Moneycontrol Bureau
Shares of Sun Pharmaceutical Industries gained 2.8 percent intraday Tuesday. Brokerage Credit Suisse said the drug maker has taken price increases in six of Ranbaxy's branded products in the US in May 2015.
On an annualised basis, price increases could boost sales and EBITDA (earnings before interest, tax, depreciation and amortisation) by USD 45 million and the benefit of higher prices should be visible in the September 2015 quarter, said the brokerage in its note.
At Halol, IMS sales were flattish on month-on-month basis while Taro sales were down 5 percent in May compared to April due to lower clobetasol sales as market share declined from 25 percent in March 2015 to 18 percent now. Loss in clobetasol should be offset by recent price rises in desoximetasone and diflorasone, said Credit Suisse.
According to the report, Hyderabad-based Dr Reddy's Labs also has taken a 15 percent price increase in Sumatriptan Autoinjector on June 2, 2015. Additionally the impact of recent product recalls (anti-seizure drug Divalproex and anti-hypertension drug Amlodipine & Atorvastatin) should be low as Bachupally plant has already cleared FDA inspection in April 2015, it believes.
The company has recalled 6 lots of anti-hypertension drug Amlodipine Besylate & Atorvastatin calcium tablets in the US and 4 lots of anti-seizure drug Divalproex.
Meanwhile, according to IMS data, Cadila has maintained the sales run-rate on Hydroxychloroquibe Sulphate (HCQS), the anti-malarial drug. The brokerage highlighted last week that Ranbaxy re-launched HCQS only at a 20 percent discount, which for Cadila means lower price erosion and higher share retention. This could boost Cadila's FY16 EBITDA by 10 percent.
At 11:11 hours IST, the scrip of Sun Pharmaceutical Industries was quoting at Rs 869.35, up Rs 19.70, or 2.32 percent. Cadila Healthcare gained 2.52 percent at Rs 1,755 whereas Dr Reddy's Laboratories fell 0.12 percent to Rs 3,516.55 on the Bombay Stock Exchange.
Posted by Sunil Shankar Matkar
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