Sun Pharma gains on reports of likely acquisition of InSite Vision

Sun Pharmaceutical Industries rose 1.09% to Rs 866.50 at 14:27 IST on BSE on reports the company has bid to acquire US-based eye care company InSite Vision Inc.

Meanwhile, the BSE Sensex was down 163.23 points, or 0.63%, to 25,693.47.

On BSE, so far 2.48 lakh shares were traded in the counter, compared with an average volume of 3.14 lakh shares in the past one quarter.

The stock hit a high of Rs 871.40 and a low of Rs 855.40 so far during the day. The stock hit a record high of Rs 1,200.70 on 7 April 2015. The stock hit a 52-week low of Rs 748.15 on 26 September 2014.

The stock had outperformed the market over the past one month till 14 September 2015, falling 4.64% compared with 7.88% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 5.33% as against Sensex's 2.15% decline.

The large-cap company has an equity capital of Rs 240.65 crore. Face value per share is Rs 1.

Sun Pharmaceutical Industries has reportedly bid to acquire US-based eye care company InSite Vision Inc., as its expands its basket of specialty products to boost sales.

According to reports, the deal may be valued at around Rs 300 crore representing $0.35 per share for each InSite Vision share on the local US OTC stock exchange. InSite's 2014 full year revenues stood at close to Rs 55 crore.

Reports suggest that InSite Vision is a developer of specialty ophthalmology drugs and has a pipeline of eight clinical candidates in various stages. Its marketed products include Azasite, an antibiotic azithromycin used for bacterial conjunctivitis and Besivance, another antibiotic for infections in the eye.

Separately, some media reports said that the company's subsidiary Taro Pharmaceutical Industries (Taro Pharma) launched drug Keveyis at a high price of $163.8 per tablet of 50 milligram in the United States. Keveyis is indicated for the treatment of primary hyperkalemic periodic paralysis, primary hypokalemic periodic paralysis, and related variants. Taro Pharma had on 10 August 2015 received approval from the US drug regulator to launch Keveyis.

Sun Pharmaceutical Industries' consolidated net profit dropped 60.2% to Rs 478.96 crore on 3.3% growth in net sales to Rs 6522.16 crore in Q1 June 2015 over Q1 June 2014.

Sun Pharmaceutical Industries manufactures specialty and generic medicines, targeting a wide spectrum of chronic and acute treatments. The therapeutic segments include psychiatry, anti-infectives, neurology, cardiology, orthopaedic, diabetology, gastroenterology, ophthalmology, nephrology, urology, dermatology, gynaecology, respiratory, oncology, dental and nutritionals.

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