Price increases on select drugs in the US by its subsidiary Taro Pharma and sharp depreciation of rupee against dollar led to a 51 per cent jump in Sun Pharma’s adjusted profit.
However, operating margins at 43.8 per cent were lower sequentially due to an unfavourable product mix in the US.
Contribution from high-margin products such as anti-cancer brand Lipodox was lower for the quarter. In the case of Lipidox, moderation in demand negated the benefit from higher prices.
However, with cessation of supplies by innovator Janssen Pharma by end of 2013, Sun may be the sole player in this product in the near term. This may provide a boost to its sales. Its recent acquisitions – DUSA and URL Pharma continue to give a leg up to US sales. Further, a healthy pipeline of 130 drugs pending approval will help Sun sustain growth in the US market.
The company continued to post healthy growth in the home market, defying trends in the industry. Domestic formulations revenues grew 17 per cent to Rs 949 crore, making Sun Pharma the second largest player in India, after Abbott India. A niche portfolio with leading brands in chronic therapies - neurology, psychiatry and cardiology helped the company post growth against all odds.