Shares of Sun Pharmaceutical Industries dropped over 4 per cent in trade on Tuesday as a doubling of its net profit to Rs 1,713.69 crore (against Rs 889 crore YoY) in the March quarter failed to lift the sentiment on the counter, which has been hurt after the anti-trust division of the us Department of Justice issued summons to its company’s US arm to appear before a grand jury.
The company, on Monday, said it was asked for documents from its US subsidiary and its affiliates relating to corporate and employee records, generic pharmaceutical products and pricing, communications with competitors and others regarding sales of generic pharmaceutical products.

“We have got situations when most of the large pharma companies facing such situations or either a delay in product launch impacting earnings growth,” said Amit Khurana, Co-Head Equities & HoR, Dolat Capital Market .

The drug maker reported its quarter earnings post market hours on Monday.

Consolidated net sales increased to 21 per cent YoY to Rs 7,414 crore for the quarter. While India sales jumped 17 per cent to Rs 1,807 crore, US finished dosage sales rose 19 per cent YoY to $580 million in the Q4FY16.
US sales include the benefit of the 180-day exclusivity for Imatinib which commenced from February 1, the company said in a regulatory filing to BSE.

Taro, a subsidiary of Sun Pharma BSE -5.64 %, has posted Q4 FY16 sales of US$ 265 million, up 9 per cent YoY.

On Tuesday, the stock fell 4.48 per cent to hit a low of Rs 776.10 on BSE.

Taro, a subsidiary of Sun Pharma BSE -5.64 %, has posted Q4 FY16 sales of US$ 265 million, up 9 per cent YoY.

On Tuesday, the stock fell 4.48 per cent to hit a low of Rs 776.10 on BSE.
“This has been a year of consolidation for us. While we have accrued targeted synergies from the Ranbaxy BSE 5.63 % acquisition, we have also made commensurate investments in building the specialty business in the US. These strategic investments will help us drive the sustainable growth of our business,” said Dilip Shanghvi, Managing Director, Sun Pharmaceutical Industries.

The R&D investments for the quarter stood at Rs 711 crore, which was 9.6 per cent of the company’s net sales. The company said it was in the process of completing remediation of the Halol plant.

The board of the company will meet on June 23 to evaluate a proposal for buyback of equity shares.