Sun Pharma strengthens on US nod for generic drug

Sun Pharmaceuticals Industries rose 0.36% to Rs 1166 at 13:10 IST on BSE, after the company received US Food & Drug Administration approval to market generic version of Sinemet in tablet form in multiple strengths.
The company made this announcement after trading hours on Wednesday, 5 November 2008.
The stock hit a high of Rs 1196.15 and a low of Rs 1112 so far during the day. The stock has a 52-week high of Rs 1557.80 on 10 September 2008 and a 52-week low of Rs 890 on 24 January 2008.
The company’s current equity is Rs 103.56 crore. Face value per share is Rs 5.
The current price of Rs 1166 discounts the company’s Q2 September 2008 annualized EPS of Rs 58.54, by a PE multiple of 19.92.
Annual sales of the drug in the three tablet strengths which Sun will sell is about $70 million in the United States. The drug is used to treat Parkinson's disease.
On 4 November 2008, Sun Pharma’s US unit Caraco Pharmaceutical Industries received a warning letter from the US Food and Drug Administration regarding its Detroit plant.
On 3 October 2008, Sun Pharma said that it had extended tender offer for Taro’s shareholders to 7 November 2008, which was initially scheduled to expire on 3 October 2008. The offer opened on 30 June 2008. Sun Pharma had launched an open offer at a price of $7.75 per share to acquire all outstanding shares of Taro.
In August 2008, Tel-Aviv district court had ruled in favour of Sun Pharma by rejecting Taro’s contention that the domestic drug firm should have conducted a special tender offer under the Israeli law. The ruling was challenged by the Israeli firm in the Supreme Court.
Taro Pharmaceutical based in Israel is a multinational generic manufacturer with established subsidiaries, manufacturing and products across the US, Israel, Canada.
Sun Pharmaceuticals Industries’ net profit rose 55.6% to Rs 303.14 crore on 24.6% increase in net sales to Rs 929.37 crore in Q2 September 2008 over Q2 September 2007. The results were announced on 25 October 2008.
Sun Pharma is an international, integrated, speciality pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India, US and several markets across the world.