Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Sun Pharmaceutical Industries
Taxotere: Key Takeaways from Hospira Call
Quick Comment: Key takeaways from Hospira’s
C4Q10 conference call related to Taxotere (US$1.25bn
brand sales) are (see Marshall Urist’s note, 2011
Outlook Below Expectations, dated February 3, for
additional details):
1. Approval timelines: Hospira expects regulatory
approval for generic Taxotere toward the end of the
C1Q11 for US launch.
2. Delay so far was due to FDA’s questions related to
labeling and packaging. According to Hospira,
there were no queries related to the quality of the
product.
3. Initial competition: Hospira expects two additional
generic players (including an authorized generic),
along with the innovator with a discounted price
(already at 20% discount). It targets to garner
40-50% market share initially.
4. Market share in the medium term: Over time,
Hospira aims to maintain 20-30% market share
once more competition sets in.
Implications for Sun: This is the single biggest
earnings growth driver for Sun for F2012, we believe.
We have assumed April 2011 launch of generic
Taxotere by Sun in our earnings model. This appears
reasonable to us based on the read-through of Hospira’s
conference call. We have assumed a US$125mn sales
opportunity for Sun for F2012 with 50% price erosion
and 20% market share. Sun has a disadvantage versus
Hospira since its product is double vial form versus
single vial for Hospira. We retain OW rating on Sun.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Sun Pharmaceutical Industries
Taxotere: Key Takeaways from Hospira Call
Quick Comment: Key takeaways from Hospira’s
C4Q10 conference call related to Taxotere (US$1.25bn
brand sales) are (see Marshall Urist’s note, 2011
Outlook Below Expectations, dated February 3, for
additional details):
1. Approval timelines: Hospira expects regulatory
approval for generic Taxotere toward the end of the
C1Q11 for US launch.
2. Delay so far was due to FDA’s questions related to
labeling and packaging. According to Hospira,
there were no queries related to the quality of the
product.
3. Initial competition: Hospira expects two additional
generic players (including an authorized generic),
along with the innovator with a discounted price
(already at 20% discount). It targets to garner
40-50% market share initially.
4. Market share in the medium term: Over time,
Hospira aims to maintain 20-30% market share
once more competition sets in.
Implications for Sun: This is the single biggest
earnings growth driver for Sun for F2012, we believe.
We have assumed April 2011 launch of generic
Taxotere by Sun in our earnings model. This appears
reasonable to us based on the read-through of Hospira’s
conference call. We have assumed a US$125mn sales
opportunity for Sun for F2012 with 50% price erosion
and 20% market share. Sun has a disadvantage versus
Hospira since its product is double vial form versus
single vial for Hospira. We retain OW rating on Sun.
No comments:
Post a Comment