Sun Pharma to pay Rs 2,517 cr to settle patent suit
Drug firm Sun Pharmaceutical Industries has said it will pay its dues of Rs 2,517.41 crore soon as part of settlement agreement with Wyeth (now a division of Pfizer Inc.) and Altana Pharma AG (now known as Takeda GmbH).
Mumbai: Drug firm Sun Pharmaceutical Industries has said it will pay its dues of Rs 2,517.41 crore soon as part of settlement agreement with Wyeth (now a division of Pfizer Inc.) and Altana Pharma AG (now known as Takeda GmbH).
"We have a made a provision of Rs 2,517.41 crore payable in terms of the settlement agreement and the amount will be paid soon," Sun Pharma Managing Director Dilip Shanghvi said at a conference call here.
During the June quarter, Sun Pharma settled the ongoing litigation pending in the US District Court, District of New Jersey regarding its subsidiary's generic pantoprazole.
Under the terms of the litigation settlement between Sun Pharma, Wyeth and Altana Pharma AG, the parties have dismissed all their claims. Sun Pharma will pay a lump-sum USD 550 million as a part of this settlement.
The company had already provided Rs 584 crore in second quarter of FY13 towards this liability. For the quarter ended June 30, 2013, the company made a provision of Rs 2,517 crore towards the difference between total settlement amount and past provision.
The company reported net loss at Rs 1,276 crore in June quarter, on account of a provision of Rs 2,517 crore towards settlement for patent infringement litigation.
"All our businesses continue to perform in-line with our expectations. We remain focused on strengthening our existing businesses and developing a differentiated and speciality driven product basket, Shanghvi said.
We also continue to review opportunities to expand and strengthen our global footprint," he added.
The company has continued its leadership in branded generics-chronic therapy in the country. Sales of branded prescription formulations in India grew by 44 percent at Rs 849 crore in first quarter of FY 2014.
Sun Pharma holds 5.1 percent market share in the Rs 72,000 crore Indian pharmaceutical market. The company reported strong performance led by Sun portfolio in the US formulations market. Sales in the US were at USD 364 million for the quarter, up by 28 percent, accounting for 58 percent of total sales.
The company has made consolidated R&D expense of Rs 205 crore, at 6 percent of sales in first quarter of FY 2014. Its total number of patent applications submitted now stands at 791, with 503 patents granted so far.