The Hindu Business Line : ‘At risk’ sale of generics in US buoys Sun Pharma’s consolidated net

Mumbai, July 28 Sun Pharma posted a consolidated net profit of Rs 501.45 crore for the quarter ended June 30, 2008, up 121 per cent from the net profit of Rs 227 crore, clocked in the corresponding period of the previous year.

There is significant one-time sales and profit component in these financials linked to the sales of products that enjoy limited duration marketing exclusivity in the US, the company said.

Sun Pharma continues to sell generic heart-burn drug Protonix and cancer-related Ethyol, products that were its “at-risk” launches.

This quarter too, these launches had a one-off effect on the US generic sales and profits, it added.

Total income has increased from Rs 688 crore for the quarter ended June 30, 2007 to Rs 1,088 crore for the quarter ended June 30, 2008.

Sun Pharmaceutical posted a standalone profit after tax of Rs 280 crore for the quarter ended June 30, 2008, up about 25 per cent from Rs 225.39 crore for the quarter ended June 30, 2007. The company’s total income increased from Rs 747.60 crore for the quarter ended June 30, 2007 to Rs 932.15 crore in the quarter ended June 30, 2008.

“This year has begun on a good note, with performance in line with our expectations. Despite a challenging macro-economic environment, and the necessity for consolidation increasingly being felt within the global generic pharma industry, our business is well positioned to deliver consistent growth and profitability.

“Our generic business in the US and the branded generic businesses in India and rest-of-the-world continue to post steady numbers justifying the investments we have made towards products, brands, customers and facilities.

“In all, we are in for a year of strong numbers across all our business segments,” Mr Dilip Shanghvi, Chairman and Managing Director said in a company statement.

The company maintained that it was “committed to completing the rightful acquisition of Taro”.

Sun is embroiled in a legal battle with the Israeli drug-maker, after Taro unilaterally terminated Sun’s $454-million merger proposal.

Sun Pharma shares were down over one per cent at Rs 1,394.25 on the BSE.