You are on page 1of 31

Monthly Update

August 29, 2016


Sector View

Health Check

Positive

Q1 earnings in line; midcap pharma gallops

Index Performance as on August 26, 2016


Return (%)
Return (%)

1M

3M

YTD

1Y

CNX 500

Nifty

-1

NSE Pharma

-3

-5

-12

Stocks Performance
Mcap

Return (%)
Company

1M

3M

Sun Pharma.Inds.

YTD

1Y 26-Aug
-15 182223

-9

-8

-8

-15

-19

-20

67008

Dr Reddy's Labs

-2

-2

-27

51981

Aurobindo Pharma

-1

-10

46053

Cipla

19

-13

-14

45365

Cadila Health.

16

16

-2

38841

Divi's Lab.

21

13

16

34723

Torrent Pharma.

12

17

12

27239

Glaxosmit Pharma

-10

-16

-10

-12

25216

Glenmark Pharma.

-2

-4

-8

-28

23821

Apollo Hospitals

-2

-1

-9

-1

18541

Biocon

27

72

101

17780

Ajanta Pharma

26

45

35

17033

Alembic Pharma

17

-9

-10

11933
11841

Lupin

Natco Pharma

46

17

50

Syngene Int.

10

19

10

40

9192

Wockhardt

-19

-12

-46

-39

9043

Pfizer

-2

-17

-15

8943

Strides Arcolab

-20

-17

-28

-22

8291

Jubilant Life

51

46

23

44

8080

Ipca Labs.

25

-26

-30

6914

Indoco Remedies

-3

-4

2925

Unichem Labs.
-4
Mcap: Market cap in | crore

2478

Price movement
15000
14000
13000
12000
11000
10000
9000
8000
7000
6000
5000
Aug-15

12000
10000
8000
6000
4000
Nov-15

Feb-16

CNX Pharma

May-16

Aug-16

Nifty (RHS)

Research Analyst
Siddhant Khandekar
siddhant.khandekar@icicisecurities.com
Mitesh Shah
mitesh.sha@icicisecurities.com

ICICI Securities Ltd. | Retail Equity Research

The Q1 earnings season ended on expected line with US focused generic


players more or less managing to overcome pricing pressure with
exclusivities and higher volumes. I-direct pharma universe registered YoY
revenue growth of 9.4% to | 35662 crore, driven by 15.2% YoY growth to
| 11496 in the US and 7.6% YoY growth to | 7863 crore in domestic
formulations (select pack). Domestic growth was largely hit by the ongoing
NLEM/FDC related issues. EBITDA for the universe grew 7.2% YoY to | 8579
crore. Lower growth vis--vis revenues can be attributed to higher R&D
spend and remedial costs. Adjusted net profit grew 8.5% YoY to | 5919
crore. Adoption of a new accounting standard (Ind-AS) also had an impact
on the quarterly performance.
On the revenue front, Natco (46% growth) and Lupin (41% growth) were
standout performers. Natcos revenues were largely driven by robust
growth in the Hepatitis C segment while Lupin benefited from exclusivity
sales in the US. Alembic, Divis, Sun, Biocon and Ajanta also reported more
than 20% growth. On the other hand Dr Reddys, Torrent and Cipla reported
negative growth mainly due to high base and price erosion in the US.
US growth was driven by limited competition opportunities/exclusivities at
Lupin from gGlumetza and gFortamet (anti-diabetic) and Sun from gGleevec
(anti-cancer). Note that US growth has not captured gNexium (GI) impact for
Cipla and gAbilify for Alembic for non-disclosure of specific traction.
Aurobindo and Glenmark also registered strong YoY growth whereas
Torrent, Cadila and Dr Reddys (DRL) were laggards on account of base
effect, slowdown in product approvals and regulatory issues.
In another significant development, Biocon and Mylan received European
Medicines Agencys (EMA) acceptance to review Mylans marketing
authorisation application (MAA) for a proposed biosimilar Trastuzumab
used to treat certain HER2-positive breast and gastric cancers. This is the
second biosimilar submission developed by the partnership that has been
accepted for review in Europe.
Finally the Indian pharmaceutical market (IPM) grew 9.5% YoY to | 9125
crore for July. Growth was driven by price hikes- 3.3%, new product
launches- 3.1% and volume growth- 3.2%. In all, 431 new brands were
launched in July 2016, by far highest monthly launches in many quarters.
No red flag on earnings front; regulatory worries waning
Although Q1 panned out on expected lines, a detailed dissection, especially
of the US performance, gives an encouraging signal. Despite pricing
pressure and client consolidation, which were thought to be significant
headwinds post Q4FY16 numbers, most players (barring a few) managed to
expand volumes thereby neutralising these headwinds. Regarding USFDA
issues, Indian players have moved on and seem better prepared than 12-18
months ago as reflected in growing number of EIRs by the USFDA for Indian
facilities. Indian formulations also did reasonably well despite NLEM, FDC
issues. We expect the earnings momentum to continue on the back of
incremental product launches in the US and likely positive outcome from
USFDA re-inspections besides normalising of Indian formulations growth.
We expect healthcare universe revenue, EBITDA and PAT to grow at a
CAGR of 12%, 13% and 17%, respectively, in FY16-18E. Growth will be
steered by US (~13% CAGR over FY16-18E) and Indian formulations (~14%
CAGR over FY16-18E).

Regulatory approvals
Exhibit 1: Summary of USFDA approvals for July, 2016
Company
Aurobindo Pharma
Aurobindo Pharma
Cadila Healthcare
Aurobindo Pharma
Aurobindo Pharma
Aurobindo Pharma
Dr Reddy's Lab
Ajanta Pharma
Sun Pharma
Aurobindo Pharma
Glenmark Pharma
Glenmark Pharma
Glenmark Pharma
Ajanta Pharma
Indoco

Drug Name
METHENAMINE HIPPURATE
GRANISETRON HCL
Nateglinide
Estradiol and Norethindrone Acetate
Estradiol and Norethindrone Acetate
ROPIVACAINE HCL
Omeprazole and Sodium bicarbonate
Omeprazole and Sodium bicarbonate
Rosuvastatin Calcium
Rosuvastatin Calcium
Rosuvastatin Calcium
Triamcinolone Acetonide
Potassium Chloride ER
Omeprazole and Sodium bicarbonate Powder
ALLOPURINOL

Company
Alembic Pharma
Lupin

Drug Name
Febuxostat
Fosamprenavir Calcium

Final Approvals
Therapeutic Area
Anti-infective
Oncology
diabetes
OC
OC
Anaesthetic
GI
GI
CVS
CVS
CVS
Dermatology
CVS
CVS
Hyperuricemia
Tentative Approvals
Therapeutic Area
Hyperuricemia
HIV

Innovator company
US PHARM HOLDINGS
Roche
NOVARTIS
JANSSEN PHARMS
JANSSEN PHARMS
FRESENIUS KABI
SANTARUS INC
SANTARUS INC
AstraZeneca
AstraZeneca
AstraZeneca
NA
UPSHER SMITH LABS
SANTARUS INC
SEBELA IRELAND

Generic Version of
HIPREX
Kytril
STARLIX
ORTHO TRI-CYCLEN
ORTHO CYCLEN-28
NAROPIN
Zegerid
Zegerid
Crestor
Crestor
Crestor
NA
KLOR-CON M10
Zegerid Powder
Zyloprim

Market Size
NA
NA
NA
NA
NA
NA
US$ 306.7 million
US$ 306.7 million
US$ 6.7 billion
US$ 6.7 billion
US$ 6.7 billion
US$ 4.4 million
US$ 283.2 million
NA
NA

Innovator company
Takeda
ViiV Healthcare

Generic Version of
Uloric
Lexiva

Market Size
US$ 430 million
US$ 71.6 million

[5

CNS: Central Nervous System; CVS: Cardiovascular, GI: Gastro Intestinal, NA: Not available;
Source: USFDA, ICICIdirect.com Research

M&As, demergers, tie-ups and JVs

Sun Pharma divested seven brands to RPG Life


Sun Pharma has signed an agreement with RPG Life Sciences to divest
seven prescription brands in India for a consideration of | 41 crore. The
seven divested brands include brands used for treatment of respiratorytrack infections, urological disorders, cardiovascular diseases and brands in
health supplements segment.
Lupin acquires 21 branded products from Japan's Shionogi
Lupin forayed into Japanese branded pharma market by acquiring 21
branded products from Japans Shionogi & Co Ltd, through its subsidiary
Kyowa Pharma for a consideration of 15.4 billion (~$150 million). As per
the agreement, Kyowa will book the sales of these products from December
2016. These 21 products had sales of 9,400 million (~US$90 million)
collectively on NHI price basis.
Cadila acquires skin treatment lotion Melgain from Issar Pharma
Cadila has acquired skin care brand Melgain (topical) from Hyderabadbased Issar Pharma. Melgain is used for depigmentary disorder called
Vitiligo. The financial details of the deal were undisclosed.
Price cuts, new launches, recalls, approvals

Sun Pharma recalling 16,085 bottles anti-depressant tablets from US


Sun Pharma is recalling 16,085 bottles anti-depressant tablets from the US
market due to failed dissolution specifications. The BuPROPion
hydrochloride extended release tablets were manufactured at the
company's Halol facility. As per the report, all recalls fall under a class III
recall category.
Cadila recalling over two lakh bottles of Venlafaxine HCL ER capsules
Cadila is recalling 2,23,776 bottles of 150 mg Venlafaxine HCL ER capsules
for failed dissolution specifications. This capsule is used for treatment of

ICICI Securities Ltd. | Retail Equity Research

Page 2

major depressive and anxiety disorders. These recalls are considered under
class II recall category.
NPPA fixes/revises ceiling prices of 24 essential drugs
National Pharmaceutical Pricing Authority (NPPA) has fixed/revised ceiling
prices of 24 essential drugs used for treatment of cancer, human
immunodeficiency virus (HIV), bacterial infections, anxiety and cardiac
conditions. Prices of these drugs have been reduced on an average of 25%.
Lupin receives CDSCO approval in India for gastrointestinal tablet
Lupin has received Central Drugs Standard Control Organisation (CDSCO)
approval for gastrointestinal (GI) tablet Acotiamide (100 mg) in India.
Acotiamide is a first-in-class novel drug to be introduced in India for patients
suffering from dyspepsia or indigestion. The current market for plain GI
prokinetics and combinations is estimated at ~| 2640 crore growing at
14%.
Mylan-Biocon announce regulatory submission for Trastuzumab
Biocon and Mylan have received European Medicines Agency (EMA)
acceptance to review Mylans Marketing Authorization Application (MAA)
for a proposed biosimilar Trastuzumab used to treat certain HER2-positive
breast and gastric cancers. This is the second biosimilar submission
developed by the partnership that has been accepted for review in Europe.
In July, Mylans MAA for the proposed biosimilar Pegfilgrastim was
accepted for review by EMA.
Biocon-Mylan biosimilar Pegfilgrastim accepted for review by EMA
Biocon has announced European Medicines Agency (EMA) has accepted for
review Mylan's marketing authorisation application for their biosimilar
product Pegfilgrastim, which is used to reduce the duration of neutropenia
for cancer patients.
Lawsuits, court rulings, settlements, regulatory issues

Sun enters into agreement with Almirall for Tildrakizumab in Europe


Sun Pharma and Almirall (Spanish company) have announced a licensing
agreement on the development and commercialisation of Tildrakizumab for
psoriasis in Europe. Under terms of the license agreement, Almirall will pay
Sun Pharma an upfront payment of US$50 million. Phase-3 studies of
Tildrakizumab have recently been completed. Sun Pharma will be eligible to
receive development and regulatory milestone payments and, additionally,
sales milestone payments and royalties on net sales.
Maharashtra Court directs Sun Pharma release pending wages
The Maharashtra Industrial Court in Mumbai has directed Sun Pharma to
immediately release the pending wages of 86 employees, who joined Sun
Pharma after its merger with Ranbaxy Lab.
Cadilas Gujarat facility receives EIR from USFDA
Cadilas topical manufacturing facility at Changodar, Ahmedabad, has
received Establishment Inspection Report (EIR) from the USFDA following
the inspection carried out in March 2016.
Natcos Kothur facility received EIR from the USFDA
Natco Pharma manufacturing facility at Kothur Village, Mahbubnagar
District, has received Establishment Inspection Report (EIR) from the USFDA
following the inspection carried out between February 29 & March 7, 2016.
Natcos Chennai facility receives EIR from USFDA
Natco Pharma has received establishment inspection report (EIR) from the
USFDA for the inspection conducted in February 8-12, 2016, at the Chemical
Division, Chennai.

