BUZZ-Street view: India's Sun Pharma acquisition of Aurobindo and psoriasis drug are risk factors

November 2 - ** Pharmaceutical company Sun Pharma's SUN.NS second-quarter profit fell by nearly 36% due to a one-off expense from the Organon acquisition (link)

** Excluding this expense, profit rose by 6.3%

** Share price fell 1.1%, closing at 1,759.4 rupees

Analysts focus on issues related to Organon and ILUMYA

** Systematix (maintains "Buy" rating; target price 2,290 rupees) stated that strong performance across regions was driven by growth in prescription drugs, increased market share, and new product launches, pushing both revenue and EBITDA above expectations

** Growth in the innovative product portfolio is expected to return to double digits, with new product launches expected to generate about $1 billion in sales

** Nomura Securities ("Buy"; target price 2,260 rupees) pointed out that sales, EBITDA, and adjusted net profit all exceeded its expectations; believes the recovery of psoriasis drug ILUMYA in the US will be supported by corrective measures and other approvals

** Emkay Global (assigned "Add" rating; target price 2,000 rupees) takes a cautious stance on ILUMYA amid increasing competition, but expects the US market slowdown to be only temporary

** ICICI Direct stated that the integration of Organon faces challenges, with limited short-term growth potential and a high leverage ratio; however, it remains cautiously optimistic about Sun's acquisition track record

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