A New Dawn for Sun Pharma, Stock Gains On 22nd Dec

On 21^st Dec, Sun Pharma share price dipped 2 per cent to Rs 615 on the NSE, its lowest level since November 9, 2016. In the past 14 trading days, the stock was down 15 per cent erasing its entire gain recorded after July-September (Q2FY17) results.

But, on 22^nd Dec, the stock picked pace and is currently trading at Rs. 618.20, up by 3 per cent. The scrip opened at Rs. 616.25 against its previous close at Rs. 614.45.

Between November 9 and December 1, after Q2F17 results, the stock had outperformed the market by rallying 9 per cent from Rs 661 to Rs 722, as compared to 2.5 per cent decline in the benchmark index. On 7^th Dec, Sun Pharma informed that the US health regulator made nine observations after the execution of inspection of its Halol facility in Gujarat.

The United States Food and Drug Administration (US FDA) inspected the Halol facility from November 17, 2016 to December 1, 2016. As the inspection ended, the US FDA issued a Form-483, quoting nine inspectional observations. None of those observations were characterized by the US FDA as repeat observations.

The company is making preparations for the observations, which will be submitted to US FDA within 15 business days of receipt of the Form-483, Sun Pharma said. Halol plant is key for Sun Pharma and it contributed in high single digits to its US sales before it was issued a warning letter last December.

Sun Pharma share price hit a 52 week high of Rs 898.45 (23-FEB-16)whereas the 52-week low value is seen at Rs 571.90 (09-NOV-16. The mid-cap company has a market cap of Rs 147883.00 (Cr). Face value per share is Rs 1. 

For further details on the stock, refer to Sun Pharma share price history.

Sun Pharma Share Price Rebounds After 1.5% Drop Yesterday

Sun Pharma share price saw a rebound of more than 1 per cent on NSE today after slipping almost 1.5 per cent in the early hours of last trading session.

The shares of the pharma major dipped on regulatory concerns as some testing programmes were not adequately designed at Halol Plant. The USFDA had inspected Halol unit from 17^thNovember to 1^st December, 2016 and issued a Form-483 citing a total of nine inspectional observations.

However, according to the analysts, observations issued for Halol unit are not serious in nature. The market was seen to be quite hopeful of early clearance from the US Food and Drug Administration to Halol unit and the same emotion was reflected on the share price performance.

The nine observations issued by USFDA after inspection of Halol unit, Gujarat are as follows:-

1. Field alert reports have not submitted in three working days of receipt of information
2. Drug products do not bear expiration date determined by apt stability
3. Testing programme is not adequately designed to assess drug product stability
4. Establishment of test procedures is not fully reviewed by quality control unit
5. Accuracy of test methods has not been established
6. Sound & appropriate lab control mechanisms are not established
7. Procedures applicable to quality control unit are not fully followed
8. Changes to procedures are not drafted & reviewed by apt organisational units
9. Changes to procedures are not approved by appropriate organisational units

Sun Pharma share price closed at Rs 684.35, up by 1.08 per cent on NSE. The share price went as high as Rs 685.70 and as low as Rs 666.55 in today’s trading session. A total of 45,08,196 shares of the company have been traded on NSE aggregating to a total value of Rs 30,633.64 lacs.

Get the historical share price performance of the company, at Sun Pharma share price history.

Sun Pharma Tanks 5% over Worries Of Halol Facility

Sun Pharma share price is set to extend its losing streak for the fourth straight session on Wednesday on rising concerns over the Halol facility in Gujarat. On Tuesday it was reported that the USFDA has informed that the Halol facility has issued a 14-page Form 483 post inspection.

The rising concerns over the Halol facility has made the Sun Pharma share price tank 5.39% in trade today at NSE. The stock had opened at Rs. 700 also its intraday high today against its previous close of Rs. 706.15

Worries over Halol resurfaced after Sun Pharma's plant at Mohali, one of the facilities of erstwhile Ranbaxy, received seven observations after a re-inspection by the USFDA last month. Notably, it is the same team of FDA executives that re-inspected the Halol plant, too.