ICICI Securities Ltd. | Retail Equity Research

Page 3

Competition Commission slaps penalty of ~| 73 crore on Lupin


As per media, the Competition Commission of India has slapped a penalty
of ~| 73 crore on Lupin and its two officials for indulging in unfair business
practices with regard to supply of medicines in Karnataka.
Others

Glenmark sells US$ bonds, raises US$200 million through US$ bonds
Glenmark Pharma has raised US$200 million through five years non call
three year senior unsecured notes offering at 4.5% per annum, due 2021
(2016 notes). The bonds were oversubscribed eight times while notes have
been rated BB and BB by S&P and Fitch, respectively. The proceeds from
the issuance and sale of notes will be used for investment in Glenmark's
subsidiaries.
Q1FY17 Results

Ajanta Pharma registers strongest ever gross margins


Revenues grew 20.4% YoY to | 471 crore on the back of 18.6% growth in
exports to | 287 crore. Domestic sales grew 9.5% to | 162 crore. EBITDA
margins increased 406 bps YoY to 35.4% on account of gross margin
expansion. Gross margins increased 532 bps YoY to 78.9%. EBITDA
increased 36.0% YoY to | 166.6 crore. Net profit increased 33.5% YoY to
| 120 crore, on the back of a robust operational performance.
Alembic Pharma - gAbilify drives Q1; investment mode to continue
Revenues grew 24.8% YoY to | 728 crore on account of continuous windfall
gains from gAbilify sales in the US. Export sales grew 75.2% to | 308.5
crore. Domestic branded formulation sales grew 5.7% to | 277.7 crore on
the back of 16% growth in the speciality portfolio. EBITDA margins
improved 407 bps YoY to 21.6% owing to robust margin from gAbilify
sales. EBITDA grew 53.8% YoY to | 157.0 crore. Net profit grew 48.4% YoY
to | 103.6 crore owing to a robust operational performance.
Aurobindo - In line results; US driven growth continues
Revenues grew 12.9% YoY to | 3725.9 crore on account of 20.5% growth in
the US to | 1703.9 crore. The Europe business grew 12.1% to | 831.2 crore.
EBITDA margins increased 188 bps YoY to 23.9% mainly on account of an
improvement in gross margins. Net profit grew 23.8% YoY to | 585.0 crore
mainly due to a better operational performance.
Biocon witnesses robust growth in branded business, biosimilars
Revenues grew 20.7% YoY to | 982 crore mainly due to 41.1% YoY growth
in branded formulations to | 158 crore, 70.8% growth in biologics to | 123
crore and 17.4% growth in Syngene to | 263 crore. Growth in branded
formulations was due to conversion from IGAAP to Ind AS. EBITDA margins
improved 119 bps YoY to 26.8% mainly due to lower other expenditure. Net
profit increased 34.2% to | 161 crore on account of a better operational
performance.
Cadila Healthcare - US de-growth drags numbers
Revenues declined 4.0% YoY to | 2287.1 crore due to 14% YoY de-growth
in the US to | 848.3 crore. Domestic formulations grew 6.2% YoY to | 786.2
crore. EBITDA margins declined 134 bps to 22.9% on account of higher
employee cost. EBITDA declined 9.3% YoY to | 523.9 crore PAT declined
22.6% YoY to | 356.2 crore mainly due to a lower-than-expected
operational performance and higher taxation.
Cipla - High gNexium base mars Q1
Revenues de-grew 6.4% YoY to | 3593.7 crore, on account of the high base
of gNexium sales. US sales de-grew 21.2% YoY to | 657 crore. Domestic
formulation grew ~5% YoY to | 1449 crore. EBITDA margins declined 1047
bps to 17% mainly on account of high gNexium base. EBITDA de-grew

ICICI Securities Ltd. | Retail Equity Research

Page 4

42.1% YoY to | 611.0 crore. Net profit de-grew 43.7% YoY to | 365.2 crore,
mainly on account of the base effect.
Divis Lab - witnesses strong growth with sharp improvement in margins
Revenues grew 24.6% YoY to | 1008.1 crore due to ~26% growth in
generic business to | 501 crore and ~22% growth in custom synthesis (CS)
business to | 443 crore. EBITDA margins increased 273 bps YoY to 40%
mainly due to a better product mix. EBITDA increased ~34% YoY to | 403.8
crore. Net profit witnessed YoY increase of ~23% to | 301.8 crore owing to
a strong operational performance.
Dr Reddys Lab- Performance stumbles on US slumps
Revenues declined 13.9% YoY to | 3235 crore mainly due to 16.2% decline
in US sales. The US sales decline was primarily on account of increased
competition in gValcyte and gVidaza. RoW sales declined 52.7% YoY to
| 128 crore primarily on account of zero sales in Venezuela. EBITDA margins
declined to 12.0% against 26.6% in Q1FY16 on account of higher
operational expenditure across the board and lower realisation. EBITDA
declined 61.2% to | 387 crore. Net profit fell 80.8% to | 119 crore mainly
due to lower operational performance and higher taxation.
Glenmark Pharma - US driven growth continues
Revenues grew 17.9% YoY to | 1943.1 crore mainly due to 24.4% YoY
growth in the US to | 698.2 crore. India business grew 10.4% YoY to | 513.8
crore. EBITDA margins declined 230 bps YoY to 19.5% due to lower gross
margins, higher employee cost. EBITDA rose mere 5.5% YoY to | 379.1
crore. Adjusted net profit increased 24.0% YoY to | 226.8 crore mainly due
to | 50 crore of forex gain in the quarter.
Indoco Remedies US drives revenue; though margin pressure persists
Revenues grew 15.2% YoY to | 257.4 crore mainly due to 18.4% YoY
growth in export formulations to | 92.3 crore. Domestic formulations grew
12.7% to | 142.1 crore. EBITDA margins declined 238 bps YoY to 16.2%
mainly on account of an increase in employee expenditure and R&D spend.
EBITDA grew a mere 0.5% to | 41.8 crore. Net profit grew 2.7% YoY to
| 19.8 crore. Growth in net profit was mainly on account of lower taxation.
Ipca Lab - Export formulations register solid growth
Revenues grew 11.1% YoY to | 842 crore mainly due to ~22% YoY growth
in export formulations to | 274.8 crore. Domestic formulations grew 8.5% to
| 345 crore. EBITDA margins increased 442 bps YoY to 15.3%, on account
of an improvement in gross margins and lower other expenditure. EBITDA
grew 56.4% to | 129 crore. Adjusted net profit grew 95% YoY to | 53 crore
due to incremental EBITDA and lower depreciation.
Jubilant Life - Demonstrates strongest ever margin performance
Revenues de-grew 1.8% YoY to | 1420 crore. Revenues in the
pharmaceutical business (including drug discovery segment) grew 10.1%
YoY to | 802 crore while life science ingredients (LSI) revenues de-grew
13.9% YoY to | 618. De-growth in the LSI segment was mainly due to lower
crude prices and optical focus on profitable products. EBITDA margins
increased ~345 bps YoY to 25.9% on the back of 180 bps increase in both
pharmaceutical and LSI margins to 34% and 19%, respectively. Adjusted
net profit grew 22.8% to | 162 crore due to better operational performance
and lower interest cost.
Lupin - Demonstrates strong gross margins and robust US growth
Revenues grew 40.7% YoY to | 4439.4 crore mainly due to 83.8% growth in
US sales to | 2188.6 crore. Strong US sales were due to Gavis
consolidation, robust sales in Metformin (anti-diabetic). Domestic sales
grew 5.2% YoY to | 931.3 crore. EBITDA margins improved 333 bps YoY to
29.5% mainly on account of a strong gross margin performance. EBITDA
grew 58.6% YoY to | 1308.0 crore. Net profit grew 55.1% YoY to | 882.0
crore owing to a strong operational performance.

ICICI Securities Ltd. | Retail Equity Research

Page 5

Natco Pharma - Hepatitis C group continues to drive numbers


Revenues grew 45.4% YoY to | 325.2 crore due to strong traction from
Hepatitis-C segment (300% growth to ~| 135 crore). EBITDA margins
declined 186 bps YoY to 23.8% mainly on account of higher other
expenditure. EBITDA grew 34.8% to | 77.3 crore. Adjusted net profit
increased 69.8% YoY to | 47.7 crore on account of lower finance costs,
depreciation and high other income.
Sun Pharma - Base business expansion amid gGleevec exclusivity
Revenues grew ~22% YoY to | 8243 crore on account of 32% increase in
US sales to | 3910 crore. US sales growth can be attributed to gGleevec
(oncology) exclusivity. Domestic sales grew ~8% YoY to | 1854 crore.
EBITDA margins increased 929 bps YoY to 35.4% mainly due to lower base
and exclusivity of gGleevec. Taro Pharmas EBITDA margins declined 165
bps YoY to 62.6%. EBITDA grew 65.2% YoY to | 2921 crore. Net profit grew
64% YoY | 2034 crore mainly due to a strong operational performance.
Syngene International - Growth tempo maintained albeit at lower gear
Revenues grew 17.5% YoY to | 274.5 crore mainly due to growth in the
discovery services vertical and development and manufacturing group.
Adjusting for the impact of sales return, growth would have been 22.5%.
EBITDA margins declined 120 bps to 32.3% YoY owing to higher employee
cost and other expenditure, which was partially offset by improvement in
gross margins. EBITDA grew 13.3% to | 88.8 crore. Net profit increased
28.1% to | 59.7 crore mainly due to higher other income. Other income
increased to | 15.9 crore from | 2.1 crore/| 2.7 crore in Q1FY16, Q4FY16.
Torrent Pharma - Base effect impacts Q1
Revenues declined 20.6% YoY to | 1545 crore mainly due to 51.1% YoY degrowth in the US to | 434 crore. The decline in US sales was due to the high
base of gAbilify exclusivity in Q1FY16. EBITDA margins declined 1840 bps
to 28.3%. EBITDA fell 51.9% YoY to | 437 crore Net profit fell 35% YoY to
| 292.0 crore.
Unichem Lab - Impressive formulation growth
Revenues grew 9.5% YoY to | 342.0 crore on account of 12.5% YoY growth
in domestic sales to | 221.5 crore and 16.7% growth in export sales to
| 97.1 crore. De-growth in APIs growth (down 25% YoY), however, pulled
down the numbers a bit. EBITDA margins declined 80 bps YoY to 12.9%
mainly due to higher employee cost and provision for diminution in the
Brazilian subsidiary. Net profit witnessed a YoY decline of 11.1% to | 25.8
crore mainly due to higher taxation.

ICICI Securities Ltd. | Retail Equity Research

Page 6

Q1FY17 Results Review

Geographical/segmental performance in Q1FY17


India
Q1FY16 Var. (%) Q4FY16 Var. (%)
132.0
18.9
116.7
34.6
262.7
5.7
259.6
7.0
112.0
41.1
105.0
50.5
740.4
6.2
767.4
2.4
465.4
10.4
539.8
-4.8
126.2
12.7
130.8
8.6
318.1
8.5
249.5
38.3
885.1
5.2
761.5
22.3
1381.0
4.9 1258.0
15.2
475.6
9.8
526.7
-0.8
1723.7
7.6 1806.5
2.6
491.0
2.6
447.0
12.8
197.0
12.5
171.3
29.4
7310.2
7.6 7139.7
10.1

(| crore)
Ajanta
Alembic
Biocon
Cadila
Glenmark
Indoco
Ipca
Lupin
Cipla
Dr Reddy's
Sun Pharma
Torrent
Unichem
Total

Q1FY17
157.0
277.7
158.0
786.2
513.8
142.1
345.2
931.3
1449.0
522.3
1854.3
504.0
221.5
7862.5

(| crore)
Aurobindo
Cadila
Glenmark
Lupin
Dr Reddy's
Sun Pharma
Torrent

US
Q1FY17 Q1FY16 Var. (%) Q4FY16 Var. (%)
1703.9 1413.7
20.5 1666.3
2.3
848.3
985.0
-13.9
961.0
-11.7
698.2
561.1
24.4
652.0
7.1
2188.6 1190.6
83.8 2187.1
0.1
1552.3 1851.5
-16.2 1895.0
-18.1
4070.6 3090.6
31.7 3910.3
4.1
434.0
888.0
-51.1
514.0
-15.6

Total

11495.9

(| crore)
Aurobindo
Cadila
Glenmark
Dr Reddy's
Lupin
Torrent
Total

Europe
Q1FY17 Q1FY16 Var. (%) Q4FY16 Var. (%)
831.2
741.8
12.1
840.7
-1.1
79.2
83.6
-5.3
70.6
12.2
150.0
109.9
36.5
270.5
-44.6
161.5
191.2
-15.5
175.9
-8.2
128.0
100.3
27.6
125.4
2.1
187.0
157.0
19.1
163.0
14.7
1536.8 1383.8
11.1 1646.1
-6.6

(| crore)
Cadila
Glenmark
Torrent
Total

Latin America
Q1FY17 Q1FY16 Var. (%) Q4FY16 Var. (%)
52.7
55.3
-4.7
55.3
-4.7
155.6
218.5
-28.8
241.6
-35.6
167.0
138.0
21.0
119.0
40.3
375.3
411.8
-8.8
415.9
-9.8

(| crore)
Aurobindo
Alembic
Cadila
Glenmark
Indoco
Ipca Labs
Lupin
Cipla
Dr Reddy's
Sun Pharma
Unichem
Total

API
Q1FY17 Q1FY16 Var. (%) Q4FY16 Var. (%)
734.5
722.9
1.6
774.6
-5.2
128.2
116.8
9.8
166.9
-23.2
97.6
98.0
-0.4
92.2
5.9
191.2
134.9
41.7
222.9
-14.2
17.6
12.5
40.8
12.0
46.7
201.5
208.1
-3.2
114.2
76.4
286.9
325.7
-11.9
283.8
1.1
131.0
209.0
-37.3
204.0
-35.8
469.2
561.4
-16.4
576.6
-18.6
488.2
292.9
66.7
392.5
24.4
20.8
27.9
-25.4
20.1
3.4
2766.7 2710.0
2.1 2859.8
-3.3

9980.5

15.2 11785.7

-2.5

ICICI Securities Ltd. | Retail Equity Research

The Q1 earnings season concluded on expected line with US focused


generic players more or less managing to overcome pricing pressure with
exclusivities and higher volumes. I-direct pharma universe registered YoY
revenue growth of 9.4% to | 35662 crore, driven by 15.2% YoY growth to
| 11496 in the US and 7.6% YoY growth to | 7863 crore in domestic
formulations (select pack). EBITDA for the universe grew 7.2% YoY to
| 8579 crore. Lower growth vis--vis revenues can be attributed to higher
R&D spend and remedial costs. Adjusted net profit grew 8.5% YoY to | 5919
crore. Adoption of new accounting standard (Ind-AS) also had an impact on
the quarterly performance.
Exhibit 2: Actual s vs. estimates
Company
Ajanta Pharma
Alembic Pharma
Aurobindo Pharma
Biocon
Cadila Healthcare
Divi's Laboratories
Cipla
Dr Reddy's Labs
Glenmark Pharma
Indoco Remedies
Ipca laboratories
Jubilant Life Sciences
Lupin
Natco Pharma
Sun Pharma
Syngene
Torrent Pharma
Unichem Labs
Total

