Sun Pharma surges 5percent as US arm Taro posts healthy December quarter results
Shares of Sun Pharmaceuticals were trading 5 per cent higher at Rs 436 on the BSE in intra-day trade on Thursday after its US subsidiary Taro Pharmaceutical reported strong results for the quarter ended December 2018.
Taro Pharmaceuticals posted net sales of $176.4 million, an increase of $20.9 million, mainly driven by a 13 per cent increase in overall volumes. Its gross profit of $117.5 million (66.6 per cent of net sales compared to 66.2 per cent) increased $14.6 million, the company said in news release.
“While we are pleased with this quarter’ results and encouraged by the increase in our overall volumes, we are cautiously optimistic about viewing this as a continuing trend because the challenging generic landscape continues,” said Uday Baldota, Taro’s Chief Executive Officer (CEO).
The Company recently received approvals from the US Food and Drug Administration (FDA) for three Abbreviated New Drug Applications (ANDAs). Currently, it has a total of twenty-seven ANDAs awaiting FDA approval, including eight tentative approvals. CLICK HERE TO READ FULL NEWS RELEASE
Meanwhile, the board of directors of Sun Pharma is scheduled to meet on February 12, 2019 to consider financial results of the company for the quarter and nine months ended December 31, 2018 (Q3FY19).
“Resolution on Halol plants to increase exports to US and higher USD to improve sales growth. The launch of specialty products in US to increase overheads. Also exposure in EMs to impact sequential margin in Q3FY19E,”analysts at Prabhudas Lilladher said in Q3FY19 earnings preview.
Edelweiss Securities expects Sun Pharma’s US revenue (USD 360 million) to grow 5 per cent QoQ and 10 per cent YoY in constant currency terms, as market share gains Absorica, chlorthalidone and gInvega offset decline in gWelchol and Taro.
Domestic sales are expected to grow at 10 per cent YoY, in-line with IPM growth. Increase in R&D and front-end expenses in speciality will likely offset around 10 per cent YoY benefit from rupee depreciation. EBITDA margins are likley to remain steady QoQ, at around 22 per cent, the brokerage firm said in result preview.