Today Caraco announced that they have agreed to market/distribute the generic version of Eloxatin on behalf of Sun Pharma.
Caraco Pharmaceutical Laboratories, Ltd. (NYSE: CPD) has launched oxaliplatin injections. These 50mg and 100mg oxaliplatin injections, which are therapeutically equivalent to Eloxatin(R) from Sanofi-Aventis, received approval from the US Food and Drug Administration (FDA) for Sun Pharma’s Abbreviated New Drug Application (ANDA). Oxaliplatin is an anticancer used in the treatment of colon and rectal cancer. Oxaliplatin injections have annual sales of approximately $1.3 billion in the US.
This is big news for Caraco shareholders. I believe this will make the company at least break-even on cash burn. I wouldn’t be surprised in Caraco actually starts making cash based on distribution of this product. The market for this drug is substantial and Caraco should get 7%, with most of the profit dropping into cash.
The company’s shares have responded pleasantly based on this news. Management has been doing an exception job in fixing the FDA issues and getting the company back on track. Patient shareholders will be rewarded.