Sun Pharma swings to loss in Q1 as sales dip nearly 10%

Headline results for the first quarter:

  • Revenue: INR 74.7 billion ($996 million), down 9.6%
  • Loss: INR 16.6 billion ($222 million), versus a profit of INR 13.9 billion ($186 million) recorded in the prior year

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

What the company said:

Managing director Dilip Shanghvi said Sun Pharmaceutical's performance in the first quarter "reflects the impact of the global COVID-19 pandemic and consequent lockdown across markets and is not an indicator of the underlying strength of our business." He noted that "despite challenging conditions, we have done well and have not lost market share for any of our key specialty products in the US [and] we have also maintained our market share in the Indian domestic market."

In explaining its quarterly loss, Sun Pharma said its first-quarter sales last year had included a one-time contribution from the special business in the US, and therefore "the numbers are not strictly comparable." Analysts were expecting the company to record a profit of INR 13.9 billion ($186 million) for the quarter.

Other results:

  • US finished dosage sales (including Taro): $282 million, down 33.5%, with Sun Pharma noting that the comparable year-ago period included a one-time contribution from the US special business and "hence the numbers are not strictly comparable"
  • Taro Pharmaceutical sales: $117.6 million, down 27%, impacted by Taro booking a one-time settlement charge of $ 418.9 million related to the global resolution of US investigations into the country's generic pharmaceuticals industry
  • India sales: INR 23.9 billion ($318.8 million), up 3%
  • Emerging markets sales: $173 million, down 10.5%
  • Rest of world sales: $136 million, down 18.5%
  • Active pharmaceutical ingredient (API) sales: INR 5.5billion ($73 million), up 20%, with the company saying it "[continues] to increase the API supply for captive consumption for key products"

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