The combined entity will enable the company to better serve the needs of patients, healthcare professionals and customers around the world
The acquisition of 8,086,818 shares (21.52 per cent) will be at the cost of Rs 2,891.76 crore, Sun Pharma said.
Progress in the Specialty pipeline will be a key watch as the company has stepped up R&D investments
Elevated promotional/travel expenses and increased competitive intensity would weigh on margins
Overall, traction for specialty products for Sun Pharma got a helping hand from the leading products Ilumya, Cequa, Levulan and Absorica
All generic pharmaceutical companies across the world and those involved in the distribution of generic drugs in the USA have seen their market value eroding sharply.
Sun Pharma is n focus after Taro, its US arm, reports a 30 percent decline in net sales. In an interview to CNBC-TV18, Amey Chalke, Research Analyst at HDFC Securities shared his readings and outlook on the same as well as on some other pharma stocks.
Wockhardt, Sun Pharma, Tara, Novartis and other pharma company Perrigo are also in focus on account of reports from the US that there are lawsuits filed by Unions representing the New York Police Department on price collusion of two dermatology products.
Healthcare major Sun Pharmaceutical Industries' second quarter profit is seen rising 52.3 percent year-on-year to Rs 1,685 crore on strong operational performance.
Pharma stocks, especially which have large exposure to United States, saw knee-jerk reaction on Friday after a media report indicated that US prosecutors are undertaking an investigation into the suspected price collusion.
However, higher competition in Taro's products, re-inspection of Halol resulting in more observations which could delay earnings recovery from the Halol plant may pose threat to the company.
InSite Vision focuses on developing new specialty ophthalmic products, including three late stage programs.
Credit Suisse has build 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.
BoAML is betting big on Indian pharma companies as weak rupee is positive for the sector. It says Cadila, Aurobindo and Lupin are the biggest beneficiaries of a weak rupee while Sun Pharma would see a moderate impact as it has global operations.
Brokerage Credit Suisse said Sun Pharma has taken price increases in six of Ranbaxy's branded products in the US in May 2015.
Sarabjit Kour Nangra, VP- Research, Angel Broking, believes it to be the Ranbaxy effect. However, she says 14.5 percent is very low, because after consolidation she was looking at closer to 30 percent.
Shares of Sun Pharmaceutical Industries and Ranbaxy Laboratories gained 2.5 percent each intraday on Thursday on news the Sun has formed new leadership team for merged entity.
While the leadership team is comprised mainly from the representatives of Sun Pharma, it also has executives from Ranbaxy, drawing upon expertise, experience and contribution of the chosen leaders from both the organisations.
In April last year, the 28-member European Union had temporarily banned import of Alphonso mangoes. It also banned import of four vegetables - taro, bitter gourd, snake gourd and eggplant - from India from May 1, 2014. Export of Indian mangoes to the EU during 2012 and 2013 were valued at USD 6.73 million and USD 10.09 million, respectively.
The company has grown faster than the market in India and would be focused on research and development (R&D) spends going forward, said Uday Baldota, CFO, Sun Pharma.
2014 was a glitzy year for this man. With a net worth of USD 18 billion, 59-year-old Shanghvi became the second richest man in India, out-ranking Lakshmi Mittal on the Forbes India Rich List this year. Sun Pharma, a small start-up in 1983, leapfrogged to become the largest pharma company in India and fifth largest in the world.
The pharma major is hopeful of maintaining its revenue growth guidance of 13-15 percent for FY15 though the margins may get impacted marginally.
Sun Pharma for its second quarter ended September 2014 a net profit of Rs 1,362 crore during the same period of previous fiscal.
Taro's gross profit, as a percentage of net sales, was at 79 percent compared to 77.7 percent. During the quarter, operating income increased USD 40.0 million to USD 160.3 million, or 63.9 percent of net sales, compared to 58.6 percent of net sales.
Sun Pharma has also received US FDA for its Abbreviated New Drug Application (ANDA) to market a generic version of Temodar, Temozolomide Capsules, 5 mg, 20 mg, 100 mg, 140 mg, 180 mg and 250 mg.