Sun Pharma profit slides 26% in Q3 as expenses rise

Headline results for the third quarter:

Revenue INR 80.4 billion ($1.1 billion) +5%
Profit INR 9.1 billion ($128 million) Versus INR 12.4 billion ($174 million)

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

Managing director Dilip Shanghvi remarked that Sun Pharma's "branded business in India is doing well and has recorded double-digit growth," while for the international business, "we continued our efforts to enhance our portfolio in new markets by entering into a licensing agreement with AstraZeneca in China for some of our novel oncology products." Shanghvi added that the drugmaker continues to "enhance our global specialty business, which is gradually becoming a meaningful growth engine."

During the quarter, Sun Pharma also recorded an increase of nearly 12% in total expenses over the year-ago period to INR 69.2 billion ($968 million).

Other results:

  • US finished dosage sales (including Taro): $350 million, down 3%, with the company noting that it recently introduced the eye-disease drug Cequa in the US and the launch has been "received well"
  • Taro Pharmaceutical sales: $148 million, down 16%, while quarterly profit for the unit was $68 million
  • India sales: INR 25.2 billion ($354 million), up 13%
  • Emerging markets sales: $195 million, down 4%, with the decline primarily led by lower tender business revenues in South Africa
  • Rest of world sales: $155 million, up 24%, with the main growth driver being consolidation of the Pola Pharma business
  • Active pharmaceutical ingredient (API) sales: INR 5 billion ($70 million), up 18%, with the company saying it "[continues] to increase the API supply for captive consumption for key products"



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