UPDATE 1-Sun Pharma Q2 net falls on US unit woes, Cipla soars

* Sun net profit at 4.54 bln rupees vs forecast of 3.77 bln

* Sun says U.S. unit working to gain compliance after seizure

* Cipla net up 83 pct to 2.76 bln rupees; f'cast was 2.86 bln

* Sun shares rise 0.9 pct, Cipla gain 1.6 pct in weak market (Adds details)

BANGALORE, Oct 28 (Reuters) - India's Sun Pharmaceutical Industries (SUN.BO) posted a smaller-than-expected 11.5 percent drop in quarterly profit as the seizure of its U.S. unit's drugs by the regulator on manufacturing violations weighed.

Cipla Ltd (CIPL.BO), another drugmaker, saw its net profit jump 83 percent in the September quarter on a rise in domestic and export earnings and foreign exchange gains.

Chairman Dilip Shanghvi said Sun's U.S. unit, Caraco Pharmaceutical Laboratories (CPD.A), was working towards full regulatory compliance to allow it to resume manufacturing.

In June, U.S. authorities seized all medicines made by generic drugmaker Caraco after health officials said there had been repeated violations of manufacturing standards.

Detroit-based Caraco signed a consent decree with the U.S. Food and Drug Administration in September, under which it cannot resume manufacturing until it gets a written notification from independent experts and the agency to do so.

Caraco's sales in the September quarter fell 36 percent to $78.4 million, hurt by price erosion on distributed products, the FDA's action and the cessation of manufacturing. [ID:nBNG524121]

In August, Sun got FDA approval to launch two generics, including a version of Sanofi-Aventis' (SASY.PA) cancer drug Eloxatin used to treat colon and rectal cancer, that has annual U.S. sales of about $2.3 billion. [ID: nBOM341053]

Sun, India's No. 1 drugmaker by market value, said net profit in July-September, its fiscal second quarter, dropped to 4.54 billion rupees ($96 million) from 5.13 billion a year earlier.

Net sales were 11.85 billion rupees, little changed from 11.78 billion a year earlier. A Reuters poll had forecast a fall in net profit to 3.77 billion rupees on revenue of 10.02 billion.

Global demand for generic drugs from Sun and Indian rivals such as Dr Reddy's Laboratories (REDY.BO), Ranbaxy Laboratories (RANB.BO) and Cipla is booming as nations around the world battle rising healthcare costs.

But the companies are facing stiff price pressure as more drug makers jump into the generics market. Increased scrutiny of manufacturing standards by overseas regulators is also a worry.

The FDA in February said Ranbaxy, 64 percent owned by Japan's Daiichi Sankyo (4568.T), sold misbranded or adulterated drugs in the United States, the firm's largest market, after it had earlier banned imports of more than 30 of its generic drugs.