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ICICI Securities Ltd.

| Retail Equity Research




November 6, 2013

Monthly Update





Q2 earnings start on firm note amid IPM gloom
After a long time (no data to verify when the last time was) the domestic
pharma market (IPM) registered negative growth in September, marred by
the tussle between manufacturers at one end and distributors/retailers at
the other regarding the revised trade margins under the NLEM 2011.
September saw the market declining 1.8% MoM as per the AOICD data.
Growth for the September quarter stood at 2.8%, another new low. On a
MAT (TTM) basis, the domestic pharma market grew 6.8% to | 72343 crore.
Such was the pressure that some players (including some established ones)
have already bowed down to their demands either by increasing trade
margins or offering substantial discounts, in a way breaking the industry
protocol.

The Q2 earnings season started more or less on expected lines (with a
positive bias) despite subdued India business growth. While Indoco, Ipca
and Torrent reported a better-than-expected set of numbers, Lupin,
Glenmark, Biocon and Unichems numbers were more or less in line. Cadila
and, to some extent, Jubilant reported a weak set of numbers. Almost all
players benefited from strong US and other overseas markets growth. On
the other hand, except Glenmark, all players reported subdued domestic
formulations growth for obvious reasons.

Ranbaxy received some respite from the USFDA when it received clearance
for its US facility, Ohm Laboratories Inc. Ohms manufacturing plant now
remains the only manufacturing facility of Ranbaxy that supplies products to
the US market, after the companys three export-oriented manufacturing
plants in India were pulled up for violations in good manufacturing
practices.

Amid dismal Q2 numbers, Cadila continued its pursuit for innovative
products when it received USFDA approval for initiating Phase I clinical
trials of ZYDPLA1, a novel next generation orally active, small molecule
DPP-4 inhibitor to treat Type 2 Diabetes. ZYDPLA1 with a once-a-week
dosing regimen is likely to provide diabetic patients with a more convenient
treatment alternative.

The pharma industry found itself at the receiving end when the Department
of Pharmaceuticals rejected a review petition filed by DRL and Abbott
Healthcare, on ceiling of prices on their products. While Abbott Healthcare
filed the petition against the fixing of ceiling price of Phenobarbitone and
Promethazine (both CNS), DRL opposed fixing of the ceiling price of
Omeprazole 20 mg capsules (anti-ulcerant).

Underperformance more to do with buying in other sectors
After a long time the BSCHC saw underperformance of this magnitude vis--
vis the broader markets. While the monthly growth shocker may be the
factor, a closer scrutiny of other indices gives the indication that heavy
buying in some other sectors also led to the underperformance. Sectoral
indices such as IT, banks, oil & gas and metals saw heavy buying interest.
As most frontline pharma stocks are trading at optimum levels, profit
booking was imminent after in line set of Q2 numbers. Going ahead, with
some blips here and there, we do not envisage this (underperformance) to
become a trend as we see the re-rating of most stocks continuing on the
back of robust numbers and earning visibility.
Health Check
Sector View
Overweight

Index Performance as on October 31, 2013
Return (%) 1M 3M YTD 12M
BSE 500 9 10 1 8
Sensex 9 9 9 14
BSE Healthcare 2 6 18 26
I-Direct Healthcare 2 5 26 35
Return (%)

Stocks Performance
Mcap
Company 1M 3M YTD 12M 31-Oct
Sun Pharma.Inds. 3 8 65 75 126095
Dr Reddy's Labs 3 8 34 40 41783
Lupin 4 2 45 57 39782
Cipla -4 3 0 14 33176
Glaxosmit Pharma -1 3 12 21 20594
Ranbaxy Labs. 18 37 -22 -26 16549
Glenmark Pharma. 6 -2 7 32 15274
Cadila Health. -3 -10 -27 -24 13538
Divi's Lab. 0 4 -12 -19 12910
Apollo Hospitals -2 -3 15 17 12644
Ipca Labs. -4 2 32 49 8624
Torrent Pharma. 3 5 25 34 7640
Biocon 2 10 21 30 6921
Aurobindo Pharma 7 28 14 37 6310
Strides Arcolab 1 48 -20 -2 5157
Wockhardt -15 -5 -72 -70 4879
Pfizer 0 2 -9 -5 3231
Natco Pharma 10 11 47 81 2116
Unichem Labs. 5 8 -27 -29 1606
Jubilant Life 25 11 -56 -55 1595
Indoco Remedies 24 33 27 26 748
Elder Pharma -7 3 -22 10 646
Opto Circuits 12 -4 -78 -81 559
Dishman Pharma. 33 60 -40 -28 557
Return (%)
Mcap: Market cap in | crore;
Price movement
6000
7000
8000
9000
10000
Oct-12 Jan-13 Apr-13 Jul-13 Oct-13
15000
17000
19000
21000
BSE Healthcare Sensex (RHS)

Analysts name
Siddhant Khandekar
siddhant.khandekar@icicisecurities.com
Krishna Kiran Konduri
krishna.konduri@icicisecurities.com

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Page 2
Regulatory approvals




Exhibit 1: Summary of USFDA approvals
[5
Company Drug Name Therapeutic Area Innovator company Generic Version of Market Size
Jubilant Life Bupropion Hydrochloride Tablets Anti-Depressant GSK Pharma Wellbutrin
Jubilant Life Bupropion Hydrochloride Tablets Anti-Smoking GSK Pharma Zyban
Aurobindo Pharma Acyclovir Sodium Injection Anti-Viral GSK Pharma Zovirax NA
Unichem Labs Amlodipine Besylate tablets CVS Pfizer Norvasc US$ 40 million
Company Drug Name Therapeutic Area Innovator company Generic Version of Market Size
Aurobindo Pharna* Lamivudine; Tenofovir Disoproxil Fumarate; Nevirapine tablets Anti-Retroviral NA NA NA
Final Approvals
Tentative Approvals
}US$ 518 millon

CNS: Central Nervous System; CVS: Cardiovascular, NA: Not available;; * The company has filed New Drug application (NDA)
Source: USFDA ICICIdirect.com Research;

Exhibit 2: UK MHRA approval for September 2013
Company Drug Therapeutic Area Innovator company Generic Version of
Strides Arcolab Capecitabine tablets Anti-Cancer Roche Xeloda
Ranbaxy Cilostazol tablets CVS Otuska Pharma Pletal
Source: UKMHRA, ICICIdirect.com Research;


Regulatory Filings/ Approvals
Cadila gets USFDA nod for IND
Cadila has received USFDA approval for initiating Phase I clinical trials of
ZYDPLA1, a novel next generation orally active, small molecule DPP-4
inhibitor to treat Type 2 Diabetes. Currently, all available DPP-4 inhibitors
are dosed once-daily. ZYDPLA1 with a once-a-week dosing regimen is likely
to provide diabetic patients with a more convenient treatment alternative.
ZYDPLA1 is expected to offer sustained action, which will result in an
improved efficacy profile.

Ranbaxys US facility gets USFDA clearance
The USFDA has given clearance to manufacturing practices at Ranbaxys
US facility, Ohm Laboratories Inc. The clearance will allow Ranbaxy to file
applications for approvals from Ohm. Ohms manufacturing plant now
remains the only manufacturing facility of Ranbaxy that supplies products to
the US market, after the companys three export-oriented manufacturing
plants in India were pulled up for violations in good manufacturing
practices.

Ranbaxy gets CDSCO nod for malaria drug
Ranbaxy has received approval from the Central Drugs Standard Control
Organisation to manufacture and market a new drug for the treatment of
malaria in adults. This drug Synriam is used for treating uncomplicated
malaria in adults caused by Plasmodium vivax parasite. It has also received
permission to conduct phase-III clinical trials for the paediatric formulation
to be used to treat malaria.

Government rejects review petition for DPCO 2013 by leading players
The Department of Pharmaceuticals has rejected a review petition filed by
DRL and Abbott Healthcare, on ceiling of prices on their products. While
Abbott Healthcare filed the petition against the fixing of ceiling price of its
Phenobarbitone tablets 60 mg and 30 mg and Promethazine Injection,
25 mg/ml (both CNS), DRL opposed fixing of the ceiling price of Omeprazole
20 mg capsules (anti-ulcerant).

Indian Patent office dismisses CL application
For the first time, the Patent Controller rejected an application from Mumbai
based BDR Pharmaceuticals seeking a compulsory licence (CL) for its less-
ICICI Securities Ltd. | Retail Equity Research


Page 3
expensive version of Dasatinib, a cancer drug from multinational Bristol-
Myers Squibb Co (BMS). Dasatinib is a chemotherapy drug used to treat
patients with Chronic Myeloid Leukaemia. The Patent Office rejected BDR's
application on the ground that the company did not make enough effort to
obtain a voluntary licence for the drug. A month's dose of BMS drug costs
about | 1.65 lakh. BDR had applied for a compulsory licence for the drug for
| 8,100 a month.

