MUMBAI, India, October 25 /PRNewswire/ —
– Q2FY09: Net Sales Up 76%, Net Profit Up 135%

Sun Pharmaceutical Industries Ltd. (Reuters: SUN.BO,
Bloomberg: SUNP IN, NSE:SUNPHARMA, BSE: 524715) reported strong growth for
the second quarter ending Sep 30, 2008.

There is significant one-time sales and profit component in
these financials linked to the sales of products that enjoy limited duration
marketing exclusivity in the US.

Highlights of Q2 FY09 consolidated financials

– Net sales increased 76% to Rs. 11,778 million, from Rs. 6,679 million
in Q2 FY08
– US generics sales increased by 195% over the second quarter last year
to USD 122 million
– International sales grew at 141% over Q2 FY08
– Operating margin (EBIT margin) increased to 43%
– Net profit at Rs. 5,128 million is an increase of 135% compared to Q2
last year

Highlights of H1 FY09 consolidated financials

– Net sales increased 71% to Rs. 22,196 million, from Rs. 12,954 million
in H1 FY08
– US generics sales increased 200% over same half last year
– International sales grew at 138% over Q1 FY08; contribute 59% of total
sales
– Operating margin (EBIT) increased to 46%
– Net profit at Rs. 10,142 million is an increase of 128% compared to H1
last year

These results were taken on record by the Board of Directors
at a meeting held in Mumbai today.

According to Dilip Shanghvi, Chairman and Managing Director of
the Company, “We’ve had strong performance across all our business segments.
Our generic business in the US, the branded prescription businesses in India
and international markets continue to post steady growth. This performance
validates our belief in the potential for these markets and the investments
we have made in setting up, nurturing and expanding these businesses.”

India formulations – Leadership through focus

Sales of branded prescription formulations in India were at
Rs. 4,473 million for the second quarter, a growth of 20% over the same
quarter last year, contributing 37% of total sales. For the first half,
domestic formulation sales were at Rs. 8,769 million, an increase of 19% over
first half last year.

Sun Pharma holds 3.4% market share in the highly competitive
pharma market, as per latest IMS ORG report. 9 key products were launched
during the quarter, taking the total for H1 to 16.

US Generics – Profitable growth in a tough market

Sun Pharma continues to sell generic Protonix and Ethyol,
products that were Company’s “at-risk” launches. This quarter and half year
too, these launches had a one-off effect on the US generic sales and profits.

Sun Pharma subsidiary, Caraco Pharmaceutical Industries, Ltd
(Amex: CPD), recently announced Q2 FY09 sales of USD 122 million, up 195%
from USD 41 million for Q2 FY08. Caraco recorded a net income of USD 8.4
million for Q2 FY09. For the first half, Caraco reported sales of USD 230
million and net income of USD 18 million.

Between Sun Pharma and Caraco, ANDAs for 61 products are now
approved. In the second quarter, ANDAs for 10 products have been filed, of
which 7 are from Sun Pharma, and 3 from Caraco. With this, in the first half
ANDAs for a total of 15 products have been filed. During the second quarter,
ANDAs for 3 products from Sun Pharma have been approved. Counting this, ANDAs
for 96 products now await USFDA approval, including 7 tentative approvals.
This pipeline is expected to build revenues for our US generic business in
the years ahead.

Research – Building the future

Consolidated R&D expense for Q2 FY09 is Rs 884 million, or
7.5% of net sales. For the first half, the consolidated R&D expense is Rs.
1,626 million, or 7.3% of net sales.

A cumulative of 117 DMF / CEP applications have been made,
with 61 approved so far. The total number of patent applications submitted
for Sun Pharma now stands at 228 with 72 patents granted so far.

Update on Taro

Sun Pharma has been successful in its defense of the
litigation brought against it in the Tel-Aviv District Court by Taro and
certain of its directors. Honorable Judge Dr. Michal Agmon-Gonen J. of the
The Tel-Aviv District Court rejected Taro’s contention that Sun Pharma should
have conducted a “special tender offer” under Israeli Law. The plaintiffs
have appealed this decision in the Supreme Court of Israel which temporarily
prohibited closing of the Tender Offer until it issues a decision on the
appeal. As a result, this Tender Offer that was launched soon after exercise
of the option to buy shares from the current promoters of Taro and originally
scheduled to expire on July 28th 2008, has now been extended till Nov 7th
2008 and if required, will be extended further.

Earnings call

The Company will conduct an hour long call at 6.30 pm IST on
October 25, 2008 where senior management will discuss the Company’s
performance and answer questions from participants. To participate in this
conference call, please dial the numbers provided below five to ten minutes
ahead of the scheduled start time. The dial-in numbers for the call are +91
22 6629 0101, +91 22 3065 1010 and +91 22 4039 2525. The operator will
provide instructions on asking questions before the call. A replay of this
call will also be available till November 6, 2008 (ID 786742 # +91 22 3065
1212.) You can also hear the call via an audio webcast, details of which are
available on the Company website, http://www.sunpharma.com. The transcript of
the conference call will be put up on the website.

About Sun Pharmaceutical Industries Ltd.

Established in 1983, listed since 1994 and headquartered in
India, Sun Pharmaceutical Industries Ltd. (Reuters: SUN.BO, Bloomberg: SUNP
IN, NSE:SUNPHARMA, BSE: 524715) is an international, integrated, speciality
pharmaceutical company. It manufactures and markets a large basket of
pharmaceutical formulations as branded generics as well as generics in India,
US and several other markets across the world. In India, the company is a
leader in niche therapy areas of psychiatry, neurology, cardiology,
diabetology, gastroenterology, and orthopedics. The company has strong skills
in product development, process chemistry, and manufacturing of complex API,
as well as dosage forms. More information about the company can be found at
http://www.sunpharma.com.
Sun Pharmaceutical Industries Ltd.

Contacts: Uday Baldota, Tel: +91-22-6645-5645, Xtn 605, Tel Direct: +91-22-66455605, Mobile: +91-98670-10529, Email: uday.baldota@sunpharma.com; Mira Desai, Tel: +91-22-6645-5645, Xtn 606, Tel Direct: +91-22-66455606, Mobile: +91-98219-23797, Email: mira.desai@sunpharma.com