Sun Pharma - Deuruxolitinib Approval To Strengthen Specialty Business: HDFC Securities

HDFC Securities Institutional Equities

Sun Pharmaceutical Industries Ltd. received timely approval from the U.S. Food and Drug Administration for its specialty drug Leqselvi (Deuruxolitinib – Janus kinase inhibitor) 8 mg tablets for the treatment of adults with severe alopecia areata (PDUFA in July 2024).

This will add to Sun Pharma a fast-growing derma-focused specialty business (existing brands like Ilumya and Winlevi). Deuruxolitinib (tablet) is poised to be a competitive product, offering better efficacy at the 24-week mark with 80% more scalp hair coverage for 30% of patients, compared to existing approved brands.

In contrast, Olumiant (Eli Lilly – baricitinib tablet) achieves this for 28% of patients, and Litfulo (Pfizer – ritlecitinib – capsule) for 23% of patients. We expect Deuruxolitinib to see a gradual scale-up over the next one-two years.

Sun Pharma has already developed its specialty infrastructure in the dermatology space, and it has started incurring costs for all pre-launch activities for Deuruxolitinib.

Sun Pharma will have five years of new chemical entity exclusivity. We expect specialty scale-up (traction in Ilumya, Winlevi, Cequa, Deuruxolitinib), traction in U.S. generics (100+ pending ANDA) and India (MR addition, new launches) to drive growth and lead to a steady margin (as growth offsets the increasing research and development).

We will factor in Deuruxolitinib post clarity on launch time and treatment regime price. We reiterate Buy with a target price of Rs 1,750, based on a 31 times Q1 FY27E earnings per share.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.