Highlights of the call
- Net sales for the quarter ended March’09 on consolidated basis declined by 10% to Rs 1134.41 crore and Net profit declined by 45% to Rs 394.88 crore.
- For the year ended March’09, net sales posted moderate growth of 27% to Rs 4272.30 crore and net profit rose by 22% to Rs 1817.73 crore.
- Caraco Pharmaceuticals industries, a subsidiary of company has reported net sales of USD 51 million for the quarter, a decline of 67% over corresponding pervious period and net loss of USD 2 million for the quarter. Caraco Voluntary recalled all lots of Digoxin Tablets distributed prior to March due to size variability and write-off the same.
- Caraco has received warning letter from US FDA in the October 2008 for some procedural issues in Detroit facility. US FDA has also completed follow up inspection for Detroit facility.
- Other expenditure for the quarter increased by whopping 2000 bps as percentage to sales, net of stock adjustment to 40.9% (Rs 423.99 crore in the quarter as compared Rs 266.11 crore in the corresponding pervious period). The jump in the expenditure is on the back of products recalled in Caraco Pharmaceuticals (Company subsidiary) and forex losses.
- Currently 500 scientists are working in the company and filed 230 patents of which 76 patents were approved.
- Cash on the books as on 31st March’09 is Rs 3500 crore.
- Domestic formulation grew by 81% to Rs 652.58 crore for the quarter ended March’09 and contributed 56% of total sales. The spurt in sales is mainly on the back of launching of one time (exclusivity) products and change in the products distribution models. The push in the domestic formulations in the quarter under review will lead to slow down in the first half of the current financial year.
- Domestic formulation for the year grew by 33% to Rs 1959.66 crore. Excluding the sales from the one time (exclusivity) products sales increased by 25%.
- Company has launched 9 control substance products in January 2009.
- R & D expenditure for the quarter stood at Rs 74.84 crore and for the year at Rs 332.04 crore.
- Company currently holds 36% in Taro Pharmaceuticals. Company need to invest Rs 1000 crore to acquire remaining stake in Taro.
- Sun Pharma now holds 3.5% market share in the highly competitive pharma market, as per latest IMS ORG report.
- Company has launched 17 products in the quarter taking total for the year to 42.
- The company continues to rank number one by prescription share with 6 classes of specialist doctors, as per the latest report from CMARC.
- Sun Pharma has filed 5 ANDAs where as Caraco filed 4 taking total filings on consolidated basis for the quarter to 9. For the year, company along with subsidiaries filed 37 ANDAs as against a guidance of 30. As on 31st March’09, 108 products await US FDA approval, including 7 tentative approvals.
- A cumulative of 129 DMF/CEP applications has been made, with 71 approved so far.
- Expects R & D expenditure would be around 7-8%.
- Expects to file 30 ANDAs with US FDA.
- Capex for FY’10 would be around Rs 170 crore.
- Expects revenue growth of 13-15% on consolidated basis for FY’10.