Q3 Result Preview: Sun Pharma to lead with highest sequential rise in US sales; Domestic strongest for Torrent-Jefferies

livemint.com:

Also read-Market strategy in 2024: Kotak Institutional lists 3 key challenges investors will face this year The Flu season has not been strong this year in the US and hence the companies as Lupin , Zydus Lifesciences that reap maximum benefits, may not see the Flu led gains this year. Nevertheless their growth momentum may still remain strong.

The product launch momentum remains strong. Most of the Indian companies thereby will benefit from large product launches that have taken place or are lined up this year.

Analysts at Jefferies India Pvt Ltd expect the current benign US pricing environment to continue and believe most of their coverage firms will clock sequential sales growth in the quarter. They have factored highest sequential growth for Sun Pharma ( up 8% sequentially) as the company will benefit on seasonality of specialty products , traction in recently launched generic Vyvanse and surge in sales of Albuterol and Ipratropium combination, as per Jefferies Estimates.

Lupin will also see 4% sequential growth and will gains from sales of generic Spiriva (respiratory product) sales and HIV treatment drug Darunavir exclusivity, as per Jefferies estimates Dr Reddy’s Laboratories may see 2% sequential sales growth mainly led higher generic Revlimid sales while Zydus sales are expected to rise 3% sequentially driven by Indomethacin launch Also Read- Reliance Q3 results tomorrow: O2C weakness may impact consolidated Ebitda sequentially: Jio, retail to see steady show The growth in the Indian pharma market too may remain robust. The analysts at Jefferies have built in 10-12% YoY growth for most of companies under their coverage, with the only exception of Lupin and Dr Reddy’s.