Chennai, Aug 20 (IANS): Stock prices of Sun Pharmaceutical Industries Ltd flared up on Thursday against the back drop of the company getting US FDA approval for a dermatology product.
According to a research analyst at Angel Broking, the proposed drug may contribute around $50-80 million to the annual sales of the company for a net profit around $25-40 million.
The company's scrip opened at the BSE at Rs.948 against its closing price of Rs.927.25 on Wednesday. The stock price went up to Rs.965.15 during the day and latter came down to around Rs.935.
Sun Pharmaceuticals on Wednesday said the US Food and Drug Administration (FDA) approved its supplemental new drug application (sNDA) for Ximino (Minocycline HCI) extended release capsules 45 mg, 90 mg and 135 mg.
According to the company, Ximino extended release capsules are indicated for inflammatory lesions of on-nodular moderate to severe acne vulgaris in patients 12 years and above.
This approval further strengthens the company's branded dermatology portfolio in the US.
Sun Pharmaceuticals said it expects Ximino extended-release capsules to be available for patients during the fourth quarter of 2015.
According to Sarabjit Kour Nangra, vice president research-pharma at Angel Broking, the US market is the largest market for the global acne products with about 50 million suffering from acne in the country.
As of January 31, 2015 the US-branded prescription market is worth $3 billion - split between oral antibiotics ($1.7 bn sales) or lotions, creams and ointments ($1.3 bn in sales), Nangra said.
The acne market is so fragmented that numerous companies are selling hundreds of millions worth of drug treatments.
"Thus, the landscape is very competitive, with no dominant leader. The most prominent brand in the US, Solodyn has the US sales of $300-400 million. Thus, the product can garner decent sales from the product," Nangra said.
"However, given the generic competition, conservatively we estimate the product can contribute around $50-80 mn to the annual sales of the company, with net profit around US$ 25-40 mn," she added.
Questions sent to Sun Pharmaceuticals remain unacknowledged and officials were not available to comment despite several attempts by IANS.