Price erosion in its base business in the US market reduced the performance of the first quarter of the new fiscal year 2021-22 to Torrent Pharmaceuticals Ltd, as its consolidated net profit increased marginally by three percent.
Compared to a profit after tax (PAT) of Rs 321 crore in the first quarter of the previous financial year 2020-21, Torrent Pharma published a PAT of Rs 320 crore for the first quarter of the current fiscal year FY22. The company's revenue also grew in the single digits by four percent, from Rs 2,056 crore in the first quarter of FY 21 to Rs 2,134 crore in the first quarter of FY 22.
While India, which forms the largest market for Torrent Pharma, grew 18 percent during the quarter to Rs 1,093 crore, US revenue fell 29% to Rs 266 crore. Last year, the quarter ending June 30, 2020 Torrent Pharma post-India revenue is Rs 925 million and US revenue is Rs 373 million.
According to AIOCD data, Torrent's Q1FY22 growth was 24% compared to 37% growth in the Indian Pharmaceutical Market (IPM), where the latter's growth during the quarter included a high contribution from treatments. Covid and a low base last year. Among Covid drugs, the quarter also saw Torrent launch baricitinib and is currently conducting clinical trials for molnupiravir even as more partnerships are being evaluated to expand its Covid portfolio.
On the other hand, sales were lower in the US market due to the erosion of prices in the base business and the lack of new approvals pending re-inspection of the facilities. As of June 30, 2021, 54 New Drug Abbreviated Applications (ANDAs) were pending approval with the USFDA and seven interim approvals were received, including one interim approval received during the quarter.
Other important markets for Torrent Pharma they include Brazil and Germany, which grew by 9% and 5%, respectively. While Brazil's revenue was Rs 153 million for the quarter, Germany's was Rs 260 million, even as the company experienced growth momentum in both the brand and generics segment in Brazil.
Meanwhile, the company's research and development (R&D) spending grew 16 percent year-on-year (y-o-y) in the first quarter of fiscal 22 to stand at Rs 125 crore, down from Rs 108 crore in the year. corresponding period of last year.
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