Sun Pharma board okays buyback
The board of Sun Pharmaceutical Industries on Tuesday approved the buy-back of its equity shares from the open market at a maximum price of 425 a sh17-03-2020
17-03-2020
Sun Pharmaceutical Industries Ltd - 524715 - Board approves Buy-back of equity shares
Sun Pharmaceutical Industries Ltd has informed BSE regarding Outcome of Board Meeting held on March 17, 2020.17-03-2020
Sun Pharmaceutical Industries Ltd - 524715 - Announcement under Regulation 30 (LODR)-Meeting Updates
Outcome of Board Meeting pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, ("Listing Regulations").17-03-2020
Buyback buzz, but Sun Pharma has not found magic pill for margin declines
Suhani Adilabadkar Sun Pharmaceutical Industries is the fourth largest global specialty generic company, ranked No. 1 in India and 8th in the US. It is the largest Indian pharmaceutical company in the US manufacturing specialty products, branded generics, complex and pure generics, OTC products, antiretrovirals (ARVs) and APIs. With a footprint across more than 100 countries, Sun Pharma has a portfolio of over 2,000 products, globally, in a full range of dosage forms which includes tablets, capsules, injectables, ointments, creams and liquids, nasal sprays and hormones etc. The company has 44 manufacturing sites approved by global health regulatory agencies, supported by a worldwide supply chain and multiple research and development (R&D;) facilities across the world, investing 7% of its sales in R&D; annually. The company has been rising sharply in recent days on board consideration for buyback of shares. Quick Takes Revenue jumped 5% YoY, operating profit declined 14% and PAT fell 30% YoY in Q3FY20. The stock has been on a steady decline since 2015, falling 58% over the past five years. Specialty portfolio has grown 30% QoQ from $91 mn in Q2FY20 to $118 mn in December quarter FY20. India business has grown 13% YoY during the quarter reported at Rs. 2,517 crore. With respect to the coronavirus impact, Sun Pharma management clarified that there would not be any significant effects as of now, as the majority of pharma manufacturing units are not located in coronavirus affected areas. Sun Pharma is highly dependent on China intermediate supplies for APIs while formulation business dependence is relatively lower. A Mixed December Quarter FY20 Sun Pharma reported revenue growth of 5% YoY in Q3FY20 at Rs. 8,155 crore, against Rs. 7,740 crore in the same period, previous year. Growth was driven by India and the ROW business, as well as the integration of its recent acquisition, Pola Pharma (Japan). With moderate revenue growth and operating expenditure rising 13% YoY, operating profit declined 14% YoY at Rs. 1,841 crore compared to Rs. 2,153 crore in the corresponding quarter FY19. The higher operating expense was driven by increases in staff cost, decline in Japanese business and higher marketing spend for specialty business. Consequently, operating margin declined at 22.6% in Q3FY20 compared to 27.8% in the same period, previous year. PAT or net profit declined 30% YoY in Q3FY20 impacted by higher depreciation and taxation and stood at Rs. 1,024 crore against Rs. 1,459 crore in the corresponding quarter, previous year. The company has filed 7 ANDAs and 9 approvals were received during the quarter. Additionally, the pipeline includes 55 approved NDAs while 4 NDAs await US FDA approval. Once the darling of Indian stock markets, the stock has been on a steady decline since 2015, falling 58% over the past five years. Specialty Business a new growth driver, but health of acquisition a question mark Sun Pharma delivered mixed results for its December quarter FY20, impacted by the poor performance of its subsidiary Taro which in turn affected the US formulation business. Taro, Sun PHarma’s US acquisition, contributes roughly half of US revenues, and reported sales of $148 mn, down 16% YoY in Q3FY20. The US business on the whole was at $350 mn for December quarter FY20, declining 3% YoY over the same period, previous year accounting for about 31% of total consolidated sales. In spite of lower US and Taro lower revenues, Sun Pharma invoked strong investor interest after its December quarter results came out, for which its specialty portfolio is responsible. To survive and battle it out in the US pharma industry, plain generics are not enough amidst high pricing pressure and channel consolidation. Thus, pharma companies like Sun Pharma have augmented their innovation engine and moved up the pharma value chain in the form of specialty products. Specialty business is fast becoming an additional engine of consistent cash flows and long-term growth for pharma companies. The specialty portfolio of Sun Pharma includes dermatology, ophthalmology and