idirect healthcheck jan16content.icicidirect.com/mailimages/idirect_healthcheck_jan16.pdf ·...

ICICI Securities Ltd. | Retail Equity Research

January 18, 2016

Monthly Update

Subdued Q3 expected; Cadila warning letter… Companies under the I-direct healthcare coverage (ex-Ajanta Pharma) in Q3FY16 are expected to post growth of ~8% YoY to | 33,512 crore. US sales from the select pack are expected to grow 15.8% to | 6787.2 crore on the back of 1) rupee depreciation (~6.4% YoY), 2) continued traction from gValcyte to DRL and gAbilify to Torrent and Alembic post exclusivity, 3) market share gains and 4) Natrol acquisition by Aurobindo. Similarly, Cipla through gNexium supply to Teva is also likely to register strong growth in the US. On the domestic front, despite the ongoing restructuring at some of the companies, the select pack is likely to grow ~12% YoY to | 5652.6 crore on the back of strong growth in the chronic segment and recovery in the acute segment. On the flip side, currency headwinds in other geographies like Europe and emerging economies such as Russia, Brazil and Venezuela are likely to impact the overall performance negatively. On the companies front, we expect Alembic, Cipla and Torrent to register strong growth mainly due to robust US sales while Ajanta and Natco are likely to grow on the back of strong growth in the domestic market. On the other hand, DRL and Lupin are likely to deliver a weak set of numbers due to lack of meaningful US launches while Ipca’s numbers are likely to be impacted due to ongoing cGMP issues. Restructuring at Sun is likely to continue in Q3 as well. Apart from this, Chennai floods would impact Apollo Hospitals’ Q3 growth. On the USFDA cGMP front, Cadila received a warning letter from the USFDA for its Moraiya formulation facility and Ahmedabad API facility (Zyfine). The company has clarified that there are no products in the US market, which use API of Zyfine. However, the Moraiya facility is an important formulation plant for Cadila as ~60% of its US revenues (25% of overall revenues) are derived from this facility. In a significant development, Natco entered into a settlement of litigation with US based Celgene relating to patents of Revlimid (lenalidomide; oncology). Based on this settlement, Natco with its partner Watson Pharma (Allergan) is eligible to manufacture and market volume limited quantity gRevlimid from March 2022 and unlimited quantity from January 31, 2026. This generic launch also depends on USFDA’s final approval for gRevlimid. The Indian pharmaceutical market (IPM) grew ~12% YoY to | 8349 crore in December. The growth was mainly driven by price hikes – 2.8%, volume growth – 5.2%, and new product launches – 4.0%. IPM registered growth of 14.3% YoY to | 24978 crore in Q3FY16. Recent headwinds factored in; long term drivers still intact Back to back warning letters to Indian companies from the USFDA coupled with currency headwinds in emerging market have weighed on prices. However, we believe recent setbacks have already been factored in the benchmark Nifty Pharma index, which is down ~18% from the peak and trading at ~17x FY18E against the historical range of 20-22x. Going ahead, the Street apprehensions on account of compliance issues and currency volatility in emerging markets are likely to be mitigated by acceleration in US approvals (148 ANDAs in CY15 against 105 in CY14) and sustainable growth in domestic formulations. We continue to maintain a positive view on the sector on the back of earning visibility, consistent operating cash flows, healthy operating margins, relatively low leverage and strong return ratios.

Health CheckSector View

Outperformer

Index Performance as on January 18, 2015

Return (%) 1M 3M YTD 1Y

CNX 500 -6 -11 -9 -12

Nifty -5 -11 -7 -14

NSE Pharma -5 -16 -7 0

Return (%)

