Specialty drugs, domestic growth prospects positives for Sun Pharma stock

While pricing pressure in the US generics is also stabilising, the specialty products that Sun Pharma has been investing in are seen as a growth driver of its US business

Shares of Sun Pharmaceutical Industries (Sun Pharma), which have been on an uptrend rising more than 12 per cent from November lows, were among the top Sensex gainers on Wednesday. Analysts say the strong growth in domestic business and gradual ramp-up of its specialty products in the US — the world’s largest health care market — is boosting investors’ confidence.

The news flow on Taro’s (Sun Pharma’s US subsidiary) share buyback and talks to resolve the long-running criminal antitrust probe of alleged price-fixing by various companies (including Sun) in the US are the other positives.

While the buyback of public