*Sun Pharma – Q2FY22 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive*
The stock is trading at 24.7x FY23E consensus earnings
• All businesses have grown yoy except API
• Global Specialty – Rev $157 mn including $10mn milestone rev QoQ $148mn
• Ilumya has grown on both yoy and qoq and continues to gain traction; recently launched in Canada as well
• ¬¬¬Winlevi – an acne product, launched in US
• Specialty R&D 28% of total R&D spend in Q2
• Expenses are seeing increasing trend as business activity is coming to normalcy
• Rs 76.4 cr forex loss
• Consol R&D – Rs 536 cr, declined yoy to spill over in earlier quarter
• Cost inflation would put pressure on margins however management would pass on the increase
*_India_*
• Rs 3187 cr – 26% yoy – 33% of sales
• Market share increased both yoy and qoq
• Improving demand for non-covid treatments leading to higher sales of chronic and semi-chronic therapies, peak monsoon season, increased footfalls, increased health awareness
• Field force near to pre-covid levels
• Launched 28 new products
*_US_*
• 8% yoy - $361mn
• Specialty, ex-taro led the growth in ,Cequia, Absorica, Illumya, Levulan
• Absorcia declined qoq as expected to entry of competition
• Supply constraints in ¬¬¬ Levulan led to qoq drop
• Q2 is typically a soft quarter for derma
*_Others_*
• Emerging mkts – $ 243mn – 16% yoy, 19% of total sales, In cc 14% yoy
• Formulations in RoW – $ 188mn, 5% yoy, 15% of total sales
• API – Rs 436 cr, lower 15% yoy due to ¬¬¬¬ OPH revenues