January 17, 2015

Pharma Sector Update

(Sector Analysts: Kanika Singh, Neha Kumar and Ravi Karanam)

Current Market Price of Pharma stocks

Stock
Sun Pharmaceuticals
Dr. Reddy's Laboratories
Cipla
Lupin
Aurobindo Pharma
Indoco Remedies
Alembic Pharma

CMP (in INR)

923.75
3344.85
674.75
1489.35
1177.50
318.65
476.90

India refuses to patent Gilead's blockbuster drug Sofosbuvir used for treatment of
Hepatitis C
The Indian Patent Controller rejected Gilead's patent application for the oral drug Sofosbuvir, which is
used for treatment of Hepatitis C stating that the molecules and compounds of the drug were already
known. The drug is already under a worldwide debate due to its high price - US $84000 for a treatment
course or $1,000 per pill in the US while some studies have shown that the drug could be produced for a
mere $101 for a three-month course or roughly $1 per pill. The drug has been known to be very effective
in the treatment of Hepatitis C and this decision by the Indian Patent Controller has opened vast
opportunities for Indian pharma companies producing generic drugs to ramp up production to levels
needed to treat 185 million people infected with Hepatitis C worldwide.

Novartis AG and GlaxoSmithKline set to create a global healthcare joint venture

As a part of the global healthcare joint venture, the board of directors of Novartis AG approved the
transfer of its OTC division to GlaxoSmithKline Consumer Private Limited (GSK CPL, an affiliate of GSK).
The board of directors took into account the prospects of the company's OTC business in India following
the divestment of Novartis AG's global OTC business, the valuation for the transfer of the OTC division
and the enhanced ability of the management and the employees to focus on and drive forward the growth
of the company's retained businesses.

High Court orders Cipla to stop the sale of its respiratory drug Indacaterol, a generic
version of Novartis' Onbrez
The Delhi High Court has passed an order restraining Cipla from selling its generic version of Novartis'
respiratory drug Onbrez in the domestic market. Cipla had launched the generic version of the drug late in
2014 at Rs.130 per 10 pills, which is one-fifth the price Norvatis' Onbrez, sold at Rs. 677 per 10 pills.
Following this, Novartis had filed a patent infringement litigation which resulted in their favour. Cipla had
said that inspite of having the patent since 2008, the company was importing only negligible quantities making it available to only 8,000 patients over a period of 2 years, while there are 1.5 crore patients
suffering from lung and respiratory diseases in India - leading to shortage in the market. The High Court
has asked Cipla to apply for a compulsory license within two weeks and that the decision on the license
should be taken within six months.

References:
http://www.pharmabiz.com/NewsDetails.aspx?aid=86142&sid=2
http://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/high-courtstops-ciplas-generic-drug-sales/articleshow/45832530.cms
http://www.pharmabiz.com/NewsDetails.aspx?aid=86178&sid=2