Sun Pharma Q2 net falls 46.5% to Rs 320 cr

After it set aside Rs 584 cr towards a possible compensation in a patent dispute case related to drug Protonix

Sun Pharmaceuticals has posted a decline of 46% in its net profit for the quarter ended on September 30, 2012, on the 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 at 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% to Rs 2,657 crore from Rs 1,894.6 crore during the same period.

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

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

Sale of branded prescription formulations in India stood at Rs 810 crore, up by 15% from Q2 last year. Sun Pharma holds 4.7% 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 Rest of World - continue to demonstrate good growth, in line with our expectations."