Sun Pharma: Growth worries not over yet

Expected boost to US business missing; results short of Street expectations

Sun Pharmaceutical's performance for the quarter ended December 2016 (Q3) failed to impress, thanks to subdued growth in US business. Analysts were expecting a better growth in US, driven by launch of authorised generic of anti-hypertensive Olmesartan and its combinations and boost from oncology product Gleevac generics launched in February 2016 (now included in base business), but a mere four per cent growth was disappointing. Since US business is significant (45 per cent of total revenue), the subdued show pulled down overall numbers. 

The company's US subsidiary, Taro, which so far has been a growth driver for Sun despite US