Views on Sun Pharma announce US FDA approval for Ximinoâ„¢ - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking)

Sun Pharma announces US FDA approval for Ximinoâ„¢:

"Sun Pharmaceutical today announced that the U.S. Food and Drug Administration (FDA) has approved its Supplemental New Drug Application (sNDA) for Ximinoâ„¢ (Minocycline HCl) extended-release capsules 45 mg, 90 mg and 135 mg. Ximinoâ„¢ extended-release capsules are indicated for inflammatory lesions of non-nodular moderate to severe acne vulgaris in patients 12 years of age and older. This approval further strengthens the Company's branded dermatology portfolio in the US. It expects Ximinoâ„¢ extended-release capsules to be available for patients during the fourth quarter of 2015.

The US market is the largest market for the global acne products with about 50mn suffering from acne in the country. As of January 31, 2015 is a $3.0bn market in the US branded prescription market. The market is split between oral antibiotics ($1.7bn in sales) or lotions, creams and ointments ($1.3bn in sales).The acne market is so fragmented that numerous companies are selling hundreds of millions worth of drug treatments. Thus, the landscape is very competitive, with no dominant leader. The most prominent brand in the US Solodyn has US sales of US$ 300-400mn. Thus, the product can garner decent sales from the product. However given the generic competition, conservatively we estimate the product can contribute around US$ 50-80mn to the annual sales of the company, with net profit around US$ 25-40mn. We remain NEUTRAL on the stock."

Shares of SUN PHARMACEUTICAL INDUSTRIES LTD. was last trading in BSE at Rs.935.65 as compared to the previous close of Rs. 927.25. The total number of shares traded during the day was 540149 in over 18494 trades.

The stock hit an intraday high of Rs. 965.15 and intraday low of 931.5. The net turnover during the day was Rs. 514424164.

Source : Equity Bulls

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