India’s top drugmaker Sun Pharma beats Q2 profit view

HYDERABAD (Reuters) -Sun Pharmaceutical Industries, India’s largest drugmaker by revenue, reported a bigger-than-expected rise in second-quarter profit on Wednesday, driven by strong sales in its domestic and U.S. formulation businesses.

Consolidated net profit after tax rose to 23.76 billion rupees ($285.37 million) for the quarter ended Sept. 30, from 22.62 billion rupees a year earlier.

Analysts, on average, had expected net profit of 23.04 billion rupees, according to LSEG data.

Sales from its U.S. formulation business rose 7.9% to 35.5 billion rupees during the quarter, while sales from its India formulations rose 11.1% to 38.43 billion rupees.

Both businesses account for 30% and 32% of total sales, respectively, Sun Pharma said.

The company’s generic version of popular cancer drug Revlimid is also a significant contributor to the total sales.

Mumbai-based Sun Pharma, one of India’s oldest drugmakers, which also makes popular consumer healthcare products like Revital vitamin pills and pain relief gel Volini, said its total revenue from operations rose 11.3% to 121.92 billion rupees.

The company, founded in 1983, makes generics and specialty medications for chronic and acute treatments, over-the-counter medications, anti-retrovirals and active pharmaceutical ingredients.

Rivals Dr Reddy’s and Cipla last week reported better-than-expected profit on strong U.S. demand.

Shares of Sun Pharma rose 1.26% after its results compared to a 0.35% drop in the Nifty 50 index.

($1 = 83.2601 Indian rupees)

(Reporting by Rishika Sadam in Hyderabad; Editing by Sonia Cheema)