Sun Pharma Share Price Target: Emkay Sets the Target Of Rs 2,400 - Here's Why

The US Court of Appeals has vacated a preliminary injunction that had stalled Sun Pharma’s launch of Leqselvi in the U.S., a move analysts see as a key positive for the company. Emkay Global Financial Services has maintained its ‘BUY’ rating with a target price of Rs 2,400, citing improved clarity around the drug’s launch potential. Sun Pharma’s stock currently trades at around ₹1,600.

Legal Hurdle Cleared, But Litigation Continues

Leqselvi, part of Sun’s dermatology portfolio, was previously blocked from launch by a court order in November 2024. While the new ruling removes that hurdle, the ongoing litigation with Incyte means any launch before the expiry of the 335 patents in December 2026 would be at-risk. Sun has not yet announced its launch plans.

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Brokerage Sees Quicker Resolution

Emkay Global Financial Services, in a client note, described the development as “materially positive,” as it removes a key overhang on the company’s specialty product pipeline in the U.S. market.

“Given that our—and the street’s—base is a royalty-based settlement with Incyte, this development significantly strengthens Sun’s position in negotiations,” the brokerage said in its note. The note adds that with regulatory clarity now in place, Sun Pharma can focus on market execution for Leqselvi, which is positioned in a niche but growing therapeutic segment.

Market Potentialities 

Emkay believes the development strengthens Sun’s hand in settlement talks, with a royalty-based agreement remaining the most likely outcome. The brokerage expects US sales of $40 million in FY26 and $124 million in FY27, with Leqselvi becoming a significant revenue contributor over time.

While the addressable market for Leqselvi in US at ~0.3mn patients (0.2% prevalence of Alopecia Areata in US with 45% of cases being classified as severe) is fairly large, Emkay exxpect Leqselvi to also gain share from competing JAK inhibitors. 

By FY30, Leqselvi’s global sales could top $600 million, matching the scale of Sun’s psoriasis drug Ilumya, and delivering EBITDA margins above 45%, according Emkay Global. Sun also plans to explore 2–3 additional indications and roll out the drug internationally in a phased manner.