India's Sun Pharma beats Q2 profit view on higher demand for specialty drugs
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Sun Pharmaceuticals, India's largest drugmaker by revenue, reported second-quarter profit above analysts' estimates on Monday, aided by higher demand for its specialty drugs that are used to treat uncommon medical conditions.
The Mumbai-based firm's net profit rose 28% to 30.40 billion rupees (nearly $362 million) for the three months ended Sept. 30, beating analysts' estimate of 28.87 billion rupees, according to data compiled by LSEG.
The company's high-margin global specialty pharmaceutical segment, which includes medicines for diseases such as alopecia and psoriasis, reported a 19.2% jump in sales to $286 million. This segment, which Sun Pharma calls 'high growth', contributed to more than 18% of its total sales in fiscal year 2024.
Sun Pharma, which also makes copycat generic drugs and branded versions, reported a 9% rise in revenue to 132.91 billion rupees for the second quarter, driven by sales in the U.S. - its biggest market - and India, which jumped 21.9% and 11%, respectively.
However, its revenue still fell short of analysts' expectation of 133.3 billion rupees.
Generic drugmakers have been struggling with a slowdown in the U.S. due to delayed approvals for new generic drug applications, lower pricing amid stiff competition and increased inspections of generic drug manufacturing facilities by the Food and Drug Administration, according to analysts.
"We look for growth drivers beyond India and U.S. generic market... We expect innovative (drug) revenues to more than double for Sun over (the) next four years," research firm UBS said.
The company's shares rose as much as 2.4% after its results.
($1 = 84.0510 Indian rupees)