Revenues
Q1FY17E
454.7
647.5
3804.0
951.4
2607.7
932.6
3661.7
3911.6
2021.9
269.4
813.2
1547.0
4652.8
321.1
7880.5
302.6
1587.0
341.8
36708.5

Q1FY17
471.0
728.0
3725.9
982.4
2287.1
1008.1
3593.7
3234.5
1943.1
257.4
842.2
1419.5
4439.4
325.2
8243.0
274.5
1545.0
342.0
35662.0

EBITDA
Q1FY17E
Q1FY17
145.5
166.6
158.6
157.0
894.9
889.0
233.1
263.1
622.3
523.9
345.1
403.8
539.3
611.0
998.3
386.9
427.0
379.1
48.3
41.8
106.1
128.5
337.6
368.2
1535.4
1308.0
72.2
77.3
2744.1
2921.0
97.9
88.8
476.1
437.0
37.3
44.2
9819.1
9195.0

Net profit
Q1FY17E
Q1FY17
100.9
119.6
108.7
103.6
565.9
585.0
139.5
166.6
429.8
356.4
261.6
301.8
302.3
365.2
572.8
118.9
239.8
226.8
24.5
19.8
52.1
52.6
132.1
161.5
930.4
882.0
46.1
47.7
1854.2
2033.7
56.9
59.7
331.6
292.0
26.1
25.8
6175.3
5918.5

Source: Company, ICICIdirect.com Research

Exhibit 3: Quarterly performance of I-Direct healthcare coverage


Company
Ajanta Pharma
Alembic Pharma
Aurobindo Pharma
Biocon
Cadila Healthcare
Divi's Laboratories
Cipla
Dr Reddy's Labs
Glenmark Pharma
Indoco Remedies
Ipca laboratories
Jubilant Life Sciences
Lupin
Natco Pharma
Sun Pharma
Syngene
Torrent Pharma
Unichem Labs
Total

Revenues
Q1FY17 Q1FY16 Var.(%)
471.0
391.4
20.4
728.0
583.3
24.8
3725.9 3298.9
12.9
982.4
813.9
20.7
2287.1 2382.6
-4.0
1008.1
808.8
24.6
3593.7 3838.5
-6.4
3234.5 3757.8
-13.9
1943.1 1647.7
17.9
257.4
223.4
15.2
842.2
758.0
11.1
1419.5 1445.7
-1.8
4439.4 3156.1
40.7
325.2
223.7
45.4
8243.0 6761.5
21.9
274.5
233.7
17.5
1545.0 1947.0
-20.6
342.0
312.4
9.5
35662.0 32584.3
9.4

Q1FY17
166.6
157.0
889.0
263.1
523.9
403.8
611.0
386.9
379.1
41.8
128.5
368.2
1308.0
77.3
2921.0
88.8
437.0
44.2
9195.0

EBITDA
Q1FY16 Var.(%)
122.5
36.0
102.0
53.8
725.1
22.6
208.3
26.3
577.8
-9.3
301.8
33.8
1054.5
-42.1
998.0
-61.2
359.3
5.5
41.6
0.5
82.2
56.4
325.1
13.3
824.8
58.6
57.3
34.8
1767.8
65.2
78.4
13.3
909.0
-51.9
42.9
3.1
8578.6
7.2

Profit
Q1FY17 Q1FY16 Var.(%)
119.6
89.6
33.5
103.6
69.8
48.4
585.0 472.5
23.8
166.6 123.9
34.5
356.4 462.0
-22.9
301.8 245.2
23.1
365.2 649.2
-43.7
118.9 620.8
-80.8
226.8 182.9
24.0
19.8
19.3
2.7
52.6
27.0 LP
161.5 131.6
22.8
882.0 568.6
55.1
47.7
28.1
69.8
2033.7 1241.1
63.9
59.7
46.6
28.1
292.0 449.0
-35.0
25.8
29.0
-11.1
5918.5 5455.9
8.5

Source: Company, ICICIdirect.com Research, LP: Loss to Profit

On the revenue front, Natco (46% growth) and Lupin (41% growth) were the
standout performers. Natcos revenues were largely driven by robust
growth in Hepatitis C segment while Lupin benefited from exclusivity sales
in the US. Alembic, Divis, Sun, Biocon and Ajanta also reported more than

Page 7

20% growth. On the other hand, Dr Reddys, Torrent and Cipla reported
negative growth mainly due to high base and price erosion in the US.
US growth was driven by limited competition opportunities/exclusivities at
Lupin from gGlumetza and gFortamet (anti-diabetic) and Sun from gGleevec
(anti-cancer). Note that US growth has not captured gNexium (GI) impact for
Cipla and gAbilify for Alembic for non-disclosure of specific traction.
Aurobindo and Glenmark also registered strong YoY growth whereas
Torrent, Cadila and DRL were laggards on account of base effect, slowdown
in product approvals and regulatory issues.
Domestic growth was largely impacted by ongoing NLEM/FDC related
issues. Biocon, Ajanta, Unichem and Indoco witnessed decent growth.
Exhibit 4: I-Direct Healthcare Universe Revenues trend
38000
37000
36000
35000
34000
33000
32000
31000
30000

Exhibit 5: I-Direct Healthcare Universe EBITDA trend


9400

36695
34843

35662
34584

9195

9200

8978

9000
8800

32584

8600

8757

Q3FY16

Q4FY16

8400
8200
Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY17

Q1FY16

Q2FY16

Revenue

Source: Company, ICICIdirect.com, Research

Exhibit 6: I-Direct Healthcare Universe profits trend

Exhibit 7: Trends in EBITDA & PAT margin of I-Direct Healthcare Universe


5919

6000

30.0
25.0

5800

5588
5456

20.0

5439

15.0

5316

5400

5.0

5000

0.0
Q2FY16

Q3FY16

Q4FY16

PAT

Source: Company, ICICIdirect.com, Research

ICICI Securities Ltd. | Retail Equity Research

26.3

25.8

25.4

16.7

15.6

16.2

25.8

23.9

16.6

14.5

10.0

5200
Q1FY16

Q1FY17

EBITDA

Source: Company, ICICIdirect.com, Research

5600

8794
8579

Q1FY17

Q1FY16

Q2FY16

Q3FY16

EBITDA Margins (%)

Q4FY16

Q1FY17

PAT Margins (%)

Source: Company, ICICIdirect.com, Research

Page 8

Exhibit 8: Deviation from estimates / Change in outlook post Q1FY17 numbers


[5

Company
Ajanta Pharma

Initial Rating
BUY

Current Rating
HOLD

Deviation from
estimates
Remarks
Above
Better-than-expected on the profitability front

Alembic Pharma

BUY

HOLD

Above

Aurobindo Pharma

BUY

BUY

Inline

Biocon

HOLD

BUY

Above

Higher-than-expected branded Formulation and biosimilar sales. EBITDA margins were also
better-than-expected mainly due to improvement in gross margins and lower other expenditure

Cadila Healthcare

BUY

BUY

Below

Cipla

BUY

HOLD

Above

mainly due to lower than expected US sales. EBITDA margins were lower-than-expected
mainly due to higher employee cost
Revenues were in-line, while Margins were better-than-expected mainly due to lower-thanexpected other expenditure
Higher than expected sales in generic business

Divi's labs

BUY

BUY

Above

Dr Reddy's Labs

BUY

HOLD

Below

Glenmark Pharma

BUY

BUY

Below

Indoco Remedies

BUY

BUY

Below

Ipca labs

BUY

BUY

Inline

Jubilant Life Sciences

BUY

BUY

Mixed bag

Lupin

BUY

BUY

Below

Natco Pharma

BUY

BUY

Inline

Sun Pharma

HOLD

BUY

Above

Torrent Pharma

BUY

BUY

Below

Unichem Labs

BUY

BUY

Inline

Higher-Than-expected gAbilify sales in the US

Q1 was largely impacted by decline in US sales primarily on account of increased competition


in gValcyte and gVidaza
Numbers were below I-direct estimates on account of lower-than-estimated offtake in Europe
and LatAm as well as EBITDA margins.
Miss in margins was mainly due to lower gross margins and higher employee expenses

Revenues were lower than I-direct estimates while profitability was higher than I-direct
estimates
Miss vis--vis I-Direct expectation was mainly due to lower US sales and one-off inventory
adjustment in the US
Beat vis--vis our expectation was due to higher than expected US base business sales and
lower-than-expected employee cost and other expenditure
Numbers were lower-than-expected on the profitability front while revenues were in line

Source: Bloomberg, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Page 9

Exhibit 9: Patent litigations (12 months)


Innovator
Month
Aug-15
Allergan
Aug-15
Galderma Labs
Sep-15
Jazz Pharma
Sep-15
Gilead Sciences Inc.
Sep-15
Horizon Pharma
Sep-15
Bayer Pharma
Oct-15
Merck
Oct-15
Salix Pharmaceuticals, Inc.
Oct-15
Takeda Pharma
Oct-15
Janssen Pharma
Oct-15
Novartis Pharma
Oct-15
Otsuka Pharma
Oct-15
AstraZeneca
Nov-15
AstraZeneca
Nov-15
Novartis Pharma
Nov-15
Allergan
Nov-15
Shire Pharma
Nov-15
Dexcel Pharma
Nov-15
Dexcel Pharma
Nov-15
Cephalon Inc.
Nov-15
Cosmo Techs
Nov-15
Pfizer
Nov-15
Vanda Pharma
Nov-15
Forest Labs
Nov-15
Jazz Pharma
Nov-15
Otsuka Pharma
Nov-15
Symed Labs
Dec-15
UCB Inc.
Dec-15
Unimed Pharma
Dec-15
Helsinn Healthcare
Dec-15
Sanofi-Aventis
Dec-15
Otsuka Pharma
Dec-15
Merz Pharma
Jan-16
Dow Pharma
Jan-16
Cubist Pharma
Feb-16
Bayer Pharma
Feb-16
Bristol Myers Squibb
Feb-16
Janssen Products LP
Mar-16
Shire Canada
Mar-16
Daiichi Sankyo
Apr-16
Daiichi Sankyo
May-16
Daiichi Sankyo
Jun-16
Apicore
Jun-16
UCB, Inc.
Jun-16
Gilead
Jun-16
Janssen Biotech
Jun-16
Sanofi-Aventis
Jul-16
Sanofi-Aventis
Jul-16
Roche
Jul-16
AstraZeneca AB
Jul-16
Hyperion Therapeutics
Jul-16
Gilead Sciences, Inc.
Source: Bloomberg, ICICIdirect.com Research

ANDA Filer

Brand Name

Lupin
Taro Pharma
Lupin
Lupin
Lupin
Alembic Pharma
Lupin
Taro Pharma
Aurobindo
Aurobindo
Natco Pharma
Zydus Pharma
Alembic Pharma
InvaGen Pharma
Dr. Reddy's Labs
Aurobindo Pharma
Lupin
Sun Pharma
Dr. Reddy's Labs
Aurobindo Pharma
Lupin
Dr. Reddy's Labs
Lupin
InvaGen Pharma
Sun Pharma
Alkem Labs
Glenmark Pharma
InvaGen Pharma
Dr. Reddy's Labs
Dr. Reddy's Labs
Glenmark Pharma
Ajanta Pharma
Taro Pharma
Taro Pharma
Dr. Reddy's Labs
InvaGen Pharma
Cipla
Lupin
Lupin
Torrent Pharma
Alembic Pharma
Aurobindo Pharma
Aurobindo Pharma
Aurobindo Pharma
Aurobindo Pharma
Glenmark Pharma
Cadila Healthcare
Cadila Healthcare
Cadila
Aurobindo
Lupin
Aurobindo

Namenda
Epiduo
Xyrem
Tamiflu
Pennsaid
Staxyn
Beyaz
Moviprep
Prevacid
Xarelto
Gleevec
Abilify
Brilinta
Brilinta
Exelon Patch
Acular LS
Lialda
Omeprazole
Omeprazole
Nuvigili
Uceris
Toviaz
Fanapt
Viibryd
Xyrem
Abilify
Zyvox
Zyrtec-D
Androgel
Aloxi
Multaq
Abilify
Naftin
Onexton
Cubicin
Xarelto
Reyataz
Prezista
Daliresp
Benicar
Benicar
Benicar
LYMPHAZURIN
VIMPAT
EMTRIVA
ZYTIGA
MOZOBIL
MOZOBIL
Aloxi
Nexium 24HR
RAVICTI
Truvada

API
Memantine Hydrochoride
Adapalene & Benzoyl peroxide
Sodium Oxybate
Oseltamivir
Diclofenac
Vardenafil Hydrochloride
Drospirenone
Polyethylene glycol electrolyte soln
lansoprazole
Rivaroxaban
Matinib Mesylate
Aripiprazole
Ticagrelor
Ticagrelor
Rivastigmine
Ketorolactromethamine
Mesalamine
Omeprazole
Omeprazole
Modafinil
Budesonide
Fesoterodine
Iloperidone
Vilazodone
Gamma-hydroxybutyric acid
Aripiprazole
Linezolid
Cetirizine
Testosterone
Palanosetron
Dronedarone
Aripiprazole
Naftifine Hydrochloride
Cindamycin Phosphate and Benzoyl Peroxide
Daptomycin
Rivaroxaban
Atazanavir
Darunavir
Roflumilast
Olmesartan
Olmesartan
Olmesartan
isosulfan blue
lacosamide
emtricitabine
abiraterone
plerixafor
plerixafor
palonosetron hydrochloride
esomeprazole magnesium
Glycerol Phenylbutyrate
emtricitabine / tenofovir disoproxil fumarate

