The moment the market opened for trading, Sun Pharma rose 3.5% at Rs.521.90; after that it slipped and is now trading at Rs.512 levels, up some 1.5%. Its 52-week high is at Rs.709.80 and low at Rs.433.15.

There was good news for the company – the US FDA granted its approval for the specialty and high margin branded drug, Ilumya which is used for the treatment of moderate-to-severe plaque psoriasis.

Sun Pharma had in-licensed the drug from Merck in September 2014 for an upfront cost of $80 million. The arrangement now is that Merck will manufacture it while Sun Pharma will pay milestones and royalties.

Most of the brokerage houses have put out a report stating that Sun will face very stiff competition for this drug and to gain market share, it might have to offer much better prices.