Sun Pharma's Stock Surges 4% as Taro Pharma Reports Strong Q3 Performance

29 Jan 2024 , 03:40 PM

Sun Pharmaceutical Industries Limited’s shares surged 4% to reach a record high of ₹1,420.85 on the NSE following robust performance by its subsidiary Taro Pharmaceutical Industries in Q3FY24.

Taro reported a Q3 profit of $20.2 million, a significant increase from $7.3 million in the same quarter of the previous year. The company’s Q3 revenue rose by 13% YoY, reaching $157.14 million.

Taro Pharma’s operating income for the third quarter was $15.83 million, compared to $1.3 million in the corresponding quarter of the previous fiscal, with margins at 10.8%.

Sun Pharma is set to acquire the remaining 21.52% stake in Taro Pharmaceutical Industries for ₹2,891.7 crore this month, consolidating its control over Taro. Sun Pharma currently holds 78.48% of Taro.

The deal, marking the end of nearly 17 years of negotiations, follows Sun Pharma’s previous attempts to gain full control over the US-listed generic drugmaker, which operates mainly in the United States and Canada.

Upon completion of the merger, expected in the first half of the year, Taro will become a privately held company and be delisted from the New York Stock Exchange.

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