Sun Pharmaceutical Industries rose 2.21% to Rs 624.80 at 11:49 IST on BSE after the company said it has settled legal dispute with Novartis Pharmaceuticals in the US on a generic version of patented leukemia drug Gleevec.
The company made the announcement before trading hours today, 15 May 2014.
Meanwhile, the BSE Sensex was down 64.66 points, or 0.27%, to 23,750.46.
On BSE, so far 85,000 shares were traded in the counter, compared with an average volume of 2.03 lakh shares in the past one quarter.
The stock hit a high of Rs 629.50 and a low of Rs 614 so far during the day. The stock hit a record high of Rs 653.10 on 3 March 2014. The stock hit a 52-week low of Rs 458 on 13 June 2013.
The stock had underperformed the market over the past one month till 14 May 2014, falling 2.62% compared with 5.24% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.39% as against Sensex's 16.93% rise.
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The large-cap company has an equity capital of Rs 207.12 crore. Face value per share is Re 1.
Sun Pharmaceutical Industries announced that one of its subsidiaries has executed a settlement agreement with Novartis Pharmaceuticals Corporation stipulating a dismissal of the lawsuits filed in the United States against the company regarding submission of an Abbreviated New Drug Application (ANDA) for a generic version of Gleevec, Imatinib Mesylate tablets. These tablets are indicated for the treatment of chronic myeloid leukemia.
Under the terms of the settlement agreement, Sun Pharma's subsidiary may launch its version of generic Gleevec in the United States on 1 February 2016. The other terms of the agreement are confidential. The agreement is subject to customary regulatory approvals.
Sun Pharma's subsidiary holds a tentative approval from the US FDA for its ANDA for a generic version of Gleevec. As per IMS, Gleevec had annual sales of approximately $2 billion in the US. Gleevec is the registered trademark of Novartis Pharmaceuticals Corporation.
Separately, with reference to the news item appearing in the newspaper on 14 May 2014 titled "Sun Pharma moves Supreme Court against stay on Ranbaxy merger", Sun Pharmaceutical Industries clarified after market hours on Wednesday, 14 May 2014, that the facts mentioned under the referred news article are largely true. The company further stated that there is no material impact of the matter on the process of completion of merger of Ranbaxy Laboratories with the company. Sun Pharma and Ranbaxy had announced on 7 April 2014 that they have entered into definitive agreements pursuant to which Sun Pharma will acquire 100% of Ranbaxy in an all-stock transaction.
On a consolidated basis, Sun Pharmaceutical Industries' net profit surged 73.7% to Rs 1531.09 crore on 50.3% growth in net sales to Rs 4286.59 crore in Q3 December 2013 over Q3 December 2012.
Sun Pharmaceutical Industries is an international specialty pharmaceutical company with over 72% sales from global markets. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in US, India and several other markets across the world.
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