Sun Pharma Q2 profit falls 36 pc to Rs 1,989 cr; formulations, global innovative sales push revenue

New Delhi, Oct 30 (PTI): Pharma major Sun Pharmaceutical Industries on Friday reported a 36.36 per cent decline in consolidated net profit to Rs 1,988.53 crore for the September quarter, dragged down by a one-time expenditure related to the proposed acquisition of Organon and litigation expenses in the US.

The company had posted a consolidated net profit of Rs 3,124.95 crore in the corresponding quarter last fiscal year, Sun Pharmaceutical Industries said in a regulatory filing.

Consolidated total revenue from operations in the second quarter of the current fiscal year stood at Rs 16,198.71 crore as compared to Rs 14,478.31 crore in the year-ago period, it added.

The rise in revenues was driven by an increase in formulation sales in India -- up 17.3 per cent to Rs 5,552.3 crore -- accounting for 34.5 per cent of the total consolidated sales for the quarter. Global innovative medicines sales, which increased 6.9 per cent to approximately USD 356 million, were also a key factor behind the rising revenues, accounting for 21.1 per cent of sales.

Emerging markets accounted for 20.7 per cent of total consolidated revenue for Q2. The performance in innovative medicine continues to be driven by growth across US and ex-US markets, across products notably Illumia, Ex-US, Ciqua, and Odumzo, the company said during a post-earnings call.

Total expenses during the quarter under review were higher at Rs 12,287.83 crore as compared to Rs 10,780.62 crore a year ago, the company said.

The quarter included about Rs 1,269 crore in exceptional charges, primarily a US generic-pricing antitrust litigation settlement -- about Rs 923 crore -- and costs associated with the proposed Organon acquisition (about Rs 346 crore). Management indicated additional transaction-related costs may arise before closing.

The Organon acquisition is subject to satisfaction of the remaining customary closing conditions and is on track to close by early 2027, the company revealed during the earnings call.

"Our performance during the quarter was driven by strong momentum in India, emerging markets and the rest of the world. Among key developments, Ilumya is now approved in the US for the treatment of adults with active psoriatic arthritis. ...Beyond dermatology, we strengthened our cardiovascular portfolio through the licensing of lerodalcibep, a PCSK9 inhibitor, for markets outside the US and China," Kirti Ganorkar, Managing Director of the company, said.

The shares of Sun Pharmaceuticals settled 0.87 per cent higher at Rs 1,778.25 apiece on the BSE. PTI TRB VHI NB

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