Mumbai-headquartered Sun Pharmaceutical Industries, India’s largest drug manufacturer, is placing significant bets on speciality drugs to drive future growth. The company has earmarked an investment of over $100 million for the commercialisation of niche and patented medicines in fiscal year 2026 (FY26). However, analysts warn that profitability could face pressure due to increased expenditure and a surge in taxes.

The company, which achieved an 8% year-on-year growth in revenue in FY25, remains optimistic about sustaining a similar trajectory in FY26. It projects mid-to-high single-digit growth for the current fiscal year, driven by its expanding speciality portfolio. However, its net profit took a hit in the March quarter due to a spike in tax outgo. Consequently, market analysts have revised their fiscal year 2026 earnings per share (EPS) estimates downward by 3-8%.

According to Chairman and Managing Director Dilip Shanghvi, the $100 million capital outlay will play a critical role in expanding the company’s speciality product segment. “For the current year, we are looking to invest approximately USD 100 million additionally on the commercialisation of new speciality products,” Shanghvi said during an analyst call.

The company is focusing on two key products: Unloxcyt, approved by the USFDA for treating metastatic or locally advanced cutaneous squamous cell carcinoma, and Leqselvi, intended for severe alopecia areata. These drugs are expected to enhance Sun Pharma’s footprint in the high-value speciality drug market.

In FY25, Sun Pharma’s global speciality sales rose by 17.1% year-on-year, reaching USD 1,216 million. In the January–March quarter alone, the segment saw an 8.6% increase in revenue, totalling USD 295 million.

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In a strategic shift, the company is also looking for partners for the development and commercialisation of its osteoarthritis candidate MM-II in selected geographies. Additionally, it plans to initiate trials for GL0034, targeting type 2 diabetes as its first indication.

Strengthening its position in oncology and immunotherapy, Sun Pharma recently announced its decision to acquire Checkpoint Therapeutics, a US-based firm specialising in targeted oncology. The acquisition is pending regulatory approval. Checkpoint’s key asset, Unloxcyt, recently received approval from the USFDA, and Sun Pharma plans to leverage its global network to maximise patient access.

Despite near-term challenges, including underperformance against the BSE Healthcare index and tax headwinds, Sun Pharma remains bullish on its long-term growth strategy anchored by innovation and strategic investments in speciality therapeutics.

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