Lupin had a net loss of 1.52 billion rupees compared to a profit of 2.22 billion rupees in the same quarter last year, the company said.
Mumbai: A surprising disclosure was made by the Mumbai based drugmaker Lupin Ltd as it recently posted a quarterly loss of Rs 152 crore after a one-time charge of Rs 342 crore related to litigation over a blood pressure drug Perindopril.
Lupin made a provision of 3.42 billion rupees ($47.7 million) after the General Court of the European Union in December upheld a 2014 European Commission decision on a fine against Lupin related to the blood pressure drug Perindopril, the company said.
Medical Dialogues had earlier reported that a court in Europe has upheld a decision to impose a fine of 40 million euros (over Rs 325 crore) on Lupin by European Commission (EC) in litigation over blood pressure lowering drug Perindopril.
In 2014, Lupin and Unichem Laboratories were among six global drug makers on which the European regulator had imposed a collective fine of 427.7 million euros for striking deals to prevent entry of cheaper version of blood pressure drug Perindopril in the EU.
As per the current status, Lupin had a net loss of 1.52 billion rupees compared to a profit of 2.22 billion rupees in the same quarter last year, the company added.
An average of estimates from 18 analysts had expected a profit of 2.89 billion rupees, according to Refinitiv Eikon data.
Lupin’s sales rose 12.2 per cent to 43.7 billion rupees in the quarter. Revenue from North America, which accounted for nearly a third of total revenue, slipped 1 per cent.
“After a tough H1, we are now starting to see growth in the U.S.,” said Nilesh Gupta, managing director of Lupin Ltd.
Indian pharmaceutical companies have struggled with weak sales in the United States on account of regulatory bans and warnings over quality control at production plants.
Sales have also been hit by pricing pressures as competition heats up in the U.S. generics market.
The company’s revenue in India jumped 11.4 per cent to 11.9 billion rupees.
Original reporting by Krishna V Kurup in Bengaluru; editing by Darren Schuettler; Reuters.