Sun Pharma continues its growth momentum in the December Quarter

MUMBAI: Sun Pharma continued its growth momentum by logging a strong performance in the December quarter. The company logged 33% growth in its consolidated net sales and its operating profit margin stood at 44%. Its good performance in the US business, which now contributes half of the revenues of the company, boosted by the sale of generic Lipodox was one of the major growth drivers. The contribution of the company's latest acquisitions in the US market - DUSA and URL has been insignificant in the December quarter.

The company's growth in the domestic market, now contributing a little over one-fourth of the total revenues, stood at 19% - outperforming the industry growth.

In an unprecedented move, the US FDA earlier this week granted approval to Lipodox, the first generic version of the cancer drug Doxil to Sun Pharma in order to meet the shortage of the drug. Since last couple of quarters, Sun's sales in the US have been boosted by Lipodox's sales made at the behest of the US FDA. Now with a generic approval in place, Sun can continue to enjoy the revenues from the sale of this drug - making it part of its base business rather than a one-off item in the books every quarter.

The company's strong position in the key markets of the US and India is the major determinant of the company's strong track record. The company's recent acquisitions in the US will provide the further boost in the sales from the US market.