Sun Pharma shares drop after Taro reports lowest sales in 10 quarters

Operating losses were attributed to price erosions and the ongoing impact of integrating the recent acquisition Alchemee. In February this year, Taro announced the completion of the Alchemee acquisition for $90 million, adding the company's business and assets, including the Proactiv brand, into its portfolio.

Proactiv is the leading acne routine in the US and has been in the market for over two decades.

Despite the addition of brands, Taro's sales during the quarter remained flat at $130.5 million, compared to $132 million last September. Sales turned out to be lower due to continued price erosion, particularly in the US generics business.

Taro's sales were also the lowest in the last ten quarters.

The impact of Taro's results will be seen on Sun Pharma's shares in Friday's trading session and its overall earnings. Analysts believe that Taro's results may mean Sun Pharma can report a miss of over 5 percent on its EBITDA estimates during the quarter.

Sun Pharma will report its September quarter results on November 1.

Shares of Sun Pharma are trading 1.3 percent lower at Rs 1,000.10, as of 9:30 am. The stock is up 18 percent this year and is trading near its 52-week high.