Sun Pharma Sales May Hit $100 Million After Latest Cancer Treatment Assets: Jefferies

Sun Pharmaceutical Industries Ltd. may see up to combined sales peak of $100 million post revenue share from Philogen, Jefferies. The brokerage came up with the estimate after analysing Sun Pharmaceutical Industries' latest specialty assets for treatment of cancer.

The pharmaceutical company should also leverage its existing infrastructure to commercialise the latest specialty assets, Jefferies said. The combined new product value, estimated to be at $380 million, is less than 1% of the market–cap.

Sun Pharmaceutical Industries added Nidlegy from Philogen in Europe, Australia, and New Zealand for commercialisation in May 2023. In October 2024, Sun Pharma and Philogen signed another agreement for global commercialisation rights of Fibromun. Both products are for cancer treatment.

The revenue share for Nidlegy is 50:50. For Fibromun, the revenue share for Sun Pharmaceutical Industries is 55%, and 45% for Philogen, Jefferies said.

Fibromun will be the larger opportunity for both Sun Pharma and Philogen based on current indications. The drug will account for 70% of the $100 million sales, the brokerage said.

"Nidlegy is a neoadjuvant treatment for locally advanced fully resectable melanoma," Jefferies said. The drug has completed phase three trial and an application has been made to the European Medicines Agency for marketing authorisation. Once approved, it will be the first treatment in neoadjuvant setting for resectable melanoma.

Fibromun is a chemotherapy drug metastatic soft tissue sarcoma, currently under phase–3 global trials. Trials for various other indications are at earlier stages. "Currently, the first line of treatment is Doxorubicin/ Doxorubicin Ifosfamide. The primary end point of the study is 45% reduction in the risk of disease progression," Jefferies said.

Sun Pharmaceutical Industries' share price rose as much as 0.84% to Rs 1,819.95 apiece. It was trading 0.04% higher at Rs 1,805.50 apiece as of 10:30 a.m., as compared to a 0.33% decline in the NSE Nifty 50 index.

The stock gained 45.44% in 12 months, and 43.34% on year-to-date basis. The relative strength index was at 50.44.

Out of 41 analysts tracking the company, 30 maintain a 'buy' rating, seven recommend a 'hold,' and four suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 13.2%