homeearnings NewsSun Pharma Q1 earnings expectations | Speciality drugs like Ilumya, Winlevi, Cequa to lead growth
Sun Pharma Q1 earnings expectations | Speciality drugs like Ilumya, Winlevi, Cequa to lead growth
Sun Pharmaceutical Industries' first-quarter earnings for FY24 hold great significance for stakeholders, given the company's focus on its speciality business and the anticipated growth in both domestic and international markets. As the pharmaceutical industry continues to evolve, Sun Pharma's performance in the speciality segment and its strategic initiatives will play a crucial role in shaping its future trajectory.
Sun Pharmaceutical Industries, one of India's leading pharmaceutical companies, is set to release its financial results for the first quarter of the fiscal year 2024.
As investors eagerly await the numbers, all eyes are focused on the performance of its specialty business, which is anticipated to be a key driver of growth.
Analysts predict that Sun Pharma's revenue will witness an approximate 8 percent increase, showcasing the company's continued progress in expanding its market presence.
Moreover, it is expected that the margins for the specialty business will likely hover around 24-25 percent, reflecting the company's ability to maintain a competitive edge in its specialized products.
In terms of profitability, the company is projected to achieve a profit of around Rs 2,090 crore. Interestingly, this figure is likely to remain flat when compared to the same period last year. However, it is worth noting that the flat performance shouldn't overshadow the overall positive outlook for the company.
The speciality portfolio is expected to play a significant role in driving the company's growth. The portfolio comprises essential drugs like Ilumya, an innovative psoriasis drug, WINLEVI, which targets acne, and CEQUA, an eye drug. In the last quarter, the global sales of the speciality portfolio surged remarkably by 28 percent year on year, amounting to $244 million.
Market expectations indicate that Sun Pharma is likely to achieve a single-digit growth rate during this quarter. The anticipated growth range stands between 6 percent and 9 percent, with positive contributions expected from both the speciality portfolio in the US and other international markets.
Sun Pharma is also expected to benefit from the sales of its generic version of Revlimid in the US market. Revlimid is a crucial cancer drug, and the estimated revenue for this drug in the US market is predicted to be between $440 million and $465 million. This would represent a notable improvement compared to the previous quarter's revenue of $430 million.
For its domestic formulations business, Sun Pharma is anticipated to achieve growth between 8 percent and 10 percent. The company's specialty business is likely to support these positive figures.
However, it's essential to consider that these gains may be offset by higher research and development (R&D) spending and remediation charges associated with issues, such as those at the Halol facility.
As the earnings report is released, investors will closely scrutinize several factors impacting Sun Pharma's performance. Among these factors are the Halol import alert and the Mohali consent decree issued by the US FDA. Additionally, investors will eagerly seek updates on the specialty portfolio's sales progression toward the significant milestone of $1 billion.
Furthermore, Sun Pharma's management commentary regarding the US pricing pressures and the NDA filing of a recently acquired alopecia drug by Concert Pharma will be keenly observed by industry analysts and investors alike.
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