Now that’s surprising!! After admitting to a net loss of almost Rs. 1,276 crores in the June quarter, the top drug maker in India, Sun Pharmaceuticals shares have shown to be jumping up 9%!
Loss of Sun Pharmaceuticals
In the first quarter, Sun Pharmaceuticals India’s largest drug maker, according to the market, has reported a net loss of nearly Rs. 1,276 crore in its first Quarter. The company blamed a patent infringement suit with Pfizer for this happening and claimed it had to undergo this loss due to a whopping settlement with the US based pharma company.
On Friday , Sun Pharmaceuticals declared that it had along with Teva Pharmaceuticals had made provision to settle the patent suit with Pfizer Inc and had shelled out $2.15 billion to come clean. Pfizer had filed a patent suit blaming Sun Pharmaceuticals of marketing the generic versions of Protonix, its acid-reflux drug.
A net profit of Rs. 795 crore, had been reported by the Mumbai based drug maker in the past year quarter. Sales rose almost 31 per cent and showed a figure of Rs.3, 482 crore for the first quarter that ended on the June 30.
Reports affirm that the company stated “income from operation rose to Rs 3,502 crore in the three months to June from Rs 2,683 crore in the first quarter of last year.” In the quarter Sun Pharma had to shell out Rs 2,517 crore to Pfizer for the patent infringement suit. Sun Pharmaceuticals came out with a generic version of the anti-ulcer drug pantoprazole prompting Pfizer to the judiciary.
The US market, has contributed approximately Rs 2,184 crore or $364 million that is almost half of the total sales of the Company. The Israeli subsidiary of Sun Pharmaceuticals by the name of Taro has shown a 4% fall in sales making that about $153 million.
The company confirmed a 44% jump with a sales business of almost Rs 849 crores over the year ago quarter.
The Company has publically admitted to the dailies that "All our businesses continue to perform in-line with our expectations,", Managing director at Sun Pharma, Dilip Shanghvi , gave his statement saying "We remain focused on strengthening our existing businesses and developing a differentiated and specialty driven product basket. We also continue to review opportunities to expand and strengthen our global footprint."
Well the latest update of stocks state that “Sun Pharma, the top gainer on the 50-share Nifty, traded 6.7 per cent higher at Rs. 539.50 as of 09.31 a.m. The stock had earlier hit a high of Rs. 551.30”.