IP issues/court rulings
Glenmark files lawsuit against scores of players to enforce agreement
Glenmark has filed a lawsuit in the Court of Chancery of the State of
Delaware to enforce its exclusive royalty-bearing licence agreement against
Astellas Pharma Europe BV, Astellas International, Triax Pharmaceuticals
LLC, Precision Dermatology Inc, Onset Dermatologics LLC and Metacon
Labs. The agreement is with Triax Pharmaceuticals, Astellas Pharma Europe
BV and Astellas Pharma International BV. Under the royalty-bearing licence
agreement, Glenmark is entitled to 180 days of exclusivity for its
Hydrocortisone Butyrate Cream (dermatology), as it is the first generic
company to file ANDA for the product. The company filed the lawsuit after
learning the launch of a generic equivalent of Locoid Lipocream by Metacon
Labs.

Capex & Investments
Apollo promoters in fund raising pact with US PE fund
Apollo Hospitals promoters have agreed to raise ~| 550 crore from the US
based buyout firm KKR Co & LP in a structured debt deal. These funds have
been earmarked to be used for expansion. The PE fund will subscribe to
convertible debentures issued by holding company PCR Investments with
an option to convert them into equity shares of listed Apollo Hospitals at the
end of five years. The promoters will also have the right to buy back these
instruments at the end of two years. The investment is in the form of a five-
year callable security that consolidates existing debt at PCR.

Natco to raise funds via preferential route
Natco Pharma has proposed to issue 24 lakh equity shares to CX Securities
Ltd, a foreign institutional investor, on a preferential basis. The shares will
be issued at a price of | 638.40 apiece, aggregating to | 153 crore. The
proceeds of the issue are likely to be used for capex.

Price cuts/new product launches
Lupin launches generic Zymaxid with 180 days exclusivity
Lupin has launched Gatifloxacin Ophthalmic Solution, the generic version of
Allergan Inc's Zymaxid Ophthalmic Solution in the US market with 180 days
of marketing exclusivity. Zymaxid Ophthalmic Solution had annual US sales
of US$62 million. Lupin was the first applicant to file ANDA for Zymaxid
Ophthalmic Solution.

Q2FY14 Results
Biocon maintains recent consistency in performance
Biocon reported an in line set of Q2FY14 numbers. Revenues grew 18%
YoY to | 741 crore driven by 19% growth in biopharma (ex-branded
formulations) and 46% growth in contract research services. Branded
formulations, on the other hand, grew just 8% YoY. EBITDA margins
contracted 60 bps to 23.7% YoY mainly on account of higher non-core
income in Q2FY13. The net profit grew 14% to | 102 crore as the higher
base weighed on profitability.



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Page 4
Cadila margins falter again
Cadila reported another dismal set of Q2FY14 numbers, especially on the
margins front. While revenues grew 13% YoY to | 1747 crore, margins
remained under substantial pressure. EBITDA margins stood at 14.9% due
to lower growth in high margin businesses such as domestic formulations
and JVs. But for the price hikes initiated in the US, margins could have been
even worse. US sales growth of 29% YoY was probably the only silver
lining in an otherwise dull quarter. PAT grew 94% YoY to | 183 crore on a
lower base and lower taxation.

Higher depreciation thwarts Glenmark charge
Glenmark reported a mixed set of Q2FY14 numbers. Sales grew ~17% YoY
to | 1463 crore driven by regular growth engines such as the US (30% YoY
growth) and India (21% YoY growth). EBITDA margins remained flat YoY at
21.6% on the back of 1) higher US realisations and 2) better domestic
performance despite higher R&D spend. However, higher depreciation was
the dampener on account of which net profit remained flat at | 157 crore.

Formulation exports buoy Indoco numbers
Indoco reported a strong set of Q2FY14 numbers. Revenues grew 25% YoY
to | 202 crore driven by ~34% growth in export formulations (31% of total
turnover). Domestic formulations (60% of total turnover), on the other hand,
grew just 10% YoY as per expectation. EBITDA margins improved 220 bps
to 16.3% on the back of a better product mix and lower R&D cost. Net profit
grew 33% to | 16 crore despite higher interest expenses.

Margin booster for Ipca numbers
Ipca recorded an extraordinary set of EBITDA margins, at ~28%, far higher
than last nine quarters average of 22%. The revenues grew 10% YoY to
| 847 crore driven by 26% growth in overall APIs (~23% of the turnover).
Overall formulations (~77% of the turnover), on the other hand, grew just
6% YoY on the back of 1) postponement of global tenders, 2) lower anti-
malarial sales due to extended monsoon and 3) NLEM 2011 pricing impact.
EBITDA expanded significantly by 440 bps YoY on the back of 1) higher
realisation due to currency benefit, 2) lower carrying value of old inventory
and, 3) lower offtake of low-margin anti-malarials.

Jubilant numbers boosted by LSI performance; restructuring on the cards
Jubilant reported a mixed set of Q2FY14 numbers. Revenues grew 17%
YoY to | 1436 crore driven by 11% volume growth and 9% exchange gains.
However, there was a paradox among segmental growth with the usual
growth driver pharma segment (48% of sales) growing just 6% YoY. On the
other hand, the more commoditised LSI segment (52% of sales) grew 30%
YoY. EBIDTA margins declined 360 bps to 18.9% on account of higher
growth registered by the LSI segment, which normally fetches lower
margins. The company has proposed a few steps with the ultimate objective
of de-leveraging the heavy balance sheet.

US growth drives Lupin numbers
Lupin reported an in line set of Q2FY14 numbers. Revenues grew 16% YoY
to | 2668 crore buoyed by 32% growth in the US (including IP) and 20%
growth in APIs. Other core markets of India and Japan continued to
languish with India growing by 9% and there was de-growth in Japan.
EBITDA margins improved 250 bps to 24.7% on account of 1) higher
realisation, 2) higher proportion of own manufactured products in sales and
3) translation gains in Japan. The net profit grew 39% to | 406 crore despite
higher taxation on the back of improved profitability at the GPM/EBITDA
level and higher other income.


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Page 5
Torrent numbers better than expectation despite margin pressure
Torrent Pharmaceuticals reported a better-than-expected set of Q2FY14
numbers. Revenues grew 25% YoY to | 972 crore driven by healthy growth
from Europe/US regions and also strong traction from the CRAMS business.
India and Brazil, on the other hand, reported lower growth but on expected
lines. EBITDA margins contracted ~140 bps YoY to 18.4% due to 1) forex
loss of | 36 crore (| 14 crore in Q2FY13), 2) provision of | 7 crore for slow
moving inventory, 3) presence of | 11 crore licensing income in Q2FY13, 4)
price reductions in Brazil and 5) change in the product mix in RoW markets.
Adjusting for the first three items, margins were better than expectations.
Net profit grew just ~5% YoY to | 113 crore due to squeezed EBITDA and
higher taxation.

NLEM 2011 affects Unichem numbers
Unichem reported an in line set of Q2FY14 numbers. Revenues grew just
2% YoY to | 270 crore as the core domestic branded formulations business
(65% of the total turnover) expanded just 1%. The growth was in sync with
sluggish IPM growth for the quarter due to the new National List of Essential
Medicines (NLEM) 2011 pricing implementation. International formulations
(23% of the total turnover), on the other hand, grew 9% YoY on the back of
US and RoW markets. However, CRAMs continued the dismal show.
EBITDA margins were compressed 140 bps YoY due to lower notified prices
on NLEM products and higher other operating expenses. Adjusted PAT
grew 3% to | 36 crore, summing up the overall weak quarter.

