The USFDA approval for anti-allergic and anti-hypertensive medicines gives a strong boost to the existing pipeline.
Sun Pharma has seen an upside of almost 27 per cent since the start of September 2010, outpacing the BSE Healthcare index’s rise of 17.8 per cent and a 10.7 per cent surge in the Sensex. The move comes on the back of multiple triggers such as acquisition of Taro and healthy September results.
The pharma major’s latest success has come with the US Food and Drug Administration (USFDA) approval last week for the launch of two generics — Desloratadine (anti-allergic tablets) and the anti-hypertensive Diltiazem hydrochloride. Schering Plough’s brand Clarinex (Desloratadine) enjoys sales of around Rs 1,000 crore per annum in the US, while Diltiazem ER capsules, marketed by Biovail Corporation under brand name Tiazac, has an annual sale of around Rs 210 crore per annum.
However, an unfavourable judgment in the US court limiting the launch of schizophrenia drug Aripiprazole till 2015 comes as a setback though the company plans appealing in higher courts. The brand Abilify (Aripiprazole) marketed by Bristol Myers Squibb had generated around Rs 18,100 crore sales in 2009 and is sixth largest selling drug in the US. Analysts say this opportunity lost will be somewhat compensated by the anticancer generic Gemcitabine’s launch this month.
With ANDA approvals in September quarter and including Taro’s approvals, Sun’s filings of ANDA’s now stands at 363 with 146 still awaiting approvals. The company indicates more filings, taking its filings to 30 in 2010-11.
After Taro acquisition, management guidance for revenue growth in 2010-11E has increased to 35 per cent (20 per cent earlier). Analysts at Angel Securities estimate Sun Pharma’s net sales to post a 33.7 per cent compound annual growth rate (CAGR) to Rs 7,336 crore over FY10-12. The stock ended 1.33 per cent higher at Rs 2,269.75 on Tuesday over its previous close despite 1.3 per cent dip in the Sensex. It trades at 21xFY12E earnings estimates.