Used for
Alzheimer's Disease
Acne
Narcolepsy
Influenza
Osteoarthritis
Sex Stimulant
Birth control
Gastro Intestinal
Stomach ulcers
Blood Thinner
Anti-cancer
Schizophrenia
CVS
CVS
Dementia
Ocular Pain
Ulcerative Colitis
GI
GI
CNS
GI
Urotherapy
Schizophrenia
Anti-depressant
CNS
Schizophrenia
Anti-Infective
Respiratory
Low Testosterone
Nausea
Atrial Fibrillation
Schizophrenia
Fungal Infection
Acne
Antibiotic
Blood Thinner
HIV
HIV
Respiratory
Anti-depressant
Anti-depressant
Anti-depressant
lymphatic imaging agent
partial-onset seizures
HIV
Oncology
non-Hodgkin's lymphoma
non-Hodgkin's lymphoma
prevention of acute nausea
treatment of acid reflux
urea cycle disorders
HIV

[5

ICICI Securities Ltd. | Retail Equity Research

Page 10

The Indian pharmaceutical market (IPM) grew 9.5% YoY to | 9125 crore
for July. Growth was driven by price hikes- 3.3%, new product
launches- 3.1% and volumes increase by 3.2%
Fixed dosage combination (FDCs) related market de-grew 3.9% to | 234
crore
Drugs under NLEM list increased 1.6% to | 1061 crore while non-NLEM
drugs posted growth of 11.2% to | 7677 crore. Volume growth in NLEM
and non-NLEM was 11.0% and 4.2%, respectively
Among companies under I-direct coverage, Natco, Indoco, Ipca,
Alembic and Unichem have registered robust growth of 33.2%, 27.8%,
18.1%, 18.0% and 17.3% respectively. Cipla, Glenmark, Lupin and Sun
registered growth of 8.9%, 8.5%, 7.8%, and 7.8% respectively.
Therapy wise, eight therapies have outpaced IPM growth. Notable
among them with growth rates- Respiratory27.2%, anti-infective
14.9%, Vaccine 12.6%, anti malarial 11.1% and anti-diabetic 10.1%
In all, 431 new brands were launched in July 2016
On a MAT basis, IPM growth was at 10.3% YoY to | 100896 crore.
Domestic companies have grown 10.9% while MNC companies have
grown 5.0% in July 2016

Industry acute to chronic therapy ratio percentage

Jul-16

Jun-16

Mar-16
20

May-16

Feb-16
13.7

Apr-16

Jan-16
14.2

Nov-15
14.5

Dec-15

Oct-15
14.8

Sep-15
13.5

Brand
Company Therapy
July' 16 July' 15 Gr. (%)
Corex
Pfizer
Corex
318.6
253.0
25.9
Spasmo Prox Wockhardt Spasmo Proxy 304.7
227.6
33.9
Augmentin Sanofi
Lantus
297.0
239.9
23.8
Augmentin
297.0
329.8 -10.0
Lantus
GSK
Galvus Met Novartis
Galvus Met
293.5
207.2
41.7
Clavam
Alkem
Clavam
250.7
222.7
12.6
Volini
Sun
Volini
233.9
205.6
13.8
Becosules Sun Pharma Becosules
220.5
258.7 -14.8
Foracort
Alkem
Pan
203.4
178.6
13.9
Pan
Cipla
Foracort
202.4
181.4
11.6
Source: AIOCD data base

Aug-15

Top brands in Indian pharma market

14.3

Exhibit 10: Domestic formulations - growth trend


Jul-15
10

10.3

10.5

(%)

15

11.2

20

11.5

25

14.4

Therapy
July' 16 July' 15 YoY (%) June' 16 MoM (%)
Anti-Infectives
1405
1223
14.9
1163
20.8
Gastro Intestinal
1133
1045
8.4
1085
4.5
Cardiac
1084
1030
5.2
1057
2.5
Vitamins / Minerals /
820
782
4.8
807
1.6
Anti Diabetic
755
686
10.1
743
1.5
Respiratory
683
537
27.2
531
28.6
Pain / Analgesics
648
590
9.8
585
10.9
Neuro / Cns
526
516
1.9
522
0.7
Derma
522
493
5.8
514
1.6
Gynaecological
461
434
6.3
450
2.4
Vaccines
164
145
12.6
133
23.1
Ophthal / Otologicals
155
155
0.0
164
-5.9
Hormones
148
136
8.8
135
9.9
Anti-Neoplastics
145
148
-1.6
145
0.3
Blood Related
119
87
37.3
111
7.8
Others
106
101
5.2
100
6.4
Urology
101
94
8.0
101
0.6
Sex Stimulants / Reju
60
47
27.7
35
71.6
Anti Malarials
48
43
11.1
45
6.2
Stomatologicals
43
39
8.6
42
2.9
Source: AIOCD data base

IPM grows 9.5% in July

14.3

Therapy wise performance (| crore)

5
0
-5

Indian Pharma Market

Source: AIOCD data base, ICICIdirect.com Research

18

(%)

12
10
8
6

6.9
5.0

Unichem

Torrent

10.5

9.6

8.4

8.9

Sun Pharma

13.3

9.7

Pfizer

15.4

14.1

10.4

Novartis

Lupin

Ipca Labs

Indoco

GSK Pharma

Glenmark
15.9

15.8

16
14

Source: AIOCD data base ; As per AIOCD MAT July 2016

DRL

Cipla

Cadila

Biocon

SubChronic,
20348.75,
20.2%

Ajanta

Acute,
48725.34,
48.3%

Exhibit 11: Companies growth in domestic market in July, 2016


Alembic

Chronic,
31822.25,
31.5%

5.8

6.6

1.6

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base

ICICI Securities Ltd. | Retail Equity Research

Page 11

Acute : Chronic contribution (MAT July16)

Sun Pharmaceuticals

Stock Performance

Chronic,
3980.52,
45.3%

150
130
110
90
70
50

SubChronic,
1202.74,
13.7%

Acute,
3606.23,
41.0%

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Aug-16

Sun Pharma

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

31 to 50

9.5

Others

Jul-16

Jun-16

Indian Pharma Market

7.8

6.3

8.4
5.2

5.2

3.3

8.2

4.5
21 to 30

May-16

20.3
9.6

12.1

12.7

5
11 to 20

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

18.1

9.9

10

9.5

10%

11.6

7%

10.3
12.5

15
(%)

56%

13.3

9%

12.2
17.5

20

4.3

18%

6.6
12.3

25

22.6 Oct-15

Sep-15

Jul-15

Aug-15

Exhibit 12: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

Top 10

Jun-16

Sun Pharmaceutical Industries

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 13: Market share in Indian formulations market

Exhibit 14: Top 10 brands performance

9.6
9.0

Therapy

Volini

Pain

July' 16 July' 15 Var. (%) June' 16 Var. (%)


21.3

17.6

21.5

20.1

6.4

Rosuvas

Cardiac

16.1

13.7

18.2

15.8

2.4

Istamet

Anti Diabetic

16.2

13.8

17.2

15.2

6.7

7.8

Gemer

Anti Diabetic

16.3

13.8

18.3

14.7

11.0

7.2

Levipil

Neuro

14.3

12.2

17.2

13.6

4.7

6.6

Susten

Gynaecological

12.8

13.2

-3.2

13.3

-3.8

Pantocid

Gastro Intestinal

13.1

12.6

3.4

11.6

12.7

Revital H

Vitamins

13.7

10.3

32.7

12.9

5.7

Pantocid Dsr

Gastro Intestinal

10.8

10.6

2.1

9.9

9.4

Storvas

Cardiac

8.6

9.7

-12.1

8.6

-0.1

8.9

8.4
(%)

8.9 8.9 9.0 8.8 8.9 8.9 8.8


8.7 8.7

Brand

(| crore)

8.4 8.3 8.3

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Aug-15

Jul-15

6.0

Sun Pharmaceutical Industries

Source: AIOCD data base, ICICIdirect.com Research * Included Ranbaxys sales

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 15: Contribution of therapies to domestic sales (MAT July16)

Exhibit 16: Therapy wise performance

Derma
7%

Cardiac
29%

Anti-Infectives
18%

Therapy

July' 16

July' 15

YoY (%)

June' 16

QoQ (%)

Cardiac

147.3

132.1

11.5

138.9

6.0

Neuro

136.0

128.1

6.2

130.0

4.6

Gastro Intestinal

100.0

96.1

4.1

93.0

7.6

90.8

84.4

7.6

80.1

13.5

Anti-Infectives

Gastro
Intestinal
19%

Neuro
27%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

(| crore)

Derma

38.2

34.3

11.5

69.5

-45.0

Anti Diabetic

73.1

69.3

5.6

54.2

34.9

Vitamins

34.2

30.1

13.9

37.4

-8.4

Pain

57.3

54.2

5.9

32.8

75.1

Respiratory

30.3

23.5

29.0

30.5

-0.4

Gynaecological

30.0

31.7

-5.1

23.6

27.4

Source: AIOCD data base, ICICIdirect.com Research

Page 12

Cipla

Acute : Chronic contribution (MAT July16)

August 29, 2016

Stock Performance
Chronic,
1985.51,
39.7%

140
120
100
80
60

SubChronic,
622.17,
12.5%

Acute,
2388.79,
47.8%

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Jun-16

Cipla

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

25

Others

Jul-16

Jun-16

8.9

6.3
8.7

8.4
6.0

4.3

6.6

Indian Pharma Market

9.5

12.1
11.5

9.6
9.9

12.7
16.6

1.9

31 to 50

3.5

21 to 30

4.5

5
11 to 20

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

21.0

13.3

10.3

10

11.0

(%)

12%

15

8%

11.4

12%

12.2

20

44%

9.5
15.8

24%

22.6Oct-15

Sep-15

Jul-15

Aug-15

Exhibit 17: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

Top 10

Aug-16

Cipla

Source: AIOCD data base


Source: AIOCD data base, ICICIdirect.com Research

Exhibit 18: Market share in Indian formulations market

Exhibit 19: Top 10 brands performance

(| crore)

5.4

Brand

Therapy

5.2

Foracort

Respiratory

16.3

14.6

11.5

16.4

-0.5

Budecort

Respiratory

12.3

9.9

24.3

10.7

14.8

Asthalin

Respiratory

10.3

9.9

3.6

9.6

7.0

Seroflo

Respiratory

10.9

10.5

4.0

10.4

4.6

Duolin

Respiratory

10.8

8.7

23.4

10.2

5.7

Aerocort

Respiratory

7.7

7.3

5.4

7.3

5.0

Azee

Anti-Infectives

7.9

6.9

14.6

6.2

28.4

5.1

5.0
4.8

(%)

4.8

5.2

5.1

5.2

4.9 4.9

5.2
4.9
4.7 4.7

4.6

4.6

4.6

4.4
Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Aug-15

Jul-15

4.2

Cipla

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Montair Lc

Respiratory

7.3

5.1

42.5

5.8

25.8

Novamox

Anti-Infectives

6.0

5.9

0.2

5.2

14.3

Emeset

Gastro Intestinal

7.0

6.3

11.8

6.8

3.9

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 20: Contribution of therapies to domestic sales (MAT July16)

Exhibit 21: Therapy wise performance

Other
20%

Neuro
3%
Gastro
Intestinal
8%

Cardiac
12%

Respiratory
30%

Anti-Infectives
27%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Therapy
Respiratory
Anti-Infectives

(| crore)

July' 16
122.1

July' 15
105.3

YoY (%)
1 5.9

June' 16
111.2

QoQ (% )
9.8

110.9

101.7

9.0

103.0

7.7

Cardiac

51.8

50.3

3.0

51.4

0.9

Gastro Intestinal

38.2

33.7

1 3.4

38.4

- 0.6

Neuro
Ophthal

13.2
13.8

15.0
14.0

-1 2.5
- 1.2

14.2
14.4

- 7.4
- 3.9
14.1

Pain

14.8

13.1

1 3.0

13.0

Derma

11.0

10.8

1.7

10.4

5.5

8.4
6.3

7.1
6.5

1 7.7
- 2.8

9.2
6.2

- 9.0
2.4

V itamins
Gynaecological

Source: AIOCD data base, ICICIdirect.com Research

Dr. Reddys Labs

Acute : Chronic contribution (MAT July16)


Chronic,
725.31,
30.2%
Acute,
1177.45,
49.0%

Stock Performance) Stock Performance


140
120
100
80
60

SubChronic,
502.43,
20.9%

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Jun-16

Aug-16

Dr. Reddys

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Jul-15

Aug-15

Exhibit 22: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

11 to 20

21 to 30

31 to 50

Others

9.5
4.8

1.5

6.3

8.4
4.1

-1.4

-10
Indian Pharma Market

Source: AIOCD data base

Dr. Reddys Laboratories

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 23: Market share in Indian formulations market

Exhibit 24: Top 10 brands performance

(| crore)

2.7

Brand

Therapy

2.6

Omez

Gastro Intestinal

9.4

10.8

-12.8

10.6

-11.6

Omez D

Gastro Intestinal

8.6

7.5

14.9

8.8

-2.0
-11.2

2.6

2.6

2.5

2.6

2.7

2.4

2.3

2.3

2.3

2.2

2.3

2.3

2.3

2.3
2.2 2.2

2.2

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Econorm

Gastro Intestinal

6.5

6.2

6.0

7.4

Stamlo

Cardiac

4.4

5.2

-15.6

4.2

4.3

Grafeel

Anti-Neoplastics

7.9

5.2

51.8

2.4

223.7

3.4

-9.8

3.7

-17.4

Razo

Gastro Intestinal

4.8

4.1

16.8

4.3

10.4

Atarax

Respiratory

5.1

3.1

63.6

4.3

17.0

Jul-16

3.1

Jun-16

Derma

May-16

Mintop

Apr-16

-12.5

Mar-16

7.3

5.3

Feb-16

4.9

3.5

Jan-16

20.7

4.5

Dec-15

4.3

4.7

Nov-15

5.2

Gastro Intestinal

Sep-15

Pain

Razo D

Aug-15

Nise

2.0
Jul-15

2.1
Oct-15

(%)

