Sun Pharma hits 52-week low on Taro's weak June quarter results

The stock slipped 5% to Rs 475, also its 52-week low on BSE in early morning trade.

Sun Pharmaceutical Industries has slipped 5% to Rs 475, also its 52-week low on BSE in early morning trade, after its unit Taro Pharmaceutical Industries’ net income halved to $54.5 million in quarter ended June 2017 (Q1FY18). The company had net income of $109.9 million in the same quarter last year.

Net sales during the quarter under review declined 31% to $161.3 million, due to continuing increased competition and the challenging pricing environment; despite an overall increase in volumes.

Mr. Abhay Gandhi, Taro’s interim CEO stated, “Our results reflect the difficult generic pricing environment, particularly in the U.S., driven by more intense competition among manufacturers, new entrants to the market, buying consortium pressures, and a higher ANDA approval rate from the FDA. We expect this product-specific pricing pressure to continue into the future.

Taro said it recently received approvals from the U.S. Food and Drug Administration (FDA) for four Abbreviated New Drug Applications (ANDAs): Children’s Ibuprofen Oral Suspension USP (OTC) 100mg/5mL, Ibuprofen Oral Suspension 100mg/5mL, Betamethasone Valerate Topical Foam 0.12%, and Felbamate Oral Suspension USP 600mg/5mL. The company currently has a total of thirty-three ANDAs awaiting FDA approval, including six tentative approvals. CLICK HERE FOR FULL PRESS RELEASE

Meanwhile, Sun Pharmaceutical will announce results for the first quarter ending June 30, 2017 on Friday, August 11, 2017.

At 09:35 am; the stock was down 2.7% at Rs 487 on BSE, as compared to 0.38% decline in the S&P BSE Sensex. A combined 2.35 million shares changed hands on the counter on BSE and NSE.

In past three weeks, the stock declined 19% as compared to a marginal 0.19% fall in the benchmark index.