Divergent Sales Performance Among Indian Pharma Firms in March, ANDA Applications Rebound from Bottom

Overview

This report tracks U.S. sales and prescription trends for Indian pharmaceutical companies in March 2026 based on IQVIA data, alongside an analysis of ANDA application and approval trends. Core findings show divergent performance among firms, with Zydus and Dr. Reddy's showing strong sales growth, while Cipla and Sun Pharma face growth pressures. At the industry level, ANDA applications, which hit a low in FY25, show signs of recovery in the first half of FY26.

Core views

Sales performance was markedly divergent. Zydus saw the largest sequential growth in T3M sales ex-gRevlimid, up $23 million, primarily driven by stepped-up sales of gMyrbetriq. Dr. Reddy's grew by $57 million, powered by Nilotinib and gRevlimid. In contrast, Cipla's sales declined by $41 million sequentially, impacted by Lanreotide and Albuterol declines. Lupin recorded a $10 million sequential increase, aided by gMyrbetriq. Key company details: Sun Pharma's Specialty Pharmaceuticals segment growth fell to -0.5% (the weakest in five years), with Ilumya growth slowing and new product Leqselvi showing modest traction post-launch, with TRx and sales at just 13.6% and 19.9% of competitor Litfulo after nine months. Cipla faced supply constraints, with notable market share losses in Albuterol and Lanreotide, though newly launched gSaxenda captured 6% TRx share. Lupin and Zydus maintained flat shares in gMyrbetriq, but faced competitive erosion in products like gRisperdal Consta and Asacol HD. Torrent gained from the gDificid launch, securing 13.7% TRx share in a market with only three generic competitors. Regulatory and application data show FY25 ANDA applications at just 600, the lowest in 20 years (adjusted). However, the first half of FY26 saw 309 applications, up from 269 in the same period last year, with complex products accounting for 15-20%. USFDA inspection OAI classification rates remain low (6.2% in FY25), indicating a relatively benign regulatory environment.

Analysis framework

The report uses IQVIA sales and prescription data (TRx) for monthly tracking, comparing sequential and year-on-year changes to identify growth drivers. It also incorporates USFDA ANDA application and approval data to analyze shifts in industry supply-side competition. Market share tracking evaluates specific products' performance in generic competition, while distinguishing between TRx volume and sales to assess pricing pressures.

Methodology notes

• Industry/Industrial Analysis FrameworkSupply-demand framework

  Tracking industry supply-side pipeline via ANDA applications

  The report uses ANDA application volumes to gauge future generic supply pressures, where lower applications typically suggest potential improvements in competitive dynamics.

• Industry/Industrial Analysis FrameworkIndustry Concentration Analysis

  Tracking market share changes for specific products

  Monitoring shifts in companies' market shares (Market Share) for specific drugs helps assess competitive intensity and product competitiveness.

• Company Fundamentals & Financial FrameworkEarnings Quality Analysis

  Comparing TRx volume and sales divergence

  The report examines cases where TRx growth is not matched by sales growth, analyzing the impact of price erosion or product mix changes on earnings quality.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Sun Pharma (SUNP IN)

  Buy rating, but specialty growth slowing

  Strengths

  Ilumya still accounts for ~50% of specialty sales

  Weaknesses

  Specialty Pharmaceuticals segment growth fell to -0.5%, Leqselvi launch performance modest

  Comparison

  New product traction lags competitors Litfulo and Olumiant

  Risks

  New product ramp-up falling short

• Dr. Reddy's (DRRD IN)

  Buy rating, sales growth driver

  Strengths

  Nilotinib and gRevlimid driving growth

  Weaknesses

  gVascepa TRx share fell to 3%

  Comparison

  Second-largest player in gVascepa but losing share

  Risks

  Key product share erosion

• Cipla (CIPLA IN)

  Buy rating, near-term pressure

  Strengths

  Newly launched gSaxenda captured 6% TRx share

  Weaknesses

  Supply constraints, Albuterol and Lanreotide share losses

  Comparison

  gAbraxane faces competition from eight generics

  Risks

  Persistent supply constraints, intensifying competition

• Zydus (ZYDUSLIF IN)

  Buy rating, strong sales performance

  Strengths

  Largest sequential sales growth ex-gRevlimid

  Weaknesses

  Asacol HD and gSprycel share declines

  Comparison

  gMyrbetriq share flat

  Risks

  Increased competition for some products

• Torrent (TRP IN)

  Neutral rating, new product-driven

  Strengths

  gDificid launch drove $5 million sequential sales growth

  Comparison

  Only three competitors in gDificid, TRP holds 13.7% share

  Risks

  New product sustainability

Key data

• Zydus sales ex-gRevlimid sequential growth$23 millionMar-2026 T3M data
• Sun Pharma Specialty Pharmaceuticals segment growth-0.5%YoY, weakest in five years
• FY25 ANDA applications600Lowest in 20 years
• FY26 H1 ANDA applications309Up from 269 in the same period last year
• USFDA inspection OAI rate6.2%FY25 data, remains low
• Cipla sequential sales change-$41 millionImpacted by Lanreotide and Albuterol declines

Impact & implications

Divergent sales performance underscores the importance of stock selection, with investors needing to focus on specific product pipelines rather than industry beta. The bottoming of ANDA applications may signal easing competitive pressures ahead, though rising complex product shares imply higher barriers. The current benign regulatory environment supports Indian firms in maintaining manageable compliance costs. Sun Pharma's slowing specialty growth warrants caution regarding new product ramp-up risks.

Risks

• Supply constraints facing Cipla and others
• Intensifying generic competition for some products
• Fluctuations in USFDA inspection rates
• New product launch traction falling short

What to watch

• Sustainability of FY26 ANDA application recovery
• Sun Pharma's new product Leqselvi subsequent ramp-up
• Changes in USFDA inspection OAI rates
• Trends in complex product ANDA application share