Sun Pharma shares rise 2% as US patent settlement clears path for Leqselvi launch; Morgan Stanley remains overweight

Shares of Sun Pharma rose 2 percent to Rs 1,711 in morning trade on July 15, extending their gains for a third straight session. The rally comes after the company settled a patent dispute with US-based Incyte Corporation, clearing the path for the immediate launch of LEQSELVI (deuruxolitinib) in the US. As part of the settlement, Sun will make an upfront payment along with ongoing royalties. LEQSELVI is used to treat severe alopecia areata, an autoimmune disorder that causes hair loss.

The agreement stipulates that both parties will seek dismissal of the pending LEQSELVI litigation in the US District Court for the District of New Jersey. It will mutually release all claims that were or could have been raised in the litigation.

Follow our LIVE blog for all the latest market updates

Following the development, Morgan Stanley maintained its 'Overweight' rating on Sun Pharma with a target price of Rs 1,960 per share, implying an upside potential of 16.4 percent from the last close of Rs 1,683 per share. As part of the settlement, Incyte granted Sun a limited license for non-oncology uses, including alopecia areata. The US launch and resolution of litigation are seen as positive developments, reinforcing Morgan Stanley's bullish stance. The brokerage projects Leqselvi sales at $61 million for FY26 and $83 million for FY27.