A notice on the BSE said that the exchange has sought clarification from Sun Pharmaceutical Industries on December 07, 2016, with reference to a report dated December 07, 2016, quoting 'USFDA informs that Halol issued 14-page Form 483 post inspection.

Meanwhile at 1:51 PM, Sun Pharma share price was trading at Rs. 670, down by 5.12%. So far almost 79 lakh shares had changed hands over the NSE trading counter.

On a month-to-date basis, Sun Pharma share price have slipped 2.19 per cent to Rs 706 till December 6. The scrip was trading at Rs 721.80 on December 1. The stock has appreciated nearly 7 per cent since the announcement of its second quarter earnings on November 10.  Lower valuations, defeat of the Democratic candidate in the US presidential election and a weaker rupee has set off buying interest on the counter.

Sun Pharma is the top 500 performing stock as identified by Dynamic Levels for the quarter. For the details on the stock, kindly drop by at Sun Pharma share price history page of Dynamic Levels website.

The Best Bets in the Market hit by Demonetization

A correction in the Indian equity markets over the past two trading sessions,  the Sensex is down 4.3 per cent and the Nifty down by 4 per cent, has made shares of some of the good companies more attractive mostly Mid-Caps. These are companies which will probably either remain unaffected by the current cash crunch in the market or will see minimal impact.

Large Caps:

SUN PHARMA

Sun Pharma share price had almost halved from its peak in April 2015. The current price factors in most of the negatives. Sun Pharmaceutical has said it is anticipating 8-10 per cent revenue growth this financial year. Also, there could be triggers such as US clearance for its Halol facility and development in the US business from limited competition specialty products. These and an escalating US dollar make it a good bet. Sun Pharma is also the top 500 recommendation by Dynamic Levels for the quarter.

SBI

India’s largest lender State Bank of India is most probably the biggest beneficiary from the deposit rush driven by demonetization as it’ll significantly reduce the cost of funds. With 18 per cent share of bank deposits, which is expected to increase now, after the demonetization tremors calm down, it may lead to increase in SBI’s investment book, which mainly consists of government bonds at a time when yields are falling, resulting in treasury gains. Today, SBI share price opened with the rise of almost 2 per cent against 1 per cent of Nifty50 Index and is the top 500 stock identified by Dynamic Levels for the quarter.

Mid Caps:

GILLETTE

Gillette is yet another top 500 recommendation by Dynamic Levels for the quarter. The company is unlikely to see much influence from the current cash situation. Gillette share price is down 25 per cent from its all-time high and with the recent correction, at a 5-year-low price-to-earnings (P/E) multiple. On a yearly basis, Gillette has seen margins improving and strong earnings growth. The stock has given 100% returns once in every three years since 2009.

HONDA SIEL

The company, which sells pumps and farm equipment, is witnessing a rapid rise in exports of around 23 per cent quarter on quarter and 44 per cent year on year in the September quarter. Exports account for almost half the revenue and will keep on to growing given its Japanese parent is increasing its manufacturing base in India. Today, Honda Siel share price opened with the rise of almost 3 per cent. It is also the multibagger recommendation by Dynamic Levels.

J KUMAR INFRAPROJECTS

With more money with the government, the infrastructure space is likely to get a boost. J Kumar is one of the very few infra companies with a debt-free balance sheet. This will let it bid for more projects. Although in past two trading sessions J Kumar share price has taken the hit, yet it is expected to bounce back significantly. J Kumar has strong fundamentals and hence is quoted as the top 500 performing stock for the quarter by Dynamic Levels.

