Sun Pharmaceutical Industries Limited , one of India's leading pharmaceutical companies, has announced a significant expansion into the Chinese market with the establishment of a new subsidiary. The move marks a strategic step for the company as it seeks to strengthen its global presence and tap into one of the world's largest pharmaceutical markets.

New Subsidiary Details

According to a regulatory filing, Sun Pharma has incorporated a new subsidiary named Sun Pharma (Hainan) Company Limited in China. The subsidiary was officially registered on July 16, 2025, as per the company's intimation to the stock exchanges under SEBI regulations.

Strategic Objectives

The primary objective of this new subsidiary is to facilitate the localization of Sun Pharma's products in China. As stated in the regulatory filing, the newly set-up company will focus on:

• Localizing products for the Chinese market
• Collaborating with prospective partners in China for production
• Conducting sales locally within the Chinese market

This move aligns with Sun Pharma's global expansion strategy and its aim to establish a stronger foothold in key international markets.

Ownership and Structure

Sun Pharmaceutical Industries Limited will maintain full control over the new subsidiary, owning 100% equity either directly or through its existing subsidiaries. This structure ensures that Sun Pharma retains complete oversight of its operations in China.

Market Implications

The establishment of a dedicated subsidiary in China represents a significant opportunity for Sun Pharma:

1. Market Access: It provides direct access to the vast Chinese pharmaceutical market, potentially boosting the company's global revenue streams.
2. Local Production: By localizing production through partnerships, Sun Pharma can potentially reduce costs and adapt more quickly to local market demands.
3. Regulatory Compliance: A local presence may help navigate China's complex regulatory environment more effectively.

Industry Context

This expansion comes at a time when many global pharmaceutical companies are looking to increase their presence in China. The country's growing healthcare sector, large population, and increasing focus on healthcare reform make it an attractive market for pharmaceutical investments.

Sun Pharma's move into China demonstrates the company's commitment to global growth and its ability to identify and act on strategic opportunities in key markets. As the company establishes its operations in China, industry observers will be keen to see how this expansion impacts Sun Pharma's overall performance and market position in the coming years.

The company has not disclosed financial details or specific product plans for the new subsidiary at this time. Investors and industry analysts will likely watch closely for further updates on Sun Pharma's Chinese operations and their impact on the company's global strategy.

Sun Pharmaceutical Industries Limited (Sun Pharma) has made two significant announcements regarding its novel drug LEQSELVI™ (deuruxolitinib), marking important milestones for the company's dermatology portfolio.

Settlement with Incyte Corporation

Sun Pharma has reached a settlement and license agreement with Incyte Corporation, resolving the ongoing litigation related to LEQSELVI™. As part of the agreement:

• Both parties will seek dismissal of the pending litigation in the United States District Court for the District of New Jersey.
• Incyte has granted Sun Pharma a limited, non-exclusive license to U.S. Patent Nos. 9,662,335 and certain related patents for oral deuruxolitinib in specific non-hematology-oncology indications, including alopecia areata, in the United States.
• Sun Pharma will make upfront and ongoing royalty payments to Incyte until the expiry of the patents.

The specific financial terms of the settlement remain confidential.

US Launch of LEQSELVI™

Sun Pharma has launched LEQSELVI™ (deuruxolitinib) in the United States for the treatment of adults with severe alopecia areata. Key points of the launch include:

• LEQSELVI™ is now available for prescription nationwide, offering a new treatment option for eligible patients.
• The drug is an oral selective inhibitor of Janus kinases JAK1 and JAK2.
• In clinical trials, LEQSELVI™ demonstrated rapid and significant results:
  • One-third of patients regained almost all of their hair by Week 24.
  • Some patients (3%) achieved 80% or more scalp coverage as fast as 8 weeks.

Richard Ascroft, CEO of Sun Pharma North America, stated, "The launch of LEQSELVI in the U.S. brings an effective, new treatment option for severe alopecia areata to eligible patients and the healthcare providers who treat them."

About Alopecia Areata

Alopecia areata is an autoimmune disease causing partial or complete hair loss on the scalp and body. It affects up to 2.50% of the United States and global population during their lifetime, with significant psychological impacts on patients.

Patient Support Program

Sun Pharma has introduced the LEQSELVI SUPPORT™ Program to enhance accessibility:

• Eligible patients can receive their medication for as little as $0 for up to two years.
• The program provides access to a dedicated Patient Access Liaison for personalized support.

Safety Information

While LEQSELVI™ offers new hope for alopecia areata patients, it comes with important safety considerations. The drug may cause serious side effects, including infections, malignancies, thrombosis, and gastrointestinal perforations. Patients and healthcare providers are advised to review the full prescribing information, including boxed warnings.

These developments represent significant progress in Sun Pharma's specialty pharmaceutical portfolio, particularly in the dermatology segment. The resolution of the patent litigation and the subsequent launch of LEQSELVI™ in the US market position Sun Pharma to potentially capture a significant share in the treatment of severe alopecia areata.