Sun Pharma hit; US cancer drug supply contact may end
Shares in Sun Pharmaceutical Industries fall 1.6 percent on worries the drug maker will soon see an end to its temporary arrangement to supply a cancer drug in the United States.
October 19, 2012 / 13:07 IST
Shares in Sun Pharmaceutical Industries fall 1.6 percent on worries the drug maker will soon see an end to its temporary arrangement to supply a cancer drug in the United States.
Janssen Biotech, a unit of Johnson & Johnson's , said on Monday it would resume supplies of 20 mg dosages of Doxil, which treats ovarian and other cancers. The US healthcare firm had suspended supplies following the manufacturing disruption from a third party supplier.Sun Pharma had been supplying an alternative version of Doxil called Lipodox in the United States under a temporary arrangement with the Food and Drug Administration.Brokerage Edelweiss estimates Sun's US sales of Lipodox had reached around USD 110-120 million, with 90-95 percent EBITDA margins, during the temporary period."Though this opportunity was short term and the resumption was anticipated by end 2012, the timing of the same was uncertain. Nevertheless, this ends a lucrative short term opportunity for Sun," Edelweiss said in a email to clients.Sun Pharma declined to comment. 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!
