Sun Pharma to invest $100 million in FY26 to boost speciality drug business

Sun Pharmaceutical Industries will invest around $100 million in the current fiscal year to support the commercialisation of innovative speciality products, the company’s chairman and managing director, Dilip Shanghvi, said.

The Mumbai-based drugmaker said the capital outlay will significantly strengthen its speciality drug portfolio.

“For the current year, we are looking to invest approximately USD 100 million additionally on the commercialisation of new speciality products,” Shanghvi told analysts on a post-earnings call.

The company plans to focus investments on the launch of Unloxcyt, approved for metastatic cutaneous squamous cell carcinoma, and Leqselvi, a treatment for severe alopecia areata.

Shanghvi said the company is evaluating strategic options for MM-II, a product in development for osteoarthritis pain, and is now seeking a commercialisation partner in certain geographies.

"This change is due to the strategic reassessment of our pipeline. We continue to believe in the potential of the product,” he added.

Sun Pharma also plans to initiate clinical trials for GL0034 in type 2 diabetes as its first indication, following a reassessment of its development pipeline.

The drugmaker has agreed to acquire Checkpoint Therapeutics, a US-based oncology firm.

“We are awaiting approval of that transaction and subsequent closing,” Shanghvi said.

Checkpoint recently received US FDA approval for Unloxcyt, which Sun Pharma plans to scale using its commercial network.

Sun Pharma expects mid-to-high single-digit consolidated revenue growth in FY26, following total sales of ₹5,20,410 million ($6.24 billion) in FY25.

In the January–March quarter, consolidated gross sales rose 8.5% year-on-year to ₹12,815.6 crore. Revenue from operations grew 8.1% to ₹12,958.8 crore, compared to ₹11,982.9 crore a year earlier.

India formulation sales climbed 13.6% to ₹4,213 crore, while US formulation sales fell 2.5% to $464 million. Global speciality sales for FY25 rose 17.1% to $1,216 million.

R&D expenses for the March quarter stood at ₹816.6 crore. The company expects R&D spending in FY26 to range between 6% and 8% of total sales.

EBITDA rose 22.4% year-on-year to ₹3,716.1 crore in the March quarter.