Sun Pharma gains further on Credit Suisse overweight report

Sun Pharmaceutical Industries gained as much as 1.65 percent intraday on Wednesday as the research firm Credit Suisse maintained an overweight rating on the stock with a target price of Rs 840.

"The Doxil opportunity is still under-appreciated by the market, as it's likely to remain a low competition product and now becomes part of the base business," Credit Suisse reasoned.

Shares rose for the second consecutive session today after the US Food and Drug Administration approved its generic version of ovarian cancer drug Doxil made by Johnson & Johnson in the US market.

"Doxil generic approval came in as a positive surprise. This would add USD70-USD 100m in high margin sales for FY14 until further generic competition comes in," CLSA said in a note on Tuesday.

Other positive news for the stock was that its subsidiary Taro Pharmaceutical Industries posted a 42 percent growth in October-December net profit.

At 11:06 hours IST, shares rose 0.63 percent to Rs 752 on Bombay Stock Exchange.

(With inputs from Reuters)

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