Sun Pharma net dips 46% on Rs 584-cr one-time provision

Last Updated: Thu, Nov 08, 2012 19:31 hrs

Sun Pharmaceuticals has posted a decline of 46 per cent in its net profit for the quarter ended September 30, on a one-time loss of Rs 584 crore. The company has set aside Rs 584 crore for a possible compensation in a patent infringement case over Protonix.

Earlier this year, Wyeth had filed a claim in a US court seeking $960 million in damages from Sun Pharma for alleged patent infringement of its gastrointestinal drug Protonix. Sun had launched its generic version of Protonix tablets in January 2008.

The group has posted a consolidated net profit of Rs 320 crore for the quarter as compared to Rs 598 crore for the quarter ended September 30, 2011. Consolidated net sales rose by 40 per cent to Rs 2,657 crore from Rs 1,894.6 crore during the same period.

On Thursday, shares of Sun Pharma closed at Rs 696.15, down Rs 0.76 on BSE.

Sales in the US, accounting for 49 per cent of total sales, were $244 million for Q2 FY13, up 38 per cent. Israel-based subsidiary Taro had posted Q2 FY13 sales of $161 million, up 16 per cent from the corresponding quarter last year.

Sale of branded prescription formulations in India stood at Rs 810 crore, up by 15 per cent from Q2 last year. Sun Pharma holds 4.7 per cent market share in the Rs 65,000-crore pharma market, as per latest AIOCD-AWACS report.

Dilip Shanghvi, Managing Director, Sun Pharma said, “All Sun Pharma businesses - India, US and RoW - continue to demonstrate good growth, in line with our expectations."

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