Sun Pharmaceutical Industries Ltd. share price target

Sun Pharma (SUNP) Q4FY25 EBIDTA (+11% YoY) was largely in line however moderate growth (9% YoY) in specialty sales after several quarters of strong double-digit growth was below our estimate. Over last few years SUNP dependency on US generics has reduced and company's growth is more functional on specialty, RoW and domestic pharma that has strong growth visibility. Though FY26 expenses (an additional $100mn spend) is likely to remain elevated given company are in investment phase to ramp up specialty...

Sun Pharmaceutical Industries (SUNP) delivered 4%/9%/4% miss on revenue/EBITDA/PAT for 4QFY25. Lower-than-expected sales in global specialty and ROW led to a miss on 4QFY25 performance.

Sales/EBITDA/APAT were lower than our estimates by 3.5%/9.6%/29.4%. ETR for 4QFY25 stood at 32.9% including 1x tax expense of Rs 3.7bn

The US Court of Appeals has vacated the preliminary injunction against Sun Pharma’s launch of Leqselvi which was granted by the US District Court of New Jersey in Nov-24.

Sun Pharma (Sun) is acquiring US-based early-stage oncology-focused biotech company Checkpoint Therapeutics (Checkpoint) for an upfront cash payment of USD 4.1/share (total outgo of USD 355mn) and USD 0.7/share in cash in future milestones.

SUNP to acquire Checkpoint Therapeutic for US$ 4.10 a share, at ~66% premium to its last closing price. Deal valued at US$ 355mn

Domestic sales grew by 14% in Q3FY25 driven partially by volume/new launches and price hikes. Strong domestic sales growth to continue

J&J, in a recent investor interaction, had stated that its oral IL-23 receptor antagonist peptide (Icotrokinra) could potentially compete with existing oral as well as injectable treatment options for moderate to severe plaque psoriasis.

SUNP reported 11% domestic sales growth led by 5% volume growth from ~14,000 MRs; leads in Rx count across 13 doctor categories

Sun Pharmaceutical Industries reported a revenue of ?13,291 crore for the quarter, reflecting a 9% year-over-year increase and a 5% rise quarter-over-quarter. This figure surpassed our estimates by 2%, despite experiencing price reductions in Taro’s portfolio and in Japan.

Sun Pharma (SUNP) delivered better-than-expected 1QFY25 earnings, led by an improved segmental mix and lower RM costs.

Sun Pharma’s Dadra facility received a Warning Letter for a violation of cGMP regulations, which had previously received an Official Action Indicated (OAI) status on 11th Apr’24.

SUNP missed consensus EBITDA estimate by 4% as higher R&D spend offset gross margin gains; higher other income & low tax aided PAT

Sun Pharma (Sun)’s Q4FY24 results were aided by higher other income, barring which, performance was marginally below our expectations.

Sun Pharma (SUNP) reported a slight miss at the operational level for
4QFY24. This was due to lower-than-expected sales in the ROW market and
higher-than-expected opex for the quarter.

In this note, we explored the specialty pipeline of SUNP, examining products under development, the commercialized portfolio, and the competitive dynamics within each segment.