Sun Pharmaceutical Industries Ltd.’s quarterly profit rose 71% and beat estimates as a recovery in hospital visits and medicine prescriptions helped India’s biggest drug maker rebound from a surprise loss in the preceding quarter.
Mumbai-based Sun Pharma posted a net income of 18.1 billion rupees ($243.3 million) for the quarter ended Sept. 30, compared to the 11.31 billion-rupee profit estimate in a Bloomberg survey of analysts. Revenue rose 5.3% to 85.5 billion rupees compared to the year-ago period, according to a filing on Tuesday.
The drugmaker, helmed by billionaire Dilip Shanghvi, saw a pickup in sales as patients started visiting doctors and hospitals again for routine checkups as well as surgeries after avoiding them for months due to lockdowns or the fear of coronavirus infection. The rebound boosted Sun’s portfolio of generic drugs, many of which are used to treat chronic ailments in its two top markets — the US and India — which also have the world’s two biggest Covid-19 outbreaks.
The turnaround comes after Sun Pharma’s subsidiary, Taro Pharmaceutical Industries Ltd., agreed to pay in July almost $480 million to settle drug-price fixing allegations in the US It included criminal charges that the company conspired with competitors to rig the prices of generic drugs between 2013 and 2015.
Sun Pharma’s shares were trading almost 3% higher at 3 p.m. in Mumbai on Tuesday, pushing this year’s increase to 11.5%. The benchmark S&P Sensex has slipped 2.4% so far this year.