Credit Suisse upgrades Sun Pharma to ‘Outperform,’ profit surge predicted

By Catherine Sturman
Credit Suisse has recently updated Sun Pharma from ‘Neutral’ to ‘Outperform,’ as a result of its heavy investment in seven key areas. The pharm...

Credit Suisse has recently updated Sun Pharma from ‘Neutral’ to ‘Outperform,’ as a result of its heavy investment in seven key areas.

The pharmaceutical industry is becoming an increasingly competitive market, with growing cost pressures, delays in the approval of new drugs, against a growing demand for personalised healthcare services.

However, the decision by Credit Suisse showcases its growing confidence in Sun Pharma and its growing profit margins, leading the company’s shares to rise by up to 5%.

“Sun has already invested $600 million in seven specialty assets. Our proprietary analysis shows peak sales of these assets should be $700 million,” said Credit Suisse.

Related stories

“Increasing contribution of specialty addresses growth concerns in generics and helps Sun revert to 20% profit growth trajectory. Strong free cash flow (over $500 million) should help acquire more assets and deepen presence in chosen specialties. Monetisation has already started with two drugs in the market, and the lead derma drug MK-3222 should be launched next year.”

Sun Pharma has also invested significantly in its research and development capabilities. Approximately 10% of its revenue will be invested in this area throughout 2018. However, the company is still awaiting positive news surrounding its Halol plant, where issues have still not been completely resolved.

Nonetheless, up to 20 out of 44 brokerages have a “buy” rating according to data from Bloomberg. Despite Sun Pharma’s successes, it still has a way to go to attract further positive reviews.


Featured Articles

HPV Vaccine 'Protects Males from Cancers' - Global Report

As a new report shows the human papillomavirus vaccine can also protect men and boys, we take a look at HPV vaccines, and their impact on world health

Tata Consultancy Report Shows AI in Healthcare on Rise

Tata Consultancy Services AI for Business Global Study shows that three-quarters of healthcare leaders are deploying AI to drive innovation and efficiency

McKinsey: Consumers Demand Data-driven Wellness Products

New McKinsey Future of Wellness survey shows that consumers demand data-driven wellness solutions to improve health, sleep, nutrition, fitness & longevity

SpaceX Starlink Launch Boost for Indonesia Healthcare

Technology & AI

J&J Targets Supplier Sustainability to Cut Healthcare GHGs


Walgreens to Sell Over-the-Counter Opioid Overdose Drug

Medical Devices & Pharma