Sun Pharma's US Business Under Pressure: Can New Launches Drive a Recovery?
The article outlines the slowdown in the company’s US business and how it will counter it, as it continues to operate in the business of manufacturing, developing, and marketing a wide range of branded and generic formulations and Active Pharmaceutical Ingredients.
With a market capitalization of Rs 4,34,280 crore, Sun Pharmaceutical Industries Ltd’s share closed at Rs 1,810 per share, down by 0.56 percent from its previous close. The stock of the company gave a return of 10.32 percent over the last year .
About the Company
Sun Pharmaceutical Industries Limited is India’s largest pharmaceutical company and a major global specialty generic drug manufacturer. Founded in 1983 by Dilip Shanghvi, the company is headquartered in Mumbai and operates across more than 100 countries. It has over 43,000 employees, more than 40 manufacturing facilities across five continents, and a strong research and development network.
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Overall Financial Performance: Sun Pharma’s revenue increased to Rs 15,300 crore in Q1 FY27 from Rs 13,851 crore in Q1 FY26, registering a 10 percent growth YoY. EBITDA increased to Rs 4,418 crore in Q1 FY27 from Rs 4,302 crore in Q1 FY26, up 3 percent YoY. Net profit increased to Rs 2,901 crore in Q1 FY27 from Rs 2,293 crore in Q1 FY26, up 6 percent YoY. EPS stood at Rs 12.06 in Q1 FY27 compared with Rs 9.50 in Q1 FY26, up 27 percent YoY
How did the US Business perform in Q1 FY27?
Sun Pharma’s US business reported revenue of $427 million in Q1 FY27(or Rs 4,099 crore), down 9.7 percent YoY, contributing 26.6 percent of consolidated revenue. The decline was mainly driven by continued Lenalidomide erosion, along with additional competition in some generic products. On a QoQ basis, the business also declined partly due to Levulan seasonality. Despite the pressure, the company launched five new generic products in the US during the quarter.
The company continues to invest in its US generic business, which has 100-plus ANDAs and an ongoing generic R&D pipeline. Management said there is no cyclicality in the generic business, while products developed for the US can also be leveraged across other geographies.
However, management did not provide a specific timeline for a turnaround in the US generic business or specific US growth guidance. Alongside generics, Sun Pharma is also building its specialty portfolio through Leqselvi and Unloxcyt, which are seeing improving prescriber adoption and market access.
Company’s Future Outlook
Management has kept its high single-digit revenue growth guidance for FY27, even though revenue grew 10.1 percent in Q1 FY27. The company said it is not increasing its full-year guidance at this stage. A favourable movement in foreign exchange could also support revenue growth, but management wants investors to continue using the existing guidance.
In terms of margins, gross margin was 80.5 percent in Q1 FY27, mainly because of a better mix of products. Both branded generics and innovative medicines helped improve the mix. EBITDA margin stood at 28.9 percent.
Management said the previous year had a benefit from Lenalidomide(cancer medicine), so the margin comparison can look weaker. However, after removing this benefit, EBITDA margin was higher than last year. The company has not given a specific margin target yet.
How Is Sun Pharma Positioning Its US Business for a Recovery?
Focus on specialty medicines : Sun Pharma is expanding its innovative medicines portfolio in the US, with products such as Leqselvi and Unloxcyt helping offset weakness in the generic business.
Leqselvi(medicine for severe hair loss) gaining traction : The product has been seeing rising prescriptions and prescriber adoption, crossing 1,000 prescribers in June 2026, with payer access also expanding.
Unloxcyt (cancer medicine) expanding market access : Sun Pharma is adding more cancer centres and integrated health systems to its formularies, while commercial coverage is progressing.
Five new generic launches : Sun Pharma launched five generic products in the US during Q1 FY27. While the company did not provide product-wise sales details, these launches add to the generic portfolio as Lenalidomide faces continued erosion and additional competition.
Reduce dependence on Lenalidomide : US sales fell 9.7 percent YoY to $427 million in Q1 FY27, mainly due to Lenalidomide erosion and additional competition. The recovery strategy therefore depends increasingly on new specialty medicines and a broader product portfolio.
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Conclusion
Sun Pharma’s US business remains under pressure, with Q1 FY27 revenue declining 9.7 percent YoY mainly due to Lenalidomide erosion and competition in some generic products. However, the company is adding new generic products while continuing to invest in its 100-plus ANDA pipeline. The lack of a specific turnaround timeline means the recovery in the generic business may take time.
At the same time, Leqselvi and Unloxcyt are emerging as important growth drivers as prescriber adoption and market access improve. With management retaining its high single-digit FY27 revenue growth guidance, the key question is whether these new specialty medicines and generic launches can offset the ongoing pressure from Lenalidomide and help the US business return to growth.