Sun Pharmaceutical Industries Limited on Wednesday posted fiscal second quarter profit at Rs 2375.51 crore, up 5 per cent in comparison to Rs 2262.22 crore during the second quarter of FY23, beating estimates. It posted revenue from operations at Rs 12,192.41 crore, up 11.3 per cent as against Rs 10,952.28 crore during the quarter ended September 2022. The company EBITDA stood at Rs 3179 crore during the quarter and EBITDA margin for Q2 was at 26.1 per cent vs 27 per cent for Q2 last year.
According to a CNBC TV18 poll, Sun Pharma was expected to post Q2 profit at Rs 2187 crore and revenue at Rs 12,005.5 crore. Sun Pharmaceutical recorded gross sales at Rs 12003.10 crore, up 11.0 per cent on-year.
Dilip Shanghvi, Managing Director, Sun Pharma, said, “US FDA’s acceptance of deuruxolitinib NDA for treatment of moderate to severe alopecia areata marks an important milestone. There are limited treatment options for alopecia areata and deuruxolitinib should make a meaningful difference in patient lives, once approved. Similarly, another late stage candidate Nidlegy will potentially complement our Odomzo franchise. Nidlegy’s recent positive phase-3 data in patients with locally advanced fully resectable melanoma positions us to provide patient solutions across a broad spectrum of skin cancers.”
Sun Pharma’s Q2 performance across markets
Sun Pharma’s India formulations sales for Q2FY24 stood at Rs 3842.50 crore, up 11.1 per cent over Q2 last year. India formulation sales accounted for about 32 per cent of total consolidated sales. For Q2FY24, the company launched 8 new products in the Indian market.
Formulation sales in the US were $430 million recording a growth of 4.2 per cent over Q2 last year, accounting for over 30 per cent of total consolidated sales.
Taro reported net sales of $148.2 million for the quarter ended September 2023. Excluding the impact of the one-time GTN adjustments in both quarters, the sales growth was mid-single-digit YoY. Net profit for Q2FY24 was $8.5 million.
Formulation sales in emerging markets were at $284 million for Q2, up 9.4 per cent over Q2 last year and accounting for about 19.5 per cent of total consolidated sales for the quarter.
Formulation sales in Rest of World (ROW) markets, excluding US and emerging markets, were $206 million in Q2FY24, up by 13.7 per cent over Q2 last year and accounting for approximately 14 per cent of total consolidated sales.
Meanwhile, for Q2FY24, external sales of API were at Rs 497.20 crore, up by 5.1 per cent over Q2 last year. “Our API business imparts benefits of vertical integration and continuity of supply chain for our formulations business. We continue to focus on increasing API supply for captive consumption for key products,” the company said.
Sun Pharma’s R&D focus
Sun Pharma’s consolidated R&D investment for Q2FY24 was Rs 773.40 crore, 6.4 per cent of sales as compared to Rs 571.00 crore for Q2 last year. “Our R&D efforts span across both specialty and generic businesses and we continue to invest in building the pipeline for various markets including the US, emerging markets, RoW Markets and for India. Our specialty R&D pipeline includes 6 molecules undergoing clinical trials. We have a comprehensive product offering in the US market consisting of approved ANDAs for 526 products while filings for 93 ANDAs await US FDA approval, including 28 tentative approvals. Additionally, the portfolio includes 54 approved NDAs while 13 NDAs await US FDA approval. For the quarter, 3 ANDA were filed and 8 approvals were received,” the company said.