Sun Pharmaceutical Industries Ltd , India's largest drugmaker, said on Saturday third-quarter net profit fell unexpectedly due to a decline in sales in the United States and costs from resolving regulatory issues at a manufacturing plant. But the company said it expected to meet its guidance for revenue growth of 13 to 15 percent for the current fiscal year ending in March.
Sun Pharma's net profit in October-December was 14.25 billion rupees ($229.60 million), down from 15.31 billion rupees in the same period a year ago. Analysts on average expected a profit of 16.48 billion rupees. Sales of formulations in the United States, the company's largest market, fell 5 percent, mainly due to increased competition for the antibiotic generic drug doxycycline, managing director Dilip Shanghvi said on a conference call with analysts.
Shanghvi also said the company's earnings were affected by costs associated with addressing the observations raised by US Food and Drug Administration after an inspection of Sun's Halol manufacturing plant in western India in September. Shanghvi declined to specify the costs associated with resolving those issues. "Some of this remediation has impacted our supplies in the third quarter, but we expect them to resume in the fourth quarter," he told analysts.
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