Competitor's Loss Is Sun Pharma’s Gain

Pharma major, Sun Pharma touched an all time high of Rs 587 on the reports that its rival company Janssen Pharmaceuticals is facing shortage of Doxil in the US Pharma market in coming weeks. Janssen Pharmaceuticals is a subsidiary of Johnson and Johnson and sells Doxil, an anticancer drug in the US market. The innovator company has failed to give any guidance as to when it will be able to restore the product supply. This is a huge opportunity for help Sun Pharma which already has its generic version of the same product. Sun Pharma already holds 50% market share in this product and shortage of the brand means further gain in the market share. One may see boost in the Q2 and Q3 numbers. The unexpected news caught many eyeballs as the stock gained in a very sluggish market today.We already have a buy recommendation on the stock and believe that the target price of Rs 625 is very much achievable. Investors, who would like to hold a quality stock in their portfolio, should buy Sun Pharma on every dips.