FDA. It received  approval for 9 products during the quarter, taking the total number of approvals to 320 as at the end of June 2013. ANDAs for 133 products now await US FDA approval, including 19 tentative approvals. The company filed total 791 patent applications, with 503 patents granted upto the end of June 2013.

Sun Pharma's standalone net sales declined by 22.7 per cent to Rs.588.29 crore during the first quarter ended June 2013 from Rs.760.61 crore. Its standalone net profit declined sharply to Rs.45.70 crore from Rs.292.63 crore. However, these are figures are not strictly comparable as the company transfer  its domestic formulation undertaking to Sun Pharma Laboratories Ltd. It has shown a lower other operating income of Rs.29.35 crore as against Rs.244.60 crore which represents income from partnership firms, which it converted I from partnership firms into wholly owned subsidiaries of the company from August 31, 2012.

The company has allotted bonus shares in the ratio of 1:1 on August 3, 2013 and its equity capital increased to Rs.207.12 crore from Rs.103.56 crore in the previous period.