NEW DELHI: The June quarter earnings should be weak for Cadila Healthcare and Lupin with sharp declines in the US sales on a QoQ basis, said global brokerage firm Credit Suisse (CS).

It says Cadila’s US sales will decline 20 per cent due to seasonality impact of Tamiflu drug and market share loss to Teva on Lialda, which is used to treat inflammatory bowel disease.

Sun Pharmaceutical, India’s largest drug maker, and Mumbai-based Cipla should report sequentially improving margins with higher contribution from domestic business, the brokerage said.

India sales growth for Cipla to be 25 per cent YoY on a low base of goods and services tax, while US sales should grow 3 per cent QoQ with increasing market share in asthma-related drug Pulmicort and anti-cancer chemotherapy drug Decitabine.

For Dr Reddy’s Laboratories, suboxone, which is used to treat opioid addiction, acute pain, and chronic pain, should mask off weakness in base business, the brokerage said.

CS expects “lacklustre” quarter for Aurobindo Pharma, while higher Unichem growth and margins are expected for Torrent Pharmaceuticals.

Nifty Pharma index is down 4 per cent this year as of Friday, compared with 2 per cent gain in the broader index.