IDirect HealthCheck Oct15
Transcript of IDirect HealthCheck Oct15
ICICI Securities Ltd. | Retail Equity Research
October 15, 2015
Monthly Update
US windfalls, rupee depreciation to drive Q2 Companies under the I-direct healthcare coverage (ex-Sun, Ajanta Pharma) in Q2FY16 are expected to post growth of 19.1% YoY to | 28085.4 crore. US sales from the select pack are expected to grow 36.5% to | 7303.6 crore on the back of 1) rupee depreciation (~7% YoY), 2) exclusivity launches (gAbilify by Torrent, Alembic), 3) market share gains (Aurobindo, Cadila) and 4) Natrol acquisition by Aurobindo. Similarly, Cipla through gNexium supply to Teva and Alembic through gAbilify exclusivity are also likely to register strong growth in the US. On the domestic front, Indian formulations from the select pack are likely to grow 14.6% YoY to | 5993.4 crore driven by strong growth in the chronic segment and a recovery in the acute segment. On the flip side, currency headwinds in other geographies like Europe, Japan and emerging economies such as Russia, Brazil and Venezuela are likely to impact the overall performance negatively. On the companies’ front, we expect Alembic, Cipla, Cadila, Aurobindo and Torrent to register strong growth mainly due to robust US sales while Ajanta and Natco are likely to grow on the back of strong growth in the domestic market. On the other hand, Lupin and Glenmark are likely to deliver a weak set of numbers due to lack of meaningful US launches while Ipca’s numbers are likely to be impacted due to ongoing cGMP issues. Restructuring at Sun is likely to continue in Q2 also. Biocon has acquired the USFDA approved API unit from Vizag-based Acacia Life sciences. Sun Pharma’s subsidiary Taro has entered into an all-share purchase agreement with Epirus for its subsidiary Zalicus, which is developing a pain management drug. Cipla has entered into a deal with Serum Institute of India to supply its vaccines to South Africa. Cipla Medpro will be responsible for obtaining regulatory approvals and marketing the vaccines. In its quest to expand the diabetology portfolio, Lupin has formed a strategic alliance with German MNC Boehringer Ingelheim to co-market an anti-diabetic drug Linagliptin in India. On the domestic front, The Indian pharmaceutical market (IPM) registered growth of 9.9% YoY to | 7852 crore for September. In Q2FY16, growth was at 11.7% YoY to | 25218 crore in Q2FY16. Among our covered companies, Glenmark registered highest growth of 23.2% YoY in Q2FY16 followed by Lupin, Torrent, Dr Reddy’s and Alembic clocking growth of 19.4%, 18.6%, 15.9% and 14.1%, respectively. On a MAT basis, IPM growth was at 13.7% YoY to | 93021 crore. Q2 numbers, product approvals, currency tailwinds, M&As to weigh With a marked improvement on the USFDA approvals front (82 approvals YTD FY16 including new acquisitions vs. 85 approvals in the whole of FY15), buying activity has resumed in most US focused pharma stocks. Similarly, the rupee has weakened vis-à-vis the US$ and is likely to stay at the higher level, which is likely to nullify the currency impact in Europe and RoW. We continue to maintain our long term bullish view on the sector despite premium valuations on the back of earning visibility, consistent operating cash flows and strong balance sheets. Lupin and Dr Reddy’s are our top picks from the large cap pharma space whereas Cadila, Torrent and Ajanta are our preferred picks from the midcap space among others.
Health CheckSector View
Outperformer
Index Performance as on October 14, 2015
Return (%) 1M 3M YTD 1Y
CNX 500 4 -3 1 8
Nifty 4 -4 -1 4
CNX Pharma 5 2 20 29
Return (%)
Stocks Performance Mcap
Company 1M 3M YTD 1Y 14-Oct
Sun Pharma.Inds. 4 -3 7 11 213692
Lupin 11 7 43 54 92202
Dr Reddy's Labs 4 12 30 44 71839
Cipla 2 1 7 16 53953
Aurobindo Pharma 11 4 39 70 46139
Cadila Health. 17 10 32 57 43151
Glaxosmit Pharma 0 -3 4 21 28077
Glenmark Pharma. -2 -4 31 37 28484
Divi's Lab. -2 14 25 22 28535
Torrent Pharma. 4 15 35 80 25752
Apollo Hospitals 6 7 28 35 20161
Wockhardt 10 3 53 104 17056
Ajanta Pharma 6 -6 61 122 13199
Pfizer 3 13 11 52 10920
Biocon -2 -7 3 -8 8782
Ipca Labs. -1 7 1 3 9327
Natco Pharma 20 17 74 89 9294
Strides Arcolab 6 1 31 81 7483
Indoco Remedies -5 -11 3 11 2968
Jubilant Life 23 99 224 163 6260
Unichem Labs. 11 36 28 38 2820
Return (%)
Mcap: Market cap in | crore
Price movement
50006000700080009000
100001100012000130001400015000
Oct-14 Jan-15 Apr-15 Jul-15 Oct-15
4000
6000
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10000
12000
CNX Pharma Nifty (RHS)
Research Analyst
Siddhant Khandekar [email protected] Mitesh Shah [email protected]
Nandan Kamat [email protected]
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Page 2
Regulatory approvals
Exhibit 1: Summary of USFDA approvals for September 2015
[5
Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeAurobindo Pharma Gemfibrozil CVS Pfizer Lopid US$ 44 millionAurobindo Pharma Telmisartan CVS Boehringer Ingelheim Micardis US$ 250 millionAurobindo Pharma Caffeine Citrate CNS Eurohlth Intl Sarl Cafcit NAAlembic Pharma Zolmitriptan CNS IPR Zomig US$ 152.8 millionDr. Reddy's Labs Esomeprazole Magnesium GI Astrazeneca Pharma Nexium US$ 7.3 billionGlenmark Pharma Voriconazole Anti-Infection PF Prism CV Vfend US$ 800 millionJubilant Life Sciences Zolmitriptan CNS Astrazeneca Zomig US$ 152.8 millionLupin Clarithromycin Antibiotic Abbvie Biaxin NASun Pharma Dexmethylphenidate Hydrochloride CNS Novartis Focalin US$ 683 million
Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeNatco Pharma Lapatinib Anti-Cancer Glaxo Smith Kline Tykerb US$ 362.5 millionStrides Acrolab Rilpivirine HIV Janssen Prods Edurant NA
Final Approvals
Tentative Approvals
CNS: Central Nervous System; CVS: Cardiovascular, NA: Not available; Source: USFDA, ICICIdirect.com Research
M&As, demergers and JVs
DRL to buy IP rights of Alchemia’s fondaparinux Dr Reddy’s entered into an agreement with Australian bio-pharmaceutical company Alchemia Ltd to acquire exclusive global intellectual property rights for its anti-coagulant drug fondaparinux sodium for the equivalent of | 116 crore. Under the terms of the sale, Alchemia will receive US$17.5 million in cash from Dr Reddy’s at the close of the transaction. In addition, the company received a payment of US$1.15 million for its share of net profit from US-only sales of fondaparinux for Q1FY16. Torrent Pharma Board approves Zyg Pharma amalgamation The Board of Directors of Torrent Pharma has approved the scheme of amalgamation of Zyg Pharma. In May 2015, Torrent Pharma had acquired a 100% stake in Encore Group’s Zyg Pharma Pvt Ltd. Biocon acquires USFDA approved API facility Biocon acquired the manufacturing unit from Vizag-based Acacia Lifesciences. The USFDA approved unit is currently manufacturing advanced intermediates of potent APIs useful to the company's business as well as for supply to third-party customers. Cipla to supply Serum Institute’s vaccines in South Africa Cipla has entered into a deal with Serum Institute of India to supply its vaccines to South Africa. Cipla Medpro will be responsible for obtaining regulatory approvals and marketing the vaccines. Taro Pharma acquires Zalicus Pharmaceuticals of Canada Taro has entered into an all-share purchase agreement with US based Epirus for its subsidiary Zalicus, which is developing a pain management drug candidate coded Z944. Taro will pay cash of US$3.8 million in addition to issuing a non-interest bearing, limited recourse promissory note of an equal amount with maturity date of July 1, 2017. Z944 has successfully completed phase one clinical trials and was poised to enter phase two trials. Lupin, Boehringer to co-market anti-diabetes drug in India Lupin and German firm Boehringer Ingelheim have formed a strategic alliance for co-marketing an anti-diabetic drug Linagliptin, a novel dipeptidylpeptidase-4 (DPP-4) inhibitor in India. According to the
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Page 3
agreement, Lupin will market and sell linagliptin under a separate brand name Ondero (monotherapy) and Ondero Met (fixed-dose combination with Metformin). Boehringer will continue to sell its linagliptin under the brand names Trajenta (monotherapy) and TrajentaDuo (fixed-dose combination with Metformin).
