Sun Pharma's Specialty Pipeline and Growth Prospects
Sun Pharma is actively building a promising specialty pipeline focused on addressing patient needs in dermatology, ophthalmology, and onco-dermatology. This pipeline includes Ilumya, a treatment for psoriatic arthritis, which is currently in phase-III clinical trials with nearly 950 patients enrolled. Additionally, Sun Pharma is preparing to submit study protocols for phase-II and phase-III clinical trials for GL0034 and MM-II drugs, respectively.
Strong R&D investment: Sun Pharma has the highest research and development (R&D) spend among its peers, both in absolute terms and as a percentage of sales. This investment is crucial for advancing the specialty pipeline and bringing new products to market.
Sun Pharma has established strong brand franchises in developed markets, which provide a solid foundation for future growth.
Sun Pharma has consistently demonstrated strong execution in the DF segment, which is expected to continue contributing to overall growth.
Despite some delays in the clinical trial processes of Ilumya, MM-II, and GL0034, Motilal Oswal remains bullish on Sun Pharma's innovative pipeline, considering it the most promising within the Indian listed space. The brokerage values Sun Pharma at 30x 12M forward earnings, factoring in the potential of its specialty pipeline and other growth drivers.