Sun Pharma focuses on US innovation amid generics slowdown

Sun Pharmaceutical Industries is working to stabilize its US generics business as manufacturing compliance improves and new launches restart, while doubling down on innovation, specialty drugs, and selective expansion.

Speaking after the December quarter results, management said pressure on the US generics portfolio should ease as regulatory hurdles are cleared. “The generics business will start to recover once we are in manufacturing compliance for a number of our sites in order to launch new products,” Richard Ascroft, chief executive officer, North America, said.

In the December quarter, innovative medicines helped offset weaker generics sales in the US. Sun Pharmaceutical Industries reported US formulations sales of $477 million, up 0.6 per cent year-on-year, even as generics declined. The US market contributed about 27.5 per cent of consolidated revenue. “US continues to be an important part of our focus, specifically for innovative medicines,” executive chairman Dilip Shanghvi said.

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The company is scaling up two specialty launches in the US: UNLOXCYT for advanced cutaneous squamous cell carcinoma and LEQSELVI for severe alopecia areata. On UNLOXCYT, Ascroft said, “Our early interactions have been positive. We have completed initial stocking and had our first orders from distributors.” He added that the product’s efficacy-safety balance is resonating with clinicians. On LEQSELVI, doctors are seeing early hair regrowth, including in patients who failed other JAK inhibitors.

In India, a major near-term trigger is the planned day-one launch of generic semaglutide after patent expiry. “Sun plans to be in the market on day one of a generic launch,” managing director Kirti Ganorkar said, adding that approvals and supplies are already in place.

Sun Pharma also reaffirmed a disciplined approach to acquisitions, prioritizing organic growth while remaining open to strategic opportunities backed by a strong balance sheet.