About the company:
Sun Pharmaceutical Industries Ltd. (Sun Pharma) is an Indian multinational pharmaceutical company headquartered in Mumbai, India. It is one of the largest generic drug manufacturers in the world and the largest pharmaceutical company in India. Founded in 1983 by Dilip Shanghvi, Sun Pharma specializes in the production of a wide range of pharmaceutical formulations, including generics, branded generics, over-the-counter (OTC) products, and active pharmaceutical ingredients (APIs). The company operates in over 100 countries, with a strong presence in the U.S., India, and emerging markets. Sun Pharma is known for its focus on specialty and complex generics, including treatments for neurology, cardiology, dermatology, and oncology.
Business Segment Performance:
India Business: ₹43,004 million revenue, 13.8% growth YoY, maintaining leadership with 8.2% market share.
U.S. Business: Sales at $474 million, down 1% YoY due to a decline in generics, but specialty sales remained strong.
Emerging Markets: Revenue $277 million, 10.1% growth YoY.
Rest of the World (RoW): Sales $259 million, 21% growth YoY.
Specialty Business: Strong 24.8% growth led by ILUMYA, CEQUA, ODOMZO, and WINLEVI.
Strategic Updates:
R&D Spend: ₹8,450 million (6.3% of sales), below guidance due to clinical trial delays.
Opioid Litigation: ₹3,162 million settlement provision recorded in Q3.
Expansion Plans: Focus remains on specialty, dermatology, ophthalmology, and select adjacencies.
Compliance: Halol facility under FDA review, awaiting re-inspection.
Key Market & Product Insights:
India: Growth led by volume and new product launches, outperforming market growth.
U.S.: Specialty sales driven by ILUMYA and CEQUA; 4 generic products launched.
Japan: Specialty focus on ILUMYA and Duac, as generics face pricing pressure.
China: ILUMETRI performing well in psoriasis treatment.
Investor Q&A Takeaways:
Specialty sales growth balanced between U.S. and ex-U.S. markets.
Biosimilars remain under evaluation but are not a priority yet.
Capital allocation focus on strategic specialty acquisitions.
Outlook:
Continued specialty business expansion.
India business expected to outgrow market, backed by new launches.
Focus on resolving compliance issues and FDA approvals.
R&D investments expected to pick up next year as clinical trials progress.
Here is a table summarizing Sun Pharma’s financial performance over the last three quarters (Q1 FY25, Q2 FY25, and Q3 FY25):
| Financial Metrics | Q1 FY25 | Q2 FY25 | Q3 FY25 |
|---|---|---|---|
| Total Sales (₹ Million) | 127,250 | 130,638 | 134,369 |
| EBITDA (₹ Million) | 36,793 | 38,673 | 40,090 |
| EBITDA Margin (%) | 28.9% | 29.6% | 29.3% |
| Net Profit (₹ Million) | 27,878 | 30,880 | 29,034 |
| Adjusted Net Profit (₹ Million) | 28,965 | 32,196 | 32,196 |
| EPS (₹ per share) | 11.8 | 12.9 | 13.4 |
| R&D Expenses (₹ Million) | 7,987 | 8,221 | 8,450 |
| Net Cash (USD Billion) | 2.8 | 2.9 | 3.0 |
Recent updates:
Highlights from last con call:
Financial Highlights:
Revenue Growth: Q3 FY25 sales reached ₹134,369 million, growing 10.5% YoY.
EBITDA: ₹40,090 million, up 15.3% YoY, with a 29.3% EBITDA margin.
Net Profit: Adjusted net profit at ₹32,196 million, growing 24.1% YoY.
Dividend: Interim dividend declared at ₹10.50 per share, up from ₹8.50 per share last year.
Net Cash Position: $3 billion as of Dec 31, 2024.