Sun Pharmaceutical Industries is pivoting the US strategy by doubling down on high-margin specialty drugs even as the threat of new import tariffs creates a volatile trade environment. The company’s latest quarterly results reveal a major milestone. For the first time, revenue from its innovative specialty medicines in the US has surpassed sales from its traditional generics business.
The company's Q2 FY26 results, ending September 30, 2025, surged by 16.4% Year-over-Year (YoY) to $333 million; this upliftment was led by psoriasis drug Ilumya and dry-eye treatment Cequa. This performance successfully offset a 4.1% decline in total US formulation sales, which was dragged down by increasing competition in the generics space.
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Sun Pharma is pressing its advantage, as a series of key launches is lining up to build on this momentum. The company launched Leqselvi (deuruxolitinib), a novel oral treatment for severe alopecia areata (hair loss) in the US in July 2025.
According to Money Control reports, Richard Ascroft, CEO of Sun Pharma North America, said, “We’ve been pleased with the initial access and response to Leqselvi and expect access and uptake to improve through the year.”
Further strengthening the pipeline, Sun Pharma is on track to launch Unloxcyt, an FDA (Food and Drug Administration) approved treatment for advanced skin cancer, in the US within the next six months. It also plans to file for a new indication for Ilumya to treat psoriatic arthritis.
However, these new launches of patented drugs coincide with an unforeseen scenario. A new 100% US tariff on imported, branded, and patented medicines comes into effect on October 1, 2025. While the Indian pharma exports (generics) are exempted, Sun Pharma’s estimated exposed revenue of $1.1 billion makes it uniquely vulnerable.
“Despite macro uncertainties, Sun Pharma has been bullish on its specialty pipeline and global expansion. We continue to invest in differentiated capabilities and are well-positioned to grow our innovative medicines business,” as said by Chairman Dilip Shanghvi and mentioned in Money Control reports.
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