India's Torrent Pharma's profit slips as R&D costs outweigh domestic demand
India's Torrent Pharma's profit slips as R&D costs outweigh domestic demand Oct 23 (Reuters) - Indian drugmaker Torrent Pharmaceuticals TORP.NS reported a near 10% decline in second-quarter profit on Friday, as higher spending on research and development outpaced robust demand for chronic therapies in the country.
Consolidated net profit fell to 5.34 billion rupees for the quarter ended September 30, from 5.91 rupees a year earlier
Torrent and peers such as Mankind Pharma MNKI.NS continue to benefit from strong demand for chronic therapies, particularly diabetes and cardiovascular treatments, helping drive steady growth in the domestic formulations business
Sales in India, Torrent's biggest market, jumped 20% to 21.81 billion rupees, also boosted by strong demand for generic semaglutide — the active ingredient in Novo Nordisk's blockbuster diabetes drug Ozempic and weight-loss drug Wegovy
The growth in domestic business helped lift overall revenue nearly 51% to 49.79 billion rupees
The gain, however, was limited by nearly a 71% jump in total expenses, including a 35% increase in research and development costs
The drugmaker's profit margins deteriorated to 10.7% from 17.9% a year earlier
(Reporting by Kashish Tandon in Bengaluru; Editing by Shilpi Majumdar)
((Kashish.Tandon@thomsonreuters.com; 8800437922;))
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