4.3

6.6

12.1

9.6

26.5

27.4
12.7

23.6
9.5

6.7

0
Top 10

10.3

10

7.5

16%

9%

12.2
19.0

(%)

20

12%

13.3

22.6
30.7

30

29%

14.6

34%

31.7

40

Dr. Reddys Laboratories

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 25: Contribution of therapies to domestic sales (MAT July16)


Gastro
Intestinal
22%

Other
36%

Cardiac
14%

Anti-Infectives
8%
Respiratory
9%

AntiNeoplastics
11%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Exhibit 26: Therapy wise performance


Therapy

(| crore)

July' 16

July' 15

YoY (%)

June' 16

Gastro Intestinal

44.3

43.4

1.9

46.6

QoQ (%)
-5.1

Cardiac

25.6

28.6

-10.5

26.1

-1.8

Anti-Neoplastics

28.8

26.1

10.1

22.7

26.6

Respiratory

18.7

14.0

33.7

15.5

20.5

Anti-Infectives

15.9

14.1

12.9

14.5

9.7

Pain

13.4

13.0

2.8

13.0

3.1

Derma

10.7

10.7

-0.7

12.4

-14.2

Anti Diabetic

12.7

12.7

0.0

13.1

-2.9

Neuro

6.6

6.5

0.4

6.5

1.0

Vitamins

6.3

5.9

5.5

6.3

-1.1

Source: AIOCD data base, ICICIdirect.com Research

Page 14

Lupin

Acute : Chronic contribution (MAT July16)

Stock Performance

Chronic,
1652.39,
49.0%

140
120
100
80
60

SubChronic,
657.00,
19.5%

Acute,
1066.22,
31.6%

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Jun-16

Aug-16

Lupin

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Jul-16

Jun-16

May-16

Apr-16

Mar-16

9.5

4.7

7.8

6.3

6.6

8.4
11.7

20.5

Feb-16
12.1
18.4

12.7
14.5

Jan-16

Dec-15

Nov-15
9.5

9.6
12.9

4.3
9.9

7.2

9%

21.8

12

10.3
12.1

11%

13.3
20.9

20

8.5

13%

20%
(%)

47%

12.2

28

22.6 Oct-15

Sep-15

Jul-15

Aug-15

Exhibit 27: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

-4
Top 10

11 to 20

21 to 30

31 to 50

Others

Indian Pharma Market

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base

Exhibit 28: Market share in Indian formulations market

Brand

Therapy

3.5

Gluconorm-G

Anti Diabetic

Tonact

Cardiac

3.4 3.3 3.3 3.3

3.2

3.4 3.4 3.4 3.4


3.3 3.4

3.2 3.2

(| crore)

July' 16 July' 15 Var. (%) June' 16 Var. (%)


14.6

10.8

35.9

13.4

9.0

7.5

8.4

-11.1

7.1

4.7

4.3

-15.7

4.0

-10.6

2.5

Rablet

Gastro Intestinal

4.5

4.6

-3.4

4.1

8.1

2.3

Ramistar

Cardiac

3.5

4.3

-17.6

3.4

3.5
-3.3

Jul-16

3.6

Jun-16

Respiratory

May-16

Esiflo

Apr-16

2.7

Mar-16

17.3

Feb-16

5.2

4.6

Jan-16

7.2

19.3

Dec-15

28.4

4.6

Nov-15

5.9

5.4

Oct-15

7.6

Gastro Intestinal

Sep-15

Respiratory

Rablet-D

Aug-15

Budamate

2.9

3.1

Jul-15

(%)

Exhibit 29: Top 10 brands performance

3.7
3.3

Lupin

Lupin

R-Cinex

Anti-Infectives

3.5

3.4

5.0

3.7

Cetil

Anti-Infectives

4.2

3.0

37.8

3.9

7.7

Telekast-L

Respiratory

4.2

2.9

43.5

3.0

40.1

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 30: Contribution of therapies to domestic sales (MAT July16)

Exhibit 31: Therapy wise performance

Other
22%

Cardiac
26%

Gastro
Intestinal
8%

Anti Diabetic
11%

Anti-Infectives
21%
Respiratory
12%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

(| crore)

Therapy

July' 16

July' 15

YoY (%)

June' 16

Cardiac

68.5

70.0

-2.2

66.3

QoQ (%)
3.3

Anti-Infectives

60.8

56.5

7.5

54.9

10.8

Respiratory

34.4

28.6

20.3

31.6

8.8

Anti Diabetic

36.9

29.2

26.5

34.8

6.0

Gastro Intestinal

25.1

22.6

11.1

22.8

9.9

Vitamins

15.6

17.4

-9.9

14.9

4.8

Neuro

13.8

13.4

3.2

13.9

-0.5

Pain

12.7

13.0

-1.9

12.2

4.1

Gynaecological

10.7

9.5

13.0

10.7

0.0

2.0

1.9

7.0

2.1

-5.5

Ophthal

Source: AIOCD data base, ICICIdirect.com Research

Page 15

Cadila Healthcare

Acute : Chronic contribution (MAT July16)

Stock Performance

Chronic,
1652.39,
49.0%

140
120
100
80
60

SubChronic,
657.00,
19.5%

Acute,
1066.22,
31.6%

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Jun-16

Aug-16

Cadila Healthcare

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Jul-15

Aug-15

Exhibit 32: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

9.5
3.4

6.3

8.4
5.8

4.3

6.6

Indian Pharma Market

Source: AIOCD data base

1.1

12.0

9.6

12.1

12.7

Others

3.1

31 to 50

7.2

21 to 30

6.8

11 to 20

5.6

Top 10

10.3
15.4

10

13.3

15

13.8

9%

12.8

(%)

13%

12.2

20
11%

12.1

25

20%

9.5

47%

22.6
24.2

30

Cadila Healthcare

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 33: Market share in Indian formulations market

Brand

4.1

4.0

4.0
3.9

3.9

3.9

3.8

3.9 3.9 3.9 3.9 3.9

3.9

4.0
3.9
3.8

3.7

Therapy

(| crore)

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Skinlite

Derma

13.3

13.7

-2.9

15.3

Atorva

Cardiac

8.4

10.9

-23.2

7.8

-12.7
7.0

Mifegest Kit

Gynaecological

10.7

9.1

18.4

11.0

-2.2

10.5

8.3

25.6

9.6

8.9

8.4

7.7

9.5

7.5

12.0

Gastro Intestinal

Deriphyllin

Respiratory

3.5

Falcigo

Anti Malarials

5.7

6.3

-9.8

3.8

52.0

3.4

Aten

Cardiac

5.7

6.9

-17.2

5.0

13.5

Amlodac

Cardiac

4.3

6.8

-35.7

5.3

-17.6

Zyrop

Blood Related

6.9

5.8

18.6

6.3

9.4

Clopitorva

Cardiac

4.4

4.8

-8.7

4.5

-2.4

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Aug-15

Jul-16

Pantodac

3.6

3.7

Jul-15

(%)

Exhibit 34: Top 10 brands performance

Cadila Healthcare

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 35: Contribution of therapies to domestic sales (MAT July16)

Exhibit 36: Therapy wise performance

Other
38%

Cardiac
16%
Gastro
Intestinal
14%
Gynaecological
11%

Pain
10%

Respiratory
11%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

(| crore)

Therapy

July' 16

July' 15

YoY (%)

June' 16

QoQ (%)

Cardiac

50.7

56.7

-10.5

49.7

2.2

Gastro Intestinal

48.4

45.7

5.8

48.5

-0.4

Gynaecological

32.8

34.6

-5.1

33.5

-1.9

Respiratory

33.0

29.7

11.1

29.8

10.6

Pain

32.7

30.1

8.6

31.3

4.4

Derma

25.3

25.6

-0.9

26.9

-5.9

Anti-Infectives

28.0

23.7

18.2

22.6

23.6

Anti-Neoplastics

23.0

17.5

31.5

22.1

4.3

Vitamins

16.7

14.3

16.9

14.7

14.1

Hormones

6.6

6.7

-1.5

5.9

11.8

Source: AIOCD data base, ICICIdirect.com Research

Page 16

GlaxoSmithKline

Acute : Chronic contribution (MAT July16)

Stock Performance

Chronic,
421.12,
13.0%
SubChronic,
702.31,
21.6%

Acute,
2122.10,
65.4%

140
120
100
80
60
Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Jun-16

Aug-16

GSK Pharma

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

9.5
4.5

6.3

4.3

6.6

8.4

12.1

-6.7

0.3

2.2

4.7

6.9

9.6

12.7

Jan-16

Dec-15

Nov-15

22.6Oct-15

-7.2

-5

-9.5

-2.4

16%

-1.1

1.2

(%)

9%

9.5

10

51%

4.5

15

10%

10.3

12.2

20

14%

13.3

25

21.2

Sep-15

Jul-15

Brands contribution to domestic sales (MAT July16)

Aug-15

Exhibit 37: Company growth vis--vis Indian pharma market growth

-10
-15
Top 10

11 to 20

21 to 30

31 to 50

Others

Indian Pharma Market

Source: AIOCD data base

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 38: Market share in Indian formulations market


3.6

3.5

3.4
3.2

3.3

3.4

3.4 3.4

Exhibit 39: Top 10 brands performance

3.3
3.1 3.1

3.0

3.0 3.1

3.1
2.9

2.8

(| crore)

Brand

Therapy

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Augmentin

Anti-Infectives

20.9

26.5

-20.8

16.7

Synflorix

Vaccines

16.2

14.3

13.5

16.4

-1.0

Calpol

Pain

23.4

13.3

75.2

13.8

69.7

Zinetac

Gastro Intestinal

14.8

12.5

18.8

13.5

9.6

25.4

5.7

30.2

8.7

-14.6

Jun-16

7.4

May-16

Vaccines

Apr-16

Rotarix

Mar-16

-9.0

Feb-16

-9.4

10.1

Jan-16

10.2

-26.0

Dec-15

-22.5

12.4

Nov-15

11.9

9.2

Oct-15

9.2

Derma

Sep-15

Derma

Betnovate N
Aug-15

Betnovate C

2.4
Jul-15

2.6
Jul-16

(%)

3.2

Glaxosmithkline Pharmaceuticals

Glaxosmithkline Pharmaceuticals

Source: AIOCD data base, ICICIdirect.com Research

Eltroxin

Hormones

12.2

10.9

12.1

11.9

2.7

Ceftum

Anti-Infectives

11.4

11.7

-2.4

10.1

12.6

Betnesol

Hormones

8.1

7.9

2.8

5.9

38.4

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 40: Contribution of therapies to domestic sales (MAT July16)


Anti-Infectives
23%

Other
26%

Respiratory
8%
Pain
10%

Derma
18%
Vaccines
15%

Exhibit 41: Therapy wise performance


Therapy

(| crore)

July' 16

July' 15

YoY (%)

June' 16

QoQ (%)

Anti-Infectives

61.2

63.8

-4.2

51.6

18.7

Derma

46.0

57.5

-20.1

45.3

1.4

Vaccines

39.9

27.7

43.9

39.4

1.2

Pain

34.9

23.3

49.4

23.6

47.8

Respiratory

20.8

18.9

9.9

16.4

26.7

Hormones

21.0

19.5

7.8

18.3

14.8

Vitamins

24.0

23.0

4.4

22.0

9.1

Gastro Intestinal

16.7

15.1

10.2

15.3

9.0

Cardiac

4.6

6.2

-25.2

4.5

1.7

Gynaecological

3.4

2.9

15.1

3.2

5.3

Source: AIOCD data base, ICICIdirect.com Research


Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Page 17

Wockhardt

Acute : Chronic contribution (MAT July16)

Stock Performance
Chronic,
270.87,
20.1%

Acute,
924.43,
68.6%

400
350
300
250
200
150
100
50
0

SubChronic,
151.47,
11.2%

Aug-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Source: AIOCD data base

Wockhardt

Indian Pharma Market

Jul-16
9.5
2.3

6.3
1.8

8.4
9.4

9.6
9.9

12.7

9.5

12.1

29.8

38.3

50.5
22.6

Source: AIOCD data base

Wockhardt

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 43: Market share in Indian formulations market

Exhibit 44: Top 10 brands performance


Brand

Therapy

Jul-16

Jun-16

1.23
1.29 1.26
1.28

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

1.41 1.39
1.37 1.38 1.34
1.37 1.35 1.39
1.33

Wockhardt

Source: AIOCD data base, ICICIdirect.com Research

Intestinal
25%

Vitamins
15%

Neuro
8%

29.9

-14.3

24.7

3.7

Practin

Vitamins

7.3

6.5

11.8

7.9

-7.6

Tryptomer

Neuro

5.1

5.0

0.9

5.4

-5.1

Bro Zedex

Respiratory

4.7

3.1

50.4

2.9

59.4

Methycobal

Vitamins

4.3

4.2

0.4

4.9

-12.7

Biovac V

Vaccines

3.5

6.2

-43.9

2.3

51.1

Biovac A

Vaccines

2.7

4.2

-35.6

2.0

37.2

Zedex

Respiratory

3.4

2.2

50.9

2.0

65.8

Ace Proxyvon

Pain

2.2

2.8

-23.3

2.2

0.0

Wosulin

Anti Diabetic

2.3

2.0

16.3

2.4

-3.6

Exhibit 46: Therapy wise performance


Therapy

Respiratory
12%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

(| crore)

July' 16

July' 15

YoY (%)

