Dip in US, emerging mkt biz pulls down Cipla Q1 net by 43%

Pharma major Cipla today reported a 43.19 per cent decline in consolidated net profit at Rs 365.24 crore for the quarter ended June 30 due to flat growth in domestic market and dip in the US and emerging markets business.
The group had posted a net profit of Rs 649.22 crore for the corresponding period of previous fiscal.
Its consolidated total income from the operations also declined by 6 per cent to Rs 3,593.72 crore for the quarter under consideration as against Rs 3,838.45 crore for the same period a year ago.
The company's revenue, dented by North America business, declined by 21 per cent in the US and in emerging markets businesses by 6 per cent.

The domestic market revenue, that contributed 40 per cent, grew by 5 per cent only. The revenues in home market were hit by government's measures to cut drug prices.
"We have had a satisfactory quarter. Our base business has shown improvement in profitability, reflecting our emphasis on product mix and implementation of cost control measures. We are committed to maintaining our growth momentum and focus on our key markets - India, South Africa and the US.

"We will continue to invest in R&D and streamline our operations as we focus on driving profitability and simplifying the way we do business," Cipla's outgoing Managing Director Subhanu Saxena told reporters here.

Saxena will step down from his position on August 31.
The company plans to accelerate scaling up of the US
business.
It has launched one product from InvaGen pipeline and made 4 filing in Q1 FY 17, including some oncology filing. It has also acquired 3 products for the US from Teva's portfolio including a limited-competition product. The company will continue to focus on partnerships for first-to-file opportunities and differentiated generics.
The growth momentum in key markets of India, South Africa and the US with focussed cost containment measures has resulted in enhanced profitability in the base business.
The company is preparing itself for the future with focused investments in R&D as well as portfolio build-up through strategic inorganic moves. The quarter also saw an improvement in cash flows on account of operational efficiencies, the company said.

Shares of Cipla today closed at Rs 516.65 per scrip on BSE, down 1.26 per cent from its previous close.