Tuesday, August 16, 2011

Sun Pharma Investment in Impax laboratories has grown four fold since investment - Currently Valued at ~ 350 Crore. Expected to grow to 800 Cr. Or $180m by 2012

Not everybody knows this, but there is a good news for Sun Pharma.  Sun Pharma holds 4.5% stake in NASDAQ listed Impax Laboratories. Recently Impax stock price has jumped 15%, after fter IPX066 met the primary endpoint vs. carbidopa-levodopa plus entacapone in the Phase III ASCEND-PD trial to treat advanced Parkinson's disease (PD).  IPX066 is a extended release version of Levodopa/Carbidopa combination,  the current  gold standard in Parkinson disease treatment. IPX066 significantly reduced the percentage of "off" time in which patients experienced symptoms of their PD during waking hours from baseline as measured by patient diary vs. carbidopa-levodopa plus entacapone (33.5% vs. 10% reductions, p<0.0001). The double-blind, crossover, international trial enrolled 84 evaluable patients. Impax plans to submit an NDA to FDA for IPX066 in 4Q11, while partner GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) plans to submit an MAA to EMA in 2012.
IPX066 - Market Potential
With about 600 thousand annual prescriptions for Levodopa/Carbodopa written annually across the globe, the drug may generate upto $1000m in annual peak sales. Post US FDA approval (expected in 2H-2012), the Impax share price will more than double from current levels.  Hence Sun pharma investment in Impax should be worth upto $120m