Specialty drugs essential for re-rating of Sun Pharma stock, say analysts

Analysts say, Tuesday's launch of ophthalmic specialty product Cequa can achieve peak sales of $100-125 million per annum

Sun Pharma continues to expand its specialty product pipeline in the US to drive growth, even as the generics business continues to feel pricing pressure. The firm on Tuesday launched its ophthalmic specialty product Cequa, used for treating dry eyes.

The market size for the product is about $1.6 billion per annum, split currently between two players. Cequa, given its better effectiveness and faster onset of action, could gain 10-15 per cent market share and better pricing, compared to generic variants of its existing brand, said analysts.

Cequa, if priced well, has the potential to generate $100-125 million peak sales