Sun Pharmaceuticals Industries Ltd. Earnings Call Nuggets: Doxil, Caraco and India Business

Sun Pharmaceuticals Industries Ltd. (SUNPHARMA.NS) recently reported its third quarter earnings and discussed the following topics in its earnings conference call.

Doxil and Caraco

Monica Joshi – Avendus Securities: Just two questions. One is on Doxil. If you could give us an outlook if we know of any other participants awaiting in the market, and if at all when other likely to enter the market? And secondly on Caraco, if you could share some outlook in terms of how many products are in the pipeline and how would you see Caraco now ramping up with the FDA issues behind it?

Dilip Shanghvi – Managing Director: We have no visibility about other companies who have filed Doxil with the U.S. FDA, because U.S. FDA does not share this information with the industry or with public. And there are no patents on Doxil in Orange Book, so there are no litigations which give us any idea about whereas somebody is coming. But it’s a generic product and at some point I am sure there would be competition. As to I think Caraco, Caraco is now a what do you call merged with Sun, so you are talking about Detroit manufacturing facility. We haven’t yet started receiving ANDA approvals, which were with U.S. FDA, hopefully within a short period of time we will start getting approval for new products from the site. And as we bring them to market, we will keep you updated.

India Business

Anubhav Aggarwal – Credit Suisse: One question on the India business, you mentioned about sales return and discount treatment, just wanted to check that, whether this change be EBITDA neutral because were you earlier – is this accounting change or is that a change quantum of sales return and discount?

Sudhir V. Valia – Executive Director: Anubhav this is EBITDA neutral.

Anubhav Aggarwal – Credit Suisse: Second question is on the minority interest, you indicated in the release that now the partnerships firms have become wholly owned subsidy, so from now onwards, minority interest will only be reflected from the Taro only. You will not have any from the India business contribution coming to minority interest, will that be true?

Abhay Gandhi – President: Yeah, at least those partnership firms, there were some small non-Sun Pharma shareholding. There will be no minority interest.

Anubhav Aggarwal – Credit Suisse: Just last one on the URL side, how many ANDAs are pending with the FDA?

Sudhir V. Valia – Executive Director: We haven’t given out that number Anubhav. I think once we consolidate our numbers for you next quarter, we will give you that.