 "Sun Pharma surges 5% as US arm Taro posts healthy December quarter results")
Shares of Sun Pharmaceuticals were trading 5 per cent higher at Rs 436 on the BSE in intra-day trade on Thursday after its US subsidiary Taro Pharmaceutical reported strong results for the quarter ended December 2018.
Taro Pharmaceuticals posted net sales of $176.4 million, an increase of $20.9 million, mainly driven by a 13 per cent increase in overall volumes. Its gross profit of $117.5 million (66.6 per cent of net sales compared to 66.2 per cent) increased $14.6 million, the company said in news release.
“While we are pleased with this quarter’ results and encouraged by the increase in our overall volumes, we are cautiously optimistic about viewing this as a continuing trend because the challenging generic landscape continues,” said Uday Baldota, Taro’s Chief Executive Officer (CEO).
The Company recently received approvals from the US Food and Drug Administration (FDA) for three Abbreviated New Drug Applications (ANDAs). Currently, it has a total of twenty-seven ANDAs awaiting FDA approval, including eight tentative approvals. CLICK HERE TO READ FULL NEWS RELEASE
Meanwhile, the board of directors of Sun Pharma is scheduled to meet on February 12, 2019 to consider financial results of the company for the quarter and nine months ended December 31, 2018 (Q3FY19).
“Resolution on Halol plants to increase exports to US and higher USD to improve sales growth. The launch of specialty products in US to increase overheads. Also exposure in EMs to impact sequential margin in Q3FY19E,”analysts at Prabhudas Lilladher said in Q3FY19 earnings preview.
Edelweiss Securities expects Sun Pharma’s US revenue (USD 360 million) to grow 5 per cent QoQ and 10 per cent YoY in constant currency terms, as market share gains Absorica, chlorthalidone and gInvega offset decline in gWelchol and Taro.
Domestic sales are expected to grow at 10 per cent YoY, in-line with IPM growth. Increase in R&D and front-end expenses in speciality will likely offset around 10 per cent YoY benefit from rupee depreciation. EBITDA margins are likley to remain steady QoQ, at around 22 per cent, the brokerage firm said in result preview.
Taro Pharmaceuticals posted net sales of $176.4 million, an increase of $20.9 million, mainly driven by a 13 per cent increase in overall volumes. Its gross profit of $117.5 million (66.6 per cent of net sales compared to 66.2 per cent) increased $14.6 million, the company said in news release.
“While we are pleased with this quarter’ results and encouraged by the increase in our overall volumes, we are cautiously optimistic about viewing this as a continuing trend because the challenging generic landscape continues,” said Uday Baldota, Taro’s Chief Executive Officer (CEO).
The Company recently received approvals from the US Food and Drug Administration (FDA) for three Abbreviated New Drug Applications (ANDAs). Currently, it has a total of twenty-seven ANDAs awaiting FDA approval, including eight tentative approvals. CLICK HERE TO READ FULL NEWS RELEASE
Meanwhile, the board of directors of Sun Pharma is scheduled to meet on February 12, 2019 to consider financial results of the company for the quarter and nine months ended December 31, 2018 (Q3FY19).
“Resolution on Halol plants to increase exports to US and higher USD to improve sales growth. The launch of specialty products in US to increase overheads. Also exposure in EMs to impact sequential margin in Q3FY19E,”analysts at Prabhudas Lilladher said in Q3FY19 earnings preview.
Edelweiss Securities expects Sun Pharma’s US revenue (USD 360 million) to grow 5 per cent QoQ and 10 per cent YoY in constant currency terms, as market share gains Absorica, chlorthalidone and gInvega offset decline in gWelchol and Taro.
Domestic sales are expected to grow at 10 per cent YoY, in-line with IPM growth. Increase in R&D and front-end expenses in speciality will likely offset around 10 per cent YoY benefit from rupee depreciation. EBITDA margins are likley to remain steady QoQ, at around 22 per cent, the brokerage firm said in result preview.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%