Capex, investments, fund raising
Sun Pharma to raise up to | 12000 crore Sun Pharma has sought shareholders approval to raise up to | 12,000 crore through convertible debentures or a qualified institutional placement (QIP). The funds raised will be used for expansion and acquisitions. Aurobindo Pharma to raise US$ 300 million through QIP Aurobindo Pharma is set to launch a share sale to institutional investors to raise US$ 300 million. In January, Aurobindo's board gave approval to raise up to US$ 350 million via 'issue of shares to qualified institutional buyers under qualified institutional placement'. AHLL to invest | 500 crore to fund growth Apollo Health and Lifestyle (AHLL) is planning to invest up to | 500 crore to fund the growth of its business, going forward. Apollo Health & Lifestyle also plans to invite private equity investors to participate in this growth opportunity. AHLL operates a network of primary care and specialty care formats across India. In the primary care space, it currently has five formats - Apollo Clinics, Apollo Sugar, Apollo Diagnostics, Apollo White and Apollo Dialysis. Lawsuits, court rulings, settlements
Sun Pharma withdraws lawsuit filed by Ranbaxy Sun Pharmaceutical has withdrawn its appeal in the lawsuit filed by Ranbaxy against the US health regulator challenging FDA's decision to revoke approvals for generic versions of Nexium (Gastro intestinal) and Valcyte (antiviral). HC restrains Glenmark from manufacturing, selling Zita, Zita-Met The Delhi High Court has restrained Glenmark Pharma from manufacturing and selling its anti-diabetes drugs Zita and Zita-Met, saying it has infringed the patent of the Merck Sharp and Dohme. Price cuts, new launches, recalls
Glenmark launches Anti Diabetic Agent Teneligliptin in India Glenmark Pharma has launched generic Teneligliptin, a new third-generation oral anti-diabetic drug, at a substantially lower price compared to other Gliptins available in India. Only 10.5 lakh out of the 6.5 crore diabetic patients in India use Gliptins as they are relatively expensive. Gliptins account for ~19% i.e. | 1,200 crore of the | 6,600 crore diabetic market in India.
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Exhibit 2: Patent litigations in last 12 months [5
Month Innovator ANDA Filer Brand Name API Used for Sep-14 Millenium Pharmaceuticals Glenmark Pharma Valcade Bortezomib Multiple MylomaSep-14 Teva Pharma Dr. Reddy's Labs Copaxon Glatiramer Acetate Multiple SclerosisSep-14 Reckitt Benckiser LLC Aurobindo Pharma Mucinex Guaifenesin MucusSep-14 Cephalon Inc. Dr. Reddy's Labs Treanda Bendamustine LeukemiaSep-14 Cephalon Inc. Sun Pharma Treanda Bendamustine LeukemiaOct-14 Novartis Pharma Dr. Reddy's Labs Gleevec Imatinib LeukemiaOct-14 Braintree Laboratory Inc. Taro Pharma Suprep Sodium Sulphate Bowel PreparationOct-14 Cephalon Inc. Wockhardt Treanda Bendamustine LeukemiaNov-14 Biomarin Pharma Dr. Reddy's Labs Kuvan Sapropterin Dihydrochloride phenylketonuriaNov-14 Otsuka Pharma Cadila Healthcare Abilify Aripiprazole CNSNov-14 Otsuka Pharma Alembic Pharma Abilify Aripiprazole CNS
Jan-15 iCeutica Lupin Ltd. Zorvolex Diclofenac Anti-Inflammatory
Jan-15 Senju Pharma Lupin Ltd. Prolensa Bromfenac Eye Inflammation
Jan-15 Sheonogi & Co. Aurobindo Pharma Doribax Doripenem Infection
Jan-15 Teva Pharma Dr. Reddy's Labs Copaxone Glatiramer Multiple Sclerosis
Feb-15 Roxane Laboratories Lupin Ltd. Roxane Calcium Acetate CCalcium Acetate Serum phosphorous Reduction
Feb-15 Cephalon Inc. Glenmark Generics Treanda Bendamustine Leukemia
Feb-15 Cephalon Inc. Dr. Reddy's Labs Treanda Bendamustine Leukemia
Mar-15 Otsuka Pharma Indoco Remedies Abilify Aripiprazole CNS
Apr-15 Sanofi Aventis Dr. Reddy's Labs Jevtana KIT Cabazitaxel Prostate Cancer
Apr-15 Sanofi Aventis Glenmark Jevtana KIT Cabazitaxel Prostate Cancer
Apr-15 Medicis Pharma Taro Pharma Zyclara Imiquimod Actinic Keratoses
Apr-15 Alcon Research Wockhardt Patanol Olopatadine hydrochloride Allergic Conjunctivitis
Apr-15 Janssen Products LP Cipla Prezista Darunavir Anti-Retroviral
Apr-15 Teva Pharma Dr. Reddy's Labs Copaxone Glatiramer Multiple Sclerosis
Apr-15 Eli Lilly Lupin Effient Prasugrel CVS
Apr-15 Horizon Pharma Lupin Pennsaid Diclofenac Osteoporosis
May-15 Apotex Inc. Lupin Paxil CR Paroxitine Hydrochloride Anti-Anxiety
May-15 Galderma Labs Glenmark Epiduo Adapalene; Benzoyl Peroxide Acne
May-15 Horizon Pharma Dr. Reddy's Labs Vimovo Esmoprazole Magnesium; Naproxen Osteoporosis
May-15 Merz Pharma Taro Pharma Naftin Naftifine Hydrochloride Fungal Infection
May-15 Takeda Zydus Pharma Daliresp Roflumilast CVS
May-15 Takeda Strides Daliresp Roflumilast CVS
May-15 Acorda Therapeutics Inc. Sun Pharma Ampyra Dalframpridine Multiple Sclerosis
May-15 Merck Lupin Safyral Drospiranone; Ethinyl Estradiol; LevoBirth Control
May-15 Kowa Lupin Livalo Pitavastatin Calcium High Cholestrol
Jun-15 Millenium Pharmaceuticals Dr. Reddy's Labs Valcade Bortezomib Anti-Cancer
Jun-15 Millenium Pharmaceuticals Sun Pharma Valcade Bortezomib Anti-Cancer
Jun-15 Reckitt Benckiser LLC Dr. Reddy's Labs Mucinex Guaifenesin; Pseudoephedrine HCl Bronchial Conjestion
Jul-15 Eli Lilly Lupin Axiron Hypogonadism Testosterone
Jul-15 Fresenius Medical Gavis Pharma Phoslo Calcium Acetate Kidney Disease
Jul-15 Alcon Research Lupin TravatanZ Travoprost Ophthalmic solution Elevated Intraocular pressure
Aug-15 Allergan Lupin Namenda Memantine Hydrochoride Alzheimer's Disease
Aug-15 Galderma Labs Taro Pharma Epiduo Adapalene & Benzoyl peroxide Acne
Sep-15 Jazz Pharma Lupin Xyrem Sodium Oxybate Narcolepsy
Sep-15 Gilead Sciences Inc. Lupin Tamiflu Oseltamivir Influenza
Sep-15 Horizon Pharma Lupin Pennsaid Diclofenac Osteoarthritis
Sep-15 Bayer Pharma Alembic Pharma Staxyn Vardenafil Hydrochloride Sex Stimulant
Source: Bloomberg, ICICIdirect.com Research
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IPM grows 10% in September… • The Indian pharmaceutical market (IPM) registered growth of 9.9% YoY
to | 7852 crore for September. The growth was mainly driven by price hikes – 4.7%, volume growth – 2.3% and new product launches – 3.1%
• Drugs under the NLEM list witnessed growth of 2.8% YoY to | 1078 crore while non-NLEM drugs posted growth of 10.9% to | 7179 crore. Volume growth in NLEM, non-NLEM was 1.2% and 1.1%, respectively
• Among our covered companies, Torrent registered highest growth of 16.0% YoY followed by Glenmark, Ajanta, Cadila, Lupin and Sun registering growth of 13.1%, 12.6%, 12.6%, 12.4% and 11.8%, respectively
• Therapy wise, 12 therapies have outpaced IPM growth. Notable among them with growth rates- anti-diabetic – 18.1%, CNS- 15.2%, gynaecology – 13.4%, dermatology – 12.9% and gastro intestinal 12.8%. Anti-infective and respiratory segments grew just 3.2% and 4.1%, respectively
• In all, 253 new brands were launched in September 2015 • On a MAT basis, IPM growth was at 13.7% YoY to | 93021 crore • Domestic companies have grown 9.6% while MNC companies have
grown 10.7% in September 2015
Exhibit 3: Domestic formulations - growth trend
20.6
8.1
12.8 15
.3
14.0
19.9
12.8
21.8
18.5
20
15.5
13.0
9.9
-5
0
5
10
15
20
25
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market[
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 4: Companies growth in domestic market in September, 2015
16.011.8
-6.7
4.5
12.6
42.3
0.6
9.7 9.7 12.4
3.62.6
13.1 7.512.9
-11.2-15
-5
5
15
25
35
45
55
Woc
khar
dt
Unic
hem
Torr
ent
Sun
Phar
ma
Pfize
r
