Sun Pharma shares in focus after $200 million settlement in US drug pricing case

Shares of Sun Pharmaceutical Industries will be in focus on Friday after the company announced that two of its subsidiaries – Sun Pharmaceutical Industries Inc. (SPII) and Taro Pharmaceuticals U.S.A. Inc. (Taro) – have agreed to pay $200 million to settle an antitrust case in the US.

The settlement is part of the ongoing In re Generic Pharmaceuticals Pricing Antitrust Litigation in the Eastern District of Pennsylvania. The payment will secure a full release of all claims brought by the End Purchaser Plaintiffs against SPII, Taro, and their current and former affiliates, directors, officers, and employees.

The final payout may be adjusted depending on how many class members opt out. Sun Pharma clarified that the settlement does not involve any admission of wrongdoing and is still subject to court approval.


In June, Sun Pharma launched LEQSELVI (deuruxolitinib) 8 mg tablets in the US for adults with severe alopecia areata. The rollout follows a settlement and licensing agreement with Incyte Corporation, ending litigation in the District Court of New Jersey.

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As part of that agreement, Sun Pharma obtained a limited, non-exclusive license to certain Incyte patents for non-oncology indications, including alopecia areata. The company will pay an upfront fee and ongoing royalties to Incyte. Other financial terms remain confidential.

Sun Pharma share price target

According to Trendlyne, the average target price for Sun Pharma is Rs 1,974, implying an upside of 17% from current levels. Out of 36 analysts tracking the stock, the majority maintain a ‘Buy’ rating.

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Sun Pharma shares closed 0.56% higher at Rs 1,692.1 on BSE on Thursday, outperforming the 0.66% drop in the Sensex. However, the stock is down 10% year-to-date and has declined 7% in the last six months.

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