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Business Standard
31-07-2025
- Business
- Business Standard
Sun Pharma Q1 net profit falls 20% Y-o-Y; revenue rises 9%
Litigation, drug discontinuation weigh on earnings; US market remains sluggish even as India sales and Leqselvi launch boost specialty push Sun Pharmaceutical, India's largest drugmaker, has posted a decline of 20 per cent year-on-year (Y-o-Y) in its consolidated net profit for the first quarter of 2025-26 (Q1FY26). While its net profit was ₹2,278 crore, its revenue from operations rose 9 per cent at ₹13,851 crore. The fall in profit is primarily because of discontinuing the development of SCD-044, an investigational drug (₹287.6 crore), and a litigation settlement involving Taro and SPIINC (₹530.3 crore). This was despite an exceptional tax credit of ₹100.5 crore. Sequentially net profit rose 6 per cent with revenue rising 7 per cent. The muted performance in the United States (US), the company's largest overseas market, is a key concern, with formulation sales there up only 1.5 per cent Y-o-Y at $473 million, contributing 29 per cent to consolidated revenues. 'The US launch of Leqselvi represents an important step forward, offering a new treatment option for patients with severe alopecia areata,' said Chairman and Managing Director Dilip Shanghvi. He added that Leqselvi strengthened Sun's dermatology franchise and was expected to be a growth driver. The results came during market hours. Sun's stock fell 1.6 per cent, ending the day's trade at ₹1,705.5 on the BSE. Shanghvi said: 'The launch of Leqselvi represents an important step forward, offering a new treatment option for patients with severe alopecia areata. Leqselvi augments our portfolio in dermatology and adds a growth engine to our innovative medicines business.' Formulation sales in India stood at ₹4,721 crore, up 14 per cent Y-o-Y, contributing 34 per cent to consolidated sales for the quarter. Sun Pharma retained its number 1 ranking in the Indian pharmaceutical market, with market share rising from 8 per cent to 8.3 per cent, according to Pharmarack MAT June 2025 data. The company launched five products during April-June.
Mint
31-07-2025
- Business
- Mint
Sun Pharma net profit falls on US antitrust settlement, drug impairment costs
Sun Pharmaceutical Industries Ltd's revenue from operations for the April-June period beat Street expectations to rise 9.4% year-on-year to ₹ 13,851 crore. However, the drugmaker's net profit fell on exceptional items including settlement costs in a pricing antitrust litigation in the US and discontinuing clinical studies on one of its drugs. The company posted a net profit of ₹ 2,279 crore in Q1FY26, down 20% from a year earlier. A healthy double-digit growth in its India business and innovative medicines pipeline boosted its revenue and Ebitda margins during the quarter. The drugmaker has been banking on both segments to drive growth in FY26. Its adjusted net profit, excluding the exceptional items, for Q1FY26 was ₹ 2,996 crore, up 5.7%, Sun Pharma said in an exchange filing on Thursday. "Sun had a strong performance during the quarter, where the overall growth reflects steady progress across all our markets. India continues to show strong momentum, contributing meaningfully to our performance,' chairman and managing director Dilip Shanghvi said in the statement. Sun Pharma and its subsidiary Taro Pharmaceuticals agreed to pay $200 million to settle a generics antitrust pricing litigation in the US earlier this month. The company also announced that it was discontinuing studies on its drug candidate SCD-044 for atopic dermatitis, after the drug did not meet primary objectives in phase-2 trials. A Bloomberg poll of 14 brokerages had estimated the firm's revenue to be ₹ 13,699 crore, and its profit after tax at ₹ 3,042 crore. Sun Pharma reported an Ebitda (earnings before interest, taxes, depreciation, and amortisation) of ₹ 4,302 crore, up 19.2%, with the margin expanding to 31.1%. The increase in Ebitda margin was on account of improvement in raw material costs, as well as higher sales of its global specialty products and domestic branded formulations, the company's chief financial officer Jayashree Satagopan told investors in a post-earnings call on Thursday evening. Sun Pharma's share price settled 2% lower at ₹ 1,700 on the NSE on Thursday. Sun Pharma's domestic business saw robust double-digit growth, maintaining its momentum. India formulation sales rose 13.9% YoY to ₹ 4,721 crore. The growth was driven by an increase in volume as well as new product launches, as opposed to the overall Indian pharmaceutical market which is largely growing on the back of price increases. The company saw an uptick in its global specialty or innovative medicines sales, rising 16.9% to $311 million. This segment accounted for 19.3% of its quarterly sales and drove up the overall US sales. The company reported overall US sales of $473 million, up 1.4%. 'This growth is driven by our innovative medicines portfolio with all of our growth products contributing, including Ilumya, Cequa, Winlevi, and Odomzo, but offset by decline in our generics business due to additional competition in certain products,' Richard Ascroft, North America chief executive officer, told investors, adding that the company is seeing contingent pricing pressure from blood cancer drug Revlimid, which is set to lose exclusivity next year. The US accounted for 29.3% of consolidated sales for the quarter. Sun Pharma launched its drug for severe alopecia areata, Leqselvi, in the US during the quarter. 'We're very encouraged by early results, we've seen good receptivity with healthcare professionals and patients, and we already have our initial commercial prescriptions,' said Ascroft. Sun Pharma is gearing up for the launch of cancer drug Unloxcyt in the second half of FY26, the company said.