Nov
artis
Lupi
n
Ipca
Lab
s
Indo
co
GSK
Phar
ma
Glen
mar
k
Dr. R
eddy
s
Cipl
a
Cadi
la
Bioc
on
Ajan
ta
(%)
Source: AIOCD data base, ICICIdirect.com Research
Therapy wise performance (| crore) Therapy Sep'15 Sep'14 YoY (%) Aug'15 MoM (%)Anti-Infectives 1438 1394 3.2 1286 11.8Cardiac 1016 908 11.8 1007 0.8Gastro Intestinal 996 883 12.8 990 0.6Vitamins 759 716 5.9 757 0.2Anti Diabetic 671 568 18.1 664 1.1Respiratory 663 636 4.1 579 14.4Pain 612 562 9.0 592 3.5CNS 515 447 15.2 502 2.5Derma 507 449 12.9 495 2.3Gynaecological 424 374 13.4 408 3.9Hormones 148 128 15.4 150 -1.0Vaccines 146 131 11.2 137 6.4Anti-Neoplastics 127 125 2.2 145 -11.9Ophthal 119 108 9.5 119 -0.8Blood Related 103 86 18.9 101 1.7Others 93 83 12.1 91 2.2Urology 105 74 42.4 97 8.5Anti Malarials 80 74 7.5 54 48.3Sex Stimulants 41 37 10.2 40 1.8Stomatologicals 34 34 0.8 33 1.3 Source: AIOCD data base
Top brands in Indian pharma market Brand Company Therapy Sep'15 Sep'14 Gr. (%)Augmentin GSK Anti-Infectives 328.3 276.3 18.8Corex Pfizer Respiratory 270.3 221.0 22.3Becosules Pfizer Vitamins 253.9 238.3 6.5Spasmo Prox Wockhardt GI 251.8 151.3 66.4Lantus Sanofi Anti Diabetic 244.0 192.7 26.6Clavam Alkem Anti-Infectives 222.8 222.1 0.3Galvus Met Novartis Anti Diabetic 222.7 165.6 34.5Volini Ranbaxy Pain 202.5 219.1 -7.6Shelcal Torrent Vitamins 195.1 111.0 75.7Skinlite Cadila Derma 192.6 158.8 21.3
Source: AIOCD data base; Date as per MAT Sep15 & Sep 14 Industry acute to chronic therapy ratio percentage…
Acute, 44790.5,
48.2%
Chronic, 29123.9,
31.3%
Sub-Chronic, 19107.1,
20.5%
Source: AIOCD data base ; As per AIOCD MAT Sep 2015
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Page 6
IPM grows 11.7% in Q2FY16 • The Indian pharmaceutical market (IPM) has registered growth of 11.7%
YoY to | 25218 crore in Q2FY16 • The growth was mainly driven by price hikes – 4.6% followed by volume
growth of 4.2% and new product launches – 2.9% • Drugs under NLEM list witnessed growth of 3.7% YoY to | 2989.2 crore
while non-NLEM drugs posted growth of 13.1% to | 18581.0 crore • Among our covered companies Glenmark registered highest growth of
23.2% YoY followed by Lupin, Torrent, Dr Reddy’s and Alembic clocking growth of 19.4%, 18.6%, 15.9% and 14.1%, respectively
• Therapy wise, 12 therapies have outpaced IPM growth. Notable among them with growth rates- anti-diabetic – 22.9%, dermatology- 16.9%, gastro intestinal – 14.8% CNS – 16.4% and respiratory – 15.7%. Anti-infective and respiratory segments registered just 2.1% and 4.8% growth, respectively, in Q2FY16
Therapy wise performance (| crore) Therapy Q2FY16 Q2FY15 YoY (%) Q1FY16 QoQ (%)Anti-Infectives 3938 3857 2.1 3449 14.2Cardiac 3068 2654 15.6 3064 0.1Gastro Intestinal 3026 2637 14.8 2970 1.9Vitamins 2298 2089 10.0 2220 3.5Anti Diabetic 2017 1641 22.9 1974 2.2Respiratory 1782 1700 4.8 1627 9.5Pain 1788 1631 9.6 1652 8.2CNS 1536 1320 16.4 1487 3.3Derma 1500 1284 16.9 1432 4.8Gynaecological 1254 1116 12.3 1229 2.0Hormones 442 371 19.1 404 9.3Vaccines 418 376 11.3 394 6.2Anti-Neoplastics 419 372 12.8 406 3.3Ophthal 358 315 13.7 367 -2.2Blood Related 306 270 13.2 295 3.7Others 277 240 15.7 274 1.2Urology 297 218 36.3 265 11.9Anti Malarials 179 185 -3.1 109 64.4Sex Stimulants 121 110 10.7 128 -5.3Stomatologicals 102 97 4.7 102 0.4
Source: AIOCD data base
Exhibit 5: Domestic formulations – quarterly growth trend
9.6 8.1
3.5
9.27.2
4.2
0.1 3.6
5.2
5.2
4.9
4.6
1.1
2.0
2.4
2.7
2.9
2.9
10.8
13.7
11.1
17.115.0
11.7
-113579
1113151719
Q1FY15 Q2FY15 Q3FY15 Q4FY15 1QFY16 2QFY16
(%)
Volumes Price Increases New Products
[
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 6: Company wise growth trends in Q2FY16
14.1
4.6
18.6
13.415.2
13.1
19.4
2.2
(1.9)
0.3
23.2
15.9
8.811.7
0.1
13.5
(5.0)
-
5.0
10.0
15.0
20.0
25.0
Alem
bic
Unic
hem
Torre
nt
Sun
Phar
ma
Pfize
r
Nov
artis
Lupi
n
Ipca
Lab
s
Indo
co
GSK
Phar
ma
Glen
mar
k
Dr. R
eddy
s
Cipl
a
Cadi
la
Bioc
on
Ajan
ta
(%)
Source: AIOCD data base, ICICIdirect.com Research
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Page 7
Sun Pharmaceuticals
Stock Performance
80100120140
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Sun Pharma
Source: NSE, ICICIdirect.com Research Exhibit 7: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6
15.5
12.8
13.0
9.9
11.6
5.6
12.7
15.8
11.1
10.7
14.4
18.4
15.8
23.0
17.1
11.1 11.8
0
5
10
15
20
25
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Sun Pharmaceutical Industries
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 8: Market share in Indian formulations market
8.38.8
9.2 9.0 9.2
8.48.7 8.9
9.3 9.2 9.08.5 8.4
6.0
6.6
7.2
7.8
8.4
9.0
9.6
10.2
10.8
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Sun Pharmaceutical Industries
Source: AIOCD data base, ICICIdirect.com Research * Included Ranbaxy’s sales
Exhibit 9: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Volini Pain 18.2 20.0 -9.2 19.2 -5.4
Rosuvas Cardiac 12.8 10.0 28.9 13.0 -1.3
Gemer Anti Diabetic 12.6 10.5 19.8 12.3 2.6
Istamet Anti Diabetic 12.5 9.1 37.3 12.1 3.3
Levipil Neuro 12.3 9.2 33.9 11.7 4.9
Susten Gynaecological 11.7 9.8 19.5 11.5 1.1
Pantocid Gastro Intestinal 11.6 11.9 -2.7 11.2 3.9
Pantocid Dsr Gastro Intestinal 10.0 8.2 NA 9.6 4.0
Mox Anti-Infectives 9.6 9.7 -0.6 8.2 18.0
Aztor Cardiac 9.1 7.9 16.0 9.0 1.1
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 10: Contribution of therapies to domestic sales (MAT Sep’15) z
Neuro 26%
Cardiac26%
Gastro Intestinal18%
Anti-Infectives17%
Anti Diabetic13%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 11: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Neuro 126.7 110.0 15.2 122.7 3.3
Cardiac 122.2 105.0 16.4 119.8 2.0
Gastro Intestinal 88.5 75.4 17.4 87.5 1.1
Anti-Infectives 96.3 84.6 13.9 85.6 12.5
Anti Diabetic 62.6 51.5 21.7 61.6 1.8
Pain 50.6 49.8 1.8 51.9 -2.4
Derma 34.1 30.1 13.4 31.8 7.5
Gynaecological 27.6 24.6 12.4 26.7 3.7
Respiratory 25.3 24.5 3.4 22.4 12.9
Ophthal 17.7 15.9 10.8 18.4 -3.8
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 3357.0, 40.6%
Chronic, 3767.3, 45.6%
Sub-Chronic, 1145.8, 13.9%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
17%
9%
7%
9%58%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
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October 15, 2015
Cipla
Stock Performance
6080
100120140
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Cipla
Source: NSE, ICICIdirect.com Research
Exhibit 12: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6 15
.5
12.8
13.0
9.9
33.3
10.3
8.3
13.5
13.2
24.0
24.8
25.4
15.9
16.6
11.5
11.0
4.5
0
5
10
15
20
25
30
35
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Cipla
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 13: Market share in Indian formulations market
5.4
5.04.8
5.05.1
5.25.1
5.3
4.8
4.6 4.74.8
5.0
4.2
4.4
4.6
4.8
5.0
5.2
5.4
5.6
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Cipla
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 14: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Foracort Respiratory 15.9 15.0 6.0 15.3 3.6
Budecort Respiratory 13.4 11.4 16.8 11.0 21.5
Seroflo Respiratory 11.2 11.2 0.3 10.7 4.9
Asthalin Respiratory 10.9 11.8 -7.6 10.6 3.5
Duolin Respiratory 10.2 9.8 3.4 9.4 8.3
Azee Anti-Infectives 9.4 8.5 10.9 7.7 23.1
Aerocort Respiratory 8.2 8.8 -7.4 7.8 4.3
Novamox Anti-Infectives 7.1 8.1 -11.6 5.8 23.8
Montair Lc Respiratory 6.7 6.1 9.8 5.9 13.3
Advent Anti-Infectives 6.6 6.3 5.0 5.5 20.4
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 15: Contribution of therapies to domestic sales (MAT Sep’15)
