Sun Pharma Profit Falls on Organon Deal Costs
India’s largest pharmaceutical company, Sun Pharmaceutical Industries, reported a decline in its second-quarter net profit, mainly due to a one-time charge linked to its planned acquisition of Organon & Co. Net profit for the quarter ended September 30 fell to ₹19.89 billion from ₹31.18 billion in the same period last year. However, the company’s revenue increased nearly 12% to ₹161.99 billion.
Despite the profit decline, Sun Pharma recorded strong growth in its specialty drug business, with sales rising 6.9% to $356 million. Specialty medicines, which include treatments for skin diseases, cancer and obesity, accounted for 21.1% of total sales. Revenue from India, its largest market, grew 17.3%, while US sales declined 8.2%.
The company recorded a one-time charge of ₹12.69 billion, largely related to costs associated with its planned $11.75 billion acquisition of Organon and provisions under India’s labour code framework. Excluding this charge, net profit increased 6.3% to ₹44.28 billion. Following the results, Sun Pharma shares rose 4.2% to ₹1,835.
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