June' 16

Gastro Intestinal

28.1

31.7

-11.2

27.0

4.1

Vitamins

18.5

17.5

5.4

19.2

-3.6

Respiratory

15.4

9.5

62.9

9.1

69.5

8.9

8.6

3.5

10.0

-11.0
51.0

Neuro

Anti-Infectives
7%

25.6

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 45: Contribution of therapies to domesticGastro


sales (MAT July16)
Other
33%

(| crore)

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Spasmo Proxyvon PluGastro Intestinal

Aug-15

Jun-16

Apr-16
4.3
4.9

Others

5.5

31 to 50

10.3

10
21 to 30

13.3
24.7

30.3

20

12.2

(%)

30

42.6

40

55%
14%

Jul-15

May-16

Mar-16
6.6
2.5

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

50

9%

11 to 20

Aug-15

Jul-15
60

8%

(%)

Aug-16

Source: NSE, ICICIdirect.com Research

14%

1.8
1.7
1.6
1.5
1.4
1.3
1.2
1.1
1.0

Jun-16

Exhibit 42: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

Top 10

Oct-15

QoQ (%)

Anti-Infectives

7.5

7.2

4.0

4.9

Anti Diabetic

7.2

6.7

7.2

7.8

-7.3

Derma

7.3

7.7

-5.5

7.4

-1.5

Pain

5.9

7.2

-17.9

7.5

-20.9

Vaccines

6.2

10.4

-40.5

4.3

43.6

Hormones

2.6

2.4

10.9

2.6

-0.8

Source: AIOCD data base, ICICIdirect.com Research

Page 18

Glenmark Pharmaceuticals

Acute : Chronic contribution (MAT July16)

Stock Performance

Chronic,
904.38,
37.2%

200
180
160
140
120
100
80
60

SubChronic,
567.41,
23.3%

Acute,
961.87,
39.5%

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Aug-16

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

9.5
8.5

6.3

8.4

6.6
14.8

12.1
19.6

9.6
16.3

9.5

12.7
18.6

22.6

43.6

Oct-15

Sep-15
10.3
13.0

28.0

Indian Pharma Market

Source: AIOCD data base

7.1

Others

8.9

31 to 50

4.3
8.6

21 to 30

11.5

11 to 20

Jul-15

13%

10%

13.3

13%

30.9

(%)

35%

12.2

29%

50
45
40
35
30
25
20
15
10
5
0

Aug-15

Exhibit 47: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

Top 10

Jun-16

Glenmark

Glenmark Pharmaceuticals

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 48: Market share in Indian formulations market

Exhibit 49: Top 10 brands performance

2.7
2.6

2.5 2.5

2.5

Therapy

Telma

Cardiac

(| crore)

July' 16 July' 15 Var. (%) June' 16 Var. (%)


12.5

14.8

-15.9

12.5

-0.1

Telma H

Cardiac

11.9

11.4

4.6

12.1

-1.4

Ascoril Plus

Respiratory

10.0

7.5

32.5

7.1

40.8

Candid

Derma

10.0

8.8

13.4

11.1

-9.7

2.1

Candid-B

Derma

9.6

8.3

15.2

8.5

12.2

Telma Am

Cardiac

6.4

6.1

5.5

6.3

2.5

1.9

Ascoril Ls

Respiratory

4.0

2.9

38.2

2.5

57.1

2.4 2.3

2.3

2.4

2.4 2.4

2.4

2.3 2.3

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Aug-15

2.2

Jul-15

(%)

2.5

Brand

Glenmark Pharmaceuticals

Exhibit 50: Contribution of therapies to domestic sales (MAT July16)


Anti Diabetic
8%

Derma
28%

Anti-Infectives
13%
Respiratory
16%

Derma

4.2

3.0

41.3

3.8

12.5

Ascoril D

Respiratory

2.7

2.2

23.0

2.2

26.7

Bon K2

Vitamins

2.6

3.4

-22.6

3.0

-11.3

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base, ICICIdirect.com Research

Other
12%

Onabet

Cardiac
23%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Exhibit 51: Therapy wise performance


Therapy

(| crore)

July' 16

July' 15

YoY (%)

June' 16

Derma

61.1

58.3

4.7

62.7

QoQ (%
-2.

Cardiac

43.8

44.6

-1.9

44.4

-1.

Respiratory

33.6

24.8

35.4

23.3

44.

Anti-Infectives

32.0

26.6

19.9

26.1

22.

Anti Diabetic

13.7

18.0

-23.7

15.0

-8.

Vitamins

5.1

5.8

-10.9

6.7

-23.

Gastro Intestinal

6.6

5.0

31.3

5.6

17.

Gynaecological

6.1

4.4

38.8

4.8

27.

Pain

3.9

4.2

-7.0

4.3

-9.

Ophthal

3.9

3.8

2.2

3.0

29.

Source: AIOCD data base, ICICIdirect.com Research

Page 19

Torrent Pharmaceuticals

Acute : Chronic contribution (MAT July16)

Stock Performance

Chronic,
1161.81,
51.1%

Acute,
545.96,
24.0%

200
160
120
80
40

SubChronic,
567.28,
24.9%

Aug-15

Oct-15

Dec-15

Feb-16

CNX Pharma

Jun-16

Aug-16

Torrent Pharma

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Others

Jul-16
9.5
4.1

6.3

8.4
1.4

4.3

6.6
2.4

Indian Pharma Market

Source: AIOCD data base

Jun-16

May-16

Apr-16

Mar-16

Feb-16
10.2

-5

-2.7

31 to 50

-3.0

21 to 30

12.1

12.7

0
11 to 20

Jan-16

Dec-15

Nov-15
5.4

9%

9.6

10

7.4

14%

12%

3.8

(%)

15

19.9

20

33%

10.3
16.0

32%

9.5

Aug-15
13.3
21.7

25

22.6Oct-15

Jul-15
12.2
18.3

Sep-15

Exhibit 52: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

Top 10

Apr-16

Torrent Pharmaceuticals

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 53: Market share in Indian formulations market

Exhibit 54: Top 10 brands performance

2.4
2.36

2.4

2.35
2.29

2.3

2.24

2.2

2.23
2.17

2.2

2.20

2.26

2.23

2.29
2.24

2.22

Therapy

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Shelcal

Vitamins

17.6

20.2

Chymoral Forte

Pain

10.6

10.6

0.0

9.8

8.0

Nikoran

Cardiac

7.2

6.5

9.8

7.1

0.3

Dilzem

Cardiac

5.5

5.1

8.7

5.3

3.5
5.8

-12.9

17.4

0.9

4.3

28.6

4.6

18.4

Nexpro

Gastro Intestinal

4.6

4.1

11.8

4.2

8.1

Dec-15

Jul-16

5.5

Jun-16

Gastro Intestinal

May-16

Nexpro Rd

Apr-16

5.0

2.1
Mar-16

5.4

Feb-16

5.0

19.2

Jan-16

6.8

4.8

Oct-15

5.0

5.7

Sep-15

5.3

Anti Diabetic

Aug-15

Cardiac

Azulix-Mf
Jul-15

Nebicard

2.1
Nov-15

(%)

2.3

2.33

(| crore)

Brand

Torrent Pharmaceuticals

Source: AIOCD data base, ICICIdirect.com Research

Cardiac
29%

Pain
8%

Gastro
Intestinal
15%
Vitamins
16%

Vitamins

4.5

2.6

70.6

4.2

7.2

Alprax

Neuro

3.3

3.3

2.2

3.0

12.3

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 55: Contribution of therapies to domestic sales (MAT July16)


Other
16%

Shelcal Ct

Neuro
16%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Exhibit 56: Therapy wise performance


Therapy

(| crore)

July' 16

July' 15

YoY (%)

June' 16

QoQ (%)

Cardiac

56.7

54.5

4.0

54.2

4.6

Neuro

32.4

31.2

4.0

31.0

4.7

Vitamins

33.9

32.7

3.7

33.0

2.8

Gastro Intestinal

32.0

28.8

11.0

29.7

7.8

Pain

16.9

15.6

7.8

15.8

6.8

Anti Diabetic

13.0

11.6

12.2

12.4

5.3

Anti-Infectives

7.9

10.1

-21.3

6.8

17.1

Derma

5.6

4.5

24.7

5.4

5.1

Gynaecological

2.9

3.6

-19.7

3.1

-7.6

Anti-Neoplastics

0.4

1.2

-69.6

0.5

-28.1

Source: AIOCD data base, ICICIdirect.com Research

Page 20

Ipca Laboratories

Acute : Chronic contribution (MAT July16)

Stock Performance
150
125
100
75
50

Chronic,
352.96,
27.3%

Acute,
858.16,
66.5%

SubChronic,
80.08, 6.2%

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Jun-16

Aug-16

Ipca

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Jul-15

Aug-15

Exhibit 57: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

Others

1.4 1.4

1.4

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

1.3 1.2 1.2 1.2


1.2 1.2 1.2 1.2

Oct-15

Sep-15

Aug-15

1.3 1.3

Jul-15

18.1
9.5
4.0

6.3

8.4
3.7

Exhibit 59: Top 10 brands performance


Brand

(%)

Ipca Laboratories

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 58: Market share in Indian formulations market


2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6

3.3

11.5

Indian Pharma Market

Source: AIOCD data base

4.3

6.6

9.6

12.1

12.7
9.5

10.3

1.5

31 to 50

9.1

21 to 30

-5

6.3

3.6

16%

0
11 to 20

13.3

10
3.0

11%

-0.1

(%)

15

12.2

20

37%
13%

11.8

25

23%

Top 10

22.6
25.8

30

Ipca Laboratories

Source: AIOCD data base, ICICIdirect.com Research

Pain
26%

Anti-Infectives
6%

Gastro
Intestinal
8%

(| crore)

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Zerodol Sp

Pain

8.4

7.7

9.9

7.4

13.6

Zerodol P

Pain

5.7

5.2

10.3

5.4

5.1

Hcqs

Anti Malarials

5.2

6.0

-13.1

5.1

3.0

Larinate

Anti Malarials

6.0

3.4

76.5

2.9

102.4

Rapither-Ab

Anti Malarials

7.0

4.0

76.1

2.8

148.5

Glycinorm M

Anti Diabetic

3.6

3.1

17.4

3.0

21.2

Lariago

Anti Malarials

5.0

2.2

126.6

1.6

203.4

Folitrax

Anti-Neoplastics

3.0

2.9

3.3

3.0

-1.6

Zerodol

Pain

2.2

2.4

-7.6

2.3

-3.6

Lumerax

Anti Malarials

3.4

2.1

61.4

1.5

117.6

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 60: Contribution of therapies to domestic sales (MAT July16)


Other
24%

Therapy

Anti Malarials
19%
Cardiac
17%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Exhibit 61: Therapy wise performance


Therapy

(| crore)

July' 16

July' 15

YoY (%)

June' 16

Pain

29.8

26.8

10.9

26.5

QoQ (%)
12.4

Anti Malarials

30.7

20.7

48.1

16.4

86.6

Cardiac

1.1

18.9

17.9

5.4

18.7

Gastro Intestinal

9.6

10.0

-4.3

9.4

2.1

Anti-Infectives

7.3

6.6

10.0

5.9

23.0

Anti Diabetic

6.3

5.8

9.4

5.4

17.3

Respiratory

4.8

3.2

47.5

3.0

60.8

Anti-Neoplastics

4.7

4.1

15.4

4.9

-4.4

Neuro

4.4

3.4

28.4

3.9

14.5

Derma

3.9

3.1

24.5

3.1

24.1

Source: AIOCD data base, ICICIdirect.com Research

Page 21

Biocon

Acute : Chronic contribution (MAT July16)

Stock Performance

Chronic,
241.98,
70.7%

140
120
100
80

SubChronic,
29.34, 8.6%

Acute,
70.75,
20.7%

60
Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Aug-16

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

21 to 30

31 to 50

-10

Others

-15

Source: AIOCD data base

May-16
8.4
9.4

Jul-16

Jun-16

Apr-16
7.7

Mar-16

9.5

3.5

4.3

1.2

6.6

6.3

12.1
11.3

14.5

Feb-16

Jan-16
9.6
5.3

12.7

Dec-15

Nov-15
9.5

10.0

-5
-11.2

11 to 20

-0.8

2%

5.2

(%)

5%

7.3

10

6%

10.3

15

10%

6.0

77%

12.2

20

13.3

25

22.6Oct-15

Sep-15

Jul-15

Aug-15

Exhibit 62: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

Top 10

Jun-16

Biocon

Indian Pharma Market

Biocon

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 63: Market share in Indian formulations market


0.39

0.38

0.37

0.36

0.35

0.34

0.33

0.33

0.33
0.31

0.31

0.34 0.35 0.35

0.34

0.34
0.32

0.31

(| crore)

Brand

Therapy

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Insugen

Anti Diabetic

7.1

7.5

-5.1

7.3

Basalog

Anti Diabetic

5.5

5.0

10.7

5.2

6.5

Erypro

Blood Related

2.3

2.3

2.3

2.3

0.9

-2.2

1.6

-13.3

1.5

-10.9

1.2

1.5

-21.7

1.4

-13.4

Biomab Egfr

Anti-Neoplastics

0.1

0.1

106.3

0.0 NA

Insugen N

Anti Diabetic

0.5

0.9

-46.3

0.6

-23.4

Psorid

Anti-Neoplastics

0.7

0.5

42.9

0.7

-7.2

Jul-16

1.4

Anti Diabetic

Jun-16

Anti Diabetic

Blisto Mf

Apr-16

Insugen R

May-16

0.27
Mar-16

-0.6

Feb-16

3.0

2.3

Jan-16

1.7

150.8

Dec-15

22.3

0.9

Nov-15

1.4

2.3

Oct-15

1.7

Anti-Neoplastics

Sep-15

Anti-Neoplastics

Abraxane
Aug-15

Canmab

0.29
Jul-15

(%)

Exhibit 64: Top 10 brands performance

Biocon

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 65: Contribution of therapies to domestic sales (MAT July16)


