Warning to US pricing pressure by Sun Pharma to hit 2019 profit

Warning to US pricing pressure by Sun Pharma to hit 2019 profit

Overview

  • Post By : Khushboo Sharma
  • Source: Reuters.com
  • Date: 29 May, 2018

On Friday, the India’s largest drug maker Sun Pharmaceutical Industries said that there is an expectation that in 2019 the revenue to come in short of analysts’ expectation due t the pricing pressure in the main market, the United States.

Due to thecopycat drugthere’s an increment in the competition and pricing inspection in the world largest healthcare market, the manufactures of the generic drugs are seeing poor sales as doubtful grow in the global market now.

It now plans to reduce its research spend on some generic drug projects that have become “unviable”, Dilip Shanghvi, the company’s founder and managing director, said on a conference call with analysts. The move follows larger rival Teva Pharmaceutical Industries’ statement earlier this month that it planned to reduce its US generics business.

“As a large investor, I am also unhappy,” said Shanghvi who, along with affiliated parties, owns a major stake in the company he founded in 1983.

“As a large investor, I am also unhappy,” said Shanghvi who, along with affiliated parties, owns a major stake in the company he founded in 1983.

We are trying to get the (Halol) plant re-certified at the earliest. It’s taking much longer,” he said. The world’s fifth-largest generic medicines maker is holding its confidencesover the launch of three specialty drugs this year: Yonsa for a type of prostate cancer, another, named OTX101, to treat dry eye, and Ilumya for psoriasis.

“We want to find a new engine of growth and that is why we are investing in this,” Shanghvi said, adding: “We will have to incur significant expenses for these important launches.”

Thirty-six analysts polled by Reuters expect Sun’s fiscal 2019 revenue to come in at 300.36 billion Indian rupees ($4.43 billion) - about 13 percent higher than the 264.89 billion rupees for 2018.

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Khushboo Sharma

Khushboo Sharma

Actively working as an Editorial Member in Microbioz India