Respiratory29%
Anti-Infectives26%
Cardiac13%
Gastro Intestinal8%
Urology5%
Other19%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 16: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)Respiratory 124.2 120.6 3.0 112.8 10.1Anti-Infect ives 121.4 118.8 2.2 109.4 10.9
Cardiac 47.7 48.6 -1.9 46.7 2.1Gastro Intestinal 33.1 29.8 11.2 32.2 2.8
Urology 20.2 18.2 11.0 19.7 2.3Neuro 15.2 13.7 10.9 15.7 -2.9
Pain 15.4 12.0 28.1 13.6 12.8
Ophthal 10.1 9.2 8.8 9.6 4.5
Derma 10.7 10.0 6.6 10.2 5.1
Vitamins 8.3 8.4 -0.7 8.2 2.0
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep ’15)
Acute, 2123.5, 46.1%
Chronic, 1912.5, 41.5%
Sub-Chronic, 573.3, 12.4%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
24%
12%
9%12%
43%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 9
Dr Reddy’s Laboratories
Stock Performance
6080
100120140
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15CNX Pharma Dr. Reddys
Source: NSE, ICICIdirect.com Research
Exhibit 17: Company growth vis-à-vis Indian pharma market growth
20.6
8.1 12
.8 15.3
14.0 19
.9 21.8
18.5
12.6 15
.5
12.8
13.0
9.9
25.7
10.3
18.4 22
.8
22.2 24
.1
34.3
35.0
22.8
32.2
26.9
14.9
7.5
-10
20
50
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Dr. Reddys Laboratories
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 18: Market share in Indian formulations market
2.3
2.2
2.3
2.4
2.2
2.32.3
2.4
2.3 2.3
2.22.3
2.3
2.02.12.12.22.22.32.32.42.42.52.5
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Dr. Reddys Laboratories
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 19: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Omez Gastro Intestinal 10.8 6.8 59.6 10.7 1.2
Omez D Gastro Intestinal 8.4 6.6 28.4 7.2 16.6
Razo D Gastro Intestinal 6.2 3.9 60.7 6.0 4.2
Nise Pain 5.9 6.8 -12.7 5.4 9.4
Econorm Gastro Intestinal 5.7 4.4 29.5 5.7 0.6
Grafeel Anti-Neoplastics 5.7 2.5 126.3 5.7 0.3
Stamlo Cardiac 5.6 4.5 23.2 5.1 8.8
Clamp Anti-Infectives 4.5 4.7 -5.3 3.6 24.0
Stamlo Beta Cardiac 4.3 4.2 2.9 3.6 21.2
Atarax Respiratory 4.0 4.1 -1.8 3.3 22.6
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 20: Contribution of therapies to domestic sales (MAT Sep’15)
Gastro Intestinal22%
Cardiac15%
Anti-Neoplastics
10%Respiratory9%
Anti-Infectives8%
Other36%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 21: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Gastro Intestinal 45.3 35.3 28.5 43.1 5.3
Cardiac 30.0 26.5 13.3 27.1 10.5
Anti-Neoplastics 17.1 20.6 -17.2 26.0 -34.3
Respiratory 17.2 17.4 -0.8 15.3 13.1
Anti-Infectives 16.9 18.0 -6.4 15.1 11.6
Pain 14.0 14.6 -3.6 13.3 5.8
Anti Diabetic 13.2 11.9 10.2 12.3 7.0
Derma 11.7 11.2 4.3 10.1 15.1
Urology 7.7 6.1 26.6 7.2 6.6
Stomatologicals 6.2 6.3 -0.5 6.2 -0.1
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 1070.1, 50.2%
Chronic, 647.1, 30.4%
Sub-Chronic, 414.8, 19.5%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
30%
17%
9%12%
32%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 10
Lupin
Stock Performance
6080
100120140
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Lupin
Source: NSE, ICICIdirect.com Research
Exhibit 22: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6 15
.5
13.0
19.7
10.5 13
.7
18.1
14.9
22.8
19.1
16.1 18
.5
25.1
21.2
12.4
12.8
9.9
-4
12
28
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Lupin
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 23: Market share in Indian formulations market
3.3 3.3 3.4 3.4 3.43.2
3.0
3.63.8 3.8 3.7
3.4 3.4
2.32.52.72.93.13.33.53.73.9
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Lupin
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 24: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Gluconorm-G Anti Diabetic 11.7 10.2 15.0 11.4 2.3
Tonact Cardiac 8.1 7.9 1.4 8.4 -4.4
Budamate Respiratory 7.4 5.4 36.3 7.0 5.5
Rablet Gastro Intestinal 4.5 4.0 12.8 4.5 1.1
Rablet-D Gastro Intestinal 4.5 4.1 9.7 4.7 -3.2
R-Cinex Anti-Infectives 4.4 4.4 0.5 4.0 9.2
Cetil Anti-Infectives 4.3 3.4 25.6 3.4 25.0
Ramistar Cardiac 4.2 4.1 0.7 4.3 -3.5
L-Cin Anti-Infectives 4.2 3.8 10.2 3.2 31.1
Tazar Anti-Infectives 4.1 3.7 10.4 3.5 16.8
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 25: Contribution of therapies to domestic sales (MAT Sep’15)
Cardiac25%
Anti-Infectives22%
Respiratory12%
Anti Diabetic11%
Gastro Intestinal8%
Other22%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 26: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Cardiac 69.2 60.9 13.7 69.9 -1.0
Anti-Infectives 68.2 64.6 5.6 61.9 10.2
Respiratory 33.8 29.3 15.5 31.7 6.7
Anti Diabetic 30.3 26.3 15.1 29.8 1.7
Gastro Intestinal 23.5 20.6 14.1 23.1 1.9
Vitamins 17.1 15.9 7.9 16.5 3.7
Neuro 14.1 13.4 5.6 14.0 1.0
Pain 12.9 11.9 8.4 12.8 1.2
Gynaecological 10.5 6.8 53.9 9.8 7.4
Derma 1.7 1.9 -11.5 1.7 -0.9
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 1005.1, 31.2%
Chronic, 1559.4, 48.4%
Sub-Chronic, 655.9, 20.4%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
20%
12%
9%13%
46%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 11
Cadila Healthcare
Stock Performance
6080
100120140
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Cadila Healthcare
Source: NSE, ICICIdirect.com Research
Exhibit 27: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6
15.5
12.8
13.0
9.9
12.1
1.4
8.1
12.7
7.0 7.3
11.4 13
.1
9.6
13.2
11.5
10.6 12
.9
0
5
10
15
20
25
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Cadila Healthcare
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 28: Market share in Indian formulations market
3.6
3.8
4.03.9 3.9
3.83.8
3.93.8 3.8
3.73.8 3.7
3.4
3.5
3.6
3.7
3.8
3.9
4.0
4.1
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Cadila Healthcare
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 29: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Skinlite Derma 14.0 12.3 13.8 13.9 0.9
Mifegest Kit Gynaecological 11.8 5.9 99.4 11.2 5.2
Atorva Cardiac 10.4 10.4 -0.4 10.5 -1.0
Falcigo Anti Malarials 9.8 6.9 42.4 6.3 55.2
Deriphyllin Respiratory 8.5 6.5 31.6 6.5 31.6
Pantodac Gastro Intestinal 8.0 8.5 -6.0 8.0 -0.7
Amlodac Cardiac 6.0 5.3 12.3 5.6 7.0
Clopitorva Cardiac 5.9 4.0 47.7 6.0 -1.2
Thrombophob Cardiac 5.7 4.0 42.5 4.7 21.8
Dexona Hormones 5.6 4.3 32.1 4.9 14.8
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 30: Contribution of therapies to domestic sales (MAT Sep’15)
Cardiac19%
Gastro Intestinal14%
Gynaecological12%
Respiratory10%
Derma9%
Other36%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 31: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Cardiac 58.5 52.3 11.9 57.2 2.2
Gastro Intestinal 45.0 41.8 7.6 44.4 1.2
Gynaecological 36.1 28.9 25.0 35.3 2.1
Respiratory 33.9 28.3 19.8 29.6 14.3
Derma 25.3 21.7 16.4 25.0 1.2
Pain 24.5 24.0 2.2 24.5 0.1
Anti-Infectives 24.7 22.0 12.1 23.8 3.7
Vitamins 13.3 12.5 6.6 12.6 5.3
Anti-Neoplastics 12.3 10.1 22.4 14.4 -14.4
Anti Malarials 12.5 9.1 38.0 8.5 46.8
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 1526.8, 43.0%
Chronic, 1287.6, 36.3%
Sub-Chronic, 733.0, 20.7%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
27%
13%
8%10%
42%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 12
GlaxoSmithKline Pharmaceuticals
Stock Performance
6080
100120140
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma GSK Pharma
Source: NSE, ICICIdirect.com Research
Exhibit 32: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6 15
.5
12.8
13.0
9.9
13.0
12.1
5.5
0.8
2.6 6.
6
10.8 12
.9
0.7 2.
