Sun Pharma’s third quarter profit is seen rising 27.4 per cent year-on-year to Rs 1,804.6 crores, aided by operational performance. According to average of estimates of analysts, revenue during the quarter may increase 11.6 per cent year-on-year to Rs 7,905.3 crores, driven by Sun's authorised generic (AG) launches of Daichi Sankyo drugs in US. Blood pressure drug Benicar, Benicar HCT, Azor and Tribenzor are the AG launches of Daiichi.
Market size of these drugs is USD 2.5 billion. Analysts say AG sales will offset price erosion that Sun Pharma will face in cancer drug Gleevec generic. Gleevec generic sales are expected to fall around 30 per cent QoQ to USD 45 million.
Hence, United States is likely to grow 10-11 per cent YoY but may decline sequentially. Analysts say India business is likely to grow around 9-10 per cent YoY due to favourable base. Slowdown due to demonetisation will be closely watched. Rest of the World markets are likely to grow around 2 to 3 per cent YoY and emerging markets over 20 per cent in the quarter gone by. Operating profit is seen rising 21.1 per cent to Rs 2,628 crores and margin may expand 260 basis points to 33.2 per cent compared with year-ago quarter. Pricing pressure in US may impact margin. Commentary will be closely watched on Halol plant, Mohali plant and US markets.
On 14th Feb, Sun Pharma share price rolled above 0.79 per cent. The stock opened at Rs. 659 as compared to its previous closing at Rs. 654.70. The stock touched the days high and low at Rs. 661.85 and Rs. 652.60. Approximately 15,09,930 shares are traded in the counter with a traded value of Rs. 9,929.60, as per NSE. For further details on the stock, refer to Sun Pharma share price history.