Sun Pharma dips 8% on Taro’s weak Q4 results
Sun Pharmaceutical Industries plunged 8% to Rs 589, its lowest level since November 2016 EEB after the company’s US subsidiary, Taro reported a small number of digits in the quarter ended March 2017 (Q4FY17).
Taro Pharmaceutical Industries posted a 25.9% increase year-on-year to Q4FY17 net sales of $ 196.4 million, due to the continued rise in competition and difficult pricing environment, Company announced in a press release.
Net profit attributable to Taro was $ 83 million compared to $ 115 million, which resulted in diluted earnings per share of $ 2.05 compared to $ 2.68 in the same period last year, he added.
Mr. Abhay Gandhi, Acting CEO of Taro, said: “As is commonly known, and as we have said for some time now, the entire generic sector, including Taro, is facing a difficult time. Difficult generic prices, particularly in the United States, thanks to increased competition among manufacturers, new entrants in the market, purchase of consortium pressures and the FDA’s highest ANDA approval rate. ”
M. Gandhi continued: “Based on our well-balanced portfolio, focus on continuous investment in R & D, our sound portfolio and strong balance sheet of the company, we believe we are well positioned in our target markets.”
Meanwhile, Sun Pharma expects to announce its fourth quarter and year to March 31, 2017 Friday, May 26, 2017.
Edelweiss Securities in the fourth quarter results indicated that United States revenues ($ 484 million) was down 17% compared to last year due to gGleevec on Q4FY16 basis and approximately 10% sequential decrease in Taro. Sales in the rest of the world will benefit from additional sales in Japan. India is expected to show steady growth (10%).
“Revenue should grow only 6% over the previous year, a 10% growth in domestic formulations and acquisition in Japan should be offset by a 6% annual reduction in the US Taro sales should decrease by approximately 24% compared to last year, EBITDA margins expected to decline by 349 basis points compared to 30% by 30%. Net revenues are expected to decline by 11% due to lower operating and higher performance Taxes, “ICICI Securities said the results of the survey.
At 11:19; Sun Pharma fell 7% to Rs 595 compared to BSE compared to a decrease of 0.51% in PESS SES Sensex. Trading volumes on the counter almost tripled with a combination of 6.88 million shares switched hands on BSE and NSE now ….