The shares of India’s most profitable Pharma Company Sun Pharmaceuticals Industries dipped on Friday as the US Food and Drug Administration (USFDA) classified its Dadra facility as Official Action Indicated (OIA).
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Inspection by US FDA
USFDA did the inspection from 4th December 2023 to 15th December 2023. Subsequently, the regulatory body determined the inspection classification status as OAI. Following the news, Sun Pharma’s shares went down by 3% on the BSE.
Despite today’s setback, Sun Pharma has been performing well in 2024, outpacing the market with a surge of 26%. The stock reached a record high of INR 1,638.70 on April 5, 2024.
Analysts’ Views
The market analysts at InCred Research Services expect a slight slowdown in the speciality segment as well as Sun Pharma’s US generic and taro business after Q3FY2024. They expect business growth in India to be around 11% YoY with a gradual softening of margins in line with speciality sales. However, analysts at KRChoksey Shares and Securities expect Sun Pharma’s global speciality segment sales to pick up, especially with the recent marketing approval for Vinlevy in Australia. As a result, they have revised their sales and net income estimates up to 10.9% and 16.0% CAGR respectively.
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Revenue Growth
The company has sustained steady revenue and net income growth over the past few quarters, driven by strong performance in the speciality segment. Speciality revenue now constitutes 19.2% of overall sales as of Q3FY24, indicating market outperforming growth in IPM.
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