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Informist, Friday, Jul. 31, 2026

 

By Narayana Krishna and Eshitva Prakash

 

HYDERABAD/MUMBAI – Sun Pharmaceutical Industries Ltd. is on track to meet its guidance on research and development spending for 2026–27 (Apr–Mar), though it was slightly lower in the June quarter, the company's management said in a post-earnings analyst conference call.

 

The company has guided that it will spend 6–7% of its total sales on R&D, as its innovative product portfolio remains a key growth driver. For the June quarter, the company's R&D spending was at INR 8.26 billion, accounting for 5.4% of total sales.

 

For the June quarter, Sun Pharma reported a consolidated net profit of INR 28.95 billion, up 27% year-on-year. Its revenue from operations rose 10% year-on-year to INR 153.00 billion. As of Jun. 30, Sun Pharma had a cash reserve of $3.4 billion.

 

The company is focused on investing in its speciality or innovative products and development of novel and complex generics, as part of its strategy to build a sustained product pipeline for regulated markets such as the US. 

 

Sun Pharma said the company emerged as the second-largest player for diabetic and obesity drug semaglutide sales in India and is aiming to gain more market share. The company is gearing up to launch the drug in Brazil very soon with a marketing partner.

Sun Pharma said the company is well-equipped to meet the demand for semaglutide in India, as it has in-house capability to produce active pharmaceutical ingredients, management said. The company has also tied up with partners to supply the required devices for semaglutide manufacturing. Semaglutide, a glucagon-like peptide-1 category drug, is an injectable administered via prefilled pens. The company said it has no supply issues. Some generic companies are facing quality and supply issues for the drug, which is penetrating deeper into the domestic market. 

 

Sun Pharma management said it has applied to various regulators for its acquired company, Organon & Co. and received shareholder approval for the acquisition. The management said an integration team is managing the task of completing the acquisition by the end of March. In April, Sun Pharma announced the acquisition of New Jersey-based Organon for $11.75 billion. 

 

Sun Pharma said that while innovative products will drive growth in emerging markets, the rest-of-world segment may see some pricing pressure going forward. The company is expecting its effective tax rate in FY27 to be 27.8%, similar to the June quarter.

 

Friday, Sun Pharma shares ended at INR 1,990.50 on the National Stock Exchange, down 0.5% from Thursday. The company detailed its earnings during market hours. The stock had risen ahead of the earnings.  End

 

Edited by Saji George Titus

 

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