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Page 6
Exhibit 3: Patent Litigations in CY13 so far
[5
Month Innovator ANDA Filer Brand Name API Used for
Jan-13 Pfizer & Warner-Lambert Co Wockhardt Lyrica Pregabalin Anti-Seizure
Jan-13 Hoffman-La Roche & Genentech, Aurobindo Pharma Boniva Biphosphonic Acid Osteoporosis
Jan-13 AstraZeneca; KBI-E & Pozen Dr. Reddy's Labs Vimovo Naproxen/Esomeprazole Magnesium Osteoporosis
Feb-13 Novartis Dr. Reddy's Labs Reclast Zolendronic Acid Osteoporosis
Feb-13 Novartis Agila, Strides Arcolab Reclast Zolendronic Acid Osteoporosis
Feb-13 Novartis Sun Pharma Reclast Zolendronic Acid Osteoporosis
Feb-13 Novartis Wockhardt Reclast Zolendronic Acid Osteoporosis
Mar-13 Mallinckrodt & Novo Research Taro Pharma Pennsaid Diclofenac Osteoporosis
Mar-13 Pfizer & Pharmacia & Upjohn Lupin Detrol La Tolterodine Tartrate Anti-Muscarinic
Mar-13 Intendis & Bayer Glenmark Pharma Finacea Azelaic Acid Dermatology
Mar-13 G.D. Searle & Pfizer Lupin Celebrex Benzenesulfonamide Anti-Inflammatory
Apr-13 Purdue Pharma Dr Reddy's Labs Intermezzo Zolpidem Tartrate Insomnia
Apr-13 Helsinn Healthcare & Roche Aurobindo Pharma Aloxi Palonosetron Hydrochloride Nausea and vomiting
Apr-13 Acura Pharma Ranbaxy labs Oxecta oxycodone hydrochloride Pain
May-13 Senju Pharma & Allergan Agila, Strides Arcolab Zymaxid Gatifloxacin Anti-bacterial
May-13 Fresenius Kabi USA LLC Dr Reddy's Labs Diprivan Propofol Anti-epilepticus
Jun-13 Pfizer Dr Reddy's Labs Pristiq Desvenlafaxine Anti-Depression
Jun-13 AbbVie Inc Dr Reddy's Labs Zemplar Paracalcitol Anti-thyroid
Jun-13 Novartis Sun Pharma Gleevec Imatinib mesylate Leukemia
Jun-13 Janssen Producs Lupin Prezista Darunavir Anti-Retroviral
Jun-13 MSD & BMS Cipla Sustiva Efavirenz Anti-Retroviral
Jun-13 UCB Cadila Healthcare Vimpat Lacosamide Epilepsy
Jun-13 Alpex Pharma Cadila Healthcare Suprenza Phentermine Weight Loss
Jun-13 Pfizer & UCB Lupin Toviaz Fesoterodine Overactive bladder
Jun-13 Pfizer & UCB Cadila Healthcare Toviaz Fesoterodine Overactive bladder
Jul-13 UCB Sun Pharma Vimpat Lacosamide Epilepsy
Jul-13 UCB Ranbaxy labs Vimpat Lacosamide Epilepsy
Jul-13 UCB Glenmark Pharma Vimpat Lacosamide Epilepsy
Jul-13 UCB Aurobindo Pharma Vimpat Lacosamide Epilepsy
Jul-13 UCB Alembic Pharma Vimpat Lacosamide Epilepsy
Jul-13 Alcon Pharma Lupin Moxeza Moxifloxacin hydrochloride Bacterial conjunctivitis
Aug-13 Pfizer & UCB Wockhardt Toviaz Fesoterodine Overactive bladder
Aug-13 AstraZeneca Wockhardt Nexium Esomeprazole Heartburn
Aug-13 Genzyme Dr Reddy's Mozobil Plerixafor Non-Hodgkins lymphoma
Sep-13 Eli Lilly Sun Pharma Alimta Pemeltrexed Lung Cancer
Sep-13 Merch, Sharp & Dohme Aurobindo Sustiva Efavirenz Anti-Retroviral
Sep-13 Forest Labs Lupin Savella Milnacipran Fibromyalgia
Sep-13 Forest Labs Ranbaxy Savella Milnacipran Fibromyalgia

Source: Bloomberg, ICICIdirect.com Research;













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Page 7



IPM growth turns i nto the red
The Indian pharma industry posted its first de-growth in many years. The
domestic industry witnessed de-growth of 1.8% in September 2013
compared to growth of 1.1% in August 2013. The industry continued to
suffer as the distributors/retailers were unwilling to take inventory into
channel due to uncertainty over implementation of NLEM 2011 and a sharp
reduction in trade margins by companies. On a MAT (TTM) basis, the
domestic pharma market grew 6.8% to | 72343 crore for September 2013.
The acute: chronic ratio was 28.6:71.4. Anti-infectives, the biggest therapy
category, posted 18% de-growth during the month. Other key acute
therapies like gastro intestinal, respiratory and pain have also posted de-
growth of 1%, 6% and 5%, respectively. Chronic therapies like cardiac,
neurology (CNS) and anti-diabetic posted growth of 4%, 6% and 7%,
respectively.

Sun Pharma has been gaining market share in chronic & acute therapies in
the last year. It has clocked the highest market share until now on a monthly
basis at 5.49% during September 2013. On other hand, GSK is losing
market share during the same period. The market share price has declined
from 4.7% in September 2012 to 3.8% in September 2013.
Exhibit 4: Domestic formulations - growth trend
1
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Indian Pharma Market
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Source: AIOCD data base, ICICIdirect.com Research

Exhibit 5: Companies growth in domestic market in the month of Aug13
10.5
16.0
-2.7
3.0
15.2
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Source: AIOCD data base, ICICIdirect.com Research

Therapy wise performance (| crore)
Therapy Sep '13 Sep '12 YoY (%) Aug '13 QoQ (%)
Anti-Infectives 1127 1370 -18 1154 -2
Cardiac 762 729 4 746 2
Gastro Intestinal 699 704 -1 729 -4
Vitamins 552 544 1 560 -1
Respiratory 477 510 -6 484 -1
Pain 461 484 -5 458 0
Anti Diabetic 443 416 6 428 3
Gynaecological 387 394 -2 389 -1
Neuro 386 362 7 382 1
Derma 355 331 7 351 1
Ophthal 117 88 33 115 1
Hormones 108 110 -2 103 4
Others 86 156 -45 95 -10
Vaccines 67 78 -14 69 -2
Blood Related 77 76 2 75 3
Anti-Neoplastics 80 34 136 88 -9
Anti Malarials 76 108 -30 68 11
Sex Stimulants 32 30 6 33 -4
Stomatologicals 29 25 16 28 2

Source: AIOCD data base; Sep13 & Sep12 values were calculated
reducing July & August numbers from Q2FY13 & Q2FY12 numbers
Top brands in Indian pharma market
Company Brand Therapy Sep'13 Sep'12 Gr. (%)
GSK Augmentin Anti-Infective 327.7 328.8 -0.3
Pfizer Corex Cough & Cold 258.5 262.3 -1.4
Ranbaxy Revital Vitamins 258.2 215.0 20.1
Ranbaxy Volini Pain 216.7 186.8 16.0
Alkem Clavam Anti-Infective 185.1 166.4 11.2
Novartis Voveran Pain 185.0 196.6 -5.9
Mankind Manforce Rejuvenators 183.0 159.5 14.7
Pfizer Becosules Vitamins 181.6 160.8 12.9
GSK Calpol Pain 179.8 183.2 -1.8
Alkem Taxim O Anti-Infective 164.7 167.3 -1.5

Source: AIOCD data base; Date as per MAT Sep13 & Sep12
Industry acute to chronic therapy ratio percentage
Chronic,
20667.9,
29%
Acute,
51674.7,
71%

Source: AIOCD data base ; As per AIOCD MAT September 2013
Top 10 companies in acute and chronic therapies.
Company MS (%) Company MS (%)
GSK 5.4 Sun Pharma 10.4
Ranbaxy 4.7 Cipla 6.9
Cipla 4.3 Intas Pharma 5.3
Mankind 4.3 USV 5.0
Cadila Healthcare 4.1 Abbott Healthcare 4.8
Alkem Labs 4.0 Lupin 4.7
Abbott Healthcare 3.3 Cadila Healthcare 4.2
Sun Pharmaceutical 3.1 Sanofi-Aventis 4.0
Aristo Pharma 2.8 Torrent Pharma 3.8
Macleods 2.8 Novo Nordisk 3.5
Acute Chronic
Source: AIOCD data base, as per latest MAT September 2013 data
Domestic Health Check
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Page 8
Sun Pharmaceuticals

Stock Performance
90
135
180
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Sun Pharma

Source: NSE, ICICIdirect.com Research
Exhibit 6: Company growth vis--vis Indian pharma market growth
1
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1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Sun Pharmaceutical Industries

Source: AIOCD data base, ICICIdirect.com Research


Exhibit 7: Market share in Indian formulations market
4.7 4.7
5.1
5.2
5.5
5.1
5.3 5.3
5.4
5.1
5.2
5.2
5.5
4.2
4.4
4.6
4.8
5.0
5.2
5.4
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Sun Pharmaceutical Industries
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 8: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Pantocid Gastro Intestinal 9.2 9.4 -1 9.1 1
Gemer Anti Diabetic 8.9 7.2 24 9.2 -3
Aztor Cardiac 7.4 7.4 0 7.3 2
Susten Gynaecological 7.6 5.9 28 7.3 4
Levipil Neuro 7.1 5.5 30 7.1 1
Pantocid Dsr Gastro Intestinal 6.7 5.6 19 6.2 8
Glucored Anti Diabetic 5.8 5.3 9 6.1 -5
Istamet Anti Diabetic 6.2 3.9 58 6.0 3
Montek-Lc Respiratory 5.0 4.0 25 4.8 5
Oxetol Neuro 4.7 4.1 16 4.5 5
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 9: Contribution of therapies to domestic sales (MAT Sep13)
Neuro
34%
Cardiac
25%
Gastro
Intestinal
17%
Anti Diabetic
14%
Gynaecological
10%


Source: AIOCD data base, ICICIdirect.com Research

Exhibit 10: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Neuro 266.1 228.5 16 253.4 5
Cardiac 193.9 175.9 10 189.6 2
Gastro Intestinal 145.0 126.2 15 133.2 9
Anti Diabetic 111.8 97.4 15 110.1 2
Gynaecological 82.5 64.2 28 78.2 6
Ophthal 46.0 45.5 1 45.2 2
Pain 46.5 42.8 9 45.5 2
Respiratory 41.1 33.8 21 32.9 25
Vitamins 28.5 19.2 48 24.1 18
Hormones 21.5 18.8 14 19.1 12

