NEW DELHI : Sun Pharmaceutical Industries Ltd on Friday posted a consolidated net loss of ₹1,655.6 crore for the April-June quarter, dragged by subsidiary Taro Pharmaceutical Industries Ltd’s settlement with the US government in a drug pricing case. In the corresponding quarter last year, India’s largest drugmaker had posted a profit of ₹1,387.5 crore.
“Taro reported settlements and loss contingencies of $478.9 million (about ₹3,178 crore), which reflect the one-time settlement charge of $418.9 million related to the global resolution of the Department of Justice investigations into the US generic pharmaceutical industry, the company said in a statement.
The subsidiary made an additional provision of $60 million, or about ₹455.2 crore, for the related ongoing multi-jurisdiction civil antitrust matters.
While the losses were primarily due to an overall one-time charge of ₹3,633 crore, Sun Pharma also had a poor quarter, with the covid-related lockdowns in various markets leading to tepid sales, especially in the US.
The Dilip Shanghvi-led pharmaceutical firm clocked ₹7,467 crores in consolidated sales from operations, down 9.6% year-on-year.
“The Q1 performance reflects the impact of the global covid-19 pandemic and consequent lockdown across markets and is not an indicator of the underlying strength of our business. Despite challenging conditions, we have done well and have not lost market share for any of our key specialty products in the US. We have also maintained our market share in the Indian domestic market," managing director Shanghvi said in a statement.
Formulation sales in the US were down by a third at $282 million, but the sharp decline was also on account of contribution from a one-time large supply of generic medicines to an unnamed customer in the corresponding period last year.
Sun Pharma’s sales in the emerging markets and rest of the world were also lower on account of the covid-19 pandemic.
However, the Indian market, accounting for the largest chunk of 32% of sales, grew 3% at ₹2,388 crores.
Globally, lockdowns related to covid-19 pandemic has caused enormous disruptions across industries, including the healthcare sector. With many elective surgeries postponed and hospital out-patient departments and clinics shut, doctor prescriptions have seen a drop, which has also reflected in the financial performance of many pharmaceutical companies.
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