Specialty drug boost for Sun Pharma

Valuations, however, already factor in some of the positives

The Sun Pharmaceutical stock gained nearly seven per cent on Wednesday, after it announced the acceptance by the US Food and Drug Administration (FDA) for a new drug application (OTX-101) to treat dry eye disease. The Street expectation is that final approval for launch will be faster than current estimates of end-2018 or early 2019. Any launch ahead of the earlier estimates will not only give it a head start in a category with limited competition but help it fend off generic competition for a competing product, Allergan's Restasis. 

Analysts believe Sun's product is better than Allergan's. However, new generic competition