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Chronic,
2157.9, 57%
Acute,
1618.0, 43%



Brands contribution to domestic sales (MAT Sep13)
20%
11%
8%
12%
49%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base

ICICI Securities Ltd. | Retail Equity Research


Page 9
Cipla
Stock Performance
80
110
140
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Cipla

Source: NSE, ICICIdirect.com Research

Exhibit 11: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
15
.
2
9
.
8
7
.
4
5
.
6
8
.
7
9
.
3
4
.
6
9
.
6
1
.
1
-
1
.
8
1
1
.
3
1
4
.
8
-
0
.
5
0
.
4
5
.
8
6
.
3
-
1
.
1
4
.
8
1
2
.
1
1
1
.
5
1
4
.
7
4
.
8
-
2
.
0
-5
0
5
10
15
20
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
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n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Cipla

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 12: Market share in Indian formulations market
4.9
4.9
4.9
5.2
5.5
5.4
4.9
5.2
5.1
4.8
4.9
4.9
4.9
4.0
4.2
4.4
4.6
4.8
5.0
5.2
5.4
5.6
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Cipla

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 13: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Asthalin Respiratory 12.1 12.8 -6 12.1 0
Foracort Respiratory 11.0 9.7 13 11.5 -4
Seroflo Respiratory 9.6 9.1 6 9.3 3
Budecort Respiratory 8.1 8.2 -2 7.4 9
Aerocort Respiratory 7.6 7.6 -1 7.5 1
Novamox Anti-Infectives 6.8 9.0 -24 7.4 -8
Duolin Respiratory 6.9 6.8 0 7.2 -4
Mtp (Cipla) Gynaecological 0.6 10.7 -94 0.9 -34
Emeset Gastro Intestinal 5.7 5.3 7 6.0 -4
Ciplox Anti-Infectives 5.6 7.6 -26 6.3 -10
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 14: Contribution of therapies to domestic sales (MAT Sep13)
Other
15%
Gastro
Intestinal
8%
Gynaecological
9%
Cardiac
12%
Anti-Infectives
25%
Respiratory
31%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 15: Acute : Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Respiratory 273.6 244.5 12 253.3 8
Anti-Infectives 257.1 227.1 13 231.4 11
Cardiac 111.0 103.6 7 116.2 -4
Gynaecological 58.7 108.0 -46 74.4 -21
Gastro Intestinal 82.3 76.1 8 86.4 -5
Ophthal 30.8 26.3 17 32.3 -4
Neuro 27.6 22.2 24 26.1 6
Pain 25.7 23.6 9 25.3 2
Vitamins 21.5 17.8 21 23.6 -9
Derma 22.4 15.6 44 18.8 19

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Acute,
2225.9, 61%
Chronic,
1433.4, 39%



Brands contribution to domestic sales (MAT Sep13)
40%
12%
9%
13%
26%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 10
Dr Reddys Laboratories
Stock Performance
80
110
140
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Dr. Reddys

Source: NSE, ICICIdirect.com Research

Exhibit 16: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
1
5
.
2
9
.
8
7
.
4
5
.
6
8
.
7
9
.
3
4
.
6
9
.
6
1
.
1
-
1
.
8
1
8
.
7
2
0
.
2
4
.
9
3
.
6
5
.
4
1
.
2
1
0
.
4
2
4
.
02
6
.
5
1
4
.
2
1
3
.
1
1
.
8
8
.
1
-5
0
5
10
15
20
25
30
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Dr. Reddys Laboratories

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 17: Market share in Indian formulations market
2.1
1.9
2.0
2.1
1.9 1.9
2.0
2.2
2.2
2.1 2.1
2.1
2.3
1.7
1.8
1.9
2.0
2.1
2.2
2.3
2.4
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Dr. Reddys Laboratories
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 18: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Omez Gastro Intestinal 13.1 10.1 29 9.4 39
Nise Pain 7.5 6.8 10 6.0 25
Stamlo Cardiac 6.1 5.4 13 4.2 45
Omez D Gastro Intestinal 5.8 4.5 28 5.7 1
Econorm Gastro Intestinal 3.6 3.3 7 3.8 -7
Stamlo Beta Cardiac 3.8 3.2 18 3.5 7
Razo Gastro Intestinal 3.9 3.7 5 3.6 9
Reditux Anti-Neoplastics 2.5 2.2 17 3.4 -26
Mintop Derma 4.9 3.3 51 4.2 17
Razo D Gastro Intestinal 3.4 3.2 6 3.2 5
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 19: Contribution of therapies to domestic sales (MAT Sep13)
Gastro
Intestinal
23%
Cardiac
17%
Anti-
Neoplastics
13%
Pain
9%
Anti-Infectives
8%
Other
30%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 20: Acute : Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Gastro Intestinal 102.7 94.8 8 90.5 13
Cardiac 69.0 66.4 4 69.2 0
Anti-Neoplastics 43.2 36.5 18 54.9 -21
Pain 38.4 37.3 3 33.3 15
Anti-Infectives 34.6 34.7 0 28.2 23
Derma 29.8 25.2 18 25.8 15
Anti Diabetic 27.4 22.9 20 24.4 12
Respiratory 20.2 20.2 0 15.4 31
Gynaecological 15.9 15.5 2 15.4 3
Stomatologicals 15.8 15.1 4 14.7 7

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Chronic,
476.7, 30%
Acute,
1134.2, 70%



Brands contribution to domestic sales (MAT Aug13)
34%
16%
9%
11%
30%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 11
Lupin
Stock Performance
75
115
155
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Lupin

Source: NSE, ICICIdirect.com Research

Exhibit 21: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
1
5
.
2
9
.
8
7
.
4
5
.
6
8
.
7
9
.
3
4
.
6
9
.
6
1
.
1
-
1
.
8
9
.
6
2
1
.
3
9
.
8
8
.
7
1
3
.
7
1
1
.
3
1
6
.
0
1
4
.
3
1
4
.
4
3
.
2
7
.
6
0
.
1
3
.
0
-5
0
5
10
15
20
25
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Lupin

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 22: Market share in Indian formulations market
2.88
3.04
3.05
3.15
3.16
3.14
3.11
3.10
3.11
2.95
3.03
2.95
3.02
2.7
2.8
2.8
2.9
2.9
3.0
3.0
3.1
3.1
3.2
3.2
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Lupin
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 23: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Tonact Cardiac 6.7 6.6 2 5.9 15
Gluconorm-G Anti Diabetic 8.1 5.7 42 8.3 -2
Budamate Respiratory 3.9 3.4 12 3.8 1
Ramistar Cardiac 3.5 3.3 7 3.7 -6
R-Cinex Anti-Infectives 3.2 2.9 8 3.1 4
Merotrol Anti-Infectives 3.1 3.5 -12 3.4 -11
Rablet Gastro Intestinal 3.2 3.2 1 3.2 0
Rablet-D Gastro Intestinal 3.2 2.7 19 3.1 4
Tazar Anti-Infectives 3.2 3.2 0 3.2 1
L-Cin Anti-Infectives 2.9 3.9 -27 3.0 -4
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 24: Contribution of therapies to domestic sales (MAT Sep13)
Other
21%
Gastro
Intestinal
8%
Anti Diabetic
9% Respiratory
11%
Cardiac
24%
Anti-Infectives
27%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 25: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Anti-Infectives 151.5 161.6 -6 142.1 7
Cardiac 135.1 127.3 6 133.0 2
Respiratory 61.0 56.2 8 56.4 8
Anti Diabetic 53.9 44.8 20 47.9 13
Gastro Intestinal 47.6 44.7 7 46.6 2
Vitamins / Minerals / N 37.5 34.9 7 36.0 4
Neuro / Cns 29.5 30.1 -2 28.5 3
Pain / Analgesics 25.5 21.6 18 24.6 3
Gynaecological 14.8 16.3 -9 16.7 -11
Hormones 3.5 3.9 -9 3.7 -4

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Acute,
1217.4, 56%
Chronic,
971.2, 44%



Brands contribution to domestic sales (MAT Sep13)
43%
14%
9%
13%
21%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 12
Ranbaxy Laboratories
Stock Performance
40
75
110
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Ranbaxy

Source: NSE, ICICIdirect.com Research

Exhibit 26: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
1
5
.
2
9
.
8
7
.
4
5
.
6
8
.
7
9
.
3
4
.
6
9
.
6
1
.
1
-
1
.
8
3
.
0
2
1
.
6
1
1
.
8
7
.
0
1
5
.
6
6
.
0
1
.
5
4
.
8
2
0
.
1
-
1
.
1
4
.
0
0
.
0
-
9
.
4
-15
-10
-5
0
5
10
15
20
25
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Ranbaxy Laboratories

