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Sun Pharmaceuticals Industries Ltd was at an all-time high of Rs 587 on Thursday on hopes of higher sales of its key cancer drug, Doxil, after innovator Janssen Pharmaceuticals Inc, a unit of Johnson & Johnson (J&J) said on Wednesday the drug will likely be in short supply in the coming weeks.
The expected shortage in supply is due to an interruption from the company's own supplier, Ben Venue Laboratories Inc, J&J said.
J&J cannot provide an estimate of when the cancer drug would be available again and has advised healthcare providers to contact Sun Pharma.
Analysts tracking the sector say Sun Pharma already has 50 per cent of the market share in this drug, which will get a further boost after this development.
Credit Suisse initiates coverage on the company's unit, Taro Pharmaceutical Industries Ltd with an "outperform" rating and a target of $85, saying improving growth visibility, was seen helping the shares.
At 1117 am, Sun Pharma shares are up 2.87 per cent.
The company has continued its leadership in branded generics-chronic therapy in the country. Sales of branded prescription formulations in India grew by 44 percent at Rs 849 crore in first quarter of Fiscal Year 2014.
Sun Pharma holds 5.1 per cent market share in the Rs 72,000 crore Indian pharmaceutical market. The company reported strong performance led by Sun portfolio in the US formulations market. Sales in the US were at USD 364 million for the quarter, up by 28 percent, accounting for 58 per cent of total sales.
The company has made consolidated R&D expense of Rs 205 crore, at 6 per cent of sales in first quarter of FY 2014. Its total number of patent applications submitted now stands at 791, with 503 patents granted so far.