Stocks Performance Mcap

Company 1M 3M YTD 1Y 17-Jan

Sun Pharma.Inds. -1 -12 -4 -8 188907

Lupin -5 -17 -7 19 76699

Dr Reddy's Labs -3 -33 -8 -13 49027

Cipla -8 -13 -9 -9 47475

Aurobindo Pharma -4 0 -9 39 46723

Cadila Health. -23 -28 -8 -8 30784

Glenmark Pharma. -16 -25 -17 6 21567

Divi's Lab. -7 0 -8 25 28336

Glaxosmit Pharma -3 -5 -5 -1 26785

Torrent Pharma. -8 -13 -8 21 22497

Apollo Hospitals -7 -6 -8 14 18783

Wockhardt -26 -24 -21 17 13366

Alembic Pharma -12 -17 -15 29 11219

Ajanta Pharma -9 -23 -13 18 10231

Pfizer -9 -11 -8 3 9900

Ipca Labs. -17 -20 -17 -13 7811

Natco Pharma -8 -4 -14 64 8722

Biocon 0 7 -7 12 9631

Strides Arcolab -22 -20 -21 10 9098

Jubilant Life -31 -26 -30 95 4594

Indoco Remedies -6 -8 -8 -4 2765

Unichem Labs. -16 -26 -16 -3 2044

Return (%)

MMarket cap in | crore

Price movement

50006000700080009000

100001100012000130001400015000

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16

4000

6000

8000

10000

12000

CNX Pharma Nifty (RHS)

Research Analyst

Siddhant Khandekar [email protected] Mitesh Shah [email protected]

Nandan Kamat [email protected]


Regulatory approvals

Exhibit 1: Summary of USFDA approvals for December 2015

[5

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeAjanta Pharma Irbesartan CVS Sanofi Aventis Avapro US$ 1.23 billionAlembic Pharms Linezolid Anti-bacterial Pharmacia and Upjohn Zynox NAAurobindo Pharma Risedronate Sodium Osteoporosis Warner Chilcott Actonel US$113 millionAurobindo Pharma Loperamide Hydrochloride GI J and J Consumer Inc. Imodium US$ 9.7 millionAurobindo Pharma Methylprednisolone Sodium Succinate Anti-Inflammatory Pharmacia and Upjohn Solu-Medrol US$ 102 millionAurobindo Pharma Eptifibatide CVS Schering Integrilin US$ 137 millionAurobindo Pharma Levonorgestrel Oral-Contraceptive Teva Plan-B US$ 64 millionAurobindo Pharma Dexamethasone Sodium Phosphate Anti-Inflammmatory Merck Decadron US$ 31 millionAurobindo Pharma Olopatadine Hydrochloride Opthalmic Alcon Pharms Pataday US$ 235 millionAurobindo Pharma Famotidine GI Valeant Pharms Pepcid US$ 29 millionDr. Reddy's Labs Amoxicillin Anti-bacterial GSK Amoxil NAGlenmark Pharms Linezolid Anti-bacterial Pharmacia and Upjohn Zynox US$ 447.6 millionJubilant Life Sciences Citalopram Hydrobromide Anti-depressant Forest Labs Celexa NAJubilant Life Sciences Paroxetine Anti-Depressant Apotex Paxil NALupin Ethinyl Estradiol; Norethindrone Acetate Oral-Contraceptive Warner Chilcott Femhrt US$ 39.9 millionLupin Potassium Chloride CVS Apothecon Klotrix US$ 85.6 millionSun Pharma Imatinib Mesylate Anti-Cancer Novartis Gleevec US$ 2.5 billionTorrent Pharms Celecoxib Anti-Inflammatory GD Searle Celebrex US$ 2.44 billionUnichem Labs Irbesartan CVS Sanofi Aventis Avapro US$ 1.23 billion

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeAurobindo Pharma Esomeprazole Magnesium GI Astrazeneca Pharma Nexium US$ 7.3 billionAurobindo Pharma Bivalirudin CVS The Medicines Co. Angiomax NADr. Reddy's Labs Fesoterodine Fumarate Urology Pfizer Toviaz US$ 159 millionGlenmark Pharma Dronedarone Hydrochloride CVS Sanofi Aventis Multaq US$ 425.7 millionJubilant Life Sciences Olmesartan Medoxomil CVS Daiichi Sankyo Benicar NASun Pharma Isotretinion Vitamin Ranbaxy Absorica NA

