Shares of drugmaker Sun Pharmaceutical Industries Ltd rose as much as 3.27 per cent to ₹521. The company has received US drug regulator FDA’s nod for Ilumya, used for treatment of plaque psoriasis, a non-contagious skin disorder.

At about 12.15 pm, the stock was off its morning highs and was quoting at ₹508.30, up ₹3.60 or 0.77 per cent.

Credit Suisse says the approval would help Sun transition beyond generics. The brokerage has retained its “outperform” rating with a price target of ₹640.

It said: “Hopeful that Sun should be able to get 4-5 per cent market share by positioning the drug at discount to peer products; peak sales for the drug seen at $250 million-$300 million, which should be reached over the next 4 years.”

Sun will need to differentiate its product based on safety and pricing as it is competing with companies with better efficacy profiles, stronger marketing infrastructure, CLSA has said.

Jefferies has said Ilumya's undifferentiated efficacy profile and limited safety data will result in slow market-share ramp-up; and retained the “hold” rating with a price target of ₹520.

Fourteen of 37 brokerages rate the stock “buy” or higher, 11 “hold” and 12 “sell” or lower; their median price target is ₹540. The stock registered its biggest intra-day percentage rise since February 23 and is among the top percentage gainers on the NSE index.

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