Sun Pharma gains on positive cues

Following a series of positive development, the stock of Sun Pharmaceutical was buzzing on Monday. The stock hit an intraday high of Rs. 434.20 per share, up more than 4 per cent.

The positive cues for the stock included clearance for its Halol facility, which contributes 15 per cent to US sales. The US drug regulator issued No Action Indicated status for the unit, broadly meaning that no significant objectionable conditions or practices were found during the inspection of the facility.

Earlier last week, the company finalised a deal with China Medical System Holdings (CMS) for p and commericalisation of seven generic products in Mainland China. The expected market size for these products is around US$1 billion.

Also, the company acquired exclusive global license for CSIR-IICT’s patents related to certain compounds with potential therapeutic value across multiple indications. CSIR-IICT will receive upfront plus milestone payments and royalties of up to Rs. 2.40 billion on net sales from commercialisation of products developed using these patents, while Sun Pharma will develop, manufacture, commercialise these potential products.

On Monday, the stock of Sun Pharma closed at Rs. 425.80 per share, up by Rs. 11.05 or 2.66 per cent on BSE.