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 27: Market share in Indian formulations market
4.20
4.52
4.70
4.37
4.26
4.02 4.02
4.05
4.21
3.88
3.95
3.98
3.88
3.6
4.0
4.4
4.8
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Ranbaxy Laboratories
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 28: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Revital Vitamins 23.5 24.9 -6 22.7 4
Volini Pain 18.7 19.8 -6 21.7 -14
Mox Anti-Infectives 7.0 10.1 -31 7.2 -3
Storvas Cardiac 5.9 6.9 -14 5.0 16
Rosuvas Cardiac 6.2 5.3 17 6.3 -1
Cifran Anti-Infectives 6.6 7.3 -11 5.9 11
Cilanem Anti-Infectives 2.7 7.6 -65 8.6 -69
Silverex Ionic Derma 5.7 3.4 65 4.9 17
Zanocin Anti-Infectives 3.8 6.1 -38 4.4 -14
Tevran Anti-Infectives 4.0 5.1 -23 2.4 66
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 29: Contribution of therapies to domestic sales (MAT Sep13)
Other
23%
Cardiac
11%
Vitamins
11%
Derma
12%
Pain
13%
Anti-Infectives
30%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 30: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Anti-Infectives 235.2 242.1 -3 216.1 9
Pain 98.6 94.0 5 90.9 9
Derma 96.5 93.0 4 97.6 -1
Vitamins 83.9 81.2 3 84.4 -1
Cardiac 74.1 83.6 -11 82.1 -10
Gastro Intestinal 40.1 43.9 -9 43.9 -9
Respiratory 30.7 28.7 7 27.0 14
Gynaecological 19.9 21.6 -8 20.3 -2
Neuro 16.5 17.5 -5 17.6 -6
Anti Diabetic 15.8 17.7 -11 17.5 -10

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Acute,
2437.1,
82%
Chronic,
528.4, 18%



Brands contribution to domestic sales (MAT Sep13)
35%
10%
8%
13%
34%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 13
Cadila Healthcare
Stock Performance
50
80
110
140
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Cadila Healthcare

Source: NSE, ICICIdirect.com Research

Exhibit 31: Company growth vis--vis Indian pharma market growth
1
1
.
9
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6
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4
.
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0
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4
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.
4
8
.
61
1
.
7
5
.
0
3
.
0
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0
5
10
15
20
25
30
35
S
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1
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-
1
3
(
%
)
Indian Pharma Market Cadila Healthcare

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 32: Market share in Indian formulations market
3.8
4.1
4.2
4.1
4.3
4.4
4.3
4.2 4.2
4.3
3.9
4.1
4.0
3.2
3.4
3.6
3.8
4.0
4.2
4.4
4.6
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1
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-
1
3
(
%
)
Cadila Healthcare

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 33: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Skinlite Derma 10.7 7.4 43 9.9 7
Pantodac Gastro Intestinal 8.0 8.3 -4 8.0 0
Atorva Cardiac 7.7 7.2 6 6.8 14
Mifegest Kit Gynaecological 4.0 5.0 -19 7.3 -45
Deriphyllin Respiratory 7.5 6.7 13 7.7 -2
Aten Cardiac 7.5 7.4 1 6.9 9
Dexona Hormones 7.3 5.7 28 6.4 13
Amlodac Cardiac 7.0 5.3 32 5.4 29
Falcigo Anti Malarials 6.7 8.7 -23 6.4 6
Dulcolax Gastro Intestinal 3.6 4.3 -16 4.2 -14
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 34: Contribution of therapies to domestic sales (MAT Sep13)
Cardiac
17%
Gastro
Intestinal
16%
Gynaecological
13%
Respiratory
10%
Pain /
Analgesics
8%
Other
36%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 35: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Cardiac 130.2 128.2 2 130.1 0
Gastro Intestinal 129.2 127.3 2 128.3 1
Gynaecological 84.7 90.1 -6 99.2 -15
Respiratory 73.1 64.5 13 68.6 7
Pain / Analgesics 63.4 59.0 7 58.2 9
Derma 53.1 40.3 32 49.8 7
Anti-Infectives 50.7 51.4 -1 48.5 4
Vitamins 28.8 28.0 3 28.0 3
Anti-Neoplastics 28.3 22.6 25 27.8 2
Hormones 24.5 18.7 31 22.6 8

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Chronic,
869.4, 29%
Acute,
2101.1, 71%



Brands contribution to domestic sales (MAT Sep13)
27%
15%
9%
11%
38%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 14
GlaxoSmithKline Pharmaceuticals
Stock Performance
80
110
140
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare GSK Pharma

Source: NSE, ICICIdirect.com Research

Exhibit 36: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
1
5
.
2
9
.
8
7
.
4
5
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6
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4
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6
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18
.
0
0
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8
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9
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0
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5
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7
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7
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5
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6
-
1
7
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8
-
2
1
.
0
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-15
-10
-5
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25
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1
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S
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-
1
3
(
%
)
Indian Pharma Market Glaxosmithkline Pharmaceuticals

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 37: Market share in Indian formulations market
4.7
4.6
4.6
4.6
4.3 4.3
4.1
4.0
4.1
4.1
4.0
3.9
3.8
3.6
3.8
4.0
4.2
4.4
4.6
4.8
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1
3
(
%
)
Glaxosmithkline Pharmaceuticals
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 38: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Augmentin Anti-Infectives 28.2 32.5 -13 20.0 41
Calpol Pain 15.0 24.5 -39 15.9 -6
Zinetac Gastro Intestinal 11.6 13.4 -13 12.3 -6
Eltroxin Hormones 10.2 10.3 -1 10.9 -7
Ceftum Anti-Infectives 8.2 14.3 -43 10.0 -18
Betnovate C Derma 7.7 8.2 -6 9.1 -15
Betnovate N Derma 7.1 7.2 -1 8.3 -15
Betnesol Hormones 6.4 10.1 -37 6.6 -4
Phexin Anti-Infectives 5.2 8.8 -41 6.5 -21
T Bact Derma 7.2 7.2 -1 7.0 2
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 39: Contribution of therapies to domestic sales (MAT Sep13)
Other
27%
Hormones
7%
Vitamins
8%
Pain
10%
Derma
17%
Anti-Infectives
31%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 40: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Anti-Infectives 210.0 270.1 -22 205.1 2
Derma 138.1 135.8 2 130.6 6
Pain 80.4 99.3 -19 82.6 -3
Vitamins 58.4 78.6 -26 62.4 -6
Hormones 53.5 61.8 -13 51.3 4
Respiratory 48.2 54.4 -11 44.6 8
Gastro Intestinal 47.8 55.7 -14 48.0 0
Vaccines 37.7 40.7 -7 42.0 -10
Cardiac 24.6 25.6 -4 27.8 -12
Gynaecological 19.8 25.0 -21 21.5 -8

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Acute,
2774.3, 91%
Chronic,
273.3, 9%



Brands contribution to domestic sales (MAT Sep13)
19%
13%
10%
15%
43%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 15
Wockhardt
Stock Performance
25
85
145
205
265
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Wockhardt

Source: NSE, ICICIdirect.com Research
Exhibit 41: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
1
5
.
2
9
.
8
7
.
4
5
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6
8
.
7
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3
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8
2
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7
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0
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7
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0
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4
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6
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25
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1
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-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Wockhardt

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 42: Market share in Indian formulations market
1.71
1.84
1.67
1.64
1.73
1.69
1.64
1.62
1.63
1.53
1.48
1.47
1.50
1.4
1.5
1.6
1.7
1.8
1.9
S
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1
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1
3
S
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-
1
3
(
%
)
Wockhardt
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 43: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Practin Vitamins 6.7 6.8 0 7.5 -10
Spasmo Proxyvon Gastro Intestinal 0.1 6.5 -98 0.5 -74
Tryptomer Neuro 4.3 4.7 -9 4.9 -13
Decdan Hormones 3.7 5.1 -27 3.6 4
Bro Zedex Respiratory 4.2 4.4 -5 4.6 -8
Dexolac 1 Vitamins 3.9 4.2 -9 4.0 -4
Methycobal Vitamins 3.4 4.1 -16 3.6 -4
Dexolac 2 Vitamins 3.7 3.0 21 3.0 23
Zedex Respiratory 3.1 3.9 -19 3.0 4
Wokadine Derma 2.3 3.2 -30 2.8 -20
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 44: Contribution of therapies to domestic sales (MAT Sep13)
Other
32%
Derma
8%
Neuro / Cns
9%
Anti Diabetic
9%
Respiratory
12%
Vitamins
30%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 45: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Vitamins 87.9 94.4 -7 86.5 2
Respiratory 36.6 33.8 8 28.3 29
Anti Diabetic 24.4 29.5 -17 26.4 -8
Neuro / Cns 24.5 26.0 -6 24.6 0
Derma 26.3 25.7 2 23.3 13
Anti-Infectives 20.7 21.4 -3 18.4 12
Gastro Intestinal 10.6 23.0 -54 24.6 -57
Pain 14.1 19.1 -26 17.2 -18
Hormones 12.3 14.6 -16 19.3 -36
Others 11.8 4.0 192 8.3 42

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Acute,
880.5, 76%
Chronic,
283.1, 24%



Brands contribution to domestic sales (MAT Sep13)
45%
20%
11%
10%
14%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 16
Glenmark Pharmaceuticals
Stock Performance
80
120
160
200
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Glenmark

