Tag: Sun Pharmaceutical

Sun Pharma gets Australian regulator’s nod for acne drug Winlevi

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sun Pharmaceutical Industries Ltd on Tuesday announced that the Australian Therapeutic Goods Administration (TGA) has granted regulatory approval for its clascoterone cream, Winlevi. Winlevi is indicated for the topical treatment of acne vulgaris in patients 12 years of age and older.

Winlevi will be available in Australia from June 2024, the company said in a regulatory filing on March 19.

As stated by Hellen de Kloet, Business Head – Western Europe, Australia and New Zealand, Sun Pharma, “Winlevi is an exciting addition to our expanding dermatology portfolio of innovative medicines in Australia. Winlevi’s novel mechanism of action will be a welcome addition to the physician’s toolkit while treating acne.”

“We are very pleased that Winlevi will soon be available to patients in Australia. This is another achievement in the mission of Cosmo and Sun Pharma to improve the lives of patients affected by skin conditions,” said Diana Harbort, President of the Dermatology Division of Cosmo.

Shares of Sun Pharmaceutical Industries Ltd settled 1.37% higher at ₹1,569.35 apiece on the NSE on Monday. The stock has gained 25% so far in 2024.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sun Pharma growth prospects intact; share gets ‘Buy’ call as positive earnings surprise continue

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Sun Pharmaceutical Industries Ltd were trading lower on Thursday even after the drugmaker surprised the Street positively, yet again. Sun Pharma delivered robust performance in domestic formulation (DF), specialty portfolio, US generics as well as the ROW market. This was partially offset by subdued show in emerging markets for the quarter. The R&D expenditure remained lower than earlier guidance, partly driving better profitability for the quarter.

Analysts at several brokerage firms have reaffirmed their ‘Buy’ call on the Sun Pharma stock. BofA raised the target price of the stock while reiterating a ‘Buy’ view on the stock. Meanwhile, Citi, Motilal Oswal and Nuvama remain upbeat on Sun Pharma’s growth prospects and maintain a ‘Buy’ rating.

Domestic brokering firm Motilal Oswal remains positive on Sun Pharma, given its position as a leading company establishing a robust specialty franchise in developed markets and driving better-than-industry growth in branded generics markets.

The brokerage has raised their earnings estimates for FY25 and FY26 by 4% and 5%, factoring superior execution in global specialty sales, revival in growth prospects in Taro, and an industry-beating growth in the branded generics DF market.

Accordingly, Motilal has arrived at a price target of ₹1,635 per share and reiterated its ‘Buy’ view on the stock.

JM Financial said that Sun Pharma’s annual operating cash flows of over $1 billion and potential access to Taro’s rich cash reserves, if the offer sails through, creates room for bolder and bigger bets in the specialty segment (such as Concert).

The key focus area, as per the brokerage, remains derma and eye-care in the US. It expects Sun’s specialty sales to sustain double-digit growth momentum given Ilumya’s upward trajectory and Deuruxolitinib launch likely next fiscal.

Also, the Street seems to be underappreciating Sun’s potential in generics — it has a robust pipeline and resolution of site issues could be a positive trigger, JM Financial said in its post earnings stock review note.

Given the robust specialty outlook, domestic leadership, strong cash position and risk-appetite for large M&As, the brokerage has assumed coverage with a ‘Buy’ rating and a target price of ₹1,580 a share.

BofA maintains a ‘Neutral’ stance on the Sun Pharma stock and hiked its target to ₹1,440 from an earlier target of ₹1,370 per share. The brokerage said that the company’s US And India growth was positive and the Q3 earnings were in-line with its estimates. There were pulls and pushes in the specialty segment with drugs ‘Ilumya’ remaining strong while ‘Winlevi’ missing spark. Earning drivers have been factored-in in its valuation.

Citi has a target price of ₹1,640 per share on the counter, led by 2-5% increase in earnings, multiple raise and roll forward. The brokerage believes the company’s margin outlook to be strong.

However, the global brokerage expects a reversal in some factors, operating leverage in specialty and low concentration in the US.

