Moneycontrol Bureau
Shares of Sun Pharmaceutical Industries have rallied 2.7 percent in early trade Friday. CLSA has maintained buy rating on the stock as it expects 72 percent year-on-year growth in FY17 earnings per share of the company.
According to the brokerage, it is a high conviction idea in Indian pharma space.
CLSA says Sun's FY17 EPS will be driven by Gleevec generic launch in the United States & synergy benefits with Ranbaxy that merged with effect from April 2015.
In December, the pharma major received approval from the USFDA for abbreviated new drug application (ANDA) for generic version of Gleevec, Imatinib Mesylate tablets 100mg and 400mg. These tablets are indicated for the treatment of chronic myeloid leukemia.
According to the brokerage, other catalysts for company's growth include early resolution of Halol warning letter, potential clearance of Ranbaxy’s Mohali plant and positive phase III data read of novel psoriasis drug Tildrakizumab.
It expects Sun Pharma to look at acquisition of mid size companies. Aim of acquisition by the company is to built presence in US speciality market, it feels.
Additionally, its subsidiary Sun Pharma Global has received tentative approval from the US Food and Drug Administration for anti-epileptic drug Lacosamide.
At 09:34 hours IST, the scrip of Sun Pharmaceutical Industries was quoting at Rs 800.40, up Rs 16.40, or 2.09 percent on the BSE.Posted by Sunil Shankar Matkar
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