Sun Pharma innovative medicines make up 21.1% of sales

Sun Pharmaceutical Industries Limited reported that innovative medicines accounted for 21.1% of consolidated sales in Q2FY27 ended September 30, 2026, after growing 6.9% year on year. The portfolio's contribution followed US approval of Ilumya for adults with active psoriatic arthritis, with launch identified as the next milestone.

How important are innovative medicines to Sun Pharma sales?

Innovative medicines represented 21.1% of Sun Pharma's consolidated sales in Q2FY27 and 21.5% in H1FY27, with sales growth of 6.9% and 9.8%, respectively. The company reported total consolidated sales of Rs 16,100.01 crore in Q2FY27, up 11.8% year on year, and Rs 31,283.56 crore in H1FY27, up 11.0%.

The innovative-medicines growth rate was below total sales growth in Q2FY27. India formulations expanded 17.3%, emerging-markets formulations rose 7.6%, rest-of-world formulations grew 3.1%, and US formulations declined 8.2% during the quarter, showing that growth varied materially across Sun Pharma's commercial businesses.

Sun Pharma said its innovative portfolio spans dermatology, ophthalmology and onco-dermatology. Its Q2FY27 presentation attributed the portfolio's 6.9% growth to both US and international markets, but did not disclose brand-level sales or revenue by country for innovative medicines.

What does Ilumya's US approval cover?

Ilumya is approved in the US for adults with active psoriatic arthritis, and Sun Pharma lists launch as its next milestone. The healthcare-provider-administered interleukin-23, or IL-23, inhibitor provides an option for adults unable to self-administer therapy or who may benefit from regular in-office care.

The approval was supported by two 52-week global, multicentre, randomised, double-blind, placebo-controlled Phase 3 studies. Sun Pharma did not provide an Ilumya launch date, sales forecast or indication-specific revenue, so the disclosed 21.1% innovative-medicines share remains a portfolio measure rather than a measure of the new use.

Managing Director Kirti Ganorkar said Unloxcyt received a preferred recommendation from the National Comprehensive Cancer Network, or NCCN, in advanced cutaneous squamous cell carcinoma, or aCSCC. He also said Sun Pharma licensed lerodalcibep, a proprotein convertase subtilisin/kexin type 9, or PCSK9, inhibitor, for markets outside the US and China, and had begun pre-launch activities across the European Union.

The new approval comes as US formulations declined 8.2% in Q2FY27, representing approximately 27.0% of consolidated sales. Sun Pharma attributed the decline to lenalidomide erosion and said US sales were slightly higher excluding lenalidomide, while global innovative-medicines sales increased 6.9%.

Which innovative-medicines pipeline milestones are next?

Sun Pharma's innovative research pipeline includes five novel entities in clinical development, with Ilumya's US launch and Phase 2 data for GL0034 among its named milestones. GL0034 is being studied in type 2 diabetes, and the company expects topline Phase 2 data during the second half of calendar year 2027.

Fibromun is listed for soft tissue sarcoma after Phase 2 completion, with a Phase 3 start identified as the next step. Its glioblastoma programme is listed in Phase 2, with a regulatory filing shown as the next milestone, although Sun Pharma did not disclose dates for either development.

Nidlegy, for which Sun Pharma holds European Union and Australia-New Zealand rights, is filed with the European Medicines Agency, or EMA, for locally advanced melanoma, with approval and launch identified as the next step. The pipeline also lists Nidlegy in Phase 3 for locally advanced basal cell carcinoma, or BCC, and Phase 2 for locally advanced cutaneous squamous cell carcinoma, or cSCC; regulatory filings are the stated milestones for both indications.

MM-II completed Phase 2 in osteoarthritis pain and is slated to enter a commercialisation partnership. Sun Pharma also lists one undisclosed candidate for partnering, without providing its therapeutic area, clinical phase or expected timing.

How much did Sun Pharma invest in research and development?

Sun Pharma spent Rs 778.42 crore on research and development, or R&D, in Q2FY27, equal to 4.8% of sales. That was marginally below Rs 782.65 crore in Q2FY26, while H1FY27 R&D expenditure was Rs 1,604.77 crore, compared with Rs 1,685.51 crore a year earlier.

Revenue R&D expenditure declined to Rs 747.00 crore in Q2FY27 from Rs 768.06 crore in Q2FY26, while capital R&D expenditure increased to Rs 31.42 crore from Rs 14.59 crore. For H1FY27, revenue R&D was Rs 1,554.66 crore and capital R&D was Rs 50.11 crore.

Sun Pharma said 32.4% of Q2FY27 R&D spending was directed to innovative medicines. Across its broader US development portfolio, it reported 561 approved abbreviated new drug applications, or ANDAs, 120 ANDA filings awaiting US Food and Drug Administration approval, 58 approved new drug applications, or NDAs, and 12 NDAs awaiting approval.

How do innovative medicines compare with Sun Pharma's other businesses?

India formulations were Sun Pharma's largest reported business block in Q2FY27, accounting for 34.5% of consolidated sales after growth of 17.3%. Innovative medicines ranked behind India formulations at 21.1% of sales but were ahead of emerging-markets formulations, which accounted for 20.7%.

India formulations sales were Rs 5,552.28 crore in Q2FY27, compared with Rs 4,734.79 crore in Q2FY26. Sun Pharma said its India market share rose to 8.6% from 8.3%, according to the Pharmarack moving annual total, or MAT, report for September 2026, and it launched 14 products in the quarter and 19 products year to date.

The Q2FY27 mix also shows a difference between growth-led and declining businesses. Emerging markets grew 7.6% and rest-of-world markets 3.1%, whereas US formulations fell 8.2%; innovative medicines expanded 6.9% across US and international markets, according to Sun Pharma's presentation.

Conclusion

Sun Pharma's Q2FY27 disclosure shows innovative medicines contributing more than one-fifth of consolidated sales, supported by 6.9% year-on-year portfolio growth and an expanded US indication for Ilumya. The business grew more slowly than total sales and India formulations, but exceeded the reported sales share of emerging-markets formulations.

The next disclosed milestones are Ilumya's US launch, GL0034 Phase 2 topline data in the second half of calendar year 2027, regulatory progress for Nidlegy and a planned commercialisation partnership for MM-II. Sun Pharma also said the proposed Organon acquisition had approvals in a majority of regions, with indicative transaction closure in Q4FY27 and some jurisdictions still pending.