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Sun Pharma Q4 Net Down 44% At Rs 888 Crore

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The country's largest drug maker Sun Pharmaceuticals Industries on Friday said it posted 44 per cent in net profit at Rs 888.05 crore for the quarter ended 31 March, 2015 as compared to the year-ago quarter's Rs. 1587 crore. The net profit were adversely impacted by a few items, relating to professional charges, harmonisation of policies of erstwhile Ranbaxy with the company, among others, the company said in a statement.
 
The company, which announced a formal merger of India's then largest drug maker Ranbaxy Laboratories into it in March, however posted a combined revenue of Rs 6,157 crore for the quarter. 
 
 “Post the completion of the merger, we have commenced the integration of Ranbaxy. Our performance has been impacted due to various one-time charges, mainly on account of the Ranbaxy merger as well as due to price erosion for some of our products in the US," said managing director Dilip Shanghvi. 
 
He added that it  (the drop in profit) also reflects the impact of supply constraints related to the on-going remediation efforts at some of our facilities. "We are pledged to being 100 per cent compliant to the manufacturing standards and are fully responsible towards our customers and patients across the world who rely on us for quality products,” Shangvi said.
 
Sun Pharma's four key manufacturing plants (three belong to Ranbaxy and one of Sun Pharma) that were exporting products to the high-margin US market from India have been under an import ban imposed by the US Food and Drug Administration due to non-compliance to the manufacturing practices. Sun Pharma acquired Ranbaxy in April 2014 in a $4 billion merger deal as the later's majority owner Daiichi Sankyo Company Ltd wanted exit from the company due to the regulatory issues and related financial troubles.
 
During the March quarter, Sun Pharma's sales in India was Rs. 1,569 crores. The company is now  ranked No. 1 and holds approximately 9% market share in the domestic market. while, its ales in the US were $488 million for the quarter, accounting for 49% of total sales. Its Israeli subsidiary Taro Pharma (a major revenue earner for the company in the US market at present) recently posted fourth quarter sales of $244 million, up 30.5% from the corresponding quarter last year.  
 


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