Moneycontrol Bureau
Shares of Sun Pharmaceutical Industries rallied 2.75 percent in intraday trade to touch a record high of Rs 597.30 on Friday. CLSA has advised buying the stock with a target price of Rs 675 apiece. The brokerage house sees benefit from Doxil (cancer treatment drug) shortage in the US and expect the company to make more than USD 150 million from this product in FY14. Johnson and Johnson (J&J), the innovator of Doxil, is facing supply disruptions due to production issues at Ben Venue, its manufacturing partner. It 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). CLSA also revised its earnings estimates for FY14 by 2-4 percent. According to the report, strong pipeline in the US will drive street upgrades. Meanwhile, JP Morgan expects further gains to the US business that is estimated to grow an already robust 25 percent in FY14 to USD 1.4 billion (Sun sold USD 120 million worth of Doxil in CY12 and USD 63 million YTD in CY13).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!
