Friday, January 21, 2011

Another PARA IV Victory for SUN Pharma- Wins Prandin Litigation

District Court ruled in favor of Caraco (subsidiary of Sun Pharma) in the Prandin (annual branded sales of ~$200m in US) litigation invalidating ‘358 patent – the only unexpired patent.  Caraco has FTF status on Prandin. The decision will be appealed by Novo Nordisk (the innovator) in the Federal Court and thus 180-day exclusivity for Prandin may not get triggered immediately. We expect Caraco and Sun Pharma together to generate $35m sales and $28m in operating profit during 180-day exclusivity. For Caraco, just the 180-day exclusivity upside will be ~15% of the market cap. As for Sun Pharma, this is an insignificant opportunity though adds one more product to its rich and confirmed Para IV pipeline.