Pharma Sector To Report 11% Profit Growth In Second Quarter: Analysts

Indian pharmaceutical companies are likely to report a 11% on year due to lower interest expenses, according to Centrum Broking. Sales during the same period is expected to grow 95 driven by around 11% growth in the domestic formulation segments, the brokerage said.

Here is the second-quarter earnings forecast of key pharmaceutical companies by various brokerages:

• Brokerage: Axis Securities

• Outlook: Expects revenue growth of 8% year-on-year, inline with the IPM growth of 8% in the second quarter ended September 2024, driven by strong demand in the hormones and gastro segments. The company’s pricing power is anticipated to enhance gross margins moving forward, the brokerage said.

• Brokerage: Axis Securities

• Outlook: Anticipates a revenue growth of 10.1% year-on-year, fueled by new launches in the US including gProlensa and gChantix. US sales is expected to be around $227 million with significant contributions from gSpiriva amid stable pricing dynamics.

• Brokerage: HDFC Securities

• Outlook: Projects a US sales of $238 million with challenges in maintaining market share for Albuterol, but gains in Brovana and Lanreotide. Expects to achieve $30 million from gRevlimid.

• Brokerage: HDFC Securities

• Outlook: Projects sales growth of approximately 8% in India and 16% in the international business (ex-US), with US growth driven by traction in gSuprep and gPradaxa.

• Brokerage: Centrum Broking

• Outlook: Expects to see 13% year-on-year growth in the domestic formulation business, despite a sequential flat growth in the US business. Anticipates margin expansion due to higher gross margins.

• Brokerage: Centrum Broking

• Outlook: Estimates US sales of $410 million including $125 million from gRevlimid. However, sales may be subdued sequentially due to elevated price erosion. The key focus will be on commentary regarding base business performance and margin trends.

• Brokerage: Centrum Broking

• Outlook: Recovery in the US business is expected after disruptions. Anticipates steady gross margins, though Ebitda margins may decline sequentially, due to operational expenditures from newly commissioned plants.

• Brokerage: Centrum Broking

• Outlook: Expects Sun Pharma's domestic formulation sales to grow 9% year-on-year to Rs 4,200 crore.

• US sales are projected to rise 17% year-on-year in constant currency to $505 million, driven by continued traction in the specialty portfolio.

Key factors to monitor include:

• Progress on regulatory issues at the Mohali and Dadra facilities.

• Updates on the potential product launch pipeline over the next 12-18 months.

• Developments related to LEQSELVI.