Profits fall for India's largest drug maker
- Sun Pharma's third-quarter earnings fell from roughly $250 million in 2013 to $229.6 million in CFY 2014, due in large part to a decline in U.S. sales and the costs of dealing with regulators.
- Overall, analysts were expecting profits of roughly $260 million for Sun, which is the largest drugmaker in India.
- According to Managing Director, Dilip Shangvi, sales of formulations in the U.S. fell by about 5%, mainly because of increased competition for the antibiotic drug doxycycline, based on a report from Reuters.
Although Sun Pharma has been publicly focusing on the impact of lower drug sales in the US as a major contributing factor to lower earnings, Sun, like many other Indian drugmakers, has faced regulatory action related to quality-control issues at its manufacturing plants. For Sun, an FDA inspection of its Sun Halol manufacturing plant has led to cost outlays related to remediation and this has not helped the bottom line.
Despite these challenges, Sun contends that it will meet its guidance for revenue growth of 13% to 15% for the current fiscal year ending in March.