Sun Pharma's profit falls on Organon deal charge; specialty drug sales remain strong
OGN•Sun Pharma's second-quarter net profit fell to 19.89 billion rupees from 31.18 billion rupees a year earlier, after a one-time 12.69 billion rupee charge largely tied to its planned Organon acquisition. Revenue rose nearly 12% to 161.99 billion rupees, while specialty sales increased 6.9% to $356 million.
1. Profit and revenue
Sun Pharmaceutical Industries reported consolidated net profit of 19.89 billion rupees for the quarter ended September 30, down from 31.18 billion rupees a year earlier. Revenue rose nearly 12% to 161.99 billion rupees, above analysts' average estimate of 158.25 billion rupees.
2. Sales and one-time charge
Specialty sales rose 6.9% to $356 million, accounting for 21.1% of total sales. Sales in India increased 17.3%, while US sales declined 8.2%. Sun Pharma booked a one-time charge of 12.69 billion rupees, largely related to costs for its planned Organon purchase and provisions linked to India's labour code framework; excluding the charge, profit rose 6.3% to 44.28 billion rupees.
3. Planned acquisition
Earlier this year, Sun Pharma agreed to buy Organon & Co for $11.75 billion.
