Views on Sun Pharma announces US FDA approval for generic Gleevec: Angel Broking

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

Sun Pharma announces US FDA approval for generic Gleevec:

"Sun Pharmaceutical Industries announced that one of its subsidiaries has received final approval from US FDA for its Abbreviated New Drug Application (ANDA) for generic version of Gleevec®, Imatinib Mesylate tablets 100mg and 400mg. Imatinib Mesylate tablets, 100 mg and 400 mg are therapeutic equivalents of Novartis' Gleevec® tablets.

As per IMS MAT August 2015, these tablets have annual sales of approximately US$ 2.5 billion in the US. These tablets are indicated for the treatment of chronic myeloid leukemia. The Sun Pharma subsidiary, being the first-to-file an ANDA for generic Gleevec® with a Para-IV certification, is eligible for 180-days marketing exclusivity in the US. Under the terms of a settlement agreement with Novartis, the Sun Pharma subsidiary is permitted to launch its version of generic Gleevec® in the United States on February 1, 2016. On a conservative basis, the product can easily contribute sales of around US$ 250-300mn during the six-month exclusivity and net profit of around US$ 75-90mn during the period. The product can easily enhance the EPS of the company in FY2017 by 8-9%. We recommend a BUY with a price target of INR 1000."

Shares of SUN PHARMACEUTICAL INDUSTRIES LTD. was last trading in BSE at Rs.758.05 as compared to the previous close of Rs. 756.55. The total number of shares traded during the day was 197662 in over 6620 trades.

The stock hit an intraday high of Rs. 766 and intraday low of 748.85. The net turnover during the day was Rs. 149481852.

Source : Equity Bulls

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