oncology segments and consists of ilumyatm (for treating psoriasis), YONSA (for treating prostate cancer), XELPROS (for treating elevated intraocular pressure) and recently launched Cequa ( for treating dry eyes) to name a few. The specialty portfolio has grown 30% QoQ from $91 mn in Q2FY20 to $118 mn in December quarter FY20. Speaking with regard to strong specialty growth numbers, Mr. Abhay Gandhi, CEO, North America, Sun Pharma said, “Our specialty revenues in U.S. have grown over September quarter, with the growth mainly driven by higher seasonal sales for Levulan and ABSORICA, improving sales of ILUMYA and ODOMZO coupled with contribution from the CEQUA launch”. Apart from its specialty growth lever, the company also has its India business to count on. India business has grown 13% YoY during the quarter reported at Rs. 2,517 crore. India’s formulation business contributes roughly 31% of total revenues while Sun Pharma is a leader in the chronic segment. The company has 8.2% market share and its top 10 brands contribute about 16% of its India business revenue pie. Cardiac, anti-diabetic, anti-infectives, respiratory and gastrointestinal are major growth therapies for domestic formulation business. Speaking on its India business growth strategy, India Head, Mr. Kirti Ganorkar said, “As a part of our growth strategy, we have initiated an expansion of our field force by about 10%. The main objectives behind this expansion include further widening of our strong customer reach, deep penetration of our products and ensure greater focus on all relevant brands”. Both India and US formulation business contribute 60% of the entire revenue basket. Among the other revenue growth constituents, APIs grew 18% YoY, Rest of World (ROW) markets jumped 24% YoY and emerging markets suffered a decline of 4% YOY due to lower tender business revenues in South Africa. APIs, ROW and emerging markets contributed 7%, 14% and 17% YoY respectively in Q3FY20. With respect to the coronavirus impact, Sun Pharma management clarified that there would not be any significant impact as the majority of pharma manufacturing units are not located in coronavirus affected areas. Sun Pharma is highly dependent on China intermediate supplies for APIs while formulation business dependence is relatively lower. Sun Pharma has lost its sheen and even though the specialty business and India formulation business seem to be on the right track, there are high downside risks in the near future because of the poor performance of Taro, higher price erosion in US market, price-fixing allegations in US and SEBI's probe on whistle-blower complaint. Vigilance would be the key for long term investment.17-03-2020
Sun Pharmaceutical Industries Ltd - 524715 - Disclosures under Reg. 31(1) and 31(2) of SEBI (SAST) Regulations, 2011.
The Exchange has received Disclosure under Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 on Shanghvi Finance Pvt Ltd16-03-2020
Sun Pharma share price rises 10% as board to consider share buyback
The board of directors will meet on March 17 to consider the buyback proposal and thrash out other details.13-03-2020
SUN PHARMACEUTICAL INDUSTRIES LTD. - 524715 - Board Meeting Intimation for Intimation Of Board Meeting Scheduled To Be Held On Tuesday, March 17, 2020 To Consider Inter Alia, The Proposal For Buy-Back Of Equity Shares And Intimation Of Closure Of The Trading Window
SUN PHARMACEUTICAL INDUSTRIES LTD.has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 17/03/2020 ,inter alia, to consider and approve inter alia, the proposal for buy-back of fully paid-up equity shares of the Company, which would include maximum amount, maximum number of equity shares, mode of buy-back and other matters incidental thereto in accordance with the provisions of Section 68, 69 and 70 of the Companies Act,2013, read with rules made thereto and Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018. In this connection, as per the Company''s code of conduct for prevention of insider trading, the trading window for dealing or trading in securities of the Company will remain closed with immediate effect for all directors, designated persons and insiders and shall re-open after the expiry of 48 hours after the conclusion of the aforesaid Board Meeting.12-03-2020
SUN PHARMACEUTICAL INDUSTRIES LTD. - 524715 - Disclosures under Reg. 31(1) and 31(2) of SEBI (SAST) Regulations, 2011.
The Exchange has received Disclosure under Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 on March 12, 2020 for Raksha Sudhir Valia12-03-2020
Sun Pharma stock sheds 15% on price fixing concerns, slow portfolio ramp-up
The near-term worry for the company is the ongoing investigation by the US Department of Justice related to price fixing and cartelisation by generic companies11-03-2020