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Cipla gets approval for Testosterone Cypionate injection

The market for this drug was $191mn for 12-month period ending April 2018. The dynamics in this product seem to be good and we believe is a good opportunity for Cipla.

Cipla has received final USFDA approval for Testosterone Cypionate injection. Testosterone Cypionate is sold by Pharmacia under the brand name Depo-Testosterone. This is an androgen and anabolic steroid medication which is used in the treatment of low testosterone levels in men.

Testosterone Cypionate injection currently has 8 approved ANDAs in 200mg. In 100mg formulation, there are 3 approved ANDAs. This includes companies like Sun Pharma, Mylan, Sandoz, etc. The market for Testosterone Cypionate injection was ~$191mn in 12-month period ending April 2018. As per Bloomberg 94% of this market was the held by the generic companies. Within this drug, 200mg market is the large market while 100mg is a very small market.

As per Bloomberg, the market for this drug (in both strengths) has been holding well in size which means that the drug has not seen massive price erosion, which we believe is a good opportunity for Cipla. We checked the one year price erosion and found that 200mg has seen about 18% price erosion in last one year while 100mg has held on the prices in the npast one year.

Considering these dynamics and assuming 20% price erosion and 3% market share, Cipla should be able to make $4-5mn sales from this drug.

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