Small Cap

TECHNOCRAFT

Technocraft is yet another top 500 recommendation by Dynamic Levels for the quarter. Its businesses of drum closure, scaffolding and textile are export-oriented. Its scaffolding business has acquired approvals to operate in the US and Europe. The US accounts have now more than 35 per cent of this business compared with 10 per cent last year. With President-elect Donald Trump’s plan to invest $1 trillion in infrastructure, Technocrat will be one Indian company to watch out for. Today, Technocraft share price opened with the rise of almost 2 per cent as compared to that of 1 per cent of Nifty.

Sun Pharma Share Price surged by Good Q2 Anticipation

Sun Pharmaceutical Industries, the healthcare major’s second quarter profit is seen rising 52.3 per cent year on year to Rs 1,685 crores on strong operational performance. According to analysts’ poll, revenue may witness an increase of 13.7 per cent to Rs 7,772.8 crores year on year, led by US sales. Operating profit may grow 28.6 per cent year on year to Rs 2,487 crores and margin may expand 370 basis points to 32 per cent.

Margin is expected to bounce back due to exclusivity of Gleevec generic year on year, improvement in Taro margins and receiving upfront payment of US$ 50 million for Tildrakizumab being studied for psoriasis. The base business margin may be stable post stability in cost base from Ranbaxy integration.

Experts says US growth may be led by Taro, 1 month exclusivity sales from cancer drug Gleevec generic and launches of other drugs like Glumetza (diabetes) generic. However, on sequential basis, there could be a lower contribution from Gleevec generic. Sun Pharma had 6-month exclusivity on Gleevec Generic and exclusivity expired in July. India may bounceback after sluggishness in five quarters. Analysts expect 10 to 12 per cent growth in Q2 against 8 per cent in the first quarter.

Rest of the World business is likely to grow around 15 to 16 per cent and API at over 50 per cent year on year may be aided by full quarter of consolidation of GSK’s opiates business. Commentary on Halol is a key to watch out for. Meanwhile, Taro Pharmaceutical has reported a 7.2 per cent degrowth in second quarter profit at US$ 123.7 million but operating income increased US$ 16.6 million to US$ 141.6 million and margin expanded 300 basis points to 61.9 per cent compared with year-ago period.

Sun Pharma share price is 679.10, up by 2.78 per cent or 18.35 points at 10.53 AM on NSE.

Pharma Dips over Possible US Probe Into Price Cartelization

Shares of the pharmaceutical companies on Friday (4^th November 2016) fell, with Sun Pharma share price hitting over 28 month low after the news report concluded that the US has begin probe on the possible price cartelization.

Shares of Sun Pharmaceuticals Industries Ltd fell 7.1 per cent, its steepest fall since 21^st December 2015 and hit a low of Rs 654.70 per share—a level last seen on 27^thJune 2014. Dr Reddys share price Ltd fell 5.4 per cent, Glenmark share price fell 4.1 per cent, Cadila share price Ltd 4 per cent, Aurobindo Pharma share price 4 per cent, Lupin share price 3.5 per cent. Natco Pharma share price 3.3 per cent

BSE Healthcare Index fell as much as 3.7 per cent to hit over a 4 month low at 15,221.89 points. BSE’s benchmark Sensex Index fell 0.18 per cent to 27,380.17 points.

According to an anonymous senior analyst with domestic brokerage it is very difficult to prove the price cartelization charges.

He also added that by historical data, generic drugs launched in US are one-third to one-tenth of the prevailing off-patent drugs with increased competition. Additionally, at a global level, with every company trying to outperform its peers with increased market share at competitive prices, this current allegation may not stand the test of times.

US prosecutors are keeping up the heat on generic pharma companies in one sweeping criminal investigation into suspected price collusion, a fresh challenge for an industry which is already reeling from public outrage over the spiraling costs of some medicines.

The anti-trust investigation conducted by the Justice Department, begun somewhere around two years ago, now spans more than a dozen companies and also about two dozen of drugs. The grand jury probe is currently examining whether some executives have agreed with one another to raise prices, and the first charges might emerge by the end of the year, Bloomberg report said.

