Follow Us:
Wednesday, February 19, 2020

Sun Pharma shares at record high,hopes of higher sales in key cancer drug

Firm is likely to sale more Doxil after Johnson & Johnson announced shortage in the key cancer drug.

Written by Reuters | Mumbai | Published: September 26, 2013 11:44:13 am

Sun Pharmaceuticals Industries Ltd was at an all-time high of Rs 587 on Thursday on hopes of higher sales of its key cancer drug,Doxil,after innovator Janssen Pharmaceuticals Inc,a unit of Johnson & Johnson (J&J) said on Wednesday the drug will likely be in short supply in the coming weeks.

The expected shortage in supply is due to an interruption from the company’s own supplier,Ben Venue Laboratories Inc,J&J said.

Related: Sun Pharma to benefit as rival ups guidance

J&J cannot provide an estimate of when the cancer drug would be available again and has advised healthcare providers to contact Sun Pharma.

Analysts tracking the sector say Sun Pharma already has 50 per cent of the market share in this drug,which will get a further boost after this development.

Related: Sun Pharma to pay Rs 2,517 crore to settle patent suit

Credit Suisse initiates coverage on the company’s unit,Taro Pharmaceutical Industries Ltd with an “outperform” rating and a target of $85,saying improving growth visibility,was seen helping the shares.

At 1117 am,Sun Pharma shares are up 2.87 per cent.

The company has continued its leadership in branded generics-chronic therapy in the country. Sales of branded prescription formulations in India grew by 44 percent at Rs 849 crore in first quarter of Fiscal Year 2014.

Sun Pharma holds 5.1 per cent market share in the Rs 72,000 crore Indian pharmaceutical market. The company reported strong performance led by Sun portfolio in the US formulations market. Sales in the US were at USD 364 million for the quarter,up by 28 percent,accounting for 58 per cent of total sales.

The company has made consolidated R&D expense of Rs 205 crore,at 6 per cent of sales in first quarter of FY 2014. Its total number of patent applications submitted now stands at 791,with 503 patents granted so far.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.