Sun Pharmaceutical Industries, India’s largest pharmaceutical company, maintains a robust business model centered on specialty generics, branded formulations, and active pharmaceutical ingredients (APIs). With a strong global presence, particularly in the US and emerging markets like Brazil and South Africa, it derives significant revenue from its diversified portfolio, including chronic therapies and high-margin specialty drugs like Leqselvi for alopecia. Strategic acquisitions, such as Checkpoint Therapeutics and Concert Pharma, bolster its oncology and dermatology segments, while consistent R&D investment (6-8% of revenue) drives innovation in complex formulations. Despite challenges like US tariff threats and manufacturing-related recalls, Sun Pharma’s focus on specialty portfolio expansion and stable domestic growth in India positions it for resilient revenue growth, with analysts projecting steady earnings supported by new launches and a recovering US generics market.

Latest News on Sun Pharma

The US FDA has issued a recall for an antifungal shampoo manufactured by Sun Pharma.

The US Food and Drug Administration (USFDA) has announced a recall of over 17,000 units of antifungal shampoo, Ciclopirox Shampoo, due to manufacturing issues. The recall was initiated by Taro Pharmaceutical Industries, the US arm of Sun Pharma, on December 9. The shampoo is used to treat seborrheic dermatitis, a condition that causes dry, flaky, and itchy skin. The recall was classified as a Class II recall, which means that the product’s use may lead to temporary or medically reversible health consequences, but the likelihood of serious adverse health outcomes is minimal.

The recall was due to “failed impurity/degradation specifications,” according to the USFDA. Taro Pharmaceutical Industries is a private company and a wholly-owned subsidiary of Sun Pharma, which acquired the Israel-based company in a deal valued at $347.73 million last year. Sun Pharma has been the majority shareholder of Taro since 2010. Taro primarily focuses on dermatology and produces a wide range of prescription and over-the-counter products.

The recall is a setback for Sun Pharma, which is a leading exporter to the US market. In the second quarter of FY26, the company reported revenue of Rs 14,478 crore, with a net profit of Rs 3,118 crore, a 2.56% increase year-on-year. However, formulation sales in the US declined 4.1% to $496 million. The recall highlights the importance of quality control and regulatory compliance in the pharmaceutical industry.

The USFDA’s Enforcement Report noted that the recall was nationwide and affected 17,664 units of the Ciclopirox Shampoo. The company has taken prompt action to address the issue, and the recall is expected to minimize any potential harm to consumers. The incident serves as a reminder of the need for pharmaceutical companies to maintain high standards of quality and manufacturing practices to ensure the safety and efficacy of their products.

The Delhi High Court has ruled that a lawsuit filed by Sun Pharma is admissible, citing the company’s online presence as a relevant factor.

The Delhi High Court has ruled that a lawsuit filed by Sun Pharmaceutical Industries against a company selling a product called “PEPFIX-NEOVITAL” is maintainable. The court’s decision was based on the fact that the defendant company has an online presence, which suggests that it is doing business in the Delhi territory.

The lawsuit was filed by Sun Pharma, which claimed that the defendant company was infringing on its trademark by selling a product with a similar name. The defendant company had argued that the court did not have jurisdiction to hear the case, as it was not doing business in Delhi.

However, the court rejected this argument, citing the fact that the defendant company has a website and is selling its products online. The court noted that the website is accessible to customers in Delhi, and that the defendant company is therefore doing business in the territory.

The court’s decision is significant, as it highlights the importance of online presence in determining jurisdiction in intellectual property cases. The ruling suggests that companies with an online presence can be considered to be doing business in a particular territory, even if they do not have a physical presence there.

The case is also notable for its implications for trademark law in India. The court’s decision suggests that companies must be careful to ensure that their online activities do not infringe on the trademarks of other companies. The ruling also highlights the need for companies to be aware of their online presence and to take steps to protect their intellectual property rights in the digital sphere.

In its ruling, the court noted that the defendant company’s website is accessible to customers in Delhi, and that the company is therefore subject to the jurisdiction of the Delhi High Court. The court also noted that the defendant company’s online activities are sufficient to establish a “commercial connection” with the territory, which is a requirement for establishing jurisdiction.

Overall, the Delhi High Court’s ruling in the PEPFIX-NEOVITAL case is an important development in the field of intellectual property law in India. The decision highlights the importance of online presence in determining jurisdiction and the need for companies to be aware of their online activities and to take steps to protect their intellectual property rights.

Sun Pharmaceutical Industries has secured approval from the US Food and Drug Administration for an updated label of UNLOXCYT, incorporating long-term efficacy data for Cutaneous Squamous Cell Carcinoma treatment.