1
-1.7 -0
.3
2.6
-5
0
5
10
15
20
25
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Glaxosmithkline Pharmaceuticals
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 33: Market share in Indian formulations market
3.5
3.4 3.43.4
3.3 3.3
3.43.4
3.2 3.2
3.1
3.2
3.3
3.0
3.2
3.4
3.6
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Glaxosmithkline Pharmaceuticals
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 34: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Augmentin Anti-Infectives 28.0 29.7 -5.9 27.3 2.4
Calpol Pain 19.6 15.8 24.2 14.9 31.3
Rotarix Vaccines 16.5 6.1 172.5 16.4 0.7
Synflorix Vaccines 16.3 11.6 40.3 14.6 11.4
Betnovate C Derma 12.8 9.0 42.6 12.1 5.5
Zinetac Gastro Intestinal 12.1 13.3 -9.1 12.6 -4.5
Ceftum Anti-Infectives 11.7 12.1 -3.5 11.1 5.1
Betnovate N Derma 11.6 9.1 27.5 12.2 -5.1
Eltroxin Hormones 10.7 10.9 -2.6 11.3 -5.4
Betnesol Hormones 10.6 7.6 39.7 8.0 31.9
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 35: Contribution of therapies to domestic sales (MAT Sep’15)
Anti-Infectives25%
Derma21%Vaccines
12%
Pain 9%
Hormones8%
Other25%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 36: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Anti-Infectives 68.8 74.3 -7.4 66.1 4.0
Derma 52.1 53.2 -2.1 53.3 -2.4
Vaccines 43.1 31.0 39.2 34.6 24.4
Pain 30.3 25.1 20.9 25.2 20.2
Hormones 22.3 19.1 16.7 20.1 11.4
Vitamins 20.2 20.1 0.1 20.0 1.0
Gastro Intestinal 14.4 16.3 -11.6 15.2 -5.0
Respiratory 16.3 17.6 -7.3 14.0 16.5
Cardiac 6.2 7.5 -17.6 6.1 1.4
Gynaecological 4.5 3.0 48.9 4.1 8.9
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 1987.1, 64.6%
Chronic, 419.2, 13.6%
Sub-Chronic, 670.8, 21.8%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
50%
15%
9%
11%
15%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 13
Wockhardt
Stock Performance
050
100150200250300350400
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Wockhardt
Source: NSE, ICICIdirect.com Research Exhibit 37: Company growth vis-à-vis Indian pharma market growth
20.6
8.1 12
.8 15.3
14.0 19
.9 21.8
18.5
12.6 15
.5
12.8
13.0
9.9
8.5
-4.5
-2.1
29.2
5.2
19.9
32.0
44.9
22.4
36.2
29.4
24.6
42.3
-10
0
10
20
30
40
50
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Wockhardt
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 38: Market share in Indian formulations market
1.08
1.161.10
1.16
1.37
1.47
1.40
1.281.25
1.28
1.37 1.361.40
1.01.11.11.21.21.31.31.41.41.51.5
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Wockhardt
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 39: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Spasmo Proxyvon PluGastro Intestinal 31.1 13.7 127.3 22.9 36.0
Practin Vitamins 5.6 4.8 17.5 6.2 -9.9
Biovac V Vaccines 5.3 0.0 NA 5.7 -7.1
Tryptomer Neuro 5.2 3.8 35.3 5.8 -10.2
Biovac A Vaccines 5.1 2.0 151.2 5.5 -8.2
Bro Zedex Respiratory 4.5 4.5 0.3 3.6 26.2
Methycobal Vitamins 3.9 3.5 11.8 4.6 -16.6
Ace Proxyvon Pain 3.1 2.6 19.7 3.1 -1.1
Zedex Respiratory 3.0 3.8 -20.9 2.4 23.7
Butaproxyvon Pain 2.2 0.7 213.7 1.8 22.5
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 40: Contribution of therapies to domestic sales (MAT Sep’15) Gastro Intestinal
22%
Vitamins 16%
Respiratory13%Vaccines
9%
Neuro 8%
Other32%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 41: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Gastro Intestinal 33.1 15.2 118.3 25.2 31.1
Vitamins 16.4 14.7 11.7 18.2 -9.7
Respiratory 13.4 13.7 -2.5 10.4 29.0
Vaccines 10.4 2.1 399.5 11.2 -7.5
Neuro 8.6 7.0 22.5 9.5 -9.7
Derma 8.0 7.4 7.7 7.4 8.4
Anti-Infectives 10.0 8.4 19.2 8.7 15.2
Pain 7.6 4.8 57.3 8.4 -9.6
Anti Diabetic 6.4 5.4 19.5 6.9 -6.3
Hormones 2.5 2.6 -2.2 2.0 29.1
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 852.0, 70.2%
Chronic, 228.7, 18.9%
Sub-Chronic, 132.1, 10.9%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
55%
15%
8%
8%
14%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 14
Glenmark Pharmaceuticals
Stock Performance
6080
100120140160180200
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15CNX Pharma Glenmark
Source: NSE, ICICIdirect.com Research
Exhibit 42: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6 15
.5
12.8
13.0
9.9
27.2
2.6
20.4 21.5
21.4 24
.2 28.1 30
.3
29.8
34.5
30.9
28.0
13.1
0
5
10
15
20
25
30
35
40
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Glenmark Pharmaceuticals
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 43: Market share in Indian formulations market
2.3
2.1
2.4 2.42.4
2.32.3 2.3
2.2
2.32.4 2.4
2.4
1.9
2.1
2.3
2.5
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Glenmark Pharmaceuticals
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 44: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Telma Cardiac 14.5 13.6 7.0 14.0 3.5
Telma H Cardiac 11.6 10.7 8.2 11.2 4.2
Ascoril Plus Respiratory 9.0 9.4 -3.3 7.1 27.0
Candid-B Derma 8.1 8.9 -9.5 7.6 7.1
Candid Derma 8.0 6.8 17.0 7.8 2.0
Zitamet Anti Diabetic 7.6 5.1 50.3 6.6 15.8
Telma Am Cardiac 6.3 5.6 11.6 5.9 6.2
Zita(Glenmark) Anti Diabetic 5.2 3.8 37.6 4.2 23.6
Ascoril Ls Respiratory 4.1 3.8 9.1 3.2 28.9
Onabet Derma 3.4 2.0 66.3 3.2 5.2
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 45: Contribution of therapies to domestic sales (MAT Sep’15)
Derma28%
Cardiac23%
Respiratory15%
Anti-Infectives14%
Anti Diabetic9%
Other11%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 46: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Derma 59.0 53.2 10.9 57.0 3.6
Cardiac 44.5 40.5 9.8 43.0 3.5
Respiratory 31.1 28.9 7.7 25.6 21.8
Anti-Infectives 30.6 28.6 7.2 28.1 9.1
Anti Diabetic 20.6 13.1 57.0 17.7 16.6
Gastro Intestinal 5.0 4.1 23.6 4.7 6.8
Vitamins 5.7 4.2 36.6 5.7 -0.9
Pain 4.3 4.0 7.5 4.4 -2.5
Gynaecological 3.5 3.4 4.3 3.6 -2.3
Otologicals 3.6 4.1 -12.9 3.8 -6.3
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 866.8, 40.0%
Chronic, 812.9, 37.6%
Sub-Chronic, 485.0, 22.4%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
37%
13%10%
12%
28%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 15
Torrent Pharmaceuticals
Stock Performance
80100120140160180200
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Torrent Pharma
Source: NSE, ICICIdirect.com Research
Exhibit 47: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6 15
.5
12.8
13.0
9.918
.5
6.0
23.2
30.7
21.1
30.9
30.5
28.8
27.4
28.3
18.3 21
.7
16.0
0
5
10
15
20
25
30
35
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Torrent Pharmaceuticals
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 48: Market share in Indian formulations market
2.112.23
2.302.42
2.35 2.402.32
2.432.49 2.51
2.37
2.26 2.24
1.6
2.0
2.4
2.8
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Torrent Pharmaceuticals
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 49: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Shelcal Vitamins 16.6 12.8 29.3 14.5 14.2
Chymoral Forte Pain 8.8 5.8 50.8 11.9 -26.5
Nikoran Cardiac 7.3 6.2 18.0 7.2 1.5
Dilzem Cardiac 5.3 4.9 7.3 4.9 7.7
Nebicard Cardiac 4.9 4.2 15.7 4.7 3.7
Azulix-Mf Anti Diabetic 4.7 3.8 24.0 4.5 4.6
Nexpro Rd Gastro Intestinal 4.4 4.3 1.0 4.1 7.0
Nexpro Gastro Intestinal 4.2 4.0 5.0 3.9 7.1
Shelcal Ct Vitamins 3.4 2.0 68.6 3.2 5.3
Alprax Neuro 3.3 3.0 8.0 3.1 5.9
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 50: Contribution of therapies to domestic sales (MAT Sep’15)
Cardiac28%
Neuro 16%Gastro Intestinal
15%
Vitamins 15%