Final Approvals

Tentative Approvals

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

M&As, demergers and JVs

Jubilant enters into an agreement with Sanofi Jubilant Biosys, a subsidiary of Jubilant Life Sciences and Sanofi Deutschland GmbH, Frankfurt, Germany, entered into an agreement to discover and develop small molecule inhibitors for multiple targets in the metabolic disorders therapeutic area. The research alliance is aimed at developing therapeutic small molecules that will address the unmet needs in diabetes and obesity. Cipla enters into agreement with BioQ Pharma in India Cipla entered into an agreement with US-based BioQ Pharma for registration and commercialisation of BioQ Pharma's Ropivacaine infusion system, used in treating post-operative pain, in India. Aurobindo Pharma in talks with European company for biosimilar drugs Aurobindo Pharma is in advanced talks with a European company to obtain permits for at least four biosimilar drugs to treat cancers and autoimmune disorders in a deal valued at about US$200 million. Apollo Hospitals signs MoU with UK-based Health Education England Apollo Hospitals Group and UK-based Health Education England (HEE) have signed a Memorandum of Understanding (MoU) to exchange healthcare professionals and to look at the possibility of establishing a global healthcare school. The collaboration aims to achieve a number of objectives including clinical rotation of doctors, nurses and midwives and other health professionals, as well as undergraduate healthcare students through an exchange mechanism.


Capex, investments, fund raising

Aurobindo Pharma to set up facility in Saudi Arabia Aurobindo Pharma has leased a site in Phase one of the King Abdullah Economic City's (KAEC) Industrial Valley to build its first manufacturing facility in Saudi Arabia to produce oral tablets and capsules. The deal is part of the joint effort by KAEC and the National Industrial Clusters Development Programme, with pharmaceuticals being one of six major industries targeted by the drive. Lawsuits, court rulings, settlements

Petition filed against Sun Pharma Sun Pharma is facing protests from its sales force after it allegedly transferred and demoted some employees belonging to the acquired company. The Federation of Medical and Sales Representatives Associations of India (FMRAI) filed a petition against Sun Pharma in the Punjab and Haryana High Court. Natco settles litigation with Celgene Natco entered into a settlement of litigation with US based Celgene relating to patents of Revlimid (lenalidomide; oncology). Based on this settlement, Natco with its partner Watson Pharma (Allergan) is eligible to manufacture and market volume limited quantity gRevlimid from March 2022 and unlimited quantity from January 31, 2026. This generic launch also depends on the USFDA’s final approval for gRevlimid. Glenmark settles patent litigation with Forest Labs Glenmark Pharma settled a patent litigation with Forest Laboratories and Royalty Pharma Collection Trust over anti-depressant drug Savella. Under the terms of the settlement agreement, Glenmark will have the option to market and distribute its Milnacipran Hydrochloride tablets or an authorised generic version of Savella tablets. Glenmark Pharma enters into out-of-court settlement with Roche Glenmark Pharma has entered into an out-of-court settlement with F Hoffmann-La Roche to resolve a patent dispute for the patent of the latter’s cancer drug Tarceva. Tarceva (erlotinib hydrochloride) is a once-daily, oral non-chemotherapy medicine for the treatment of advanced or metastatic non-small cell lung cancer (NSCLC). As part of the agreement, the companies have ceased all relevant patent litigation on this product and Glenmark has acknowledged the patent rights of Roche. Price cuts, new launches, recalls

Torrent Pharma launches biosimilar Adalimumab in India Torrent Pharma launched biosimilar Adalimumab in India under the brand name ‘Adfrar’. Adalimumab is used for the treatment of auto immune disorders and has wide applications like rheumatoid arthritis, ankylosing spondylitis, psoriatic arthritis, ulcerative colitis and plaque psoriasis. Torrent’s brand ‘Adfrar’ will be the second biosimilar Adalimumab in the world. Biocon, Cipla launch Hepatitis-C drug in India Biocon and Cipla launched Gilead’s hepatitis-C (combination of ledipasvir-sofosbuvir) drug Harvoni in the Indian market under brand name CIMIVIR-L and Hepcivir-L, respectively. The companies had entered into a non-exclusive licensing agreement with Gilead Sciences to manufacture and market chronic hepatitis-C medicines, including Sovaldi and Harvoni, for India and 91 other developing countries. Glenmark’s GBR-1342 enters into clinical trials Glenmark Pharma has successfully initiated the discovery and investigational new drug-enabling studies for a Decel anti-cancer biological molecule - GBR 1342. GBR 1342 is the second bi-specific antibody.


