Sun Pharma – Comptan Settlement – A Positive

Sun Pharma & Orion have settled their US patent litigations over Comptan & Stalevo (Parkinson’s disease). While it would enjoy sole exclusivity in Stalevo 100 & Stalevo 150, it would be the second generic entrant in other versions of Stalevo & Comptan.

Sun can sell 25/100/200 mg (Stalevo 100) & 37.5/150/200 mg (Stalevo 150) Stalevo tablets from 2 Apr 1 12 – will have sole exclusivity for six months. It can sell the versions from 2 Oct 12, where it is likely to be the second generic entrant after Wockhardt. Sun can launch Comptan on 1 Apr 13.

Comptan (Entacapone) & Stalevo (combination of carbidopa, levodopa and entacapone) are indicated for Parkinson’s disease. They
are marketed in the US by Orion & its marketing partner, Novartis. Stalevo & Comptan had sales of US$113m & US$87m in the US in 2008 (IMS data). There are five outstanding patents for the products expiring between 2010 and 2020

Stalevo & Comptan could potentially add cRs3/share (3% of FY12E EPS) to Sun’s earnings on an annualized basis when both companies (Sun and Wockhardt) are in the market and before more competitors come in. Sun’s EPS is expected to be Rs 77 and Rs 92 for FY 11 and FY 12 respectively.