Sun Pharma gains after buying Novartis' cancer drug Odomzo

Sun Pharmaceutical Industries rose 0.42% to Rs 617 at 11:18 IST on BSE after the company announced its plans to acquire a branded oncology product, Odomzo, from Novartis.

The announcement was made after market hours yesterday, 21 December 2016.

Meanwhile, the BSE Sensex was down 211.21 points, or 0.80%, to 26,031.17.

On the BSE, so far 1.98 lakh shares were traded in the counter, compared with average daily volumes of 5.29 lakh shares in the past one quarter. The stock had hit a high of Rs 624.90 and a low of Rs 614.50 so far during the day.

The stock hit a 52-week high of Rs 898 on 23 February 2016. The stock hit a 52-week low of Rs 572.40 on 9 November 2016.

Sun Pharmaceutical Industries said that the agreement has been signed between subsidiaries of both the companies and will close following anti-trust clearance and further closing conditions. The agreement has been signed for an upfront payment of $175 million and additional milestone payments.

Odomzo (Sonidegib) was approved by the USFDA in July 2015. Odomzo is a hedgehog pathway inhibitor indicated for the treatment of adult patients with locally advanced basal cell carcinoma (laBCC) that has recurred following surgery or radiation therapy, or those who are not candidates for surgery or radiation therapy.

According to IMS Health, the hedgehog inhibitor class grew by 40% October 2016 year till date versus prior year.

On a consolidated basis, Sun Pharmaceutical Industries' net profit rose 90.20% to Rs 2471.11 crore on 13.2% growth in net sales to Rs 7764.03 crore in Q2 September 2016 over Q2 September 2015.

Sun Pharmaceutical Industries is the world's fifth largest specialty generic pharmaceutical company and India's top pharmaceutical company.

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