Sun Pharma in demand after strong Q4 results

The company declared bonus issue after announcing Q4 March 2013 results after market hours on Tuesday, 28 May 2013.

Meanwhile, the S&P BSE Sensex was down 69.69 points, or 0.35%, to 20,091.13.

On BSE, 70,000 shares were traded in the counter compared with average volume of 1.08 lakh shares over the past two weeks.

The stock hit a high of Rs 1,045.95 and a low of Rs 1,020.60 so far during the day.

Sun Pharmaceutical Industries' (Sun Pharma) consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 32% to Rs 1260 crore in Q4 March 2013 over Q4 March 2012, while sustaining EBITDA margin at 41%.

Sun Pharma said that branded generic sales in India were at Rs 780 crore. Adjusted for the extra sales recorded in the Q4 March 2012, as well as the change in treatment of expected sales returns and treatment of discounts, the underlying sales growth of the domestic formulation business is 16%.

US finished dosage sales grew by 63% to $330 million in Q4 March 2013 over Q4 March 2012. International formulation sales grew by 13% to $73 million in Q4 March 2013 over Q4 March 2012.

Consolidated research and development (R&D) expense for Q4 March 2013 was Rs 203 crore, at 6.6% of sales. For the year ended March 2013, R&D spend was Rs 676 crore, at 6% of sales.

Dilip Shanghvi, managing director of the company said, "I am very pleased to announce that, our sales for FY13 have crossed the US$ 2 billion mark. While it took us almost 27 years to record $1 billion in revenues, the next billion was added in just 3 years."

He further said, "All our businesses continue to perform in-line with our expectations. We continue to focus on building a differentiated and specialty product portfolio and enhancing our international presence. Overall, we shall strive to remain focused on execution and building a business with consistent performance."

Meanwhile, the board of Sun Pharma recommended 1:1 bonus issue. Further, the board recommended a dividend of Rs 5 per shares (pre bonus) for the year ended March 2013.

In Q4 March 2013, abbreviated new drug applications (ANDAs) for 9 products were filed, while for the year ended March 2013, ANDAs for 22 products have been filed with the US FDA. After counting these, and adjusting for filings that were dropped, cumulatively ANDAs for 449 products have been filed with the USFDA (as on 31 March 2013). ANDAs for 9 products received approvals in Q4 March 2013 while ANDAs for 20 products were approved in the year ended March 2013. As of 31 March 2013, cumulative approvals stand at 311 while ANDAs for 138 products now await U S Food and Drug Administration (USFDA) approval, including 17 tentative approvals. The above ANDA statistics exclude the discontinued/withdrawn products of URL. The total number of patent applications submitted now stands at 814, with 457 patents granted so far, the company said in a statement.

Sun Pharma is an international, integrated, speciality pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India, US and several other markets across the world. In India, the company is a leader in niche therapy areas of psychiatry, neurology, cardiology, nephrology, gastroenterology, orthopedics and ophthalmology. The company has strong skills in product development, process chemistry, and manufacturing of complex API, as well as dosage forms.

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