Import alerts, warning letters, 483 observations

Cadila’s two facilities receive USFDA warning letter Cadila Healthcare has received a warning letter from the USFDA for its Moraiya formulation facility and Ahmedabad API facility (Zyfine). The company has clarified that there are no products in the US market, which use API of Zyfine. However, Moraiya facility is the important formulation plant for Cadila as ~60% of its US revenues (25% of overall revenues) are derived from this facility. Cadila receives EIR from USFDA for Baddi facility Cadila Healthcare has received establishment inspection report (EIR) for Baddi manufacturing plant from USFDA after successful inspection closure. Others

RBI increases investment limit in Jubilant Life Sciences The RBI has notified that foreign institutional investors (FIIs) and registered foreign portfolios investors (RFPIs) could now invest up to 45% of the paid up capital of Jubilant Life Sciences under the portfolio investment scheme (PIS). Earlier, the investment limit was up to 24% of the paid-up capital of the company.


Exhibit 2: Patent litigations YTD FY16 [5

Month Innovator ANDA Filer Brand Name API Used for

Apr-15 Sanofi Aventis Dr. Reddy's Labs Jevtana KIT Cabazitaxel Prostate Cancer

Apr-15 Sanofi Aventis Glenmark Jevtana KIT Cabazitaxel Prostate Cancer

Apr-15 Medicis Pharma Taro Pharma Zyclara Imiquimod Actinic Keratoses

Apr-15 Alcon Research Wockhardt Patanol Olopatadine hydrochloride Allergic Conjunctivitis

Apr-15 Janssen Products LP Cipla Prezista Darunavir Anti-Retroviral

Apr-15 Teva Pharma Dr. Reddy's Labs Copaxone Glatiramer Multiple Sclerosis

Apr-15 Eli Lilly Lupin Effient Prasugrel CVS

Apr-15 Horizon Pharma Lupin Pennsaid Diclofenac Osteoporosis

May-15 Apotex Inc. Lupin Paxil CR Paroxitine Hydrochloride Anti-Anxiety

May-15 Galderma Labs Glenmark Epiduo Adapalene; Benzoyl Peroxide Acne

May-15 Horizon Pharma Dr. Reddy's Labs Vimovo Esmoprazole Magnesium; Naproxen Osteoporosis

May-15 Merz Pharma Taro Pharma Naftin Naftifine Hydrochloride Fungal Infection

May-15 Takeda Zydus Pharma Daliresp Roflumilast CVS

May-15 Takeda Strides Daliresp Roflumilast CVS

May-15 Acorda Therapeutics Inc. Sun Pharma Ampyra Dalframpridine Multiple Sclerosis

May-15 Merck Lupin Safyral Drospiranone; Ethinyl Estradiol; Levomefolate CaBirth Control

May-15 Kowa Lupin Livalo Pitavastatin Calcium High Cholestrol

Jun-15 Millenium Pharmaceuticals Dr. Reddy's Labs Valcade Bortezomib Anti-Cancer

Jun-15 Millenium Pharmaceuticals Sun Pharma Valcade Bortezomib Anti-Cancer

Jun-15 Reckitt Benckiser LLC Dr. Reddy's Labs Mucinex Guaifenesin; Pseudoephedrine HCl Bronchial Conjestion

Jul-15 Eli Lilly Lupin Axiron Hypogonadism Testosterone

Jul-15 Fresenius Medical Gavis Pharma Phoslo Calcium Acetate Kidney Disease

Jul-15 Alcon Research Lupin TravatanZ Travoprost Ophthalmic solution Elevated Intraocular pressure

Aug-15 Allergan Lupin Namenda Memantine Hydrochoride Alzheimer's Disease

Aug-15 Galderma Labs Taro Pharma Epiduo Adapalene & Benzoyl peroxide Acne

Sep-15 Jazz Pharma Lupin Xyrem Sodium Oxybate Narcolepsy

Sep-15 Gilead Sciences Inc. Lupin Tamiflu Oseltamivir Influenza

Sep-15 Horizon Pharma Lupin Pennsaid Diclofenac Osteoarthritis

Sep-15 Bayer Pharma Alembic Pharma Staxyn Vardenafil Hydrochloride Sex Stimulant

Oct-15 Merck Lupin Beyaz Drospirenone Birth control

Oct-15 Salix Pharmaceuticals, Inc. Taro Pharma Moviprep Polyethylene glycol electrolyte soln Gastro Intestinal