On Thursday, the stock settled 0.76% lower at ₹1,407.65 apiece on the NSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sun Pharma Q3 Result: Earnings meet estimates led by Specialty business, India grows in single digits

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sun Pharma’s December quarter earnings met street expectations with growth coming from India and the specialty business. The company managed to maintain its growth figures despite weakness from its US-unit Taro Pharma.

Specialty sales for the quarter stood at $222 million, excluding milestone payments, compared to $200 million during the September period.

The company’s revenue for the quarter increased 15 percent year-on-year to Rs 11,241 crore. The figure was higher than the CNBC-TV18 poll of Rs 11,180.5 crore. Net profit too was marginally higher than the expectations of Rs 2,138.3 crore.

On the operating front, the company’s operating profit and EBITDA margin were also in-line with expectations. EBITDA margin increased 30 basis points from last year, while the street was working with a growth of 50 basis points.

The company has managed to largely maintain its financials despite weak results from its US-unit Taro Pharma.

Taro Pharma lost nearly all of its operating profit during the December quarter as it continued to experience pricing pressure, particularly in the US generics business.

While revenue and operating profit were higher on a sequential basis as well, Sun Pharma’s net profit and EBITDA margin saw a marginal decline when compared to the September quarter.

Sun Pharma’s US business, which contributes to nearly a third of the overall revenue, saw growth of 6.3 percent year-on-year to $422 million during the quarter. On a sequential basis, US business sales were flat.

The company’s India business, which was expected to grow between 8-10 percent during the quarter, saw growth of 7.1 percent.

The board has also declared an interim dividend of Rs 7.5 per share.

Managing Director Dilip Shanghvi said that the company is investing to scale up the specialty business, which is likely to be the key growth driver for the company. He further added that the company will be well-positioned to bring Concert Pharma’s lead asset deuroxolitinib to the market.

Sun Pharma acquired Concert Pharma for $576 million this month.

Shares of Sun Pharma are down to the day’s low, declining 2.1 percent to Rs 1,030, post the earnings announcement.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cipla and Sun Pharma likely to show growth momentum, Divis to remain under pressure | Earnings Preview

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Cipla” isinid=”INE059A01026″ bseid=”500087″ nseid=”CIPLA” sector=”Pharmaceuticals” exchange=”nse”]

The pharma sector has had a superlative run in the last year and as per market watchers and sector veterans, the pharma companies are likely to have a strong third quarter. A poll conducted by CNBC-TV18 found that the sector should see a 9-10 percent growth in the third quarter of the current financial year.

The performance is expected to be driven by the domestic market which is estimated to grow 10-13 percent with 5 percent growth in volume and up to 7 percent growth in prices.

When it comes to the US markets, expect continued price erosion and mid-to-high single digits on a year-on-year (YoY) basis. Margins for pharma companies could remain flattish on account of continued elevated cost base as well as price erosion in the US.

Lupin is likely to benefit from sales of the bowel drug Suprep. Companies like Lupin, Zydus, Ajanta Pharma and Natco Pharma could gain from sales of Tamiflu generic due to the US flu season. Dr Reddy’s Lab could see lower sales from Revlimid generic, the cancer drug, as it frontloaded its volumes in the previous quarter, the Q2FY23.

Also Read | Pharma outlook for 2023 | Cipla, Sun, Gland top picks for Bernstein

Meanwhile talking about specific stocks, Vishal Manchanda, Pharma Analyst at Systematix Group said that the firm has high expectations from Cipla and Sun Pharma in terms of growth, adding that Divi’s Laboratories would remain under pressure.

“Most companies should either grow high single-digit to low double-digit, but Cipla and San pharma are where we have higher expectations around growth. However, Divis should remain under pressure this quarter; probably the pressure can aggravate a bit compared to what it was in the previous quarter,” Manchanda told CNBC-TV18.

Watch the accompanying video of CNBC-TV18’s Ekta Batra to get a handle on the Q3 expectations from pharma sector in earnings special – Quarter Se Quarter Tak (QSQT).

