Significant price erosion in US takes toll on Sun Pharma

With base generics under pressure, analysts could cut earnings estimates

After the disappointment by Taro (Sun Pharma’s US subsidiary) earlier this week, the stage was set for a weak show by Sun Pharma in the March quarter (Q4). With premium pricing of products, Taro had so far driven US sales and margins for Sun Pharma, which faces delayed product approvals and launches on the back of the warning letter issued by the US FDA to its Halol plant. With Taro’s portfolio, primarily dermatology, under pricing pressure, Sun was bound to see pressure in US sales. 

However, Sun’s results were way below expectations and hence, after Monday’s cut due to Taro