Sun Pharma to acquire InSite Vision; stock gains 2.3%

Moneycontrol BureauShares of Sun Pharmaceutical Industries rose 2.3 percent intraday Wednesday as its subsidiary has entered into an agreement for acquisition of InSite Vision.InSite Vision focuses on developing new specialty ophthalmic products, including three late stage programs. Sun Pharma is in the process of establishing a branded ophthalmic business in the US and these deals will give access to four late stage branded ophthalmic products in the US. For the 6-month period ended June 30, 2015, InSite Vision recorded revenues of USD 3.8 million, an EBITDA loss of USD 6.4 million and a net loss of USD 7.5 million. The share has been in limelight post the company's subsidiary Taro launching Keveyis which is used to treat periodic paralysis.Credit Suisse has built in USD 100 million in sales for Keveyis in FY17. “Taro launched Keveyis at a high price of USD 163.8 per tablet of 50mg. This implies annual cost of USD 120,000 per patient. The size of the drug depends on how many patients shift to Keveyis. Super set is 5000 in the US and blue sky peak sales could be USD 600 mn,” the brokerage firm says in a note.At 09:42 hrs Sun Pharmaceutical Industries was quoting at Rs 885, up Rs 18.30, or 2.11 percent on the BSE.Posted by Rakesh Patil