Sun Pharmaceutical Industries Ltd. has received approval from the US Food and Drug Administration (USFDA) for an updated label for its medication UNLOXCYT (tretinoin), which is used to treat a rare skin condition called Cutaneous Squamous Cell Carcinoma (CSCC) in patients with advanced renal cell carcinoma (RCC). The updated label includes long-term efficacy data, demonstrating the treatment’s effectiveness in preventing the progression of CSCC.

UNLOXCYT is a topical formulation of tretinoin, a retinoid that has been shown to inhibit the growth of cancer cells. The medication is specifically designed to treat CSCC, a type of skin cancer that can occur in patients with advanced RCC. The condition is often aggressive and can lead to significant morbidity and mortality if left untreated.

The updated label includes data from a long-term study that evaluated the efficacy of UNLOXCYT in preventing the progression of CSCC in patients with advanced RCC. The study demonstrated that treatment with UNLOXCYT significantly reduced the risk of CSCC progression compared to placebo. The data also showed that UNLOXCYT was well-tolerated, with a safety profile consistent with previous studies.

The approval of the updated label is a significant milestone for Sun Pharma, as it provides healthcare providers with additional confidence in the long-term efficacy of UNLOXCYT in treating CSCC. The company believes that the updated label will help to increase awareness and adoption of the medication among healthcare providers and patients.

The USFDA approval is also a testament to Sun Pharma’s commitment to developing innovative treatments for rare and debilitating diseases. The company has a strong portfolio of specialty and generic products, and is dedicated to improving the lives of patients around the world.

In a statement, a spokesperson for Sun Pharma said, “We are pleased to receive USFDA approval for the updated UNLOXCYT label, which includes long-term efficacy data demonstrating the treatment’s effectiveness in preventing the progression of CSCC. This approval is a significant milestone for our company, and we believe it will help to increase awareness and adoption of UNLOXCYT among healthcare providers and patients.” The updated label is expected to be available in the US market shortly.

Sun Pharma Secures Rs 828 Crore Refund as CESTAT Declares Revenue Department’s Demand as Legally Invalid

Sun Pharmaceutical Industries, one of India’s largest pharmaceutical companies, has won a significant excise refund battle. The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled in favor of Sun Pharma, dismissing a revenue demand of Rs 828 crore (approximately $112 million USD) as “legally unsustainable.” The tribunal’s decision is a major victory for the company, which had been embroiled in a long-standing dispute with the excise authorities.

At the heart of the dispute was the issue of excise duty refund claims filed by Sun Pharma for the period between 2007 and 2012. The company had claimed a refund of excise duty paid on certain products, which were later exempted from excise duty. However, the excise authorities had rejected the claims, citing various grounds, including alleged suppression of facts and misdeclaration of goods.

The CESTAT, however, found that the revenue demand raised by the excise authorities was not sustainable in law. The tribunal observed that the excise authorities had failed to follow the principles of natural justice and had not provided adequate opportunities to Sun Pharma to respond to the allegations. Furthermore, the CESTAT noted that the excise authorities had not demonstrated any suppression of facts or misdeclaration of goods by Sun Pharma.

The ruling is significant not only for Sun Pharma but also for the entire pharmaceutical industry. The decision sets a precedent for other companies that may be facing similar disputes with the excise authorities. It also highlights the importance of following the principles of natural justice and ensuring that companies are given adequate opportunities to respond to allegations.

The Rs 828 crore refund claim is a substantial amount, and the ruling is expected to provide a significant boost to Sun Pharma’s financials. The company can now claim a refund of the excise duty paid, which will help to improve its cash flows and profitability. The decision also demonstrates the effectiveness of the judicial system in resolving disputes between companies and the government.

In conclusion, the CESTAT’s ruling in favor of Sun Pharma is a major victory for the company and a significant development for the pharmaceutical industry. The decision highlights the importance of following the principles of natural justice and ensuring that companies are given adequate opportunities to respond to allegations. With the Rs 828 crore refund claim now cleared, Sun Pharma can focus on its business operations and growth plans, without the burden of a long-standing dispute with the excise authorities.

Sun Pharma’s US revenue from innovative medicines now exceeds that of its generic offerings.

Sun Pharmaceutical Industries Ltd. has reported a significant shift in its business mix, with innovative medicines outpacing generic drug sales in the United States during the second quarter of fiscal year 2026. The company’s innovative medicines, including Ilumya, Cequa, and Odomzo, drove strong demand and growth. The recent launch of Leqselvi, a newly approved alopecia treatment, has further accelerated this growth. Leqselvi was acquired through Sun Pharma’s $576 million purchase of Concert Pharma and has been well received in the US market.

The company’s global innovative drug revenue reached $333 million in Q2FY26, up 16.4% year-over-year, accounting for 20.2% of total consolidated revenue. For the first half of FY26, innovative drug sales totaled $644 million, growing 16.6% year-over-year. Sun Pharma’s CEO, Richard Ascroft, noted that sales of innovative medicines will continue to rise as the company prepares to launch its cancer immunotherapy, Unloxcyt.

