The side effects are real, but Sun Pharma stays on its feet

Growth hormone kicks in as country's largest pharma co's vital signs hold amid generic strain

- RAM PRASAD SAHU

After falling 17 per cent since the start of the year to its March lows, the stock of the country's largest pharmaceutical (pharma) company, Sun Pharmaceutical Industries, has clawed back nearly half of those losses. Recent acquisitions, a favourable court ruling in the case of the hair loss drug Leqselvi, an edge over peers owing to its specialty portfolio, and a diversified global presence have supported the recovery.

The stock's weakness since January was driven by slow US sales, rising research and development (R&D) expenses, regulatory setbacks involving the US Food and Drug Administration (USFDA), and pricing pressure in generics. Still, most brokerages remain upbeat about the firm's longer-term prospects.