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Sun Pharma Q3 PAT rises 5% YoY; Concert Pharma acquisition to be completes by Q1 CY23

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Last Updated : Jan 31 2023 | 3:50 PM IST

Sun Pharmaceutical Industries reported 5.2% rise in consolidated net profit to Rs 2,166 crore in Q3 FY23 as compared with the corresponding quarter last fiscal.

The company's PAT in Q3 FY22 was Rs 2,058.8 crore.

Total sales increased by 13% to Rs 11,100.14 crore in the third quarter from Rs 9,814.17 crore in the same period previous year.

Sales of formulations in India for Q3 FY23 were at Rs. 3391.87 crore, up 7% over Q3 last year. India formulation sales accounted for about 31% of total consolidated sales.

Formulation sales in the US were $422 million recording a growth of 6.3% over Q3 last year; accounting for over 31% of total consolidated sales.

Taro posted Q3FY23 sales of $139 million, flat over Q3 last year and net profit of US$ 7.3 million, compared to US$ 26.3 million for Q3 last year.

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Formulation sales in Emerging Markets were at $257 million for Q3FY23, a growth of 7.7% over Q3 last year and accounting for about 19% of total consolidated sales for the quarter.

Formulation sales in Rest of World (ROW) markets, excluding US and Emerging Markets, were $189 million in Q3FY23, up by about 4.8% over Q3 last year and accounting for approximately 14% of total consolidated sales.

For Q3FY23, external sales of API were at Rs 515.4 crore, up by 9.4% over Q3 last year.

Consolidated R&D investment for Q3FY23 was at Rs670.2 crore as compared to Rs 547.1 crore for Q3 last year.

EBITDA was at Rs 3,003.7 crore, up 15.2% YoY. EBITDA margin for Q3 at 26.7% as against 26.4% for Q3 last year.

The company's board has declared an interim dividend of Rs 7.50 per share for the year FY23 against Rs 7 per share interim dividend for the previous year.

In January-2023, Sun Pharma entered into definitive agreement to acquire Concert Pharmaceuticals Inc. The deal involves payment to Concert shareholders of an upfront cash payment of $8.00 per share of common stock, or equity consideration of $576 Million, and plus one Contingent Value Right per share of common stock, which represents the right to receive for up to $3.50 per share of common stock upon achievement of certain time-based net sales milestones.

The acquisition would add a late-stage asset - deuruxolitinib for treating Alopecia Areata - to Sun's offering in dermatology. The transaction is expected to be completed in the first quarter of Calendar 2023.

Dilip Shanghvi, managing director of the company, said, Specialty is expected to continue as a key growth driver for Sun. We are investing to scale up this business, especially in our core therapy areas. Proposed Concert acquisition is a step forward in this direction.

Concert's lead asset, deuroxolitinib has a potential best-in-class profile in Alopecia Areata, an area of dermatology with high unmet need. We are excited to offer this new treatment option to dematologists worldwide. Given our commercial strength, we would be well-positioned to bring this product to market.

Sun Pharma is the world's fourth largest specialty generic pharmaceutical company and India's top pharmaceutical company.

The scrip fell 1.30% to end at Rs 1037.25 on the BSE today.

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First Published: Jan 31 2023 | 3:40 PM IST

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