Sun Pharma: All the right ingredients
Business Standard reported that Sun Pharma has consistently outperformed benchmark indices in the last year, helped in large part by its US business, which now accounts for over half of consolidated revenues.
According to the news source, the company is a «clear market leader» in speciality and chronic therapies, which has allowed it to escape the slowdown in domestic sales after implementation of India’s new drug pricing policy earlier this year.
Analysts at Anand Rathi see the US and India continuing to drive Sun Pharma’s top line, at a compounded annual rate of 24.7 percent, up from 19.1 percent, from 2013 to 2016. The company has raised its revenue growth forecast for 2014 to 29 percent, from 25 percent earlier.
Though the recent FDA import alert on Sun’s Gujarat plant raised some concerns, the unit’s contribution to its overall sales is very small, according to the news source.
Sarabjit Kaur Nangra at Angel Broking added the company has resolved similar issues in the past relating to Caraco facilities, which recently received FDA approval a generic version of the oral schizophrenia drug risperidone, the first such approval the since FDA observations in January and May 2013.