Sun Pharma shares gain on strong guidance for doxycycline

MUMBAI: Shares of Sun Pharmaceuticals moved higher in trade today after its competitor Himka Pharma raised guidance for drug doxycycline to $230 million from $200 million.

At 12:30 p.m.; the stock was at Rs 501.60, down 0.10 per cent, on the BSE. It touched a high of Rs 510.50 and a low of Rs 490 in trade today.

According to analysts, the raised guidance implies that doxycycline prices will remain high.

Sun Pharmaceuticals, which bought generic business of URL Pharma, is likely to benefit from the demand for doxycycline.

URL Pharma has a 19.9 per cent market share in doxycycline. Sun Pharmaceuticals could gross around $ 120 million in revenue with high margins..

Macquarie expects the product to easily contribute ~$70-80m in sales in FY14 for Sun Pharmaceuticals.