Sun Pharma: Taro provides some respite

Key triggers are in improvement in ex-Taro performance, resolution of US FDA issues

The performance of Taro, Sun Pharma’s US subsidiary, for the quarter ending September 2017 (Q2), while indicating that pricing pressure continues in the US market, has some positives. The numbers show compared to the sharp fall in sales, gross margins fell at a slower pace. Taro also saw volumes grow by one per cent for Q2 and four per cent during the first half of FY18. The company clocked some market share gains as well. While these are positives, from an investors’ perspective, it may not be enough to significantly move the needle for Sun Pharma’s stock.

The pricing pressure