Sun Pharma Q2 Earnings: Innovative Medicine Sales Surpass Generics, Here’s What You Need to Know

Outlook Business Desk

Revenue Growth Steady

Sun Pharmaceutical reported steady revenue growth across most markets in the quarter. While US generic sales declined, growth in its innovative medicines portfolio helped offset the loss, maintaining overall positive performance for the company.

Quarterly Earnings

Analysts had projected Sun Pharma’s revenue at ₹14,244 crore and profit after tax at ₹2,881 crore. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 14.9% to ₹4,527 crore.

US Sales Shift

Sun Pharma’s US innovative drug sales outpaced generics for the first time, Richard Ascroft, North America CEO, said, citing growth in Illumya, Cequa, and Odomzo, while generics fell on competition and lower Revlimid sales.

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US Market Performance

Meanwhile, Sun Pharma’s US generic sales were $496 million, down 4.1% year-on-year, accounting for 30.1% of total sales. Innovative medicine sales reached $333 million, up 16.4%, representing 20.2% of consolidated revenue.

Tariff Uncertainty

Sun Pharma may face US import tariffs on pharmaceuticals but is awaiting clarity. Richard Ascroft said no additional tariffs are currently being paid, as the original Section 232 investigation remains on hold.

India Market Growth

On the other hand, Sun Pharma’s domestic sales grew 11% to ₹4,734.8 crore, with India formulations making up 32.9% of consolidated revenue. The company retained top market position, increasing share marginally to 8.3%, launching nine products this quarter.

Weight Loss Launch

Sun Pharma also plans to enter India’s semaglutide market once the drug goes off patent in March. Chairman Dilip Shanghvi confirmed the company will remain competitive with potential launches of both injectable and oral formulations.

Sun Pharma

Portfolio Expansion

The US launch of Leqselvi for severe alopecia areata also received positive responses. Sun Pharma’s innovative R&D pipeline includes six novel clinical-stage entities, such as the cancer drug Unloxcyt, already approved in the US market.

New Drug Development

Sun Pharma is also advancing its GLP-1 candidate GL0034 for type-2 diabetes, having completed Phase 1 trials. Chairman Shanghvi highlighted promising early results for both metabolic dysfunction-associated steatohepatitis and diabetes, with data to be presented soon.

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