The company’s executive chairman, Dilip Shanghvi, reaffirmed the company’s focus on expanding its R&D pipeline and is awaiting updated FDA labeling approval for Unloxcyt ahead of its planned US launch in the second half of FY26. This shift towards innovative and specialty medicines is expected to strengthen the company’s margins and enhance market differentiation, securing long-term growth in the US and global pharmaceutical markets.

Sun Pharma’s strategic move towards innovative medicines is a significant development, as it positions the company for sustained growth and profitability. The company’s investment in R&D and its pipeline of new products, including Unloxcyt, are expected to drive future growth. With the pharmaceutical industry increasingly shifting towards innovative and specialty medicines, Sun Pharma’s strategy is well-aligned with industry trends. Overall, the company’s Q2FY26 results indicate a positive outlook for its innovative medicines business, and investors will be watching the company’s progress closely in the coming quarters.

Stock Market Updates for Sun Pharma

Recent Updates

Sun Pharma’s Q2 net profit has increased by 2.5% to ₹3,118 crore, with a 9% year-over-year revenue growth, despite a 4.1% decline in US sales.

Sun Pharmaceutical Industries has announced its Q2 results, showing a 2.5% increase in net profit to ₹3,118 crore. The company’s revenue growth stood at 9% year-over-year (YoY), driven by strong performance in the domestic market and emerging markets. However, US sales declined 4.1% YoY, which had a negative impact on the company’s overall revenue.

The decline in US sales can be attributed to increased competition and pricing pressure in the generic pharmaceutical market. Despite this, the company’s revenue from emerging markets and the domestic market showed significant growth. The company’s formulation business in emerging markets grew by 14% YoY, while the domestic market formulation business grew by 13% YoY.

Sun Pharma’s revenue from the rest of the world (RoW) markets, excluding the US, also showed a growth of 10% YoY. The company’s specialty business, which includes products such as Ilumya and Cequa, also performed well, with revenue growth of 24% YoY.

The company’s research and development (R&D) expenses increased by 15% YoY to ₹543 crore, as the company continues to invest in new product development and clinical trials. The company’s operating margin stood at 24.1%, which is a decline of 140 basis points YoY, due to higher R&D expenses and increased competition in the US market.

Sun Pharma’s management has said that the company is focusing on launching new products and increasing its presence in emerging markets to drive growth. The company is also working on reducing its dependence on the US market and increasing its revenue from specialty products.

Overall, while Sun Pharma’s Q2 results were impacted by the decline in US sales, the company’s strong performance in the domestic market and emerging markets, along with its growing specialty business, are expected to drive growth in the coming quarters. The company’s focus on new product launches and increasing its presence in emerging markets is also expected to help it navigate the challenges in the US market. With a diverse portfolio of products and a strong presence in several markets, Sun Pharma is well-positioned to achieve long-term growth and success.

Next week, several major companies, including Airtel, LIC, SBI, M&M, Sun Pharma, and Titan, are set to release their Q2 earnings reports.

The Indian corporate sector has reported earnings in line with expectations for the September quarter, boosting market sentiment. Several prominent companies, including Indian Oil Corporation, Adani Green Energy, and Hindustan Petroleum Corporation Limited, have already announced their quarterly results. The Q2 earnings season is now entering a crucial phase, with many blue-chip and growth-oriented companies set to release their July-September quarter results.

This week, starting from November 3, will be action-packed, with several key companies announcing their earnings. On Monday, Bharti Airtel and Ambuja Cements will release their results, providing insights into telecom and infrastructure demand. Other companies, including Tata Consumer Products, Titan Company, and Power Grid Corporation, will also announce their earnings, focusing on consumption and utilities.

On Tuesday, State Bank of India, the country’s largest lender, will be in the spotlight, with investors closely watching its asset quality and credit growth trends. The Adani Group, including Adani Enterprises and Adani Ports, will also release their results, along with Mahindra & Mahindra and IndiGo.

The following days will see earnings from pharmaceutical and FMCG giants, including Sun Pharma, Aurobindo Pharma, Britannia Industries, and Grasim Industries. Life Insurance Corporation (LIC) will also release its results, which is expected to draw significant retail interest. Other key earnings include Apollo Hospitals, Lupin, and Godrej Properties.

The week will conclude on Friday, with a mixed bag of companies from various sectors, including Hindalco Industries, National Aluminium, Divi’s Laboratories, Trent, and Power Finance Corporation. Overall, the Q2 earnings season is expected to provide valuable insights into the performance of various sectors and companies, influencing market sentiment and investor decisions. As always, investors are advised to consult with a qualified financial advisor before making any investment decisions.