Mumbai: Wockhardt Ltd reported a net loss of Rs409.66 crore in the three months ended 30 June due to lower sales, a one-time litigation charge, and higher costs on research and development (R&D) and remedial measures at manufacturing facilities.
In the corresponding period a year ago, the company posted a net profit of Rs10.29 crore.
The drug maker booked a one-time loss of Rs358.19 crore in the quarter due to settlement of a litigation relating to supply contract for cancer drug Trisenox with Teva Pharmaceuticals USA Inc.’s affiliate Cephalon Inc. Excluding this one-time hit, the company’s loss before tax was Rs121.34 crore.
Revenue declined 18.3% to Rs891.06 crore during the quarter from 1,090.83 crore a year ago. However, revenue was up 3.2% sequentially.
Ongoing expenses on remedial measures at plants facing compliance issues with the US Food and Drug Administration (FDA) and R&D initiatives impacted profitability but the company’s focus on cost cuts and rationalization helped it reduce losses on quarter-on-quarter basis, Wockhardt said in a release.
Sales were down year-on-year because of de-stocking ahead of implementation of Goods and Services Tax (GST) in India and weak US business due to regulatory issues and pricing pressure. However, a 29% growth in UK pushed up sales sequentially, the company said.
The company spent Rs72 crore on R&D during the quarter, accounting for 8% of sales, and capital expenditure stood at Rs51 crore.
At 2:20pm, shares of Wockhardt were trading down 2.63% at Rs588.55 on the BSE, while benchmark Sensex index was down 0.16% at 32,522.23 points.