Source: NSE, ICICIdirect.com Research

Exhibit 46: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
1
5
.
2
9
.
8
7
.
4
5
.
6
8
.
7
9
.
3
4
.
6
9
.
6
1
.
1
-
1
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8
1
9
.
5
2
3
.
3
1
0
.
9
9
.
6
1
5
.
7
1
0
.
31
2
.
4
1
7
.
7
1
4
.
5
5
.
0
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9
.
2
2
1
.
72
3
.
7
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20
25
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1
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-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Glenmark Pharmaceuticals

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 47: Market share in Indian formulations market
1.96
1.94
1.96
2.13
2.12
2.03
2.05 2.05
1.91
1.94
2.10
2.31
2.47
1.5
1.7
1.9
2.1
2.3
2.5
2.7
S
e
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-
1
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1
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1
3
A
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-
1
3
S
e
p
-
1
3
(
%
)
Glenmark Pharmaceuticals
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 48: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Telma Cardiac 10.8 8.2 31 11.4 -5
Telma H Cardiac 8.7 7.3 19 8.9 -2
Ascoril Plus Respiratory 7.6 8.8 -14 7.2 6
Candid-B Derma 7.0 6.6 6 6.8 4
Candid Derma 5.0 4.5 12 4.8 5
Telma Am Cardiac 3.6 2.9 24 3.8 -3
Alex Respiratory 2.2 2.3 -3 2.2 2
Candid Mouth Derma 2.9 1.8 60 2.5 16
Lizolid Anti-Infectives 3.0 1.9 60 2.4 28
Dubagest Gynaecological 2.2 1.6 43 2.0 9
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 49: Contribution of therapies to domestic sales (MAT Sep13)
Derma
28%
Cardiac
22%
Anti-Infectives
16%
Respiratory
16%
Anti Diabetic
5%
Other
13%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 50: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Derma 123.8 108.9 14 107.8 15
Cardiac 96.8 75.3 29 84.2 15
Anti-Infectives 80.8 62.0 30 51.5 57
Respiratory 61.5 51.9 18 48.8 26
Anti Diabetic 22.1 14.7 50 19.2 15
Pain 10.4 13.3 -22 10.5 -1
Gynaecological 11.4 8.0 42 9.7 18
Gastro Intestinal 8.6 7.5 14 8.5 1
Vitamins 9.0 6.4 40 8.1 11
Ophthal 9.2 8.9 3 6.3 47

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Chronic,
499.4, 33%
Acute,
1010.8, 67%



Brands contribution to domestic sales (MAT Sep13)
35%
14%
10%
12%
29%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 17
Torrent Pharmaceuticals
Stock Performance
80
110
140
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Torrent Pharma

Source: NSE, ICICIdirect.com Research

Exhibit 51: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
15
.
2
9
.
8
7
.
4
5
.
6
8
.
7
9
.
3
4
.
6
9
.
6
1
.
1
-
1
.
8
8
.
9
1
6
.
9
8
.
99
.
81
1
.
5
8
.
0
7
.
6
1
0
.
5
7
.
8
8
.
6
1
7
.
0
8
.
3
1
0
.
5
-5
0
5
10
15
20
S
e
p
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1
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2
N
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v
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1
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1
2
J
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-
1
3
F
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-
1
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a
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-
1
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A
p
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-
1
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M
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-
1
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J
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1
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J
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-
1
3
A
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-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Torrent Pharmaceuticals

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 52: Market share in Indian formulations market
1.59
1.66
1.74
1.75
1.76
1.71
1.70
1.79
1.83
1.79 1.79
1.76
1.79
1.4
1.5
1.6
1.7
1.8
1.9
S
e
p
-
1
2
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c
t
-
1
2
N
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v
-
1
2
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J
a
n
-
1
3
F
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b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
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-
1
3
J
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-
1
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J
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-
1
3
A
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-
1
3
S
e
p
-
1
3
(
%
)
Torrent Pharmaceuticals
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 53: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Nikoran Cardiac 4.8 4.0 20 5.0 -4
Alprax Neuro 4.1 3.7 11 3.3 23
Dilzem Cardiac 3.6 2.9 24 3.3 8
Nebicard Cardiac 3.4 2.9 20 3.7 -7
Nexpro Rd Gastro Intestinal 3.2 2.7 20 2.9 9
Domstal Gastro Intestinal 2.3 2.7 -14 2.9 -19
Azulix-Mf Anti Diabetic 3.1 2.2 37 2.9 5
Topcef Anti-Infectives 2.6 3.1 -16 2.9 -9
Nexpro Gastro Intestinal 2.5 2.3 5 2.5 -1
Deplatt-A Cardiac 2.3 1.9 19 2.3 0
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 54: Contribution of therapies to domestic sales (MAT Sep13)
Other
10%
Anti Diabetic
6%
Anti-Infectives
10%
Gastro
Intestinal
17%
Neuro
20%
Cardiac
37%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 55: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Cardiac 119.2 101.8 17 120.9 -1
Neuro 69.1 61.0 13 67.8 2
Gastro Intestinal 63.2 55.6 14 56.0 13
Anti-Infectives 36.3 38.8 -7 31.4 15
Anti Diabetic 20.7 16.7 24 19.7 5
Vitamins 8.3 9.2 -9 7.9 5
Pain 7.4 8.4 -12 7.0 6
Gynaecological 5.5 4.2 32 6.4 -15
Derma 7.2 3.9 86 5.8 23
Others 1.7 1.5 9 1.6 4

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Acute,
494.7, 39%
Chronic,
778.5, 61%



Brands contribution to domestic sales (MAT Sep13)
35%
14%
9%
14%
28%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 18
Ipca Laboratories
Stock Performance
80
140
200
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Ipca

Source: NSE, ICICIdirect.com Research

Exhibit 56: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
1
5
.
2
9
.
8
7
.
4
5
.
6
8
.
7
9
.
3
4
.
6
9
.
6
1
.
1
-
1
.
8
7
.
0
2
1
.
2
-
3
.
7
4
.
4
1
1
.
3
1
0
.
5
2
6
.
1
1
5
.
8
1
4
.
2
1
8
.
1
2
.
0
1
3
.
8
1
5
.
2
-10
-5
0
5
10
15
20
25
30
S
e
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-
1
2
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t
-
1
2
N
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-
1
2
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1
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J
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-
1
3
F
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1
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1
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1
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-
1
3
A
u
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-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Ipca Laboratories

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 57: Market share in Indian formulations market
1.74
1.96
1.77
1.72
1.67 1.67
1.71
1.91
1.84 1.84
1.75
1.70
2.04
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2.1
S
e
p
-
1
2
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-
1
2
N
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-
1
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-
1
2
J
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n
-
1
3
F
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b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
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-
1
3
J
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-
1
3
J
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l
-
1
3
A
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g
-
1
3
S
e
p
-
1
3
(
%
)
Ipca Laboratories
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 58: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Rapither-Ab Anti Malarials 7.5 8.0 -7 6.3 19
Zerodol P Pain 7.0 4.3 62 6.2 13
Larinate Anti Malarials 8.2 7.4 10 6.5 25
Zerodol Sp Pain 5.2 3.4 53 4.5 14
Hcqs Anti Malarials 5.0 3.3 49 3.8 32
Lariago Anti Malarials 5.6 8.9 -37 6.3 -11
Lumerax Anti Malarials 5.4 4.8 12 3.9 38
Glycinorm M Anti Diabetic 3.4 2.1 63 2.9 21
Azibact Anti-Infectives 2.7 3.1 -14 2.1 28
Zerodol Pain 2.9 2.3 25 2.4 18
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 59: Contribution of therapies to domestic sales (MAT Sep13)
Anti Malarials
23%
Pain /
Analgesics
21%
Cardiac
17%
Gastro
Intestinal
9%
Anti-Infectives
8%
Other
22%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 60: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Anti Malarials 99.8 97.8 2 60.9 64
Pain / Analgesics 74.4 59.6 25 68.1 9
Cardiac 52.2 45.8 14 53.2 -2
Gastro Intestinal 27.8 25.5 9 31.9 -13
Anti-Infectives 23.6 24.5 -4 20.9 13
Anti Diabetic 18.0 16.3 10 18.3 -2
Respiratory 14.2 12.8 11 10.6 34
Neuro / Cns 9.3 8.2 15 9.0 4
Anti-Neoplastics 8.7 7.2 21 8.4 3
Derma 8.9 7.1 26 7.1 25

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Chronic,
321.1, 27%
Acute,
872.5, 73%



Brands contribution to domestic sales (MAT Sep13)
22%
13%
12%
18%
35%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 19
Biocon
Stock Performance
90
110
130
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Biocon

Source: NSE, ICICIdirect.com Research

Exhibit 61: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
1
5
.
2
9
.
8
7
.
4
5
.
6
8
.
7
9
.
3
4
.
6
9
.
6
1
.
1
-
1
.
8
5
8
.
3
-
7
.
3
-
5
.
9
-
2
.
8
3
1
.
1
3
4
.
0
4
0
.
6
4
8
.
7
9
9
.
0
-
2
1
.
1
-
2
8
.
2
1
.
0
-
1
2
.
3
-40
-20
0
20
40
60
80
100
120
S
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p
-
1
2
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t
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1
2
N
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-
1
2
D
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2
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-
1
3
F
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-
1
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A
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r
-
1
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M
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-
1
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J
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1
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J
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l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Biocon

