MUMBAI: Sun Pharma’s revenue grew marginally by 2% to Rs 7,047 crore for the third quarter ended December 2015, impacted primarily due to lower sales in the US, and supply constraints at its key plant, Halol, closed post the US Food and Drug Administration warning. The company’s net profit reduced to Rs 1,417 crore for the quarter, as against Rs 1,425 for the corresponding period previous year. The Sun Pharma scrip gained marginally by 2% to close at Rs 848 on the BSE on Friday.
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The company announced it has ended its collaboration with MSD to develop and commercialize novel formulations and combinations of medicines for emerging markets, due to changes in priorities. Sun Pharma said it would not be materially impacted by the termination of the agreement, struck with New Jersey-based Merck in 2011.
Due to changes in the “strategic priorities” of both the companies, the partners no longer wish to invest further in the venture, the statement added. The agreements to market the diabetes drug sitagliptin, and the licensing deal on Merck’s experimental skin disease drug tildrakizumab would continue, Sun Pharma said.
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Sun Pharma MD Dilip Shanghvi said, “The synergy benefits of the Ranbaxy acquisition have begun to reflect in our financials.” In an earnings call later, he added that the company had exited low-margin and competitive products, and reduced costs. He added the company will request the USFDA in the first quarter 2017-18 to reinspect Halol.
US finished dosage sales were down by 11% at $486 million, accounting 45% of the overall revenue. The company’s India’s sales were up by 8% at Rs 1,890 crore, while emerging markets at $151 million, showed a decline of 7% from the corresponding quarter last year, accounting for 14% of total sales.