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Moving along with the upbeat mood in stock market, where Sensex has crossed 19,000 points, shares of Sun Pharma, the largest Indian pharma company by market value, touched a a 52-week high of Rs 943.8 on BSE.
The shares went up 3% from the previous close price of Rs 916. The reasons of recent ANDA approvals at the US market are attributed for the stock movements. Currently, Sun Pharma has a market capitalisation of Rs 96,042 crore.
Other pharma stocks such as Aurobindo Pharma, Lupin, Biocon and Wockhardt went up in range of 0.5 to 1.6% on BSE.
On last Monday, Sun Pharma had received tentative approvals from US Food and Drugs Administration (USFDA) for its Abbreviated New Drug Applications (ANDA) for generic version of Januvia (Sitagliptin) tablets and Glumetza (Metformin HCl) extended-release tablets. Sitagliptin tablets, used for type-2 diabetes treatment, have annual sales of approximately $ 2.7 billion, while Metformin HCl Extended-release tablets have annual sales of approximately $ 140 million in the US.
Apart from the tentative approvals, Sun's Israeli subsidiary - Taro Pharma has received a New Drug Application (NDA) approval of Topicort (corticosteroid spray form 0.25%) by US FDA used in treating plaque psoriasis. The current US Sales for corticosteroid spray is about $100 million.
Taro is presently selling the drug in topical form (0.25%, 0.05%) cream, gel and ointment which is already facing generic competition from companies like Perrigo and Fougera.
A report from SBI Cap Securities said, "Topicort spray (high potency) should be an effective alternative to other forms of topical corticosteroids or expensive phototherapy, laser, or medical treatments given its convenience of use. We see an upside risk from the product approval and will await first set of IMS data to understand the market acceptance."
