Sun Pharmaceutical Industries today said its consolidated net profit declined by 46.52 per cent to Rs 319.64 crore for the second quarter ended September 30, 2012, mainly on keeping aside Rs 584 crore towards potential damages for a patent infringement litigation.
The company had posted a net profit of Rs 597.74 crore during the corresponding period of previous fiscal, Sun Pharma said in a statement.
The Mumbai-based company said its net profit stood at Rs 320 crore on account of a provision of Rs 584 crores towards potential damages in respect of patent infringement litigation related to generic versions of 'Protonix'.
"While this has been done primarily from the perspective of prudent accounting, Sun Pharma continues to believe that it has sound reasons to disagree with the overstated claims of Wyeth, and also continues to believe that the patent is invalid and unenforceable and will pursue all available legal remedies including appeals," it added.
Net sales of the company, however, rose to Rs 2,657.24 crore during the second quarter, compared to Rs 1,894.60 crore during the same period of 2011-12 fiscal.
Commenting on the results Sun Pharma Managing Director Dilip Shanghvi said: "All Sun Pharma businesses – India, US and rest of the world (ROW) – continue to demonstrate good growth, in line with our expectations.
"As a company with proven development capabilities in complex products and technologies, and with world class manufacturing, we are well positioned to make the best of opportunities in worldwide markets."
The company said sale of branded prescription formulations in India grew by 15 per cent to Rs 810 crore, over the same period of previous fiscal.
During the period under review, the company's sales in the US stood at USD 244 million, up by 38 per cent from same period of 2011-12 fiscal.
The company said its US-based unit Caraco resumed manufacturing at its facilities in Michigan during the quarter after the USFDA determined Caraco to be in compliance with relevant paragraphs of the Consent Decree.
Formulation sales in ROW markets outside of India and US accounted for USD 68 million during the second quarter, registering a growth of 21 per cent over the same period of 2011-12 fiscal, it added.
The company said during the second quarter four abbreviated new drug applications were filed with the US health regulator.
Shares of Sun Pharma today closed at Rs 696.15 apiece on the BSE, down 0.76 per cent from its previous close.