Leading pharma firms are all set to report June quarter results for the financial year 2019-20 with Dr Reddy's scheduled to post earnings on July 29, followed by Zydus Cadila on July 31, Cipla and Lupin on August 7 and Sun Pharma in the second week of August. Analysts expect a better show in Q1 thanks to a combination of factors such as overall business improvement in the Unites States and a pick-up in demand in the domestic market. One-off revenue gains thanks to new product launches will also help. For instance, Cipla announced a phased launch of generic cinacalcet hydrochloride tablets (30mg, 60mg and 90mg) in the USA in March. The launch is subjected to ongoing litigation.
Cipla's cinacalcet hydrochloride tablets (30mg, 60mg and 90mg) are a generic therapeutic equivalent version of Sensipar, a branded drug marketed by Amgen, Inc. Cinacalcet tablets are indicated for the treatment of secondary hyperparathyroidism (HPT) in adult patients with chronic kidney disease (CKD) on dialysis for the treatment of hypercalcemia in adult patients with Parathyroid Carcinoma, and for treatment of severe hypercalcemia in adult patients with primary HPT who are unable to undergo parathyroidectomy.
Similarly, in February, Lupin announced the exclusive launch of its Ranolazine Extended-Release (ER) Tablets, 500mg and 1000mg. These are a generic version of Gilead Sciences, Inc.'s Ranexa ER Tablets, 500mg and 1000mg. Ranolazine is indicated for the treatment of chronic angina. Ranolazine ER Tablets, 500mg and 1000mg registered annual sales of approximately $945 million in the US (IQVIA MAT December 2018). Nilesh Gupta, Managing Director, Lupin Limited said, "This is a meaningful product and further strengthens our portfolio of generic products in the US. Launching exclusive and semi-exclusive generics is an important stepping stone as we transition to more complex generics."
Analysts will watch out for what Sun Pharma will say on gains from contract supply opportunities.
To what extent companies deliver on expectations will be keenly watched. Other than common underlining factors of better business in the US and India, there is also an element of the low base. Analysts expect the pharma sector to register 10 to 12 per cent revenue growth and around 15 to 20 per cent earnings growth.