Mint
31-07-2025
- Business
- Mint
Sun Pharma Q1 Results: Net profit declines 20% to ₹2,279 crore; revenue up 9%
Sun Pharma Q1 Results: Sun Pharma announced its results for the quarter ended June 2025 (Q1FY26) today, July 31. The pharma stock's consolidated net profit fell 20 percent to ₹ 2,279 crore in Q1FY26, dented by a one-time exceptional charge. It posted a net profit of ₹ 2,835 crore in the same period last year. Sequentially, the profit rose 6 percent from ₹ 2150 crore in the March quarter. The consolidated revenue of the company rose over 9 percent to ₹ 13,851 crore in the June 2025 quarter from ₹ 12,653 crore in Q1FY25 in the quarter under review, driven by strong growth across key markets, including India, the US, and the Rest of World regions. Sun Pharma's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 19.2% from last year to ₹ 4,302 crore. EBITDA margin for the quarter expanded by 250 basis points to 31 percent from 28.5 percent last year. Excluding exceptional items, Sun Pharma posted a 5.7 percent year-on-year increase in adjusted net profit at ₹ 2,996.1 crore for the quarter ended June 2025. The company incurred an exceptional charge of ₹ 818 crore during the quarter, which comprised a ₹ 288 crore write-off stemming from the termination of the SCD-044 development programme and a ₹ 530 crore provision related to a legal settlement in the United States. The firm reported gross sales of ₹ 137,861 million for the first quarter of FY26, marking a 10.1 percent year-on-year growth. The company's India formulation business contributed ₹ 47,211 million, registering a robust 13.9 percent increase. In the US market, formulation sales rose 1.4 percent to $473 million. Notably, the Global Innovative Medicines segment delivered strong growth, with sales rising 16.9 percent to $311 million, accounting for 19.3 percent of total Q1FY26 revenues.
New Indian Express
04-06-2025
- Business
- New Indian Express
Sun Pharma shares plunge as its much touted psoriasis drug trial fails
CHENNAI: Shares of India's largest drug maker Sun Pharmaceutical Industries fell almost 1% on main stock exchanges on Wednesday following the company's announcement of a disappointing trial results of its much expected novel drug for psoriasis. The company said in a statement on Tuesday that it is discontinuing further development of its investigational drug SCD-044, a novel orally bioavailable anti-psoriasis drug following disappointing Phase 2 trial results. This investigational drug was tested for both psoriasis and atopic dermatitis indications. The company said that the trials (double-blind, placebo-controlled Phase 2 trial evaluated the efficacy and safety) were conducted in 263 patients with moderate to severe plaque psoriasis. The primary endpoint was the proportion of patients achieving a 75% reduction in the psoriasis area. The trial failed to meet this endpoint, although no major safety or tolerability issues were reported. 'While we are disappointed with the top-line results of the clinical trials, we would like to thank all the psoriasis and atopic dermatitis patients, the healthcare professionals and administrators who participated in these pivotal clinical trials,' said Dr. Marek Honczarenko, Senior Vice President and Head of Global Specialty Development at Sun Pharma.
Economic Times
04-06-2025
- Business
- Economic Times
Sun Pharma Advanced Research shares tank 20% after psoriasis drug fails Phase 2 trials
Live Events Surprise FDA inspection at Halol unit About the drug and its target conditions (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Sun Pharma Advanced Research Company (SPARC), a unit of India's largest drug maker Sun Pharmaceutical Industries , tumbled as much as 20% on Wednesday to Rs 156.50 on the BSE after the company disclosed that its investigational drug SCD-044 failed to meet the main goals in late-stage clinical trials for psoriasis and atopic a filing released post-market hours on Tuesday, SPARC said, 'SPARC informs that its partner Sun Pharmaceutical Industries Limited (SPIL) announced the top-line results from the Phase 2 clinical trials evaluating Vibozilimod (SCD-044) for the treatment of moderate-to-severe Psoriasis (SOLARES PsO) and Atopic Dermatitis (SOLARES AD).""SPIL informed that both SOLARES PsO and SOLARES AD studies did not meet the primary endpoint of 75 per cent improvement in PASI (Psoriasis Area and Severity Index) score (> PASI75) at Week 16 and 75 per cent improvement in EASI (Eczema Area and Severity Index) score (>EASI75) at Week 16, respectively,' the company company further added, 'SPARC and SPIL will evaluate the appropriate next steps for SCD-044.'SPARC confirmed that, given the failure to meet primary endpoints, the development of the drug, also known as Vibozilimod, is being discontinued, and no further clinical trials are planned. The setback is significant as the drug was seen as a key asset in the company's speciality the past year, SPARC shares have declined about 3%, underperforming the benchmark Sensex, which has risen roughly 12% during the same CNBC-TV18 reported on Wednesday that a surprise inspection was underway at Sun Pharma's Halol facility, one of its largest manufacturing units, by three inspectors from the U.S. Food and Drug Halol unit was last inspected in May 2022 and is currently under an import alert following a warning letter from the was being developed as a treatment for psoriasis and atopic dermatitis, two chronic inflammatory skin conditions. Psoriasis is marked by raised, scaly plaques on the skin due to accelerated skin cell growth, often affecting the elbows, knees, scalp, and trunk. Atopic dermatitis, or eczema, typically involves dry, itchy, and inflamed skin, often beginning in childhood but potentially affecting people at any failure of the Phase 2 studies now casts uncertainty over SPARC's speciality drug pipeline, with investors and analysts awaiting further clarity on the company's next steps.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
