Ranbaxy gets Diovan approval – Positive for short to medium
Ranbaxy has received USFDA approval for generic Diovan. Company will be launching it shortly post receipt of approval. The brand sales in US for Diovan are close to USD1.9bn. Ranbaxy should be able to generate sales and PAT of ~USD190mn and ~USD100mn from the launch during 180 days of exclusivity. It will be a three player market during exclusivity period assuming Authorized Generic Company would also launch the drug.
The drugs was supposed to get launched in Sept-2012 but got delayed due to issues at Mohali and Toansa. However Ranbaxy maintained its exclusivity being a pre MMA filing. Company will be launching the drug from its US facility Ohm Labs. Ranbaxy is sourcing API from a third party Indian company.
National Economic News
Crop sowing 40% down due to scanty rainfall
The kharif sowing in the state has dipped by about 38.33% covering 0.387 million hectares (mha) as on June 21 on the back of scanty monsoon rainfall. The crop sowing coverage area was about 0.628 mha during the same period of the previous kharif season. The acreage of paddy cultivation, a major kharif (summer-sown) crop, dropped by 43.56% to 0.239 mha from 0.425 mha in the year-ago period. The state government had targeted paddy sowing on 3.6 mha land in its Kharif campaign 2014.
World Economic News
Japan Inflation Climbs 3.7% On Year In May
Nationwide consumer prices in Japan accelerated 3.7% on year in May, hitting their fastest pace since 1982. The headline figure was in line with expectations and up from 3.4% in April.
Core CPI, which strips out the volatile prices of food, was up 3.4% also matching forecasts and up from 3.2% in the previous month.
U.K. Tightens Mortgage Lending Conditions To Calm Property Market
The Bank of England tightened the mortgage lending rules in order to contain overheating in the property market and avert threats to financial stability. The bank focused on limiting the home buyers from taking loans beyond their repayment capacity. Though the household indebtedness currently pose no imminent threat to stability it is “prudent to insure against the risk of a marked loosening in underwriting standards and a further significant rise in the number of highly indebted households