Sun Pharma shares down

Oct 18 2012, 13:58 IST
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SummaryShares in Sun Pharmaceutical fell 1.6% on worries the drug maker may see an end to its temporary arrangement to supply cancer drug Doxil in US.

Shares in Sun Pharmaceutical Industries fall 1.6 percent on worries the drug maker will soon see an end to its temporary arrangement to supply cancer drug Doxil in the United States.

Janssen Biotech, a unit of Johnson & Johnson's, said on Monday it would resume supplies of 20 mg dosages of Doxil, which treats ovarian and other cancers. The U.S. healthcare firm had suspended supplies following the manufacturing disruption from a third party supplier.

Sun Pharma had been supplying Doxil in the United States under a temporary arrangement with the Food and Drug Administration.

Brokerage Edelweiss estimates Sun's U.S. sales of Doxil had reached around $110- 120 million, with 90-95 percent EBITDA margins, during the temporary period.

Though this opportunity was short term and the resumption was anticipated by end 2012, the timing of the same was uncertain. Nevertheless, this ends a lucrative short term opportunity for Sun, Edelweiss said in a email to clients.

Sun Pharma declined to comment.

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