Shasun Pharma

This chennai based pharmaceutical chemical manufacturer seems to have hit a gold mine. It has obtained a mojor contract from Vertex Pharma based in Cambridge, Massachusetts for manufacturing blockbuster drug Telaprevir which is used in treatement of Hepatitis C. The potential global market for this drug is over $ 2 billion (Rs.10000 Cr). The drug is in advanced clinical trial and is likely to hit the market by 2011. Vertex will have to source the entire supply from Shasun which would translate as a windfall profit for shasun.

This Rs.2 face value share is quoting at a price of of Rs.68 as on 19th Nov 2010. The book value of the share is Rs.43 and the reported EPS is Rs.4.57 per share.