Sun Pharma slips despite US FDA approval for a generic

Sun Pharma slips despite US FDA approval for a generic

Sun Pharmaceutical Industries declined 0.65% to Rs 1102 at 9:59 IST on BSE, despite receiving tentative approval from the US Food and Drug Administration for its abbreviated new drug application (ANDA) for Divalproex Sodium delayed release tablets.

The company made this announcement after market hours on Thursday, 14 February 2008.

Meanwhile, BSE Sensex was down 185.30 points or 1.04% to 17,581.33, on weak cues from the global markets. US stocks dropped on Thursday, 14 February 2008, as the credit crunch surfaced unexpectedly in the municipal bond market and after the Federal Reserve Chairman Ben Bernanke said that he sees sluggish economic growth ahead.

On BSE, 10 shares were traded in the counter. The scrip had an average daily volume of 22,319 shares in the past one quarter.

The stock hit a high of Rs 1102 and a low of Rs 1102 so far during the day. The stock had a 52-week high of Rs 1265 on 24 December 2007 and a 52-week low of Rs 886 on 16 August 2007.

The mid-cap scrip had outperformed the market over the past one month till 14 February 2008, gaining 1.62% compared to the Sensex's decline of 10.58%. It had also outperformed the market in the past one quarter, rising 0.78% compared to Sensex's decline of 9.81%.

The company’s current equity is Rs 100.74 crore. Face value per share is Rs 5.

The current price of Rs 1102 discounts its Q3 December 2007 annualized EPS of Rs 68.69, by a PE multiple of 16.04.

These generic versions of divalproex sodium delayed release 125 milligram (mg), 250 mg and 500 mg (valproic and activity) tablets are bio-equivalent to Depakote delayed release tablets distributed by Abbott Laboratories. These strengths of Depakote delayed release tablets have annual sales of approximately $755 million in the US.

Sun Pharmaceuticals Industries’ net profit rose 109.5% to Rs 345.93 crore on 75.9% growth in net sales to Rs 733.91 crore in Q3 December 2007 over Q3 December 2006.

The company's principal activity is to formulate, manufacture and distribute pharmaceuticals.