The Hindu Business Line : Sun Pharma Q3 net up 60%

Mumbai, Jan. 31 An intellectual property (IP)-driven action-packed quarter in the US has buoyed Sun Pharmaceuticals’ consolidated performance for the three months ended December 31, 2007.

A regulatory approval and launch of generic epilepsy drug oxcarbazapine, an approval and settlement on generic dementia medicine rivastigmine tartrate capsules in the quarter under review and an approval and recent “at risk launch” of heart-burn drug Pantoprazole Sodium Delayed Release – all developments in the US market – are indicative of the company’s desire to do what works best, said Sun Pharma’s Chairman and Managing Director, Mr Dilip Shanghvi, told analysts.

The company would take a custom approach depending on the opportunity that presents itself, he said.

On Wednesday, the company announced the launch of generic Protonix, a product on which Sun Pharma was the first-to-file an Abbreviated New Drug Application (ANDA) with a Para IV patent-challenge, and sharing a 180-day marketing exclusivity.

Q3 performance

Sun Pharma’s consolidated net profit for the quarter under review stood at Rs 318 crore, up 60 per cent over the net profit in the corresponding quarter of the previous year.

Net sales increased 49 per cent to Rs 804 crore (Rs 540 crore), the company said. International revenues contributed over 50 per cent of consolidated revenues, he said.

Sun Pharma shares were down 1.39 per cent on the BSE at Rs 1,138.45.

Sun Pharma’s US subsidiary Caraco reported robust sales on the back of non-recurring sales related to oxcarbazapine generic, which the company launched on getting final regulatory approval, including a shared 180-day marketing exclusivity. Caraco recorded a net income of $11 million in the third quarter, despite continuing pricing pressure, the company said.

The company’s consolidated research-spend for the quarter is Rs 84.2 crore, about 10.5 per cent of net sales for the quarter, he said.

Israel-based drug maker Taro is expected to take up Sun Pharma’s merger proposal at its shareholder meeting likely to be held during the first quarter of 2008, the company said. “We are confident of closing the transaction,” Mr Shanghvi reiterated. “We don’t expect it to take indefinite time,” he said, responding to queries on the delay. Sun Pharma holds 25 per cent equity in Taro and it has before it the option to acquire the current promoter’s holding and that would give 40 per cent holding in Taro, he said.

In May last year, Sun Pharma had signed an agreement to acquire Taro Pharma in a $454-million deal. The deal, touted to be the second overseas acquisition by an Indian drug company, however, ran into delays with Taro’s minority shareholders alleging that they have been discriminated against. Sun Pharma would not raise more funds till the resources at present with the company are used up, he added.

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