Oct-15 Takeda Pharma Aurobindo Prevacid lansoprazole Stomach ulcers

Oct-15 Janssen Pharma Aurobindo Xarelto Rivaroxaban Blood Thinner

Oct-15 Novartis Pharma Natco Pharma Gleevec Matinib Mesylate Anti-cancer

Oct-15 Otsuka Pharma Zydus Pharma Abilify Aripiprazole Schizophrenia

Oct-15 AstraZeneca Alembic Pharma Brilinta Ticagrelor CVS

Nov-15 AstraZeneca InvaGen Pharma Brilinta Ticagrelor CVS

Nov-15 Novartis Pharma Dr. Reddy's Labs Exelon Patch Rivastigmine Dementia

Nov-15 Allergan Aurobindo Pharma Acular LS Ketorolactromethamine Ocular Pain

Nov-15 Shire Pharma Lupin Lialda Mesalamine Ulcerative Colitis

Nov-15 Dexcel Pharma Sun Pharma Omeprazole Omeprazole GI

Nov-15 Dexcel Pharma Dr. Reddy's Labs Omeprazole Omeprazole GI

Nov-15 Cephalon Inc. Aurobindo Pharma Nuvigili Modafinil CNS

Nov-15 Cosmo Techs Lupin Uceris Budesonide GI

Nov-15 Pfizer Dr. Reddy's Labs Toviaz Fesoterodine Urotherapy

Nov-15 Vanda Pharma Lupin Fanapt Iloperidone Schizophrenia

Nov-15 Forest Labs InvaGen Pharma Viibryd Vilazodone Anti-depressant

Nov-15 Jazz Pharma Sun Pharma Xyrem Gamma-hydroxybutyric acid CNS

Nov-15 Otsuka Pharma Alkem Labs Abilify Aripiprazole Schizophrenia

Nov-15 Symed Labs Glenmark Pharma Zyvox Linezolid Anti-Infective

Dec-15 UCB Inc. InvaGen Pharma Zyrtec-D Cetirizine Respiratory

Dec-15 Unimed Pharma Dr. Reddy's Labs Androgel Testosterone Low Testosterone

Dec-15 Helsinn Healthcare Dr. Reddy's Labs Aloxi Palanosetron Nausea

Dec-15 Sanofi-Aventis Glenmark Pharma Multaq Dronedarone Atrial Fibrillation

Dec-15 Otsuka Pharma Ajanta Pharma Abilify Aripiprazole Schizophrenia

Dec-15 Merz Pharma Taro Pharma Naftin Naftifine Hydrochloride Fungal Infection

Source: Bloomberg, ICICIdirect.com Research


IPM grows 11.9% in December 2015 • The Indian pharmaceutical market (IPM) grew 11.9% YoY to | 8349 crore

in December. The growth was mainly driven by price hikes – 2.8%, volume growth – 5.2%, and new product launches – 4.0%

• Drugs under the NLEM list witnessed growth of 7.5% YoY to | 1020 crore while non-NLEM drugs posted growth of 12.7% to | 6945 crore. Volume growth in NLEM and non-NLEM was 4.7% and 3.8%, respectively

• Among our covered companies, Alembic registered highest growth of 24.0% YoY followed by Cadila, Glenmark, Cipla, Lupin, Ajanta and Dr Reddy’s registering growth of 22.2%, 18.6%, 16.7%, 15.0%, 14.3% and 14.0%, respectively

• Therapy wise, 10 therapies have outpaced the IPM growth. Notable among them with growth rates- anti-diabetic – 15.1%, dermatology – 11.4%, gastro intestinal 13.2%, anti-infective – 14.4%, respiratory – 18.1% and CVS – 9.4%

