Sun Pharma scrip dips after fall in Taro's profit

Shares of Sun Pharma ends at Rs 969.65 on BSE, down 3.6% from its previous close

Following its peers, Wockhardt and Ranbaxy, Sun Pharma shares fell more than three per cent on BSE after its Israeli unit, Taro Pharmaceuticals, posted a lower-than-expected net profit in the January-March quarter. Today, shares of Sun Pharma closed at Rs 969.65 on BSE, down 3.6 per cent from its previous close.

The Nasdaq-listed Taro's net profit for the quarter rose to $49.2 million from $47.3 million a year earlier. Net income for the year ended March 31, was $266.2 million, against $204.3 million, up 30 per cent. Net sales for the year increased to $671 million, or 23.5 per cent, compared to previous year. Taro shares were traded at $63.22.

In its statement, Taro had mentioned that earnings were impacted by settlements and loss contingencies of $22 million, related to certain price reporting litigation. However, details about the litigation has not been disclosed yet.