Though all the individual companies have made various disclosures about the inquiry, they have identified only a handful of the drugs under scrutiny, including a heart treatment and an antibiotic.

Among the drug makers to have received subpoenas are industry giants Mylan NV and Teva Pharmaceutical Industries Limited. Other companies include Actavis, which Teva bought from Allergan Plc in August, Lannett Co., Impax Laboratories Inc., Sun Pharmaceutical Industries Limited, Covis Pharma Holdings Sarl, Mayne Pharma Group Limited, Endo International Plc’s subsidiary Par Pharmaceutical Holdings along with Taro Pharmaceutical Industries Limited, Bloomberg report added.

Post Q1, Sun Pharma Share Price Still in its Blues

Sun Pharmaceutical Industries, the Healthcare major, could meet the analysts' expectations, as consolidated profit in April-June quarter zoomed up 266 percent Y-o-Y to Rs 2,034 crore. The growth happened owing to the top-line and operational performance despite sharp rise in tax cost. The swell in bottom-line was also because of low base in year-ago period. The company had disclosed an unusual loss of Rs 685.2 crore in Q1FY16 considering the integration and optimization measures post Ranbaxy acquisition. Sun Pharma reviewed its profit figure for Q1FY16 to Rs 556 crore from Rs 479 crore earlier as a result of news accounting standards. Total income from operations shot 22 percent to Rs 8,243 crore in the June 2016 quarter end against Rs 6,761 crore in the corresponding period last year. Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) as seen in this the quarter saw a growth of 65.2 percent to Rs 2,921 crore and margin expanded by 930 basis points to 35.4 percent Y-o-Y.  Profit was estimated at Rs 1,894 crore on revenue of Rs 7,877 crore for this quarter. Expectations for operating profit and margin read at Rs 2,560 crore and 32.5 percent, respectively. Tax expenses rose three-fold to Rs 352.7 crore from Rs 112.7 crore on Y-o-Y basis.

At 9:57 hours IST, this morning, Sun Pharma share price was quoting at Rs781.65, down 0.13 percent on NSE. The stock saw a apurt in volume by more than 1.57 times.

Sun Pharma and Almirall Enter Into A License Agreement

Sun Pharma along with its wholly owned subsidiary and Almirall reported a licensing agreement which is based on the development and commercialization of Tildrakizumab for psoriasis in Europe. Tildrakizumab is an investigational IL-23p19 inhibitor presently being assessed in patients having moderate-to-severe plaque psoriasis. On 28thJuly, Sun Pharma share price is trading at Rs.820.10 up by 1.51%. The intraday high and low is seen at Rs. 827.00 and Rs. 809.05 respectively.

Under the conditions of the agreement, Almirall is supposed to pay Sun Pharma an initial upfront payment worth US $50 million. The studies of Phase-3 studies of Tildrakizumab have been completed. Sun Pharma will be considered eligible to secure development and regulatory milestone payments and, also, royalties on net sales and sales milestone payments, the terms of which are kept confidential. Almirall can lead European studies, and can take part in larger Global clinical studies for psoriasis indication subject to the conditions of theSun Pharma – Merck agreements, along with certain cost sharing agreements. Sun Pharma share price increased by 12.20 points since morning  and it will be leading the advancement of Tildrakizumab for other indications. Whereas Almirall will have right of first negotiation for certain indications in Europe.

Sun Pharma is inclined to growing their dermatology franchise, with Tildrakizumab as their first place investigational compound. They continue to frame their pipeline and capabilities in this important therapeutic area of utter unmet need. Additionally, the license agreement has a provision for possible co-promotion agreement at some point in the future, subject to certain conditions.

Sun Pharma share price
Dynamic Levels research team perpetually checks the movement of Sun Pharma share price. The scrip made its 52 week high and low at 966.00 (20-Aug-15) and 704.00 (24-Nov-15) respectively. Sun Pharma Share Price Forecast imparts all the significant support and resistance levels of the share.