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 62: Market share in Indian formulations market
0.29
0.18
0.20
0.22 0.22
0.21
0.22
0.24 0.24
0.38
0.40
0.39
0.41
0.15
0.20
0.25
0.30
0.35
0.40
0.45
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Biocon

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 63: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Insugen Anti Diabetic 5.8 4.9 17 5.6 2
Basalog Anti Diabetic 2.5 1.8 38 2.4 5
Blisto Mf Anti Diabetic 2.2 0.8 184 2.1 5
Abraxane Anti-Neoplastics 2.7 1.0 170 1.4 88
Metadoze-Ipr Anti Diabetic 0.8 0.8 4 0.8 4
Statix Cardiac 0.6 0.7 -11 0.7 -10
Insugen R Anti Diabetic 1.0 0.4 180 1.1 -5
Erypro Blood Related 0.8 0.8 5 0.6 40
Myokinase Cardiac 0.5 0.4 15 0.4 6
Penmer Anti-Infectives 0.7 0.4 73 1.0 -28
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 64: Contribution of therapies to domestic sales (MAT Sep13)
Other
5%
Blood Related
3%
Anti-Infectives
9%
Anti-
Neoplastics
10%
Cardiac
15%
Anti Diabetic
58%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 65: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Anti Diabetic 41.8 31.3 34 36.1 16
Cardiac 9.9 8.1 22 9.0 10
Anti-Neoplastics 10.8 4.6 132 9.1 19
Anti-Infectives 8.5 4.6 84 4.9 74
Blood Related 2.0 2.3 -14 1.4 40
Derma 1.6 1.0 49 1.3 19
Others 1.0 1.3 -23 1.1 -10
Vitamins 0.8 0.9 -17 0.7 4
Neuro 0.2 0.2 10 0.2 25
Gastro Intestinal 0.2 0.0 392 0.1 152

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Acute, 61.9,
25%
Chronic,
185.3, 75%



Brands contribution to domestic sales (MAT Sep13)
65%
16%
9%
7%
3%
Top 10 11 to 20 21 to 30 31 to 50 Others



Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 20
Pfizer
Stock Performance
75
105
135
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Pfizer

Source: NSE, ICICIdirect.com Research
Exhibit 66: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
1
5
.
2
9
.
8
7
.
4
5
.
6
8
.
7
9
.
3
4
.
6
9
.
6
1
.
1
-
1
.
8
1
5
.
7
1
7
.
0
7
.
41
0
.
81
4
.
0
6
.
2
9
.
0
0
.
1
-
0
.
3
1
.
6
1
1
.
5
-
2
.
9
-
1
5
.
9
-20
-15
-10
-5
0
5
10
15
20
25
S
e
p
-
1
2
O
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t
-
1
2
N
o
v
-
1
2
D
e
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-
1
2
J
a
n
-
1
3
F
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b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
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-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Pfizer

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 67: Market share in Indian formulations market
2.50
2.55 2.54
2.38
2.37
2.35
2.31
2.23
2.25
2.27
2.35
2.37
2.14
2.0
2.2
2.4
2.6
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
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-
1
3
J
u
n
-
1
3
J
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l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Pfizer
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 68: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Corex Respiratory 18.4 24.5 -25 24.1 -23
Becosules Vitamins 14.6 16.7 -12 14.6 0
Magnex Anti-Infectives 12.3 12.6 -3 15.2 -19
Dolonex Pain 8.9 9.2 -3 9.2 -3
Gelusil Mps Gastro Intestinal 7.4 8.2 -10 8.3 -11
Minipress Xl Cardiac 7.2 6.6 9 7.7 -7
Dalacin C Anti-Infectives 6.6 7.9 -17 6.2 7
Solu Medrol Hormones 6.2 7.1 -13 5.0 25
Claribid Anti-Infectives 3.3 3.6 -8 3.5 -5
Lyrica Neuro 3.7 3.0 23 3.6 2
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 69: Contribution of therapies to domestic sales (MAT Sep13)
Anti-Infectives
20%
Respiratory
19%
Vitamins
13%
Cardiac
9%
Pain
8%
Other
31%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 70: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Anti-Infectives 91.0 92.2 -1 79.6 14
Respiratory 77.8 78.2 0 65.1 19
Vitamins 55.3 57.9 -5 56.1 -1
Cardiac 39.3 39.3 0 39.9 -1
Pain 34.7 35.3 -2 34.0 2
Gastro Intestinal 35.0 35.9 -3 31.8 10
Hormones 32.7 34.4 -5 31.7 3
Neuro 20.9 17.4 20 19.4 8
Gynaecological 14.2 15.9 -10 15.1 -6
Derma 12.3 11.6 6 10.1 22

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Chronic,
252.4, 15%
Acute,
1431.4,
85%



Brands contribution to domestic sales (MAT Sep13)
8%
7%
7%
14%
64%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 21
Novartis India
Stock Performance
50
100
150
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Novartis India

Source: NSE, ICICIdirect.com Research

Exhibit 71: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
15
.
2
9
.
8
7
.
4
5
.
6
8
.
7
9
.
3
4
.
6
9
.
6
1
.
1
-
1
.
8
3
.
0
1
5
.
4
8
.
0
3
.
8
6
.
4
1
.
2
-
1
.
7
2
.
6
2
.
2
1
1
.
3
2
.
5
-
2
.
7
1
.
4
-5
0
5
10
15
20
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Novartis India

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 72: Market share in Indian formulations market
1.45
1.55
1.65 1.66
1.69
1.59
1.61 1.61
1.56
1.60
1.57
1.49
1.44
1.2
1.3
1.4
1.5
1.6
1.7
1.8
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Novartis India
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 73: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Voveran Pain 12.1 16.2 -25 13.7 -12
Galvus Met Anti Diabetic 11.8 9.0 31 10.8 10
Rabipur (Novartis) Vaccines 5.8 5.2 12 5.3 9
Galvus Anti Diabetic 6.3 5.6 14 6.2 2
Otrivin Respiratory 4.7 5.3 -11 5.4 -13
Tegrital Neuro 4.8 3.8 28 5.5 -12
Methergin Gynaecological 4.4 4.8 -9 3.5 26
Regestrone Gynaecological 3.0 3.1 -4 3.0 -2
Syntocinon Gynaecological 1.9 3.6 -47 3.3 -43
Macalvit Vitamins 2.6 2.5 7 2.8 -7
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 74: Contribution of therapies to domestic sales (MAT Sep13)
Other
26%
Vitamins
9%
Respiratory
11%
Gynaecological
12%
Anti Diabetic
17%
Pain
25%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 75: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Pain 67.7 73.8 -8 76.3 -11
Anti Diabetic 54.2 43.8 24 50.2 8
Gynaecological 32.1 34.5 -7 35.7 -10
Respiratory 33.1 30.2 9 23.6 40
Vitamins 28.3 24.5 16 27.6 3
Neuro 23.6 18.4 28 23.6 0
Vaccines 17.0 18.2 -7 22.5 -25
Anti-Infectives 17.3 21.3 -19 16.4 5
Ophthal 6.5 4.4 47 5.9 10
Cardiac 4.4 4.9 -10 5.2 -15

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Acute,
836.0, 73%
Chronic,
313.2, 27%



Brands contribution to domestic sales (MAT Sep13)
64%
15%
7%
7%
7%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 22
Unichem Laboratories
Stock Performance
70
100
130
160
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Unichem Labs

Source: NSE, ICICIdirect.com Research

Exhibit 76: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
1
5
.
2
9
.
8
7
.
4
5
.
6
8
.
7
9
.
3
4
.
6
9
.
6
1
.
1
-
1
.
8
8
.
8
1
3
.
3
4
.
6
5
.
4
9
.
9
9
.
1
4
.
9
1
1
.
1
5
.
4
1
.
05
.
6
-
6
.
6
-
6
.
5
-10
-5
0
5
10
15
20
25
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Unichem Laboratories