Pain 8%
Other18%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 51: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Cardiac 55.6 48.1 15.6 54.3 2.5
Neuro 30.7 27.8 10.8 30.1 2.0
Gastro Intestinal 29.0 26.7 8.5 26.8 8.1
Vitamins 30.4 22.2 36.7 27.5 10.5
Pain 14.5 9.5 52.4 16.9 -14.4
Anti-Infectives 9.4 13.6 -30.7 9.3 1.3
Anti Diabetic 11.5 9.5 21.1 10.9 6.3
Derma 5.0 3.5 42.4 4.4 15.1
Gynaecological 3.5 3.3 6.5 3.3 8.2
Urology 0.8 0.7 26.1 0.8 8.7
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 564.4, 25.7%
Chronic, 1099.2, 50.1% Sub-
Chronic, 530.4, 24.2%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
33%
13%
9%
12%
33%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 16
Ipca Laboratories
Stock Performance
6080
100120140
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Ipca
Source: NSE, ICICIdirect.com Research
Exhibit 52: Company growth vis-à-vis Indian pharma market growth
20.6
8.1 12
.8 15.3
14.0
19.9 21
.8
18.5
12.6 15
.5
12.8
13.0
9.9
16.3
9.2 13
.0
12.9
28.6
12.2 14
.5
-5.8
-5.5
-0.1
3.0
35.9
3.6
-10-505
10152025303540
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Ipca Laboratories
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 53: Market share in Indian formulations market
1.51.4
1.31.2 1.2 1.2 1.2 1.2 1.3 1.2 1.3
1.31.5
1.0
1.2
1.4
1.6
1.8
2.0
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Ipca Laboratories
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 54: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Zerodol P Pain 8.8 6.4 36.0 6.6 31.8
Zerodol Sp Pain 7.9 6.4 22.2 8.2 -3.7
Larinate Anti Malarials 7.8 5.5 41.0 4.3 80.8
Lariago Anti Malarials 5.6 5.4 4.2 3.1 79.8
Hcqs Anti Malarials 5.3 4.9 8.7 4.9 8.2
Rapither-Ab Anti Malarials 5.0 4.8 5.0 3.8 31.6
Lumerax Anti Malarials 3.6 4.4 -18.2 2.4 51.2
Glycinorm M Anti Diabetic 3.1 3.0 1.8 2.8 9.9
Folitrax Anti-Neoplastics 2.7 2.6 1.9 2.5 7.2
Zerodol Pain 2.6 2.4 8.9 2.6 0.0
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 55: Contribution of therapies to domestic sales (MAT Sep’15)
Pain 24%
Anti Malarials20%
Cardiac17%
Gastro Intestinal8%
Anti-Infectives7%
Other24%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 56: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Pain 31.6 27.6 14.8 29.0 8.9
Anti Malarials 33.4 31.6 5.6 22.5 48.5
Cardiac 18.0 17.1 5.7 18.2 -1.1
Gastro Intestinal 9.5 9.1 3.8 8.9 6.4
Anti-Infectives 7.4 9.5 -21.8 7.5 -1.1
Anti Diabetic 5.6 5.7 -1.7 5.6 1.1
Respiratory 4.8 5.5 -11.8 4.4 10.3
Anti-Neoplastics 4.3 3.4 27.2 4.0 9.6
Neuro 3.5 3.5 1.1 4.1 -15.2
Derma 3.3 4.0 -18.3 3.1 5.2
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 800.2, 66.7%
Chronic, 328.3, 27.4%
Sub-Chronic,
70.5, 5.9%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
36%
15%11%
13%
25%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 17
Biocon
Stock Performance
60
80
100
120
140
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15CNX Pharma Biocon
Source: NSE, ICICIdirect.com Research
Exhibit 57: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6
12.8
13.0
9.9
31.3
9.8
15.5
1.0
7.2
18.8
17.5
11.6
11.7
3.7 4.
8 6.0 7.3
-11.
2
-15-10
-505
101520253035
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Biocon
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 58: Market share in Indian formulations market
0.39
0.37
0.360.36
0.38
0.35
0.36
0.330.34
0.36
0.340.330.33
0.34
0.35
0.36
0.37
0.38
0.39
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Biocon
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 59: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Insugen Anti Diabetic 7.3 7.6 -3.5 7.2 1.5
Basalog Anti Diabetic 4.6 3.9 18.6 4.7 -2.4
Blisto Mf Anti Diabetic 1.5 2.1 -28.1 1.4 2.6
Insugen R Anti Diabetic 1.4 1.3 10.6 1.5 -2.8
Abraxane Anti-Neoplastics 1.4 2.4 -40.8 1.0 40.3
Erypro Blood Related 1.4 0.9 61.6 2.0 -30.5
Canmab Anti-Neoplastics 1.0 1.1 -7.9 1.7 -41.9
Biomab Egfr Anti-Neoplastics 0.8 2.1 -61.9 0.2 343.2
Insugen N Anti Diabetic 0.7 0.7 7.4 0.8 -6.9
Psorid Anti-Neoplastics 0.6 0.3 98.4 0.7 -17.6
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 60: Contribution of therapies to domestic sales (MAT Sep’15)
Anti Diabetic59%
Anti-Neoplastics
21%
Cardiac7%
Blood Related5%
Derma3%
Other 5%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 61: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Anti Diabetic 16.8 17.2 -2.6 16.9 -0.5
Anti-Neoplastics 5.4 7.7 -30.2 5.1 5.0
Cardiac 1.5 2.8 -47.0 1.3 11.0
Blood Related 1.4 0.9 63.4 2.0 -30.1
Derma 0.7 0.7 -2.7 0.7 -3.6
Anti-Infectives 0.6 0.6 1.6 0.7 -17.3
Others 0.2 0.3 -34.7 0.2 -4.9
Vitamins 0.2 0.3 -25.5 0.2 3.1
Gastro Intestinal 0.4 0.2 172.1 0.4 8.1
Hormones 0.0 0.0 26.6 0.1 -62.3
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 66.8, 20.6%
Chronic, 233.8, 72.1%
Sub-Chronic,
23.6, 7.3%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
75%11%
6%
5%
3%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 18
Pfizer
Stock Performance
80110140170200230
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Pfizer
Source: NSE, ICICIdirect.com Research Exhibit 62: Company growth vis-à-vis Indian pharma market growth
20.6
8.1 12
.8 15.3
14.0
19.9 21
.8
18.5
12.6 15
.5
12.8
13.0
9.9
24.2
9.9
34.1
24.8
26.1
22.8
18.0
18.5
11.6
20.2
17.2 19
.5
9.7
-10-505
10152025303540
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Pfizer
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 63: Market share in Indian formulations market
2.912.85
3.05
3.243.32
3.032.97 2.99
2.872.93 2.97 2.952.92
2.4
2.6
2.8
3.0
3.2
3.4
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Pfizer
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 64: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Corex Respiratory 27.7 19.1 44.7 27.4 1.0
Becosules Vitamins 20.5 24.5 -16.3 21.7 -5.7
Magnex Anti-Infectives 12.9 10.7 20.8 12.3 4.9
Gelusil Mps Gastro Intestinal 11.5 10.8 7.1 11.5 0.6
Minipress Xl Cardiac 10.8 9.8 10.2 9.2 17.5
Wysolone Hormones 10.7 8.2 30.7 9.0 18.6
Dolonex Pain 10.3 10.8 -4.8 10.7 -3.6
Mucaine Gastro Intestinal 8.8 7.7 13.7 8.9 -1.6
Folvite Blood Related 7.1 5.3 33.9 6.7 5.6
Dalacin C Anti-Infectives 6.5 7.2 -10.4 6.6 -1.8
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 65: Contribution of therapies to domestic sales (MAT Sep’15)
Anti-Infectives17%
Respiratory12%
Vitamins 11%
Gastro Intestinal11%Hormones
9%
Other40%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 66: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Anti-Infectives 42.6 38.9 9.6 39.4 8.1
Respiratory 33.6 25.3 32.6 32.6 3.1
Vitamins 26.1 29.4 -11.2 27.1 -3.7
Gastro Intestinal 25.2 23.5 7.2 25.7 -1.7
Hormones 24.5 22.4 9.3 22.0 11.2
Gynaecological 19.8 16.0 23.8 18.2 9.1
Cardiac 16.1 16.3 -1.7 14.9 7.7
Neuro 17.4 14.1 23.3 17.0 2.1
Pain 15.6 16.3 -4.3 15.9 -1.7
Vaccines 6.6 5.9 11.8 6.9 -4.7
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 1796.6, 64.2%
Chronic, 430.7, 15.4%
Sub-Chronic, 569.5, 20.4%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
49%
19%
10%
10%
12%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base l
ICICI Securities Ltd. | Retail Equity Research
Page 19
Novartis India
Stock Performance
80
130
180
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Novartis India
Source: NSE, ICICIdirect.com Research
Exhibit 67: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6 15
.5
12.8
13.0
9.9
13.4
5.8
5.1 6.
7
1.1
2.6 5.
