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Sun Pharma posts Q3 results, maintains strong profitability

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In Q3FY15, the net sales / income from operations was at Rs 4,280 crores

Sun Pharmaceutical Industries reported financials for third quarter and nine months ending December 31, 2014. In Q3FY15, the net sales / income from operations was at Rs 4,280 crores, flat over same quarter last year. Branded generic sales in India was at Rs 1,150 crores, up by 21 per cent over Q3 last year. The US finished dosage sales was at $413 million down by five per cent (in $ terms) over Q3 last year. The international formulation sales outside US was at $ 72 million down by 15 per cent (in $ terms) over Q3 last year.

EBITDA was at Rs 1,913 crores which de-grew by three per cent. The net profit was at Rs 1,425 crores compared to Rs 1,531 crores for Q3 last year, down seven per cent with resulting margin of 33 per cent.

In nine months FY15 consolidated financials, the net sales / income from operations was at Rs 12,957 crores, a growth of eight per cent over the same period last year. The branded generic sales in India was at Rs 3,294 crores, a growth of 20 per cent over nine months last year. The US finished dosage sale was at $1,283 million grew by five per cent (in $ terms) over nine months last year. The international formulation sales outside the US was at $ 242 million (in $ terms), flat over nine months last year.

EBITDA was at Rs 5,798 crores grew by nine per cent; resulting EBITDA margin of 45 per cent, same as for nine months last year. The net profit for nine months FY15 was at Rs 4,388 crores compared to Rs 1,617 crores in nine months last year. Net profit for nine months last year includes a provision of Rs 2,517 crores towards the generic Protonix litigation in the US. Adjusted for this provision, net profit for nine months FY15 is up by six per cent with resulting margin of 34 per cent.

Sale of branded prescription formulations in India for Q3FY15 was at Rs 1,150 crores, up by 21 per cent from Q3 last year. For the nine months, sales were at Rs 3,294 crores, higher by 20 per cent over same period last year. As per AIOCD-AWACS report, the average industry growth was approximately 10 per cent for Q3FY15. Fifteen new products were launched in the Indian market during the nine-month period ended December 2014.

Sales in the US were $ 413 million for the quarter, down by five per cent, accounting for 59 per cent of total sales. For the nine-months, sales were $ 1,283 million recording a growth of five per cent. Sales for Q3 were impacted primarily due to temporary supply constraints arising from remediation efforts.

Taro recently posted Q3 FY15 sales of $ 238 million, up 11 per cent from the corresponding quarter last year. For the nine months, sales were $ 619 million, up by eight per cent over nine months last year. Taro’s net profit for Q3 was $ 143 million, up by 23 per cent over Q3 last year. Net profit for nine months FY15 was at $ 332 million, up by 23 per cent over nine months last year.

Formulation sales in international markets excluding US accounted for $ 72 million in Q3FY15, registering a de-growth of 15 per cent (in $ terms). Sales for Q3 were impacted primarily due to temporary supply constraints arising from remediation efforts. ROW sales for the nine months were $ 242 million (in $ terms), flat over same period last year. Excluding ex-US Taro sales, Sun Pharma sales in these markets de-grew by 29 per cent and by four per cent for third quarter and nine months FY15 respectively (in $ terms).

External sales of API were at Rs 181 crores, a four per cent growth over Q3 last year. For the nine months, API sales decreased by two per cent to Rs 566 crores. A cumulative of 266 DMF/CEP applications have been made, with 178 approved so far.

Consolidated R&D expense for Q3 FY15 was Rs 389 crores, or nine per cent of sales. This includes significant investments on account of funding the clinical development of Tildrakizumab, the psoriasis monoclonal anti-body recently in-licensed from MSD (US). For nine months, R&D spend was Rs 958 crores at seven per cent of sales.

We now have a comprehensive product offering in the US market with approved ANDAs for 358 products while filings for 131 products await US FDA approval, including 11 tentative approvals. In the 9 months, ANDAs for 19 products were filed and 14 approvals were received.

The total number of patent applications submitted now stands at 586 with 345 patents granted so far.

EP News Bureau Mumbai

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