Exclusive sales of generic cancer drug imatinib in the US and a lower operational cost has helped Dilip Shanghvi–led Sun Pharmaceuticals to post some 93 per cent growth in net profit at Rs 1,714 crore for the January-March quarter.
Its consolidated sales for the quarter grew 21 per cent to Rs 7,414 crore as compared to the corresponding previous quarter.
Sun Pharma’s US formulation sales at $580 million during the quarter grew 19 per cent over the last year. This growth was mainly on account of the 180-day exclusivity for imatinib generic which commenced from February. While the company’s India sales at Rs 1,807 crore was up 17 per cent over the year-ago quarter due to increased market share and the synergy of integration with Ranbaxy product portfolio.
However, its full year (2015-16) net profit at Rs 4,716 crore was less than expected as it was adversely impacted by a one-time items as well as exceptional charges of Rs 685 crore reported in the first quarter of the year.
These exceptional charges were related to impairment of fixed assets and goodwill and other related costs and have arisen on account of integration and optimization measures.
"This has been a year of consolidation for us," said Dilip Shanghvi, managing director in a statement on Tuesday (May 31).
"While we have accrued targeted synergies from the Ranbaxy acquisition, we have also made commensurate investments in building the specialty business in the US. These strategic investments will help us drive the sustainable growth of our business," he added.
BW Reporters
Unnikrishnan is currently Senior Associate Editor with BW Businessworld at its Mumbai Bureau. During his two decades long journalistic career, he has received several media awards and recognitions. His articles on healthcare, life sciences and intellectual property rights (IPR) have been republished by several international blogs and journals.