Cardiac
5%
Blood Related

Derma
3%

Other
4%

6%

AntiNeoplastics
22%

Anti Diabetic
60%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Exhibit 66: Therapy wise performance


Therapy
Anti Diabetic

(| crore)

July' 16

July' 15

YoY (%)

June' 16

QoQ (%)

16.8

17.8

-5.7

17.2

-2.4

Anti-Neoplastics

6.2

4.6

34.6

6.5

-4.6

Blood Related

2.4

2.3

4.7

2.3

1.8

Cardiac

1.2

1.4

-11.9

1.5

-16.2

Derma

0.8

0.7

12.8

0.9

-16.5

Anti-Infectives

0.6

0.7

-11.3

0.5

19.6

Others

0.2

0.2

18.9

0.2

-3.9

Gastro Intestinal

0.1

0.3

-59.6

0.1

24.3

Vitamins

0.1

0.2

-22.3

0.2

-26.3

Pain

0.1

0.0

81.0

0.0

219.5

Source: AIOCD data base, ICICIdirect.com Research

Page 22

Pfizer

Acute : Chronic contribution (MAT July16)

Stock Performance

Chronic,
457.82,
15.7%
SubChronic,
564.52,
19.4%

Acute,
1888.94,
64.9%

200
160
120
80
40
Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Pfizer

21 to 30

31 to 50

Source: AIOCD data base

Jul-16

Jun-16

May-16

9.5
3.0

6.3

8.4
7.2

-1.0

2.7

Pfizer

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 68: Market share in Indian formulations market

Exhibit 69: Top 10 brands performance

3.2
2.97 2.94
2.94
2.91
2.91 2.92 2.93

2.8

2.84

2.89

2.96
2.85

2.79
2.74

2.6

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Aug-15

2.4
Jul-15

4.3

6.6
3.4

-10

Others

Indian Pharma Market

(%)

Apr-16

Mar-16

12.1
5.1

9.6

-5
11 to 20

Feb-16

Jan-16

Dec-15
12.7

-3.5

1.6

19%

9.5

10

(%)

50%

3.3

15

10%

8.9

20

10%

10.3

25

11%

Nov-15

22.6
25.0

30

Oct-15

Aug-15
13.3
18.5

Sep-15

Jul-15
12.2
15.0

Exhibit 67: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

3.0

Aug-16

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Top 10

Jun-16

Pfizer

(| crore)

Brand

Therapy

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Corex

Respiratory

24.1

25.4

-4.8

20.2

19.5

Becosules

Vitamins

21.5

20.7

3.6

20.1

6.8

Magnex

Anti-Infectives

11.9

13.4

-11.4

11.1

7.2

Gelusil Mps

Gastro Intestinal

12.3

12.5

-1.8

10.7

14.7

Dolonex

Pain

12.8

12.3

4.1

11.7

10.0

Minipress Xl

Cardiac

16.3

10.0

63.7

9.3

76.3

Mucaine

Gastro Intestinal

10.2

9.0

13.8

10.0

2.5

Wysolone

Hormones

9.6

7.0

37.2

8.0

20.8

Folvite

Blood Related

6.2

6.9

-10.1

7.1

-12.2

Dalacin C

Anti-Infectives

5.7

6.8

-16.4

5.4

5.2

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 70: Contribution of therapies to domestic sales (MAT July16)

Exhibit 71: Therapy wise performance

Anti-Infectives
16%
Respiratory
14%

Other
41%

Gastro
Intestinal
10%
Hormones
9%

Vitamins
10%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Therapy

(| crore)

July' 16

July' 15

YoY (%)

June' 16

Anti-Infectives

35.0

40.4

-13.5

32.3

QoQ (%)
8.5

Respiratory

31.6

29.8

6.0

26.1

21.1

Gastro Intestinal

27.7

26.9

3.0

25.9

7.0

Vitamins

27.9

26.5

5.3

25.2

10.5

Hormones

22.2

19.3

15.5

20.5

8.6

Gynaecological

20.8

18.8

10.4

20.5

1.7

Neuro

14.8

17.9

-17.1

16.7

-11.3

Cardiac

21.9

17.0

28.4

15.4

42.3

Pain

16.9

17.8

-5.0

15.5

9.6

Vaccines

11.2

7.6

47.6

7.6

47.9

Source: AIOCD data base, ICICIdirect.com Research

Page 23

Novartis

Acute : Chronic contribution (MAT July16)

Stock Performance

Chronic,
502.26,
43.3%

190
140
SubChronic,
166.44,
14.4%

Acute,
490.75,
42.3%

90
40
Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Jun-16

Aug-16

Novartis India

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Jul-16

Jun-16

May-16

Apr-16

9.5

6.3
3.9

8.4

18.7
10.2

6.6

79%

4.3

21.6

25.1
12.1

9.6
14.9

10

Mar-16

Feb-16

Dec-15
12.7
17.3

Jan-16

Nov-15

15

10.3
15.3

12.2
16.3

20

13.3
21.7

25

(%)

9.5
20.4

22.6
27.4

30

2%
11%4%4%

Oct-15

Sep-15

Jul-15

Aug-15

Exhibit 72: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

-5.2

0
-5

Top 10

11 to 20

21 to 30

31 to 50

-10

Others

Indian Pharma Market

Source: AIOCD data base

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 73: Market share in Indian formulations market

Exhibit 74: Top 10 brands performance

1.3
1.2

1.21

1.19

1.17 1.17 1.16 1.16

1.15 1.16

1.2

1.19 1.20
1.10 1.10

1.1
1.1

1.03

(| crore)

Brand

Therapy

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Galvus Met

Anti Diabetic

26.6

Voveran

Pain

18.6

Galvus

Anti Diabetic

9.6

Rabipur (Novartis)

Vaccines

5.6

23.7

12.4

23.5

13.4

16.2

14.6

16.8

10.5

11.2

-14.2

9.9

-3.1

7.9

-28.5

7.9

-28.5
-3.2

Tegrital

Neuro

4.2

5.0

-17.4

4.3

1.0

Voveran

Pain

3.4

3.2

6.0

3.3

2.7

0.9

Regestrone

Gynaecological

2.9

3.2

-8.0

2.7

8.6

Methergin

Gynaecological

2.3

2.7

-13.6

2.2

2.6

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Jul-15

Aug-15

1.0

Jul-16

(%)

Novartis India

Novartis India

Syntocinon

Gynaecological

2.2

1.9

16.4

2.3

-4.0

Macalvit

Vitamins

1.8

2.2

-20.8

2.1

-15.8

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 75: Contribution of Other


therapies to domestic sales (MAT July16)

Exhibit 76: Therapy wise performance

15%

Therapy

Gynaecological
8%

Anti Diabetic
36%

Vaccines
9%
Vitamins
10%

Pain
22%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

(| crore)

July' 16

July' 15

YoY (%)

June' 16

QoQ (%)

Anti Diabetic

36.8

35.6

3.5

33.9

8.5

Pain

23.4

21.1

10.8

21.7

7.8

Vitamins

8.8

9.9

-11.3

11.5

-23.4

Vaccines

5.7

8.0

-29.0

7.9

-28.3

Gynaecological

7.6

8.0

-5.7

7.5

1.1

Neuro

4.2

6.1

-32.2

4.3

-3.2

Anti-Infectives

3.2

5.4

-41.1

2.7

15.8

Respiratory

1.8

1.5

16.7

1.6

13.5

Cardiac

0.7

1.1

-36.5

0.8

-14.8

Anti-Neoplastics

0.4

0.6

-37.1

0.4

5.0

Source: AIOCD data base, ICICIdirect.com Research

Page 24

Unichem Laboratories

Acute : Chronic contribution (MAT July16)

Stock Performance

Chronic,
535.00,
58.1%

160
130
100
70

Acute,
330.29,
35.9%

SubChronic,
55.60, 6.0%

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Jun-16

Aug-16

Unichem Labs

Source: NSE, ICICIdirect.com Research

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Aug-15
13.3
18.4

Brands contribution to domestic sales (MAT July16)

Sep-15

Jul-15
12.2
9.6

Exhibit 77: Company growth vis--vis Indian pharma market growth

Source: AIOCD data base

35
22.6
32.0

30

21%
46%

Top 10

11 to 20

21 to 30

31 to 50

Indian Pharma Market

Others

Exhibit 78: Market share in Indian formulations market

0.98

1.00
0.94

0.92

0.89 0.93

0.89

0.88 0.87
0.88
0.86 0.87

0.97

0.95

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Aug-15

0.80
Jul-15

9.5
7.0

6.3

8.4
4.3

Exhibit 79: Top 10 brands performance

1.10

(%)

Unichem Laboratories

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base

0.90

5.3

3.5

2.1

6.6

12.1
8.9

9.6

12.7
14.5

8.8

7.1

9.5

10

13%

6.8

15

10.3

(%)

20

11%
9%

17.3

25

Unichem Laboratories

Source: AIOCD data base, ICICIdirect.com Research

Other
11%

Gastro
Intestinal
12%

Neuro
14%

Brand

Therapy

Losar H

Cardiac

July' 16 July' 15 Var. (%) June' 16 Var. (%)


8.6

6.9

24.6

8.7

-1.1

Ampoxin

Anti-Infectives

7.0

5.3

32.8

5.2

35.1

Losar

Cardiac

5.7

5.6

1.2

5.8

-1.4

Unienzyme

Gastro Intestinal

5.4

5.9

-8.0

5.2

4.8

Vizylac

Gastro Intestinal

3.3

2.8

15.6

4.7

-29.7

Trika

Neuro

2.0

2.2

-7.9

1.9

3.1

Serta

Neuro

1.9

1.9

2.9

2.0

-4.2

Unistar (Unichem)

Cardiac

1.6

1.5

9.0

1.8

-10.7

Telsar

Cardiac

1.3

1.5

-9.6

1.5

-9.6

Arkamin

Cardiac

2.2

1.2

91.9

1.5

49.6

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 80: Contribution of therapies to domestic sales (MAT July16)


Pain
4%

(| crore)

Cardiac
42%

Anti-Infectives
17%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Exhibit 81: Therapy wise performance

(| crore)

Therapy

July' 16

July' 15

YoY (%)

June' 16

Cardiac

35.1

30.7

14.5

36.0

QoQ (%)
-2.3

Anti-Infectives

15.3

11.8

30.0

11.8

29.1

Neuro

11.5

10.0

15.3

11.0

4.0

Gastro Intestinal

10.4

10.2

1.2

11.4

-8.7
20.9

Pain

4.1

3.1

32.9

3.4

Anti Diabetic

3.6

2.4

50.4

3.6

-1.2

Respiratory

2.1

1.6

34.9

1.6

31.5

Vitamins

2.0

2.2

-9.4

1.7

15.0

Derma

1.9

1.3

45.1

2.0

-6.8

Gynaecological

0.4

0.4

-3.3

0.4

8.8

Source: AIOCD data base, ICICIdirect.com Research

Page 25

Indoco Remedies

Acute : Chronic contribution (MAT July16)

Stock Performance
Acute,
590.83,
82.6%

140
120
100
80
60

Chronic,
41.15, 5.8%
SubChronic,
82.91,
11.6%

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Jun-16

Aug-16

Indoco

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Jul-15

Aug-15

Exhibit 82: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

31 to 50

27.8

Indian Pharma Market

9.5

11.5
6.3

8.4
4.3

5.2

0.7

Exhibit 84: Top 10 brands performance

0.9
0.8

0.8
0.8

0.7 0.7
0.7 0.7 0.7

0.7 0.7 0.7

0.7

0.7

0.7

0.6

0.7

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Aug-15

0.6
Jul-15

Indoco Remedies

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 83: Market share in Indian formulations market

(%)

6.6

5.4

-10

Source: AIOCD data base

0.7

12.1

9.6

12.7
11.0

-0.9

-5

Others

5.6
-1.3

21 to 30

9.5
10.3

3.7

16%

16.2

10

-6.4

(%)

9%

10.3

15

48%

11 to 20

12.2

20

10%

13.3

25

17%

Top 10

22.6

30

Indoco Remedies

Source: AIOCD data base, ICICIdirect.com Research

(| crore)

Brand

Therapy

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Febrex Plus

Respiratory

9.0

5.4

65.8

4.8

85.2

Cyclopam

Gastro Intestinal

5.6

4.5

24.9

4.3

29.3

Oxipod

Anti-Infectives

5.0

2.6

92.6

2.8

78.9

Sensodent-K

Stomatologicals

3.7

2.8

33.8

3.2

17.0

Cital

Urology

2.7

3.0

-11.3

3.2

-16.7

Atm

Anti-Infectives

3.0

2.1

42.9

2.1

42.4

Sensodent-Kf

Stomatologicals

2.1

2.0

4.4

1.7

22.1

Cloben G

Derma

2.2

2.0

10.4

2.0

8.4

Karvol Plus

Respiratory

1.9

1.0

97.9

1.0

85.6

Cyclopam

Gastro Intestinal

3.0

2.0

49.3

2.2

35.8

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 85: Contribution of therapies to domestic sales (MAT July16)


Other
27%

Respiratory
18%

Anti-Infectives
18%

Vitamins
7%
Gastro
Intestinal
14%

Stomatological
s
16%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Exhibit 86: Therapy wise performance


Therapy

July' 16

(| crore)

July' 15

YoY (%)

June' 16

QoQ (%)
79.5

Respiratory

14.5

8.8

64.9

8.1

Anti-Infectives

13.8

9.4

47.5

9.3

48.8

Stomatologicals

11.7

9.4

24.4

10.2

14.7

Gastro Intestinal

23.3

12.2

9.8

24.7

9.9

Vitamins

5.3

4.5

17.2

4.9

8.2

Urology

3.2

3.4

-6.8

3.8

-16.0

Ophthal

3.1

3.0

4.7

3.1

0.7

Derma

2.9

2.6

11.4

2.7

9.9

Pain

3.0

2.6

15.9

2.6

13.8

Anti Diabetic

2.2

1.9

14.1

1.9

15.5

Source: AIOCD data base, ICICIdirect.com Research

Page 26

Ajanta Pharmaceuticals

Acute : Chronic contribution (MAT July16)

