Sun Pharma hits a new low

Sun Pharma is amongst the top losers of the day currently. It hit a new 52-weel low at Rs.745.95. Though it has recovered, it remains at Rs.768 levels, down 4.5%.

The market is disappointed with the company’s Q2FY16 performance. It reported a sharp 46% (YoY) drop in its consolidated net profit at Rs.1101 crore on a net sales of Rs.6803 crore, down 15%. The company has said that its sales were impacted due to lower sales, volatile currency movements and supply constraints.

US sales which accounts for 48% of its total revenue was down 28% - this was on account of supply constraints arising from remediation efforts at its Halol plant and also on account of competitive pressure on some products. Branded formulation sales, which contributes 26% to total sales was up just 1%. Emerging market sales was down 16% while formulation sales in Rest of World (ROW) markets excluding US and emerging markets was down 30%

At end of Q2FY16, the company received four product approvals. ANDA or Abbreviated New Drug Applications approvals were received for 445 products in USA and US FDA nod is awaited for 154 products.