Sun Pharma expects U.S. drug pricing pressures to continue | Reuters

By Zeba Siddiqui | MUMBAI MUMBAI Sun Pharmaceutical Industries Ltd does not expect pressure on generic drug prices in the United States to abate anytime soon, its managing director said on Thursday, signalling a challenging year ahead in the company's largest market.Dilip Shanghvi's comments followed publication of Sun Pharma's second-quarter results in which profit more than doubled from a year earlier, driven by higher sales in nearly all its markets.The United States began an investigation into generic drug prices last year and the possibility of another U.S. probe hit Indian pharmaceutical stocks last week.

Reuters November 10, 2016 21:50:07 IST
Sun Pharma expects U.S. drug pricing pressures to continue
| Reuters

Sun Pharma expects US drug pricing pressures to continue
 Reuters

By Zeba Siddiqui
| MUMBAI

MUMBAI Sun Pharmaceutical Industries Ltd does not expect pressure on generic drug prices in the United States to abate anytime soon, its managing director said on Thursday, signalling a challenging year ahead in the company's largest market.Dilip Shanghvi's comments followed publication of Sun Pharma's second-quarter results in which profit more than doubled from a year earlier, driven by higher sales in nearly all its markets.The United States began an investigation into generic drug prices last year and the possibility of another U.S. probe hit Indian pharmaceutical stocks last week. Sun, the world's fifth biggest generic drug maker, did not comment on this on Thursday, but said it believed pricing pressures would continue. Like most of its Indian rivals, Sun has had a tough year in the United States due to few regulatory approvals to launch new products, and regulatory restrictions over its Halol drug factory in Gujarat that caused supply constraints.

Sun has now completed an overhaul of that facility and is awaiting an FDA re-inspection, Shanghvi told analysts on a conference call. But he said he was not sure if the plant would win regulatory clearance in the next five months. "Looking at the experience of some other sites, it may take more than three months post-reinspection to get clearance," Shanghvi said. Analysts are waiting for Sun's tildrakizumab, an experimental psoriasis drug that showed positive results in late-stage trials, to be put forward for U.S. approval. Shanghvi said the company is also considering testing the same compound in other disease areas.

Sun reported that July-September profit rose to 22.35 billion rupees ($335.8 million) from 10.29 billion rupees a year earlier. Analysts expected an average profit of 16.46 billion rupees, according to Thomson Reuters I/B/E/S.Sales in its largest market, the United States, rose 9 percent, while those in India rose 11 percent. In emerging markets, Sun's sales rose 22 percent, the company said in a statement.

"The synergies from the Ranbaxy acquisition are gaining momentum and we are on track to achieve the targeted benefits," Shanghvi said.Sun has earlier said it expects to reap $300 million in synergies by fiscal 2018 from its purchase of rival Ranbaxy Laboratories last year.($1 = 66.5600 rupees) (Reporting by Zeba Siddiqui in Mumbai; Editing by Keith Weir and Jane Merriman)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

Facebook has known for a year and a half that Instagram is bad for teens despite claiming otherwise
World

Facebook has known for a year and a half that Instagram is bad for teens despite claiming otherwise

Facebook's policy of pursuing profits regardless of documented harm has sparked comparisons to Big Tobacco, which knew in the 1950s that its products were carcinogenic but publicly denied it into the 21st century

Daughter kidnapped by father reunites with mother after 14 years through Facebook
World

Daughter kidnapped by father reunites with mother after 14 years through Facebook

Their official meeting or reunion took place on Monday (13 September) in Texas, but the two had earlier met at the border last week. They met each other after communicating on social media.

Facebook's internal research revealed that Instagram is harmful for teens
News & Analysis

Facebook's internal research revealed that Instagram is harmful for teens

According to Facebook, parents can help by repeatedly talking to their teens about the difference between appearance and reality.