Stock Performance
Chronic,
241.57,
49.2%

290
240
190
140
90
40

SubChronic,
56.34,
11.5%

Acute,
193.21,
39.3%

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

CNX Pharma

Ajanta

21 to 30

31 to 50

Others

Jul-16

Jun-16

May-16

9.5

6.3

7.1

11.4

13.1
8.4

7.6
4.3

6.6
7.6

12.1
10.5

9.6
6.9

5
11 to 20

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15
12.7
14.3

9.5
6.5

9.9

10.0

10

12%

10.3
12.6

(%)

12.2

15

13%

13.3
18.3

20

42%

10%

Nov-15

22.6

25

23%

Oct-15

Sep-15

Jul-15

Aug-15

Exhibit 87: Company growth vis--vis Indian pharma market growth

Brands contribution to domestic sales (MAT July16)

0
Indian Pharma Market

Source: AIOCD data base

Ajanta Pharma

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 88: Market share in Indian formulations market

Exhibit 89: Top 10 brands performance


Brand

0.5

Therapy

(| crore)

July' 16 July' 15 Var. (%) June' 16 Var. (%)

Met Xl

Cardiac

4.3

3.7

17.1

4.6

-5.5

Melacare

Derma

3.8

3.6

5.7

3.0

29.1

Atorfit Cv

Cardiac

2.9

2.9

-0.3

2.9

-2.0

Soft Drops

Ophthal

1.4

1.1

23.0

1.3

6.5

Rosufit Cv

Cardiac

1.4

1.1

25.2

1.3

5.2

0.4

Feburic

Pain

1.3

1.1

13.0

1.1

14.9

0.4

Met Xl Am

Cardiac

1.2

0.9

31.5

1.2

0.5

Rosutor Gold

Cardiac

0.9

0.6

58.6

1.0

-6.7

Cinod

Cardiac

0.9

0.7

21.1

0.9

-1.3

Olopat

Ophthal

0.7

0.7

-2.3

0.9

-17.3

0.5

0.51 0.52

0.5

0.49

0.48

0.51 0.50

0.50
0.48 0.48

0.46

Jul-16

Jun-16

May-16

Apr-16

Mar-16

0.45

Oct-15

Sep-15

Aug-15

Jul-15

0.4

Feb-16

0.46

0.5

Jan-16

0.48

Dec-15

0.5

Nov-15

(%)

Aug-16

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Top 10

Jun-16

Ajanta Pharma

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 90: Contribution of therapies to domestic sales (MAT July16)

Exhibit 91: Therapy wise performance

Pain
5%
Vitamins
6%

Derma
22%

Others
9%
Cardiac
34%

Ophthal
24%

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

(| crore)

Therapy

July' 16

July' 15

YoY (%)

June' 16

QoQ (%)

Cardiac

15.2

13.1

15.9

15.5

-2.1

Ophthal

10.2

9.7

5.1

10.4

-2.1

Derma

8.9

8.8

1.1

8.3

7.4

Vitamins

2.0

2.5

-18.8

2.3

-12.3

Pain

2.0

2.1

-3.1

1.9

7.6

Gastro Intestinal

0.9

1.1

-17.0

1.0

-6.6

Neuro

0.8

0.9

-7.5

0.9

-8.8

Anti-Infectives

0.8

0.6

29.2

0.8

-3.6

Anti Diabetic

0.7

0.0

NA

0.6

5.1

Respiratory

0.3

0.3

-8.8

0.2

12.9

Source: AIOCD data base, ICICIdirect.com Research

Page 27

Alembic Pharmaceuticals

Acute : Chronic contribution (MAT July16)

Stock Performance
200
180
160
140
120
100
80
60
40

Chronic,
308.76,
21.7%
SubChronic,
267.18,
18.8%

Acute,
848.05,
59.6%

Aug-15

Oct-15

Dec-15

Feb-16

CNX Pharma

Apr-16

Jun-16

Aug-16

Alembic Pharma

Source: NSE, ICICIdirect.com Research

Source: AIOCD data base

Jul-16

Jun-16

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Brands contribution to domestic sales (MAT July16)

Aug-15

Jul-15

Exhibit 92: Company growth vis--vis Indian pharma market growth

11 to 20

21 to 30

31 to 50

Others

Indian Pharma Market

9.5

11.4
6.3

8.4
11.2
4.3
5.6

6.6
8.0

12.1
13.7

12.7

18.0

18.9
5.9

5
Top 10

9.6

10

9.5

12%

10.3

(%)

15

10%

12.2
16.8

20

13%

13.3
21.2

25

42%

24.0

22.6
31.3

30

23%

23.3

35

Alembic Pharma

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 93: Market share in Indian formulations market

Exhibit 94: Top 10 brands performance

1.6
1.5

1.49 1.50 1.49

Therapy

Azithral

Anti-Infectives

July' 16 July' 15 Var. (%) June' 16 Var. (%)


12.1

11.6

4.2

7.4

62.2

Althrocin

Anti-Infectives

8.5

6.9

23.3

6.4

32.8

Roxid

Anti-Infectives

4.6

4.4

3.2

4.3

7.1

Gestofit

Gynaecological

5.4

4.8

13.4

5.4

0.3

Wikoryl

Respiratory

4.2

2.6

63.3

2.5

68.6

1.3

Ulgel

Gastro Intestinal

3.4

3.0

11.1

2.7

23.7

1.2

Rekool D

Gastro Intestinal

3.1

3.0

0.9

2.6

15.9

Glisen Mf

Anti Diabetic

2.3

2.1

9.0

2.0

18.2

Rekool

Gastro Intestinal

2.3

2.2

5.2

2.2

6.3

Zeet

Respiratory

2.0

1.6

25.6

1.3

62.5

1.36

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Jul-15

Aug-15

1.33

1.3

1.43
1.31 1.30 1.33

Jul-16

1.4

1.44

Apr-16

1.4

1.43 1.44

Jun-16

1.41

May-16

1.5
(%)

Brand

(| crore)

Alembic Pharma

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 95: Contribution of therapies to domestic sales (MAT July16)

Exhibit 96: Therapy wise performance

Other
25%

Anti-Infectives
23%

Gynaecological
11%

Respiratory
13%

Gastro
Intestinal
14%

Cardiac
14%

Therapy
Anti-Infectives
Cardiac
Gastro Intestinal
Respiratory
Gynaecological
Vitamins
Anti Diabetic
Pain
Derma
Ophthal

July' 16
29.7
18.1
18.8
15.7
14.8
11.1
8.7
4.6
2.1
1.8

July' 15
26.9
14.9
17.2
11.3
12.3
8.6
6.4
4.2
2.5
1.7

(| crore)
YoY (%)
10.6
21.5
9.7
38.7
20.2
29.3
35.8
9.7
-13.9
3.3

June' 16
21.5
17.6
17.0
9.6
14.5
10.5
8.2
4.5
2.0
2.1

QoQ (%)
37.9
3.1
11.1
64.0
2.1
5.6
7.1
3.1
9.8
-14.1

Source: AIOCD data base, ICICIdirect.com Research

Source: AIOCD data base, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Page 28

ICICIdirect.com coverage universe (Healthcare)


CMP
(|)

TP
(|)

Ajanta Pharma

AJAPHA 1970 1,780 Hold

17338.8

45.4

52.8

63.5

43.4

37.3

31.0

27.6

23.2

19.6

42.9

37.2

35.3

34.2

30.2

Apollo Hospitals

APOHOS 1351 1,420 Hold

18801.4

22.2

33.9

49.1

60.9

39.8

27.5

27.0

20.1

15.7

8.2

10.8

13.6

8.9

12.3

15.4

Aurobindo Pharma

AURPHA

Buy

46199.1

33.9

41.3

48.0

23.3

19.1

16.5

25.0

20.5

17.7

23.3

24.6

25.5

28.1

26.0

23.5

Alembic Pharma

ALEMPHA 633

23.5

28.1

Hold

11934.9

38.2

20.4

28.1

16.6

31.1

22.5

12.4

23.1

17.5

51.5

23.2

26.2

44.9

20.5

Biocon

BIOCON

892 1,030

Buy

17849.0

22.5

33.3

38.4

39.6

26.8

23.3

11.2

8.5

6.9

9.1

13.1

14.8

11.1

14.7

15.0

Cadila Healthcare
Cipla

CADHEA
CIPLA

381
567

Buy
Hold

38999.5
45600.9

15.0
18.5

15.8
17.6

20.3
25.4

25.5
30.7

24.1
32.2

18.8
22.3

16.8
19.9

17.2
18.1

13.5
13.4

26.7
12.0

22.9
11.1

26.8
15.2

28.6
12.5

24.7
10.8

25.6
13.8

Divi's Laboratories

DIVLAB

1331 1,415

Buy

35340.5

41.8

45.1

54.5

31.8

29.5

24.4

25.0

22.1

18.3

30.7

29.2

29.8

25.9

23.3

23.4

Dr Reddy's Labs

DRREDD 2974 2,875 Hold

51914.8

142.1

86.5

143.5

20.9

34.4

20.7

12.9

17.1

11.4

17.3

10.9

17.8

20.7

11.4

16.3

Glenmark Pharma

GLEPHA

23991.4

32.2

41.4

49.8

26.7

20.7

17.2

16.8

14.1

11.4

16.2

18.7

20.6

21.2

21.7

20.9

Indoco Remedies

INDREM

310

365

Buy

2857.1

9.0

13.6

19.4

34.4

22.8

16.0

17.7

13.4

10.3

12.5

17.3

23.4

14.2

18.3

21.7

Ipca Laboratories

IPCLAB

550

605

Buy

6942.9

10.0

21.9

30.2

54.9

25.2

18.2

21.9

13.8

10.9

5.7

11.5

14.4

5.5

11.0

13.5

515

420

Jubilant Life Sciences


Lupin

VAMORG
LUPIN

620

M Cap
(| Cr)

PE(x)
EV/EBITDA (x)
RoCE (%)
RoE (%)
FY17E FY18E FY16 FY17E FY18E FY16 FY17E FY18E FY16 FY17E FY18E

I-Direct
Code

790 1,055

Rating

EPS (|)
FY16 FY17E FY18E FY16

Company

405
510

858 1,000

1512 1,890

Buy

Buy

8204.8

26.0

41.2

52.5

19.8

12.5

9.8

9.6

7.8

6.5

12.0

15.1

17.0

14.2

18.7

19.5

Buy

68213.1

50.4

64.6

75.5

30.0

23.4

20.0

20.0

15.3

12.6

18.6

20.6

22.1

20.7

21.7

20.2

Natco Pharma

NATPHA

683

700

Buy

11890.0

8.9

11.6

13.8

76.7

58.8

49.5

42.5

36.6

30.7

16.0

17.3

18.0

11.9

13.7

14.3

Sun Pharma

SUNPHA

756

890

Buy

181950.6

23.4

29.9

35.5

32.2

25.3

21.3

20.6

16.6

14.0

18.6

20.7

21.2

18.0

19.3

19.2

550

Buy

9266.0

11.1

15.8

18.7

41.7

29.2

24.6

25.5

20.3

16.3

13.2

17.4

19.3

21.0

23.6

22.3

Buy

27356.1

107.8

68.0

74.9

15.0

23.8

21.6

10.9

17.3

16.3

46.7

28.5

27.5

53.8

27.0

24.3

Buy

2473.0

12.3

15.3

21.1

22.1

17.8

12.9

15.2

12.3

8.8

13.8

15.7

18.9

11.7

12.9

15.5

Syngene International

SYNINT

463

Torrent Pharma

TORPHA

1617 1,650

Unichem Laboratories
UNILAB 272 340
Source: Company, ICICIdirect.com Research

Exhibit 97: One year forward P/E of CNX Pharma vs. Sensex
45
40

42%Premium

35
30
25
x

20
15
10
5

CNX Pharma

Jul-16

Jan-16

Jul-15

Jan-15

Jul-14

Jan-14

Jul-13

Jan-13

Jul-12

Jan-12

Jul-11

Jan-11

Jul-10

Jan-10

Jul-09

Jan-09

Jul-08

Jan-08

Jul-07

Jan-07

Jul-06

Sensex

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd. | Retail Equity Research

Page 29

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

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

ICICI Securities Ltd. | Retail Equity Research

Page 30

ANALYST CERTIFICATION
We /I, Siddhant Khandekar CA-INTER Mitesh Shah MS (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 Indias 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. We and our associates might have investment banking
and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts
and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.
The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and
meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without
prior written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securitiesis is under no obligation to update or keep the information
current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended
temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this
company, or in certain other circumstances.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This
report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their
receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific
circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate
the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any
loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the
risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to
change without notice.
ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment
in the past twelve months.
ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in
respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.
ICICI Securities or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned
in the report in the past twelve months.
ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its analysts did not receive any compensation
or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts have any
material conflict of interest at the time of publication of this report.
It is confirmed that Siddhant Khandekar CA-INTER Mitesh Shah MS (Finance), Research Analysts of this report have not received any compensation from the companies mentioned in the report in the
preceding twelve months.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
ICICI Securities or its subsidiaries collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the
publication of the research report.
Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject
company/companies mentioned in this report.
It is confirmed that Siddhant Khandekar CA-INTER Mitesh Shah MS (Finance), Research Analysts do not serve as an officer, director or employee of the companies mentioned in the report.
ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.
Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.
We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities.
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution,
publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities
described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and
to observe such restriction.

ICICI Securities Ltd. | Retail Equity Research

Page 31