9
0.0
2.7
14.1 16
.0
9.7
9.3
0
5
10
15
20
25
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Novartis India
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 68: Market share in Indian formulations market
1.33
1.41
1.32
1.381.34
1.26 1.25 1.23 1.241.28
1.351.321.34
1.1
1.2
1.2
1.3
1.3
1.4
1.4
1.5
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Novartis India
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 69: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Galvus Met Anti Diabetic 23.2 16.9 37.4 24.7 -6.0
Voveran Pain 16.4 13.7 19.7 14.9 10.7
Galvus Anti Diabetic 10.4 9.7 7.1 10.3 0.2
Rabipur (Novartis) Vaccines 6.8 6.5 4.5 7.0 -3.1
Otrivin Respiratory 5.9 5.8 1.8 5.4 9.4
Tegrital Neuro 4.2 4.6 -7.3 4.5 -6.4
Regestrone Gynaecological 3.8 3.5 9.0 2.9 29.4
Voveran Pain 3.3 2.7 21.4 3.1 5.1
Afinitor Anti-Neoplastics 2.9 1.0 179.4 0.2 1127.5
Methergin Gynaecological 2.9 2.8 3.9 3.0 -3.0
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 70: Contribution of therapies to domestic sales (MAT Sep’15)
Anti Diabetic27%
Pain 19%
Respiratory11%
Vitamins 10%
Gynaecological8%
Other25%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 71: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Anti Diabetic 34.3 27.2 26.2 35.7 -4.0
Pain 22.9 20.0 14.5 21.1 8.3
Respiratory 10.3 13.2 -21.7 8.8 17.7
Vitamins 11.1 11.2 -1.6 10.8 2.2
Gynaecological 9.3 8.6 8.6 8.3 11.7
Vaccines 6.9 6.6 5.2 7.1 -2.9
Neuro 6.9 7.8 -11.5 7.4 -6.3
Anti-Infectives 4.8 4.4 8.7 4.6 3.5
Ophthal 3.7 2.7 35.8 3.2 15.2
Cardiac 1.2 1.4 -10.9 1.2 4.2
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 590.2, 48.4%
Chronic, 453.0, 37.2%
Sub-Chronic, 175.2, 14.4%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
69%
14%
6%6% 5%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 20
Unichem Laboratories
Stock Performance
70100130160
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Unichem Labs
Source: NSE, ICICIdirect.com Research
Exhibit 72: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6 15
.5
12.8
13.0
9.9
10.4
-15.
9
2.9
3.8 6.6
13.6 16
.7
12.9
12.4
20.5
2.7 11
.1
0.6
-20
-15
-10
-5
0
5
10
15
20
25
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Unichem Laboratories
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 73: Market share in Indian formulations market
0.97
0.85
0.95 0.930.98
0.940.97
0.94
1.000.97
0.890.87
0.88
0.80
0.90
1.00
1.10
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Unichem Laboratories
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 74: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Ampoxin Anti-Infectives 7.5 7.5 0.4 6.0 24.0
Losar H Cardiac 6.5 6.1 6.1 6.4 0.9
Losar Cardiac 5.4 5.3 2.4 5.3 2.3
Unienzyme Gastro Intestinal 4.8 5.3 -9.8 4.8 0.2
Vizylac Gastro Intestinal 2.9 2.8 3.3 3.2 -11.6
Trika Neuro 2.2 2.2 1.4 2.2 0.6
Serta Neuro 1.7 1.6 5.0 1.7 -0.7
Unistar (Unichem) Cardiac 1.5 1.6 -6.5 1.5 0.4
Telsar Cardiac 1.4 1.7 -17.5 1.4 0.3
Telsar-H Cardiac 1.2 1.3 -10.9 1.1 0.6
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 75: Contribution of therapies to domestic sales (MAT Sep’15)
Cardiac41%
Anti-Infectives18%
Gastro Intestinal13%
Neuro 13%
Pain 4% Other
11%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 76: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Cardiac 29.7 29.8 -0.5 29.7 -0.2
Anti-Infectives 15.3 15.0 1.9 12.8 19.9
Gastro Intestinal 9.0 9.5 -5.4 9.5 -4.5
Neuro 9.4 8.4 12.7 9.7 -2.2
Pain 3.0 3.1 -2.4 3.1 -2.8
Anti Diabetic 2.3 2.6 -10.7 2.3 -1.6
Respiratory 2.0 2.4 -18.0 1.8 13.3
Vitamins 1.9 1.7 17.3 2.1 -9.3
Derma 1.5 1.2 25.6 1.4 8.5
Gynaecological 0.4 0.5 -29.8 0.4 -16.8
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 322.3, 37.3%
Chronic, 489.8, 56.7%
Sub-Chronic,
51.7, 6.0%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
49%
12%9%
11%
19%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 21
Indoco Remedies
Stock Performance
6080
100120140
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Indoco
Source: NSE, ICICIdirect.com Research
Exhibit 77: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6 15
.5
12.8
13.0
9.9
29.1
6.1
4.8 8.
6
8.9
18.9 22
.0
-6.7
2.4
2.6
1.2 3.
4
-1.5
-10
-5
0
5
10
15
20
25
30
35
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Indoco Remedies
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 78: Market share in Indian formulations market
0.9
0.8
0.7 0.7 0.70.8
0.7
0.7 0.7 0.70.7 0.7 0.7
0.6
0.7
0.7
0.8
0.8
0.9
0.9
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indoco Remedies
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 79: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Febrex Plus Respiratory 6.2 8.0 -22.1 5.3 18.9
Oxipod Anti-Infectives 3.9 3.7 4.6 3.0 29.8
Cyclopam Gastro Intestinal 3.6 3.5 1.6 4.1 -12.3
Atm Anti-Infectives 2.8 3.3 -15.3 2.4 19.6
Cital Urology 2.7 2.4 11.4 2.6 2.9
Sensodent-K Stomatologicals 2.6 3.6 -27.3 2.7 -0.2
Cloben G Derma 1.9 2.1 -7.2 2.0 -1.7
Karvol Plus Respiratory 1.8 1.5 22.1 1.5 23.4
Sensodent-Kf Stomatologicals 1.7 1.7 -4.0 2.0 -17.3
Vepan Anti-Infectives 1.6 1.8 -9.9 1.4 12.9
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 80: Contribution of therapies to domestic sales (MAT Sep’15) Respiratory
19%
Stomatologicals17%
Anti-Infectives16%
Gastro Intestinal14%
Vitamins 6%
Other28%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 81: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Respiratory 11.7 13.8 -14.9 9.8 20.2
Stomatologicals 8.9 10.1 -11.7 9.2 -3.9
Anti-Infectives 12.4 12.7 -2.5 10.4 19.8
Gastro Intestinal 7.9 8.2 -4.0 8.8 -10.0
Vitamins 3.5 3.4 5.2 3.6 -0.4
Urology 3.1 2.7 15.0 3.0 2.7
Pain 2.5 2.8 -9.9 2.3 7.6
Derma 2.6 2.7 -2.3 2.6 0.0
Ophthal 1.9 2.2 -12.4 2.2 -12.1
Anti Diabetic 1.8 2.2 -19.7 1.8 -3.2
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 541.3, 81.6%
Chronic, 42.4, 6.4%
Sub-Chronic,
79.4, 12.0%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
47%
17%
8%
10%
18%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 22
Ajanta Pharma
Stock Performance
80130180230280
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Ajanta
Source: NSE, ICICIdirect.com Research
Exhibit 82: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6 15
.5
12.8
13.0
9.9
36.0
33.1
19.9
10.4
23.2
14.6
16.2 15
.4
9.5 10
.9
10.0
18.3
12.6
0
5
10
15
20
25
30
35
40Se
p-14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Ajanta Pharma
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 83: Market share in Indian formulations market
0.45
0.50
0.53
0.51 0.510.51
0.480.46
0.49 0.48 0.480.49
0.46
0.4
0.4
0.4
0.5
0.5
0.5
0.5
0.5
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Ajanta
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 84: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)Met Xl Cardiac 4.0 4.1 -3.2 3.9 0.3
Melacare Derma 2.8 2.8 0.4 3.4 -16.8
Atorfit Cv Cardiac 2.8 2.6 7.5 3.3 -12.9
Soft Drops Ophthal 1.4 1.0 44.3 1.2 15.9
Feburic Pain 1.1 1.0 8.7 1.3 -9.3
Rosufit Cv Cardiac 1.1 1.0 13.7 1.1 3.2
Met Xl Am Cardiac 0.9 1.0 -2.9 0.9 -0.2
Peroclin Derma 0.9 0.7 17.8 0.8 6.6
Cinod Cardiac 0.7 0.5 37.1 0.7 -5.4
Olopat Ophthal 0.7 0.6 5.9 0.7 -4.5
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 85: Contribution of therapies to domestic sales (MAT Sep’15)
