Sun Pharma records Total Revenue of Rs 8374.36 crore for June quarter
Mumbai: India's largest drugmaker Sun Pharmaceutical Industries Ltd. (Sun Pharma) recently reported a consolidated net profit of Rs 1,387.48 crore while a total revenue of Rs 8374.36 crore for the quarter ended June 30, 2019.
The company had posted a profit of Rs 1,057.29 crore for the corresponding period of the previous fiscal, Sun Pharma said in a filing to BSE. Total revenue from operations for the quarter under review stood at Rs 8,374.36 crore. It was Rs 7,224.17 crore for the same period a year ago.
"Pola Pharma Inc Japan became a step-down subsidiary of the company with effect from January 1, 20l9. Accordingly, the results for the quarter include results of Pola Pharma Inc, and hence are not comparable with the quarter ended June 30, 2018," the company said.
Highlights of Q1FY20 consolidated financials
• Sales / Income from operations at Rs. 8,259 crores, a growth of 16% over the same quarter last year.
• India sales at Rs. 2,314 crores, growth of 8% over Q1 last year.
• US finished dosage sales at US$ 424 million, up by 12% over Q1 last year.
• Emerging Markets sales at US$ 194 million, flat over Q1 last year.
• Rest of World sales at US$ 167 million, growth of 56% over Q1 last year.
• R&D investments at Rs. 422 crores (5.1% of sales) compared to Rs. 500 crores (7% of sales) for Q1FY19.
• EBITDA at Rs. 1,881 crores, resulting in an EBITDA margin of 22.8%.
• Net profit for the quarter at Rs. 1,387 crores with resulting net profit margin at 16.8%.
These results were taken on record by the Board of Directors at a meeting held in Mumbai recently. Commenting on the same, Dilip Shanghvi, Managing Director of the Company said, "We have recorded growth across most of the markets for the quarter and our performance is in-line with our full-year guidance. We are consistently focusing on improving our efficiencies and cost structure to ensure reasonable returns for our generics business."
"At the same time, we continue our unwavering efforts on building the speciality business and are encouraged by the potential of one of our pre-clinical research molecules which is likely to enter clinical trials next year. The recent out-licensing of Tildrakizumab and Cequa for the Greater China market and the regulatory filing of Tildrakizumab in Japan reflects our global aspirations for the speciality business. Ilumya/Ilumetri is gradually gaining traction in the US and Western Europe, " he added.
India Business – Market Leadership
Sale of branded formulations in India for Q1FY20 was Rs. 2,314 crores, up by 8% over Q1 last year and accounted for 28% of total sales.
Sun Pharma is ranked No. 1 and holds approximately 8.2% market share in the over Rs. 132,000 crores Indian pharmaceutical market as per AIOCD AWACS June-2019 report. For Q1FY20, the company launched 10 new products in the Indian market.
Sales in the US were US$ 424 million for the quarter, a growth of 12% over the same period last year and accounted for 36% of total sales. Sales for the quarter include the contribution from a significant business of generic supply to a customer.
At the same time, Taro posted Q1FY20 sales of US$ 161 million, up 4% over Q1 last year. Taro's net profit for Q1 was US$ 66 million, marginally down over Q1FY19.
Our sales in emerging markets were at US$ 194 million for Q1; flat over the same quarter last year. While the business has grown on a constant currency basis, unfavourable currency movements have impacted the overall growth. Sales in emerging markets accounted for 16% of total sales for the quarter.
Rest of World Markets
Formulation sales in the Rest of World (ROW) markets excluding US and Emerging Markets were US$ 167 million in Q1FY20, a growth of 56% over Q1 last year and accounting for approximately 14% of revenues. Growth drivers include both, organic initiatives as well as a consolidation of Pola Pharma (Japan) business.
Active Pharmaceutical Ingredients (API): Strategic strength
Our API business imparts the benefits of vertical integration for our formulations business. We continue to increase the API supply for captive consumption for key products. For Q1FY20, external sales of API were at Rs. 461 crores, up by 17% over Q1 last year.
Research – Investing for future
The consolidated R&D investment for Q1FY20 was Rs. 422 crores or 5.1% of sales compared to Rs. 500 crores or 7%
of sales for Q1 last year.
We have a comprehensive product offering in the US market consisting of approved ANDAs for 466 products while filings for 108 ANDAs await US FDA approval, including 13 tentative approvals.
Building an early stage innovation pipeline
Sun Pharma has commenced research on developing an early-stage innovation pipeline for its speciality business. The addition of new research candidates is imperative to ensure the sustainability of the speciality pipeline in the long term. The current early-stage speciality pipeline includes some pre-clinical research candidates of which, one molecule has demonstrated a best-in-class therapeutic effect in early pre-clinical models and is likely to enter clinical trials next year.
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