Drug major Sun Pharma reported a net profit of Rs 1,391 crore for the quarter ended June as against a net loss of Rs 1,276 crore, a year ago. The company’s sales grew 13 percent to Rs 3,927 crore.
Speaking to CNBC-TV18’s Archana Shukla and Sumaira Abidi, Uday Baldota, CFO, Sun Pharma says the company maintains its full year guidance of 13-15 percent growth and market should not focus much on the one-time sales of the company.
Below are excerpts from the interview:
Archana: How does the outlook for the US market change, does the guidance for the overall company’s growth at 13-15 percent stay for this fiscal?
A: People don’t probably need to focus so much on the one-time sales because our overall guidance, which we gave at the beginning of the year of around 13-15 percent growth over the earlier years, that guidance remains intact and is not changing.
Sumaira: Could you also share some more color on the price adjustments that Taro has done, what will be the impact in Q2 post the price hikes which were undertaken in June?
A: Taro in its press release has given fair amount of details in terms of what the situation would have been had it not taken the price adjustment. To that extent, its reported sales on account of the price adjustment is much lower compared to what it ought to be. So that gives a fair indication of the adjusted Taro performance which would have been much higher compared to what it has reported.
Whether the same adjusted performance would occur in the next quarters is difficult to say because how the product performs in the market, how the pricing holds up is difficult to estimate. But there are specific numbers that Taro has given as to how much price protection adjustment has it done.
The performance reflected in the reported numbers is much lower compared to what it would have been if this adjustment had not been done.
Archana: Talking about some of the key products in the US market for this quarter, if you could highlight how Doxil, Cymbalta and Doxycycline have performed? What is the pricing scenario and the competition parameters in the US?
A: Both Cymbalta and Doxycycline have seen more competition and there is an impact on sales. As far as Doxil is concerned, Johnson & Johnson has been able to come to market with some amount of stocks and to that extent again the sales would have been impacted.