Stock prices of Sun Pharmaceutical Industries Ltd flared up on Thursday on the back drop of the company getting US FDA approval for a dermatology product.
According to a research analyst at Angel Broking, the proposed drug may contribute around $50-80 million to the annual sales of the company for a net profit around US$ 25-40 million.
The company's scrip opened at the BSE at Rs.948 against its closing price of Rs.927.25 on Wednesday.
Sun Pharmaceuticals on Wednesday said the US Food and Drug Administration (FDA) approved its supplemental new drug application (sNDA) for Ximino (Minocycline HCI) extended release capsuls 45 mg, 90 mg and 135 mg.
According to the company, Ximino extended release capsules are indicated for inflammatory lesions of on-nodular moderate to sever acne vulgaris in patients 12 years and above.
This approval further strengthens the company's branded dermatology portfolio in the US.
Sun Pharmaceuticals said it expects Ximino extended-release capsules to be available for patients during the fourth quarter of 2015.
According to Sarabjit Kour Nangar, vice president research-pharma at Angel Broking, the US market is the largest market for the global acne products with about 50 million suffering from acne in the country.
As of January 31, 2015 is a $3-billion market in the US-branded prescription market.
The market is split between oral antibiotics ($1.7 bn in sales) or lotions, creams and ointments ($1.3 bn in sales), Nangar said.
The acne market is so fragmented that numerous companies are selling hundreds of millions worth of drug treatments.
"Thus, the landscape is very competitive, with no dominant leader. The most prominent brand in the US Solodyn has the US sales of US$ 300-400 million. Thus, the product can garner decent sales from the product," Nangar said.
However, given the generic competition, conservatively we estimate the product can contribute around US$ 50-80 mn to the annual sales of the company, with net profit around US$ 25-40 mn, Nangar added.