Cardiac32%
Derma24%
Ophthal23%
Vitamins 6%
Pain 5%
Others10%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 86: Therapy wise performance (| crore)
Therapy Sep'15 Sep'14 YoY (%) Aug'15 QoQ (%)
Cardiac 13.4 12.0 12.0 13.7 -2.1
Derma 8.3 7.8 6.1 8.7 -3.9
Ophthal 9.2 7.8 18.3 9.1 1.6
Vitamins 2.7 2.2 23.0 2.6 3.7
Pain 2.1 2.0 3.3 2.2 -4.4
Gastro Intestinal 1.1 1.2 -8.2 1.1 1.5
Neuro 0.9 1.0 -6.9 0.8 5.0
Ophthal 0.6 0.6 0.2 0.6 8.4
Anti-Infectives 0.7 0.3 117.5 0.7 5.7
Respiratory 0.3 0.4 -34.1 0.3 2.6
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 186.2, 40.9%
Chronic, 219.3, 48.1%
Sub-Chronic,
50.0, 11.0%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
43%
13%9%
13%
22%
Top 10 11 to 20 21 to 30 31 to 50 Others
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 23
Alembic Pharma
Stock Performance
80100120140160180200
Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15
CNX Pharma Alembic Pharma
Source: NSE, ICICIdirect.com Research
Exhibit 87: Company growth vis-à-vis Indian pharma market growth
20.6
8.1
12.8 15
.3
14.0
19.9 21
.8
18.5
12.6 15
.5
12.8
13.0
9.9
30.7
5.3
9.3 11
.4
19.7
6.6
19.4 19
.1
15.2 18
.1
17.0
21.2
6.0
0
5
10
15
20
25
30
35Se
p-14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Indian Pharma Market Alembic Pharma
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 88: Market share in Indian formulations market
1.48
1.351.38 1.36
1.33
1.42
1.35
1.301.27 1.26
1.33
1.421.44
1.1
1.2
1.2
1.3
1.3
1.4
1.4
1.5
1.5
Sep-
14
Oct-1
4
Nov
-14
Dec-
14
Jan-
15
Feb-
15
Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-
15
Sep-
15
(%)
Alembic Pharma
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 89: Top 10 brands performance (| crore) Brand Therapy Sep'15 Sep'14 Var. (%) Aug'15 Var. (%)
Azithral Anti-Infectives 12.6 13.7 -8.0 11.6 8.5
Althrocin Anti-Infectives 9.0 10.9 -17.5 8.3 8.5
Roxid Anti-Infectives 5.8 5.3 8.3 4.7 22.0
Gestofit Gynaecological 4.2 3.4 23.4 4.4 -3.3
Ulgel Gastro Intestinal 3.6 2.9 25.0 3.3 9.4
Wikoryl Respiratory 3.3 3.8 -13.9 2.9 12.5
Rekool D Gastro Intestinal 2.8 2.3 17.9 2.8 -2.1
Zeet Respiratory 2.4 2.9 -17.9 2.1 11.8
Rekool L Gastro Intestinal 2.3 2.1 11.3 2.1 9.5
Glisen Mf Anti Diabetic 2.1 1.9 12.0 2.2 -1.9
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 90: Contribution of therapies to domestic sales (MAT Sep’15)
Anti-Infectives27%
Gastro Intestinal14%Respiratory
13%
Cardiac12%
Gynaecological10%
Other24%
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 91: Therapy wise performance (| crore)
Anti-Infectives 32.9 36.3 -9.5 29.3 12.2Gastro Intestinal 17.7 16.2 9.2 17.3 2.2Respiratory 16.0 16.5 -2.7 13.6 18.0Cardiac 15.6 11.5 35.9 15.7 -0.2Gynaecological 12.2 10.1 20.6 12.5 -2.1Vitamins 7.0 7.1 -0.9 7.2 -2.1Anti Diabetic 6.9 5.3 30.2 6.6 5.6Pain 4.7 3.8 21.9 4.3 8.6Derma 2.8 1.7 64.7 2.6 7.6Urology 2.3 2.6 -10.4 2.1 12.5
Aug'15 QoQ (%)Therapy Sep'15 Sep'14 YoY (%)
Source: AIOCD data base, ICICIdirect.com Research
Acute : Chronic contribution (MAT Sep’15)
Acute, 776.3, 61.9%
Chronic, 255.6, 20.4%
Sub-Chronic, 222.9, 17.8%
Source: AIOCD data base
Brands contribution to domestic sales (MAT Sep’15)
Acute, 186.2, 40.9%
Chronic, 219.3, 48.1%
Sub-Chronic, 50.0, 11.0%
Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research
Page 24
Exhibit 92: One year forward P/E of CNX Pharma vs. Sensex
0
5
10
15
20
25
30
35
40
Mar
-06
Oct-0
6
May
-07
Dec-
07
Jul-0
8
Feb-
09
Sep-
09
Apr
-10
Nov
-10
Jun-
11
Jan-
12
Aug
-12
Mar
-13
Oct-1
3
May
-14
Dec-
14
x
CNX Pharma Sensex
78.6% Premium
Source: Company, ICICIdirect.com Research
Exhibit 93: Two year forward P/E of CNX Pharma Index vs. Sensex
0
5
10
15
20
25
30
35
Mar
-07
Aug
-07
Jan-
08
Jun-
08
Nov
-08
Apr
-09
Sep-
09
Feb-
10
Jul-1
0
Dec-
10
May
-11
Oct-1
1
Mar
-12
Aug
-12
Jan-
13
Jun-
13
Nov
-13
Apr
-14
Sep-
14
Feb-
15
Jul-1
5
x
CNX Pharma Sensex
54.4% Premium
Source: Company, ICICIdirect.com Research
ICICIdirect.com coverage universe (Healthcare) I-Direct CMP TP Rating M CapCode (|) (|) (| Cr) FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E
Ajanta Pharma AJAPHA 1498 1950 Buy 13104.8 36.0 45.8 56.5 41.6 32.7 26.5 26.4 22.0 17.5 50.3 46.8 42.5 37.8 34.8 31.9
Apollo Hospitals APOHOS 1441 1400 Hold 19939.7 23.7 30.9 45.2 60.7 46.7 31.9 26.3 20.9 15.2 9.9 12.4 16.4 10.4 12.4 16.0
Aurobindo Pharma AURPHA 806 860 Buy 46802.5 27.1 33.4 39.3 29.8 24.1 20.5 36.8 30.7 25.0 23.8 23.4 26.4 36.7 31.7 28.4
Alembic Pharma ALEMPHA 719.3 790 Buy 13484.4 15.1 32.4 28.4 47.5 22.2 25.3 32.1 16.0 18.3 30.8 48.8 34.7 32.2 32.2 32.2
Biocon BIOCON 442 470 Hold 8788.5 20.4 23.0 28.0 21.6 19.2 15.8 6.3 4.9 3.8 10.4 11.8 13.4 12.5 12.8 14.0
Cadila Healthcare CADHEA 423.2 455 Buy 43078.4 56.0 80.0 104.4 7.6 5.3 4.1 22.4 15.9 12.7 20.7 27.0 30.0 27.0 29.9 30.2Cipla CIPLA 679 750 Buy 54243.1 14.7 25.3 34.2 46.2 26.8 19.8 24.8 24.5 16.7 17.2 13.8 17.3 13.8 10.9 16.3
Divi's Laboratories DIVLAB 1071 1180 Hold 28277.3 64.2 79.1 98.2 16.7 13.5 10.9 1.8 1.3 0.8 29.4 30.1 31.2 24.4 24.9 25.2
Dr Reddy's Labs DRREDD 4197 4600 Buy 71194.7 130.6 159.9 191.6 32.1 26.3 21.9 13.9 11.0 9.0 17.0 18.5 19.4 19.9 19.0 18.6
Glenmark Pharma GLEPHA 1014 1000 Hold 28459.7 16.5 33.7 47.5 61.6 30.1 21.4 23.8 25.9 18.3 19.3 14.7 22.0 18.1 14.2 23.9
Indoco Remedies INDREM 327 385 Hold 2995.2 9.0 11.9 18.9 36.4 27.5 17.2 25.8 18.5 15.5 16.6 19.8 21.3 12.7 16.0 18.2
Ipca Laboratories IPCLAB 741.9 665 Hold 9310.6 19.9 25.0 41.5 37.3 29.6 17.9 12.5 19.7 17.9 26.8 11.5 11.0 27.2 11.4 13.0
Jubilant Life Sciences VAMORG 395 335 Hold 6251.8 -3.6 31.9 43.7 -108.8 12.4 9.0 14.1 7.3 6.0 5.8 13.6 16.1 -0.4 19.3 22.6
Lupin LUPIN 2067 1885 Buy 92532.4 53.6 55.7 75.4 38.6 37.1 27.4 28.6 22.6 21.8 35.7 35.1 24.4 26.5 27.1 22.9
Natco Pharma NATPHA 2588 2575 Buy 8966.4 34.6 48.7 67.2 74.9 53.2 38.5 43.7 36.3 27.0 16.1 15.1 18.9 14.1 13.8 16.7
Sun Pharma SUNPHA 883.7 850 Hold 211477.7 19.8 20.5 32.6 44.7 43.0 27.1 25.5 24.9 17.2 19.9 19.2 24.0 20.8 18.5 23.6
Torrent Pharma TORPHA 1544 1660 Buy 25981.6 44.4 94.4 79.0 34.8 16.4 19.5 14.3 15.0 5.6 28.1 20.1 45.5 34.9 30.2 44.4
Unichem Laboratories UNILAB 306.4 214 Hold 2767.4 8.3 14.8 21.2 36.9 20.7 14.4 14.2 24.8 12.9 19.0 8.5 17.2 16.7 8.7 14.5
RoNW (%)Company
EPS (|) PE(x) EV/EBITDA (x) RoCE (%)
ICICI Securities Ltd. | Retail Equity Research
Page 25
RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Add, Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Sector view: Over weight compared to index Equal weight compared to index Under weight compared to index Index here refers to BSE 500
Pankaj Pandey Head – Research [email protected]
ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No. 7, MIDC, Andheri (East) Mumbai – 400 093
ICICI Securities Ltd. | Retail Equity Research
Page 26
ANALYST CERTIFICATION We /I, Siddhant Khandekar CA-INTER Mitesh Shah MS (Finance) Nandan Kamat MBA Finance, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
Terms & conditions and other disclosures: ICICI Securities Limited is a Sebi registered Research Analyst having registration no. INH000000990. ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com. ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. 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