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.