Sun Pharma Targets Mid-To-High Single-Digit Growth In FY26

Sun Pharmaceutical Industries Ltd. is aiming for a mid-to-high single-digit revenue growth for FY26. The guidance takes into account the regulatory uncertainties in the United States, according to Chief Financial Officer CS Muralidharan.

"On account of various regulatory uncertainties, predominantly in the United States, we have given this conscious wide range of guidance from mid-to-high single-digit growth in FY26," he said in a conversation with NDTV Profit on Friday.

On the impact of tariffs imposed by the Trump administration and the recent most-favoured-nation drug pricing policy, he said that the company is waiting for further clarity to assess the impact. 

"In respect of both tariffs and MFN, it's important that we await further clarification. Then, we will be able to assess in terms of how the interpretation and the consequent impact," the top executive emphasised. 

For the Halol facility in Gujarat, the company has informed the US Food and Drug Administration that it is ready for an audit. Regarding the Mohali facility in Punjab, remediation procedures are ongoing and the agency will be informed upon completion. "The supply of Mohali has been resumed gradually," he said.

In FY26, the company also plans two products, Leqselvi and Unloxcyt. These products are part of its dermatology and oncology portfolio. The company plans to launch Leqselvi in Q2 FY26. Delays due to litigation shifted the timeline for its launch, he said. 

Regarding Unloxcyt, he noted that the transaction is ongoing, with launch timelines to be clarified post-closure in FY26. The transaction he referred to was Sun Pharma's acquisition of Checkpoint Therapeutics earlier this year.

Muralidharan highlighted that for FY25, specialty sales increased 17.1% year-on-year to $1.216 billion. Further, its contribution to consolidated revenues rose to 19.7% in FY25 from 18% in FY24.

Regarding the US generics business, he said: "The US generic pricing environment continues to remain competitive… It's also more product-specific…we expect the pricing pressures in the US to continue in the future."

He outlined that the government initiatives, like the Inflation Reduction Act and Pharmacy Benefit Manager reforms, are affecting the US generics business. 

"India formulation business, our growth is broad based and all our therapies are doing well. Our objective has always been to grow in line with or faster than the market," the top official underlined. "Growth is predominantly driven by volumes and new product launches."

Shares of Sun Pharma closed 2.14% lower at Rs 1683.25 apiece on the BSE on Friday, compared to a 0.95% advance in the benchmark Sensex.