Sun Pharmaceutical shares surged over 3 per cent in early trade today on the BSE and NSE after the country’s largest drugmaker said it has got final approval from the USFDA for launching in the US a generic version of the anti-cholesterol medicine Zetia tablets. Sun Pharma shares were trading at Rs 540 on BSE, up 1.35 per cent after rising to a high of Rs 551.40. Yesterday too, Sun Pharmaceutical’s shares rose 1.6 percent due to a reduction in GST rates for insulin.
Earlier, Sun Pharma said that one of its wholly-owned subsidiaries has received final approval from USFDA for its Abbreviated New Drug Application (ANDA) for a generic version of Zetia (ezetimibe) tablets. These generic ezetimibe tablets are therapeutic equivalents of Merck’s Zetia tablets. Zetia is an anti-cholesterol drug and reportedly had annual sales of approximately $2.7 billion in the U.S. for the 12 months ended April 2017.
The GST Council had on Sunday reduced tax rates on 66 items including ketchup, instant food mixes, pickles, tractor components, computer printers and insulin. In yesterday’s trading session, pharma stocks reacted positively to the revised GST rates of insulin.
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At 11:20 a.m., the BSE Healthcare index was trading at 14,318.61 points, up 0.38 per cent or 54.26 points. Yesterday the BSE Healthcare index closed 36.45 points or 0.26 per cent higher at 14,227.9 points. Sun Pharma, which is the top contributor to the BSE healthcare index, gained Rs 8.35 or 1.6 per cent to close at Rs 533.15.
Sun Pharma had last month reported a net profit of Rs 1,223.71 crore in Q4 FY17 against Rs 1,416.13 crore a year ago, a fall of 13.6 percent on-year basis due to a decline in the US sales. Sun Pharma’s sales in the US, which account for nearly 37 percent of the total sales, dropped 34 percent to 38.1 crore USD in Q4, largely due to loss of exclusivity of Imatinib and fall in sales at one of its subsidiaries, the company said. After the announcement of its Q4 results, the company’s stock had tanked 12.84% on the BSE in the opening minutes of trade on 29 May, to hit an intraday low of Rs 495.55.