Mercury rises for Sun Pharmaceutical Industries on acquiring oncology product

Sun Pharmaceutical Industries (SPIL) has plans to acquire a branded oncology product, Odomzo, from Novartis. The agreement has been signed between subsidiaries of both the companies and will close following anti-trust clearance and further closing conditions. The deal has been signed for an upfront payment of USD 175 million (Rs 1187 crore) and additional milestone payments.

Odomzo was approved by the US FDA in July 2015. Odomzo is a hedgehog pathway inhibitor indicted for the treatment of adult patients with locally advanced basal cell carcinoma (laBCC) that has recurred following surgery or radiation therapy, or those who are not candidates for surgery or radiation therapy.

The transaction will produce SPIL’s first branded oncology product and will extend its commitment in dermatology. The Odomzo has marketing approval in over 30 countries globally including US, Europe and Australia. According to IMS Health, the hedgehog inhibitor class has grown by 40 per cent inOctober 2016 YTD versus the year prior to that. New data supporting the use of Odomzo was presented at ASCO in June 2016.

The share price of SPIL increased by 1.27 per cent on bourses in early trades; and is trading at Rs 620.55 on an intraday basis.