November 15, 2017 / 4:51 AM / in 9 months

BUZZ-India's Sun Pharmaceutical Industries falls on weak Q2 earnings

** Sun Pharmaceutical Industries Ltd drops as much as 3.1 pct to 510 rupees, lowest since Oct 4

** Drugmaker posted 59 pct plunge in Sept-qtr profit, hurt by rising competition in generics market and greater pricing scrutiny in the United States

** “Believe the impact of pricing erosion on Sun has been magnified due to its high base. Its medium-term margin outlook is fraught with challenges due to operating leverage and incremental spends towards its specialty pipeline,” Macquarie analysts wrote in a note

** Macquarie retained its “underperform” rating and price target of 440 rupees on stock

** Deutsche Bank says believes weak outlook in the United States will keep the near-term outlook subdued; raises price target to 469 rupees from 440 rupees, retains “hold” rating

** Sun Pharma stock had declined 16.5 pct this year as of Tuesday’s close

** Fourteen of 37 brokerages covering stock rate it “buy” or higher, 12 “hold” and 11 “sell” or lower; median PT 490 rupees - Thomson Reuters Eikon data

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