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Sun Pharma In The News

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Sun may have $120m upside from Sanofi medicine


Sun's generic product for docetaxel has received a tentative approval from the US FDA and analysts expect a final approval soon
Sun Pharmaceuticals could have much to gain from Sanofi Aven-tis' breast and lung cancer medi'cine docetaxel.
Recently, the US District Court ruled that two of Sanofi's patents on docetaxel were invalid, which can open the gates for early generic launches of the product.
Docetaxel (Sanofi's brand name for the product is Taxotere) has annual US sales of $1.2 bil'lion.
Along with Sandoz and Apo-tex, Sun Pharma is one of the generic companies to challenge the patent.
Sun's product has already received a tentative approval from the US Food & Drug Administration (US medicines regulator) and analysts expect a final approval to follow soon.
"Docetaxel is a big product in the US and price erosion post patent expiry could be to the tune of 70%," says Bhavin Shah, research analyst, Dolat Capital Market.
Sarabjit Kour Nangra, vice-president, research, Angel Broking, says since there are quite a few generic companies, each player could get about 20% share in the market.
A Sun Pharmaceuticals official said the company doesn't comment on its product opportunities.
Industry experts say on the $1.2 billion product, post patent expiry and price erosion, the Rs 4,100 crore Sun Pharma could get about $100-120 million approximately.
"Irrespective of the FDA is'sues with Sun's US subsidiary Caraco, the US continues to be a stronghold for the company, from where it gets about 26-30% of its revenues. And $100 million on a product is a decent sum," says a research analyst from a broking firm.