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 77: Market share in Indian formulations market
0.98
0.95
1.00
1.03
1.10
1.06
1.03
1.03
1.00
0.99
0.98
0.92
0.93
0.90
0.95
1.00
1.05
1.10
1.15
S
e
p
-
1
2
O
c
t
-
1
2
N
o
v
-
1
2
D
e
c
-
1
2
J
a
n
-
1
3
F
e
b
-
1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Unichem Laboratories
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 78: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Losar H Cardiac 6.6 6.7 -3 5.4 22
Losar Cardiac 5.0 5.4 -7 4.3 15
Ampoxin Anti-Infectives 5.0 6.2 -20 5.6 -12
Unienzyme Gastro Intestinal 3.4 4.0 -15 4.5 -25
Trika Neuro 2.2 3.0 -26 1.8 24
Vizylac Gastro Intestinal 1.7 1.9 -14 1.8 -4
Linox Anti-Infectives 1.7 1.6 4 1.8 -10
Telsar Cardiac 1.3 1.3 2 1.3 -1
Telsar-H Cardiac 1.1 1.2 -13 1.2 -11
Unistar (Unichem) Cardiac 1.3 0.8 59 1.3 -2
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 79: Contribution of therapies to domestic sales (MAT Sep13)
Cardiac
47%
Anti-Infectives
16%
Neuro
12%
Gastro
Intestinal
11%
Pain
3%
Other
11%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 80: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Cardiac 81.1 85.6 -5 88.6 -8
Anti-Infectives 34.4 30.9 11 26.5 30
Neuro 20.3 21.4 -5 21.5 -5
Gastro Intestinal 20.5 21.2 -3 23.0 -11
Pain 6.4 6.4 -1 6.1 5
Anti Diabetic 5.7 6.2 -7 6.5 -12
Respiratory 4.3 5.8 -27 4.2 0
Vitamins 3.8 4.0 -4 3.9 -4
Derma 2.3 3.1 -24 2.2 8
Gynaecological 1.5 0.8 88 1.2 23

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Chronic,
447.4, 62%
Acute,
278.0, 38%



Brands contribution to domestic sales (MAT Sep13)
17%
10%
8%
15%
50%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 23
Indoco Remedies
Stock Performance
80
115
150
Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
BSE Healthcare Indoco

Source: NSE, ICICIdirect.com Research

Exhibit 81: Company growth vis--vis Indian pharma market growth
1
1
.
9
1
8
.
8
4
.
1
5
.
2
9
.
8
7
.
4
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6
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8
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.
4
1
6
.
4
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.
7
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.
7
2
.
7
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.
9
8
.
7
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.
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0
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0
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8
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u
g
-
1
3
S
e
p
-
1
3
(
%
)
Indian Pharma Market Indoco Remedies

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 82: Market share in Indian formulations market
0.83
0.78
0.75
0.76
0.77
0.77
0.76
0.77
0.72
0.75
0.8
0.8 0.8
0.70
0.72
0.74
0.76
0.78
0.80
0.82
0.84
S
e
p
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-
1
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A
u
g
-
1
3
S
e
p
-
1
3
(
%
)
Indoco Remedies
Source: AIOCD data base, ICICIdirect.com Research

Exhibit 83: Top 10 brands performance (| crore)
Brand Therapy Sep'13 Sep'12 Var. (%) Aug'13 Var. (%)
Febrex Plus Respiratory 5.8 8.1 -28 6.5 -10
Cyclopam Gastro Intestinal 4.7 4.7 0 5.5 -14
Sensodent-K Stomatologicals 2.7 2.3 17 2.6 4
Atm Anti-Infectives 2.3 3.3 -31 1.9 20
Cital Gynaecological 2.1 2.0 3 2.0 5
Oxipod Anti-Infectives 2.4 2.7 -13 2.2 6
Sensoform Stomatologicals 1.6 1.5 9 1.6 3
Cloben G Derma 1.9 1.7 15 1.9 2
Vepan Anti-Infectives 1.5 1.9 -21 1.6 -3
Sensodent-Kf Stomatologicals 1.5 1.2 25 1.4 2
Source: AIOCD data base, ICICIdirect.com Research


Exhibit 84: Contribution of therapies to domestic sales (MAT Sep13)
Other
29%
Gynaecological
5%
Gastro
Intestinal
14%
Stomatological
s
15%
Anti-Infectives
17%
Respiratory
20%

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 85: Therapy wise performance (| crore)
Therapy Q2FY14 Q2FY13 YoY (%) Q1FY14 QoQ (%)
Respiratory 31.3 31.5 -1 22.5 39
Anti-Infectives 26.6 28.7 -7 22.9 16
Stomatologicals 23.5 21.1 11 22.5 4
Gastro Intestinal 22.8 21.8 5 21.0 9
Gynaecological 7.5 7.5 1 8.5 -12
Ophthal 7.3 7.8 -6 7.3 0
Pain 7.2 6.6 9 6.5 10
Vitamins 6.6 6.0 10 6.1 7
Derma 7.3 6.6 11 5.8 27
Anti Diabetic 5.7 5.2 10 5.7 0

Source: AIOCD data base, ICICIdirect.com Research

Acute : Chronic contribution (MAT Sep13)
Acute,
520.4, 93%
Chronic,
39.1, 7%



Brands contribution to domestic sales (MAT Sep13)
52%
17%
7%
9%
15%
Top 10 11 to 20 21 to 30 31 to 50 Others

Source: AIOCD data base
ICICI Securities Ltd. | Retail Equity Research


Page 24
























Exhibit 86: One year forward P/E of BSE Healthcare Index vs. Sensex
0
5
10
15
20
25
30
35
M
a
r
-
0
6
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-
1
2
x
BSE Healthcare Index Sensex
29% premium
[
Source: Company, ICICIdirect.com Research



ICICIdirect.com coverage universe (Pharma & Hospitals)
I-Direct CMP TP Rating M Cap
Code (|) (|) (| Cr) FY13 FY14E FY15E FY13 FY14E FY15E FY13 FY14E FY15E FY13 FY14E FY15E FY13 FY14E FY15E
Apollo Hospitals APOHOS 913 930 HOLD 12,681 21.9 24.0 31.6 41.7 38.1 28.9 21.7 18.0 14.2 11.7 13.5 17.2 11.1 11.3 13.4
Aurobindo Pharma AURPHA 241 211 HOLD 6,998 10.1 19.6 28.9 23.8 12.3 8.3 11.5 7.9 6.6 10.6 15.4 17.1 11.3 18.4 21.8
Biocon BIOCON 362 356 HOLD 7,232 25.4 20.8 25.4 14.2 17.4 14.2 12.7 10.1 8.2 13.6 16.8 18.2 18.9 14.0 15.3
Cadila Healthcare CADHEA 697 743 BUY 14,242 32.0 35.2 46.4 21.8 19.8 15.0 13.6 14.2 10.7 19.2 15.1 19.1 24.6 22.8 25.1
Cipla CIPLA 421 470 HOLD 33,712 19.2 19.6 23.5 21.9 21.4 17.9 14.8 14.2 11.6 18.7 16.8 19.2 17.1 15.2 15.6
Divi's Laboratories DIVLAB 984 1191 BUY 13,040 45.5 54.1 62.7 21.6 18.2 15.7 15.6 12.9 10.4 28.4 27.8 28.5 23.9 23.9 23.5
Glenmark Pharma GLEPHA 527 584 HOLD 14,260 22.7 24.6 32.4 23.2 21.4 16.3 16.2 13.2 10.4 18.8 23.1 25.9 22.5 22.6 24.5
Indoco Remedies INDREM 85 85 HOLD 782 4.6 7.0 9.5 18.4 12.1 9.0 9.7 7.3 5.8 13.2 16.1 17.9 10.3 13.8 16.1
Ipca Laboratories IPCLAB 678 768 BUY 8,535 25.6 35.7 48.0 26.4 19.0 14.1 14.6 11.4 9.5 24.7 27.6 27.5 20.8 23.2 24.4
Jubilant Life Sciences VAMORG 100 131 BUY 1,591 9.6 5.7 33.1 10.4 17.7 3.0 4.9 4.9 3.5 12.1 12.8 14.9 6.1 3.6 17.9
Lupin LUPIN 874 974 HOLD 39,104 29.3 37.6 44.1 29.8 23.2 19.8 17.5 14.4 11.6 30.1 32.9 33.3 25.3 25.3 23.6
Natco Pharma NATPHA 697 716 HOLD 2,184 22.9 32.2 60.9 28.1 20.0 10.6 16.6 13.7 8.2 14.7 16.5 24.2 13.5 16.3 24.2
Opto Circuits OPTCIR 24 NA UR 568 15.7 NA NA 2.0 NA NA 3.8 NA NA 14.2 NA NA 19.9 NA NA
Strides Arcolab STRARC 908 NA UR 5,372 44.4 NA NA 20.4 NA NA 12.3 NA NA 12.2 NA NA 43.5 NA NA
Sun Pharma SUNPHA 592 533 HOLD 122,354 14.5 9.6 22.2 40.8 61.9 26.7 23.6 19.9 18.5 34.3 37.4 31.3 21.3 13.1 24.3
Torrent Pharma TORPHA 487 528 BUY 8,218 25.6 30.8 35.2 19.0 15.8 13.8 11.9 10.3 8.5 28.8 29.3 30.9 30.4 30.2 28.6
Unichem Laboratories UNILAB 176 188 BUY 1,592 12.5 17.0 15.7 14.1 10.3 11.2 9.1 8.5 7.0 18.0 16.6 18.7 15.6 18.6 15.6
RoNW (%)
Company
EPS (|) PE(x) EV/EBITDA (x) RoCE (%)

ICICI Securities Ltd. | Retail Equity Research


Page 25
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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 pankaj.pandey@icicisecurities.com

ICICIdirect.com Research Desk,
ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No. 7, MIDC,
Andheri (East)
Mumbai 400 093


research@icicidirect.com

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