Sun Pharma reports Q4 & FY15 results

Q4FY15: Net Sales Rs. 6,145 crores, Net Profit Rs. 888 crores
FY15: Net Sales Rs. 27,286 crores, Net Profit Rs. 4,541 crores

Mumbai, June 01, 2015: Sun Pharmaceutical Industries Ltd. (Reuters: SUN.BO, Bloomberg: SUNP IN, NSE: SUNPHARMA, BSE: 524715) reported financials for fourth quarter & full year ending March 31st, 2015. The financials for Q4FY15 and full year FY15 include the impact of the merger of Ranbaxy into Sun Pharma, and hence are not strictly comparable with the same period last year.

Highlights of Q4FY15 consolidated financials

• Net sales / Income from operations at Rs. 6,145 crores.

• Branded generic sales in India at Rs. 1,569 crores.

• US finished dosage sales at US$ 488 million.

• Emerging Markets sales at US$ 123 million.

• Rest of World sales at US$ 84 million.

• EBITDA at Rs. 880 crores; resulting EBITDA margin of 14.3%.

• Net profit at Rs. 888 crores post reversal of MAT credit.

• EBITDA as well as Net Profit were adversely impacted by a few items, relating to professional charges, harmonization of policies of erstwhile Ranbaxy with the Company, etc. The impact of these items appearing above EBITDA was approximately 10% of net sales and on items appearing below EBITDA was approximately 7% of net sales.

Highlights of FY15 consolidated financials

• Net sales / Income from operations at Rs. 27,286 crores.

• Branded generic sales in India at Rs. 6,717 crores.

• US finished dosage sale at US$ 2,244 million.

• Emerging Markets sales at US$ 611 million.

• Rest of World sales at US$ 381 million.

• EBITDA at Rs. 7,917 crores; resulting EBITDA margin of 29%. • Net profit for full year FY15 at Rs. 4,541 crores.

• As mentioned above, the EBITDA as well as Net Profit for FY15 were also adversely impacted by a few items, relating to professional charges, harmonization of policies of erstwhile Ranbaxy with the Company, etc. The impact of these items appearing above EBITDA was approximately 2% of net sales and on items appearing below EBITDA was approximately 3% of net sales.

These results were taken on record by the Board of Directors at a meeting held in Mumbai .

Dilip Shanghvi, Managing Director of the Company said, “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. It 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% cGMP compliant and are fully responsible towards our customers and patients across the world who rely on us for quality products.”

India Branded Generics – Market Leadership

Sale of branded prescription formulations in India for Q4FY15 was Rs. 1,569 crores.

For the full year FY15, sales were at Rs. 6,717 crores. Sun Pharma is ranked No. 1 and holds approximately 9% market share in the Rs. 86,000 crore pharmaceutical markets as per March-2015 AIOCD-AWACS report. As per latest SMSRC report, Sun Pharma is ranked no. 1 based on share of prescriptions with 12 classes of doctors: psychiatrists, neurologists, cardiologists, ophthalmologists, orthopedicians, nephrologists, gastroenterologists, diabetologists, urologists, dermatologists, chest physicians and consultant physicians.

US Formulations

Sales in the US were US$ 488 million for the quarter, accounting for 49% of total sales.

For the full year, sales were US$ 2,244 million accounting for 50% of total sales. Taro recently posted Q4 FY15 sales of US$ 244 million, up 30.5% from the corresponding quarter last year. For the full year, sales were US$ 863 million, up by 14% over 12 months last year. Taro’s net profit for Q4 was US$ 152 million, up by 70% over Q4 last year. Net profit for full year FY15 was at US$ 484 million, up by 39% over 12 months last year.

Emerging Markets

Our sales in emerging markets were at US$ 123 million for Q4, accounting for 12% of total sales. Emerging market

sales for full year FY15 were US$ 611 million, and accounted for 14% of total sales.

Rest of World Markets

Formulation sales in Rest of World (ROW) markets excluding US and Emerging Markets were US$ 84 million in

Q4FY15 and US$ 381 million for the full year FY15. ROW markets accounted for over 8% of revenues for both Q4 and full year FY15.

Active Pharmaceutical Ingredients (API): Strategic strength

We increased the API supply for captive consumption significantly for key products which enabled us to enjoy the benefits of strategic vertical integration. As a result, for Q4FY15, external sales of API were at Rs. 286 crores. For the full year FY15, API sales were Rs. 991 crores. A cumulative of 396 DMF/CEP applications have been made, with 270 approved so far.

Research – Investing for future

Consolidated R&D expense for Q4 FY15 was Rs. 579 crores, or 9.4% of sales. This includes significant investments on account of funding the clinical development of MK-3222, the psoriasis monoclonal anti-body in-licensed from MSD (US). For full year FY15, R&D spend was Rs. 1,955 crores at 7.2% of sales.

We now have a comprehensive product offering in the US market with approved ANDAs for 438 products while filings for 159 products await US FDA approval, including 12 tentative approvals. For FY15, ANDAs for 19 products were filed and 14 approvals were received.

The total number of patent applications submitted now stands at 1,598 with 951 patents granted so far.