Sun Pharma may get windfall gains on cancer drug Doxil
The company began supplying Doxil on Special FDA importation last year owing to shortages in the US and finally received approval in Feb 2013 becoming the only other player besides the innovator in the space.
September 26, 2013 / 15:55 IST
One loss might be another one’s gain and that is applicable for Sun Pharma today. The stock is up on news that the company might reap windfall gains on one of its US drugs Doxil generic used for cancer.
Reason being, Johnson and Johnson the innovator of Doxil is facing supply disruptions due to production issues at Ben Venue, its manufacturing partner. This means Sun Pharma will become the sole supplier in the US benefiting till J&J supplies resume (which the company said they have no current visibility on).Also Read: Sun Pharmaceuticals files ANDAs for 4 products in Q1FY14Analysts are optimistic on this opportunity and are of the opinion that Sun could repeat last year’s success with Doxil generic this year for example, JPM expects further gains to the US business that is estimated to grow an already robust 25% in FY14 to USD 1.4 billion (Sun sold USD 120 million worth of Doxil in CY12 and USD 63 million YTD in CY13). On a side note, this drug seems to be lucky for Sun Pharma. The company began supplying the drug on Special FDA importation last year owing to shortages in the US and finally received approval in Feb 2013 becoming the only other player besides the innovator in the space. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
