Sun Pharmaceutical Industries, a significant player in the global pharmaceutical industry, forecasted high single-digit topline growth in the fiscal year 2023–2024 (FY24) and said it will increase its spending on clinical trials and innovation for its generic and specialty businesses.
The business stated that this expected increase in spending would mainly concentrate on creating new indications for its dermatology treatments Deuruxotinib and Ilumya, as well as carrying out more research on the diabetes medication GLP-1.
Plans for Expansion
“We are still investing in the creation of a research and development (R&D) pipeline for both the global generics and specialized business. Our current generics pipeline for the US market consists of 97 Abbreviated New Drug Applications (ANDAs), which are requests for the US FDA to authorize generic versions of already-approved or licensed drugs, and 13 NDAs (new drug applications). Five compounds in our specialized R&D pipeline are currently undergoing clinical studies. Future R&D investments are projected to rise for both our specialty and generic businesses, according to Sun Pharmaceutical Industries’ managing director Dilip Shanghvi during the investor call following the Q4 results.”
Surge in Revenue
In comparison to Q3’s Rs 670 crore or 6% of sales, Sun Pharma’s consolidated R&D spending in Q4 was Rs 665 crore, or 6.2% of sales. Regarding the forecast for FY24, we anticipate consolidated topline growth in the high single digits. All of our companies are set up for expansion. We anticipate that growth in our international specialty business will continue. The R&D expenditures will remain at 7-8% of sales in the upcoming year, according to Shanghvi.
Sun Pharma Q4 Preview: Strong Growth In Specialty Biz Likely To Boost Q4 Performance | CNBC TV18
Revenues at Sun Pharma surged by 15.7% year over year in the fourth quarter to Rs. 10,931 crore, while adjusted profit after tax (PAT) rose by 36.9% year over year to Rs. 2,166 crore. The company’s global specialized business, as well as market share gains in India and expansion in emerging areas, were the main drivers of revenue. The US formulations business continued to be primarily driven by the dermatology products Ilumya, Winlevi, and Cequa as well as the ophthalmic product Cequa during the quarter. Global IIumya sales in FY23 were $477 million, representing a rise of 51% YoY.
