Drugmaker Lupin Ltd posted a surprise quarterly loss on Wednesday after taking a one-time charge related to litigation over a blood pressure drug.
Lupin made a provision of Rs 342 crore ($47.7 million) after the General Court of the European Union in December upheld a 2014 European Commission decision on a fine against Lupin related to the blood pressure drug Perindopril, it said.
Lupin had a net loss of Rs 152 crore compared to a profit of Rs 222 crore in the same quarter last year, the company said.
ALSO READ: Lupin recalls over 24,000 bottles of skin treatment drug from US
An average of estimates from 18 analysts had expected a profit of Rs 289 crore, according to Refinitiv Eikon data.
Lupin's sales rose 12.2 per cent to Rs 4,370 crore in the quarter. Revenue from North America, which accounted for nearly a third of total revenue, slipped 1 per cent.
"After a tough H1, we are now starting to see growth in the U.S.," said Nilesh Gupta, managing director of Lupin Ltd.
Indian pharmaceutical companies have struggled with weak sales in the United States on account of regulatory bans and warnings over quality control at production plants.
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Sales have also been hit by pricing pressures as competition heats up in the US generics market.
The company's revenue in India jumped 11.4 per cent to Rs 1,190 crore.
Shares of Lupin fell 1.2 per cent after the results were announced, while the broader Mumbai market rose over 1 per cent.
Lupin made a provision of Rs 342 crore ($47.7 million) after the General Court of the European Union in December upheld a 2014 European Commission decision on a fine against Lupin related to the blood pressure drug Perindopril, it said.
Lupin had a net loss of Rs 152 crore compared to a profit of Rs 222 crore in the same quarter last year, the company said.
ALSO READ: Lupin recalls over 24,000 bottles of skin treatment drug from US
An average of estimates from 18 analysts had expected a profit of Rs 289 crore, according to Refinitiv Eikon data.
Lupin's sales rose 12.2 per cent to Rs 4,370 crore in the quarter. Revenue from North America, which accounted for nearly a third of total revenue, slipped 1 per cent.
"After a tough H1, we are now starting to see growth in the U.S.," said Nilesh Gupta, managing director of Lupin Ltd.
Indian pharmaceutical companies have struggled with weak sales in the United States on account of regulatory bans and warnings over quality control at production plants.
ALSO READ: Lupin Pharma developing new products to treat cancer, other diseases
Sales have also been hit by pricing pressures as competition heats up in the US generics market.
The company's revenue in India jumped 11.4 per cent to Rs 1,190 crore.
Shares of Lupin fell 1.2 per cent after the results were announced, while the broader Mumbai market rose over 1 per cent.
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