Sun Pharmaceutical Industries has reported net loss of Rs 1,276.10 crore for the quarter ended June 30, 2013, mainly on account of payment for patent litigation settlement.
The company had posted a net profit of Rs 795.55 crore for the same period in the previous fiscal.
During the quarter, the company has provided Rs 2,517.41 crore (previous year Rs 583.58 crore) being amount payable in terms of the settlement agreement entered on June 11, 2013, with Pfizer, Wyeth and Nycomed GmbH with respect to patent infringement litigation related to generic versions of ‘Protonix’.
Excluding the onetime settlement charge, Sun posted a 56% rise in profit as sales of its generic drugs in the US climbed.
Profit before a one-time payment to settle a patent litigation with Pfizer Inc was Rs 1,241 crore in the quarter ended June, compared with Rs 796 crore a year earlier, the Mumbai-based Sun said.
Dilip Shanghvi, MD, Sun Pharma, said all the company’s businesses continue to perform in line with expectations.
“We remain focused on strengthening our existing businesses and developing a differentiated and specialty driven product basket,” said Shanghvi adding that the company will continue to review (inorganic) opportunities to expand and strengthen global footprint.
Analysts said excluding one-time payment, the sales, margins and profits have all beaten street estimates. “We expect the stocks to rally about 5%. We will maintain buy rating on the stock and revise the target price of Rs 628,” said Ranjit Kapadia, analyst, Centrum Broking.
Sales increased 31% to Rs 3,482 crore in the three months ended June from a year earlier, Sun said.
Sales of finished dosages in the US grew 28% to $364 million in the first quarter from a year earlier, it said.
Overseas sales accounted for 57% of Sun’s total revenue in the year ended in March 2011.
On the tax rate front, Shanghvi said it was on the lower side compared to the initial assessment. “We expect overall tax rate of fiscal 2014 to be around 15%,” he said during an analyst call.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}