Breaking Update: Here’s a clear explanation of the latest developments related to Breaking News:Innovative portfolio, India market to drive growth– What Just Happened and why it matters right now.
Sun Pharma, India’s largest drugmaker, is set to post its results for the third quarter of the fiscal year on Saturday. While brokerages anticipate steady domestic growth and marginal sequential growth in its US business, driven by its innovative drugs, margins may contract due to increased spending.
Analysts will also be seeking clarity on any potential impact from the US government’s most favoured nation (MFN) pricing norms, as well as the company’s plans after getting regulatory approval to market semaglutide as a weight-loss drug in India earlier this month.
Sun Pharma’s overall sales are expected to grow 5% year-on-year, (down 1% sequentially), with US sales declining 4% sequantially to $478 million on account of lower sales of blood cancer drug Revlimid, analysts at Kotak Institutional Equities said in a 6 January note.
Sun Pharma is among several Indian drugmakers to have signed an agreement with Revlimid’s innovator, Mylan, to sell the drug in limited quantities from 2022 until its patent expires in January 2026. Lower Revlimid sales are expected to drag down the earnings of several US-focused drugmakers this quarter as they are expected to offload remaining stocks.
Innovative cushion
However, Sun’s innovative drug portfolio may offset the dip. Last quarter its innovative sales outpaced generic sales in the US for the first time. A pick up in sales of its alopecia areata drug Leqselvi, launched in the US in June 2025, as well as continued growth in other drugs such as Cequa, Winlevi and Odomzo, is expected to boost US formulations and global specialty sales.
Sun Pharma is also expected to clock steady domestic growth of 11-13%, according to brokerages Kotak, BNP Paribas and HDFC Securities. This will outpace the overall Indian pharma market, which grew 10.1% in October-November 2025, according to IQVIA.
Its Ebitda margin may remain flattish or dip due to increased marketing costs. Management had announced an investment of $100 million to market its new specialty drugs Leqselvi and Unloxyt in FY26.
Eyes on MFN, semaglutide
All eyes will be on management’s commentary on the US government’s MFN drug pricing norms, said a pharma analyst, who requested anonymity as he was not authorised to speak to the media.
Under the MFN drug pricing norms, drug manufacturers are required to match the lowest price offered for a drug in other developed countries. This is part of the Trump administration’s push to make healthcare cheaper for Americans. The government has negotiated deals on this with manufacturers such as Pfizer, AstraZeneca and Merck over the past year. Sun Pharma’s exposure to the US innovative market means it may be affected by these measures.
In December, the Centers for Medicare & Medicaid Services (CMS) released pricing initiatives to incorporate MFN pricing into Medicare Parts B and D programs. If finalised, manufacturers will have to pay additional mandatory rebates on drugs covered under these programs.
Sun Pharma also announced in January that it had received regulatory approval to launch semaglutide for weight management in India once its patent expires in March.
In Q2FY26, the company beat Street estimates with net profit up 2.6% year-on-year to ₹3,117.95 crore, and revenue from operations up 8.6% year-on-year to ₹14,405.2 crore.
The company saw steady revenue growth in most markets. Its generic sales declined, but this was offset by growth in the company’s innovative portfolio. Ebitda for the quarter was ₹4,527 crore, up 14.9%, while the margin was 31.3%, up from 29.6% a year ago.