Sun Pharma Bets on Innovation as US Generics Pressure Eases, Speciality Drugs Drive Growth

Sun Pharmaceutical Industries believes the tough phase for its US generics business is nearing an end. Management said pricing pressure and competition should ease as manufacturing compliance issues are resolved and new product launches restart. Once key plants are fully compliant, the company expects a gradual recovery in generics.

Innovation Offsets Weakness In Generics

Despite weak generics, Sun Pharma’s US business remained steady as innovative medicines helped balance the impact. In Q3FY26, US formulations sales rose marginally to $477 million and made up about 27.5% of the company’s total revenue. This highlights the company’s clear shift towards speciality and novel therapies.

Strong Focus On Speciality Launches In The US

Sun Pharma is pushing two key speciality drugs in the US—UNLOXCYT for advanced skin cancer and LEQSELVI for severe alopecia areata. Early feedback from doctors has been encouraging, with initial orders already in place and positive responses on both safety and effectiveness.

Expanding Innovation Pipeline Globally

Beyond the US, Sun Pharma is strengthening its medium-term growth through a growing clinical pipeline. The company has started global Phase II trials of GL0034 for type 2 diabetes and plans to share more trial data for diabetes and fatty liver disease in the coming months.

Big Opportunity In India With Generic Semaglutide

In India, a major near-term trigger is the planned launch of generic semaglutide once patents expire. Sun Pharma has already secured approvals for diabetes and weight management and aims to launch on day one, which could improve patient access and expand the overall GLP-1 market.

Disciplined Approach To Acquisitions

The company reiterated that it will remain selective on mergers and acquisitions. Management said the focus will stay on organic growth, with acquisitions considered only if they strengthen long-term strategy. Sun Pharma is open to using debt for the right opportunity, backed by a strong balance sheet.

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Sun Pharma Share Price Movement

Sun Pharmaceutical Industries share price (NSE: SUNPHARMA) was trading at ₹1,611.50 on the NSE at 12:15 pm on February 2, up ₹1.40 or 0.09% for the day. The stock opened at ₹1,634, touched an intraday high of ₹1,634 and a low of ₹1,598.20. The company has a market capitalisation of about ₹3.87 lakh crore and is currently valued at a P/E ratio of 37. The company offers a dividend yield of 0.99%, with a quarterly dividend of ₹3.99 per share.

Conclusion

Sun Pharma is navigating short-term challenges in US generics while clearly shifting its growth engine towards innovation and specialty drugs. With new launches, a strong pipeline and big opportunities in India, the company is positioning itself for steady long-term growth.

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