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.
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).
Analysts 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.
Sun Pharma stock price
On October 30, 2014, Sun Pharmaceutical Industries closed at Rs 829.10, down Rs 0.85, or 0.1 percent. The 52-week high of the share was Rs 877.40 and the 52-week low was Rs 552.50.
The company's trailing 12-month (TTM) EPS was at Rs 1.46 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 567.88. The latest book value of the company is Rs 35.77 per share. At current value, the price-to-book value of the company is 23.18.
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