Company Update: Sun Pharma

Company Update: Sun Pharma
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First Published: Thu, Aug 20 2009. 11 12 AM IST
Updated: Thu, Aug 20 2009. 11 12 AM IST
Sun Pharmaceuticals has succeeded in invalidating a key patent of Eli Lilly’s block buster cancer medicine Gemzar (gemcitabine injection) in the US market.
The company will now be able to launch the generic version of the medicine in the US, in November 2010E.A district court in Michigan ruled in favour of Sun on Monday, by invalidating a patent on gemcitabine which was set to expire in 2013.
The invalidated patent, termed by Lilly as method-of-use patent, was aimed at extending the patent protection on the drug by three years. Teva and Hospira are the two other generic companies that are engaged in patent litigation with Lilly on gemcitabine.
Gemzar is Lilly’s fourth best selling drug and had worldwide sales worth $721 million for the first six months of the year 2009. Lilly is set to challenge the court ruling at the Federal level.
However, we believe that Sun Pharma is not the first to file and, as such, it will not share any exclusivity.
At Rs1164, the stock is trading at 18.7xFY2010E earnings and 15.8x FY2011E earnings. We recommend a NEUTRAL view on the stock.
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First Published: Thu, Aug 20 2009. 11 12 AM IST
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