Ranbaxy has announced an agreement with Validus Pharmaceuticals to market and distribute an authorised generic version of Rocaltrol (calcitriol), in both softgel capsules and an oral liquid formulation.
The overall market sales for calcitriol softgel capsules and oral liquid are $70 million in the US.
Ranbaxy will launch the product immediately to all classes of trade in the US market, and expects to be the only generic company offering all forms and strengths of the generic Rocaltrol.
The stock is up 98% in the last 6 months, and is currently trading at 2.3x CY2010E sales. We recommend a SELL on the stock, with a target price of Rs250.