US generic cancer drug nod boosts Sun Pharma stock
“We had built Doxil launch from September 2013. However, an earlier-than-expected approval will lead to incremental revenue of $52 million in FY14,” Edelweiss Financial Services said in a research note on Tuesday. “Overall, we estimate annual sales of $80 million in FY14 and $68 million in FY15, assuming 30% price erosion and 50% market share (higher than the current share of 35%).”
Supplies of Doxil in the US had been constrained after Janssen, a unit of US pharma major Johnson & Johnson, developed manufacturing problems. In order to address the shortage, in February last year, the US FDA, as a special case, allowed Sun Pharma to export Lipodox until J&J could secure its own Doxil supplies.
With the relaunch of Doxil by J&J in October, Sun’s overall supply had reduced in US, analysts said. However, post final FDA approval for the generic, the company is an authorised distributor and will gain additional market share, they added. Sources also said that patients will gain from the AB-rated generic product that will also be valid
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