Piramal Health Q3 net plunges on higher R&D spend
Piramal Health Q3 net plunges on higher R&D spend
Mumbai: Drugmaker Piramal Healthcare Ltd’s quarterly net profit plunged 86% as research and development (R&D) expenses zoomed, while income from investments declined.
Sales rose 38.7% to ₹ 560 crore ($113.7 million).
Piramal Healthcare acquired the drug discovery business of group company Piramal Life Sciences in August last year. The acquired business has about 15 molecules in the clinical trials phase and need extensive financial support.
Post the acquisition, Piramal Healthcare’s R&D spend rose over 8 times to ₹ 121 crore in December quarter.
Piramal sold its formulations business to US-based Abbott Laboratories for $3.72 billion in 2010.
It used the cash from the sale to diversify into sectors like financial services and also make financial investments.
The drugmaker also acquired a 5.5% stake in Vodafone’s India mobile operations for $640 million in August last year.
Post the investment, the drugmaker’s income from investments fell to ₹ 589 million in the fiscal third quarter from ₹ 132 crore in the previous year, it said.
Its financial services business generated an income of ₹ 178 million in the quarter, it said.
Shares in Piramal Healthcare, valued at $1.45 billion, closed at ₹ 418.95 on Thursday, up 0.35% in a firm Mumbai market.
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