Stock To Watch: Sun Pharma Increases Stake In US-Based Pharmazz To 22.7% With Strategic $25 Mn Deal

Sun Pharma, the top specialized generics firm in the world with a presence in consumer healthcare, specialty, and generic products, said that it has signed a deal with Pharmazz Inc., a US-based company, in which Sun Pharma would invest up to $25 million. By converting the previous investment through SAFE, the investment raises the total stake in Pharmazz to about 22.7% on a fully diluted basis. The cost of the acquisition is $25 Mn investment at $5.88925 per share in cash. Sun Pharma will have the opportunity to discuss licensing Sovateltide for distribution and marketing in a few developed market nations. In several developing market nations, Sun Pharma already holds the only right to license Soteltamab for marketing and distribution.

For the quarter that ended in March 2025, Sun Pharmaceutical Industries Ltd. released a mixed set of results. Revenue for the firm increased by 8.1% to Rs 12,958.8 from Rs 11,982.9 crore in the year-ago quarter. For Q4FY25, net profit was Rs 2,153.9 crore, a decline of 19% from Rs 2,658.7 crore in the same period the previous year. EBITDA (profits before interest, taxes, depreciation, and amortization) for the pharmaceutical company increased by 22.4% to Rs 3,715.9 crore from Rs 3,035.15 crore in Q4FY24.

Formulations sales in India reached 169,230 million for the entire year FY25, a 13.7% growth over the same period the previous year. Sales of India formulations reached Rs 42,130 million in Q4FY25, representing 32.9% of the quarter's total consolidated sales and a 13.6% growth over Q4 of the previous year.

The firm invested a total of Rs. 32,484 million on research and development during FY25, which accounted for 6.2% of sales. For Q4FY25, research and development expenses came to Rs. 8,166 million, or 6.4% of total revenues.

Dilip Shanghvi, Chairman and Managing Director of the Company said, "Our businesses delivered a robust performance for the year, driven by improving market share in India and growth in Global Specialty. The nearterm pipeline in Global Specialty is promising, with products such as Leqselvi and Unloxcyt-the latter through our recently announced Checkpoint acquisition-offering significant improvements in patient care. We look forward to Specialty becoming an increasingly important part of our business."

According to the AIOCD AWACS MAT March-2025 study, Sun Pharma is the market leader with a market share that grew from 8.0% to 8.3% in the Indian pharmaceutical market, which is valued at about Rs. 2,259 billion. Sun Pharma is ranked first in terms of prescriptions across 13 distinct doctor categories, according to the SMSRC (November-February 2025) report.

The Board of Directors recommended a "final dividend of Rs. 5.50/- (Rupees Five and Paise Fifty only) per equity share of Re. l/- (Rupee One only) each is recommended to the shareholders for their approval at the ensuing Annual General Meeting of the Company. Monday, 07 July 2025 is fixed as the Record Date for the purpose of determining the Members eligible to receive the final dividend, which, if approved at the Annual General Meeting, shall be paid on or before Friday, 08 August 2025," said Sun Pharma in a stock exchange filing.

Sun Pharma Share Price Target

"Sun Pharma remains in an uptrend and is holding above key support at ₹1,650. Resistance is seen near ₹1,720-₹1,740. The stock is forming higher lows, indicating strength. A breakout above ₹1,740 may lead to a move toward ₹1,800. Dips near ₹1,670-₹1,680 can be used for accumulation with a stop-loss at ₹1,640," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

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