Ranbaxy Laboratories has received the final approval from the US FDA to make and sell the generic version of Sciele Pharma’s peptic ulcer tablet Robinul for 1 mg and 2 mg dosages.
The company said that it plans to launch the drug in 4QCY2009. The annual market sales of Robinul are worth $26 million in the US.
The stock is up 39% in the past three months to Rs312, and is currently trading at 2.3x CY2010E earnings. We recommend a SELL rating on the stock, with a target price of Rs250.