Sun Pharma Targets Mid-High Single-Digit FY26 Growth, Bets Big on Innovation Amid US Pricing Woes

• Sun Pharma aims for mid-to-high single-digit consolidated revenue growth in FY26, focusing on innovation and strengthening its medicines pipeline.
• The company has invested approximately ₹320 billion in R&D, with expenditure accounting for 6.2% of sales in FY25, highlighting R&D as a key focus area.
• New US pricing proposals from CMS, including GUARD and GLOBE models, could mandate rebates if US drug prices exceed global benchmarks.
• Macquarie notes Sun Pharma's high exposure to branded pharmaceuticals (20% of revenue from innovative medicines) makes it vulnerable to these international price comparisons.
• Sun Pharma reported a Q2 net profit of ₹31.18 billion and revenue of ₹144.05 billion, with India sales up 11%, despite shares ending lower.

Why It Matters: Sun Pharma targets FY26 growth via innovation but faces challenges from new US drug pricing policies.