Sun Pharma Advanced Research Company LtdQ2 FY22

Sun Pharma Advanced Research Company Ltd Q2 FY22 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹182.98P/E: 3.7Market Cap: ₹5.9K CrSector: Pharmaceuticals & Biotechnology

Management growth scorecard

Revenue

Category 3

Margin

N/A

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 3 growth signals are positive.

Full analysis

Revenue guidance

Category 3
  • SPARC anticipates growth from legacy products Elepsia™ and Xelpros®, with NDA submissions for PDP-716 and SDN-037 expected in early 2022, leading to launches in 2023.
  • Phenobarbital licensing and commercialization is targeted for 2022, contributing to near-term revenue.
  • New Chemical Entities (NCEs) like Vodobatinib, PROSEEK, and Vibozilimod aim for clinical proof of concept and data readouts by 2023, potentially driving medium-term growth.
  • SCO-120, the oral selective estrogen receptor degrader, is advancing into patient trials with early proof of concept expected by 2023, representing a future revenue opportunity.
  • Licensing deals, such as the partnership with Visiox and the licensing of antibodies from Biomodifying, are expected to generate milestone payments and royalties, supporting cash flow.
  • Continued fund-raising and shareholder support will enable expansion and development of new programs, fueling portfolio growth over the medium to long term.

See what Sun Pharma Advanced Research Company Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes
  • SPARC concluded a preferential issue of warrants earlier in 2021 raising approximately ₹1112 Crores (~$148 million).
  • Around 600 Crores came from promoters; the rest from marquee domestic and foreign investors.
  • Warrants are to be converted by the end of 2022, providing cash for ongoing developments and discovery operations.
  • Shareholders approved raising up to ₹1800 Crores to fund future needs.
  • The company is currently evaluating options for raising additional capital through equity or debt.
  • The raised funds will support development programs (e.g., Vodobatinib trials, SCO-120 proof of concept), discovery operations, biologics capabilities, and transition of clinical programs.
  • SPARC seeks continued investor support for these fundraising plans.

See what Sun Pharma Advanced Research Company Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
  • SPARC raised capital through a preferential issue of warrants worth approximately $148 million, to be converted by end of 2022, providing cash for ongoing trials and discovery operations.
  • The funds will support development of Vodobatinib trials (CML and Parkinson’s), SCO-120 proof of concept studies, and discovery efforts.
  • Investment planned in building capabilities for newer modalities such as Biologics.
  • Planning at least two more programs to move to US IND filing in the near term, with potential additional INDs.
  • Evaluating options to raise up to 1800 crore rupees to fund portfolio expansion, clinical development transitions, and additional INDs.
  • Strategic investments include licensing of antibodies against a unique cancer target, enhancing biologics platform capabilities.
  • External commercial partnerships (e.g., with Visiox and Tripoint) also form part of strategic efforts.
  • Focus on building modular biologics platform and expansions in translational research capacity.

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