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sun Pharma falls on profit booking despite robust results, positive brokerage views

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Sun Pharma” isinid=”INE044A01036″ bseid=”524715″ nseid=”SUNPHARMA” sector=”Pharmaceuticals” exchange=”bse”]

Shares of Sun Pharmaceuticals industry slid by nearly 3 percent despite the pharma major reporting a 43 percent growth in consolidated net profit for the April-June quarter.

The net profit for the pharmaceutical company for the April-June quarter came in at Rs 2,061 crore, jumping nearly 43 percent against Rs 1, 444 crore in the corresponding period a year ago.

The pharmaceutical major’s consolidated revenue rose 10.7 percent in the quarter ending June to Rs 10,762 crore from Rs 9,719 crore in the corresponding period a year ago.

Analysts also consider investors booking profit a reason behind the stock declining.

“It can be said that some profit-booking is taking place in the market after the stocks substantial growth in the recent days,” said Bhavesh Gandhi, AVP-Research, IIFL.

In the past five days, the stock has gained over 5 percent and has rallied over 10 percent over the past one month.

Brokerage views

Jefferies has a ‘buy’ rating on Sun Pharmaceuticals at a target price of Rs 1,089, while CLSA also has maintained the ‘buy’ rating on the pharmaceutical stock with a target price of Rs 1,140.

CLSA believes that Sun Pharmaceutical’s strong base business comprised of India formulations and diversified operations in emerging markets can aid the stock is performing well.

Morgan Stanley has maintained an ‘overweight’ rating on the shares of the company with a target price of Rs 1,032. The brokerage firm notes that expansion to large new markets will augment growth for the pharmaceutical company.

Sun Pharmaceuticals stocks settled at Rs 917, falling 2.81 percent on the BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sun Pharma settles patent litigation with Celgene Corporation for cancer drug Revlimid

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Drug major Sun Pharmaceutical on Tuesday said the company has reached an agreement with Celgene Corporation, a wholly-owned subsidiary of Bristol Myers Squibb, to resolve the patent litigation regarding the generic version of Revlimid (lenalidomide capsules) in the US. Revlimid is used in the treatment of cancer.

“Sun Pharmaceutical Industries along with one of its wholly-owned subsidiaries today announced that they have reached an agreement with Celgene Corporation, a wholly-owned subsidiary of Bristol Myers Squibb, to resolve the patent litigation regarding submission of an abbreviated new drug application (ANDA) for a generic version of Revlimid (lenalidomide capsules) in the US,” Sun Pharma said in a regulatory filing.

Pursuant to the terms of the settlement, Celgene will grant Sun Pharma a license to Celgene’s patents required to manufacture and sell certain limited quantity of generic lenalidomide capsules in the US beginning on a confidential date that is sometime after March 2022, the company added. This will be subjected to USFDA approval.

In addition, the license will also allow Sun Pharma to manufacture and sell an unlimited quantity of generic lenalidomide capsules in the US beginning January 31, 2026. Sun Pharma said as a result of the settlement, all Hatch-Waxman litigation between Sun Pharma and Celgene, regarding the Revlimid patents, will be dismissed.

Additional details regarding the settlement are confidential, the company added. The agreement is subject to customary regulatory approvals.

Shares of Sun Pharma were trading 0.19 percent lower at Rs 669.95 apiece on BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Here’s why Sun Pharma is Citi’s preferred pharma pick

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Citi bets big on Sun Pharmaceutical, saying that it’s their preferred pharma pick. They have a buy rating on Sun Pharma share, with a target price of Rs 720. They have opened a 90-day positive catalyst watch on Sun Pharma.

They believe that the company’s Psoriasis drug, Ilumya, is gaining traction in the US, Europe and Japan. Hence they believe that this will lift the profitability of the specialty business of Sun Pharma that is currently loss-making.

CNBC-TV18’s Nimesh Shah has more details in CNBC-TV18’s special segment-Standout Brokerage Report.

To watch other videos in this series, click on the Standout Brokerage Report tab below.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow