Sharemasterindia.com: Sun Pharmaceuticals shares gained as much as 3 per cent to an intraday high of Rs 874 on Tuesday after reports suggest that the company hiked prices of some of Ranbaxy's drugs in the US market.
As per the Intercontinental Marketing Services (IMS) data, Sun Pharma hiked prices of six Ranbaxy branded drugs in the US market in the month of May.
Out of the six products five drugs are used for treatment of skin diseases. Dermatology drugs are the biggest contributor for Ranbaxy and the company has been growing in this space in last 4-5 years, analysts said.
Analysts say the benefits of this price hike will be visible from the second quarter of this financial year and can lead to earnings upgrade for the company. On an annualised basis price increases can boost Sun Pharma's revenues by $45 million, some estimates suggested.
As of 11.32 a.m. shares in Sun Pharma traded 2.47 per cent higher at Rs 870.55 apiece, outperforming the broader Nifty, which was up 0.23 per cent.
