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Sun Pharma Beats Street Expectations, Net Profit Increases Over 90%

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Sun Pharma Logo

Sun Pharmaceutical Industries – specialty pharmaceutical company manufacturing and marketing pharmaceutical formulations as branded generics, as well as generics in the US, India and several other markets.
Beating the street estimates, Dilip Sanghvi led Sun Pharma reported blockbuster financials for Q2. Revenue stood at Rs. 8,265.12 crore against Rs. 6,872.39 crore – a jump of 20.25%.
Net Profit almost doubled at 94.83% from Rs. 1276.94 crore to Rs. 2487.89 crore. This doubled the EPS at Rs. 9.3 from Rs. 4.3.
While bulk of the revenue was contributed by the US Formulations business at Rs. 3,714 crore, a 25% growth was witnessed in Emerging Markets business from Rs. 908.9 crore to Rs. 1,141.1 crore.
R&D Expenditure jumped marginally at 14.46% from Rs. 498.05 crore to Rs. 570.07 crore.

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Segmental Revenue Q2FY17

  • US sales include the benefit of the 180-day exclusivity for Imatinib which lasted till July-2016.
  • Other operating income for the quarter at Rs. 501 crores which includes US$ 45 million of milestone payment from Almirall S.A (Spain) as part of the licensing agreement for the development and commercialization of Tildrakizumab for psoriasis in Europe.
  • Taro posted Q2 FY17 sales of US$ 229 million, up 8% over Q2 last year
  • Currently 144 ANDAs await US FDA approval, including 13 tentative approvals. During Q2, the company filed 3 ANDAs while it received 6 approvals.
  • Currently pipeline of NDA’s include 37 approved NDAs while 4 NDAs await US FDA approval.

Dilip Shanghvi, Managing Director of the Company said,

The synergies from the Ranbaxy acquisition are gaining momentum and we are on track to achieve the targeted benefits. These synergies will continue to help in funding our emerging specialty businesses. Post the close of the quarter, we further strengthened our branded ophthalmic pipeline through the acquisition of Ocular Technologies. We were also very happy to announce the detailed results for Tildrakizumab Phase-3 trials which validate the potential of this product for psoriasis treatment.