Sun Pharmaceutical Industries reported a 27% year-on-year growth in consolidated net profit, reaching INR 289.47 billion in the first quarter of the current fiscal year (Q1FY27). Concurrently, operating revenue increased by 10% year-over-year to INR 152.998 billion.
The profit increase was driven by strong momentum from India, as well as steady growth in innovative medicines in the US and international markets. The company's results were disclosed during the trading day, after which shares fell by 0.5%, closing at INR 1,989.35 per share on the BSE.
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Kirti Ganorkar, Managing Director of Sun Pharmaceutical, noted that performance in the reporting period was supported by robust development in India and innovative drugs. He emphasized that recent approvals of semaglutide in India, Brazil, and South Africa demonstrate the company's capabilities in developing complex peptide products for patients worldwide. Furthermore, Organon shareholders approved the proposed acquisition of Sun, which is planned to be completed in early 2027.
US Generics Business Continues to Face Challenges
The company's business activity in the US prescription drug sector declined by 9.7% year-on-year, amounting to $427 million in Q1FY27. The primary reason for this decline was the weakness of the generics portfolio, including lenalidomide. However, growth in the innovative drug segment, led by the drugs Ilumya, Cequa, and Odomzo, partially offset this decrease. During the quarter, the US business accounted for 26.6% of the company's total sales.
Global innovative drug sales grew by 12.8% year-on-year, reaching $351 million in Q1FY27, representing 21.9% of total sales. Regarding the Active Pharmaceutical Ingredients (API) business, which supplies products to both its own business and third-party clients in various regions, external sales for the quarter amounted to INR 597.2 billion, an increase of 10.5% compared to the previous year.
Sun Pharma announced its continued investment in Research and Development (R&D) in both the innovative and generics segments to strengthen its product portfolio. The innovative R&D portfolio includes five new entities currently in clinical development. In the US, the company has 558 approved Abbreviated New Drug Applications (ANDA), and 119 applications, including 28 with preliminary approval, are awaiting approval from the U.S. Food and Drug Administration (FDA). During the quarter, Sun Pharma filed three ANDAs and received approval for six. Its portfolio also includes 57 approved New Drug Applications (NDA), with 13 NDAs pending FDA US approval.
