The shares of the prominent pharmaceutical company plummeted up to 7 percent after Trump plans to slash prescription drug prices by up to 80 percent. With a market capitalization of Rs 4 lakh crore, the shares of Sun Pharmaceutical Industries Ltd were trading at Rs 1,668.00 per share, decreasing around 4.40 percent as compared to the previous closing price of Rs 1,744.85 apiece.
The shares of Sun Pharmaceutical Industries Ltd have seen a bearish movement after Trump plans to sign an executive order, which will bring down the costs of prescription and pharmaceutical drugs by 30 percent to 80 percent, with immediate effect.
Additionally, the US President also added to implement a “most favoured nations” policy, ensuring the country pays the lowest global price for prescription drugs. He claimed this move would dramatically cut healthcare costs in the US, achieving reductions previously considered unimaginable.
Also read: Kargil, Uri, and Pulwama: The Surprising Economic Impact of War on India and Pakistan
Operational & Financial Highlights
Looking forward to the company’s financial performance, revenue zoomed by 10 percent from Rs 12,381 crore in Q3FY24 to Rs 13,675 crore in Q3FY25, Further, during the same time frame, net profit increased by 14 percent from Rs 2,561 crore to Rs 2,913 crore.
In Q3 FY’25, Sun Pharma’s India formulation sales rose 13.8 percent YoY to Rs 43,004 million, comprising 32 percent of total sales. With an 8.2 percent market share, driven by volume growth and 12 new launches, outperforming the largely price-led Indian Pharmaceutical MarketIPM.
U.S. sales declined 1 percent YoY to $474 million, which accounts for 30 percent of total sales. Growth in specialty business offset weaker generics, including lower Lenalidomide sales. Key brands like ILUMYA, CEQUA, ODOMZO, and WINLEVI showed strong trends. Four new generic products were launched in Q3.
Emerging market revenue rose 10.1 percent YoY to US$277 million, with ROW formulations up 21 percent at US$259 million, contributing 16.3 percent of total revenue. Q3 FY’25 R&D spend was Rs 8,450 million (6.3 percent of sales), with FY’25 spending projected below 7 percent due to trial delays.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