• In all, 234 new brands were launched in December 2015 • On a MAT basis, IPM growth was at 14.4% YoY to | 96289 crore • Domestic companies have grown 13.4% while MNC companies have

grown 7.1% in December 2015 Exhibit 3: Domestic formulations - growth trend

15.3

14.2

20.1 21

.9

18.6

12.7

22.4

15.6

13.2 20

10.2

9.1 11

.9

-5

0

5

10

15

20

25

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market[

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 4: Companies growth in domestic market in December, 2015

-0.8

4.0

10.1

3.5 2.56.5

18.8 15.812.6

11.5

7.26.3

7.5

10.1

4.0 5.3

-15

-5

5

15

25

Ajan

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Therapy wise performance (| crore) Therapy Dec'15 Dec'14 YoY (%) Nov'15 MoM (%)Anti-Infectives 1261 1102 14.4 1254 0.5Cardiac 1060 969 9.4 984 7.8Gastro Intestinal 917 809 13.2 886 3.5Vitamins / Minerals / N 696 664 4.9 676 3.0Anti Diabetic 694 603 15.1 648 7.1Respiratory 783 663 18.1 718 9.1Pain / Analgesics 563 506 11.3 552 1.9NEURO / CNS 526 467 12.5 491 7.1Derma 516 464 11.4 490 5.3Gynaecological 386 355 8.5 366 5.3Vaccines 141 121 16.2 134 5.4Hormones 144 128 12.2 140 2.7Anti-Neoplastics 128 123 4.4 122 5.0Ophthal 115 108 6.1 110 4.5Blood Related 91 84 8.5 88 3.6Urology 88 79 12.7 83 6.4Others 96 76 27.3 91 5.4Anti Malarials 34 36 -6.3 47 -27.4Sex Stimulants / Rejuv 49 48 3.2 50 -1.9Stomatologicals 33 32 4.6 31 6.4 Source: AIOCD data base

Top brands in Indian pharma market Brand Company Therapy Dec'15 Dec'14 Gr. (%)Augmentin GSK Anti-Infectives 325.6 292.9 11.2Corex Pfizer Respiratory 291.5 223.4 30.5Spasmo Prox Wockhardt GI 280.6 158.6 76.9Lantus Sanofi Anti Diabetic 249.9 202.2 23.6Becosules Pfizer Vitamins 248.8 236.0 5.4Galvus Met Novartis Anti Diabetic 239.3 172.8 38.5Clavam Alkem Anti-Infectives 230.4 218.9 5.2Volini Sun Pharma Pain 208.3 212.3 -1.9Shelcal Torrent Vitamins 196.5 120.9 62.5Foracort Cipla Respiratory 191.5 154.7 23.8

Source: AIOCD data base; Date as per MAT Dec15 & Dec 14 Industry acute to chronic therapy ratio percentage…

Acute, 46619.90,

48.4%

Chronic, 30091.13,

31.3%Sub-

Chronic, 19577.69,

20.3%

Source: AIOCD data base ; As per AIOCD MAT Dec 2015


IPM grows 14.3% in Q3FY16 • The Indian pharmaceutical market (IPM) registered growth of 14.3% YoY

to | 24978 crore in Q3FY16 • The growth was driven by volume growth of 6.4%, price hikes – 5.0%

followed by and new product launches – 2.9% • Among our covered companies, Alembic registered highest growth of

24.6% YoY followed by Glenmark, Cadila, Cipla, Dr Reddy’s and Lupin clocking growth of 23.5%, 18.6%, 17.8%, 15.7% and 14.8% respectively.

• Therapy wise, 11 therapies have outpaced the IPM growth. Notable among them with growth rates- anti-diabetic – 20.1%, gastro intestinal – 15.3% CNS – 14.7%, anti-infective – 15.2% and respiratory – 17.8%. Anti-malarias and ophthal segment registered just 4.9% and 6.8% growth respectively in Q3FY16

Therapy wise performance (| crore) Therapy Q3FY16 Q3FY15 YoY (%) Q2FY16 QoQ (%)Anti-Infectives 3957 3440 15.0 3957 0.0Cardiac 3071 2720 12.9 3079 -0.3Gastro Intestinal 2776 2408 15.3 3043 -8.8Vitamins 2130 1969 8.2 2319 -8.1Anti Diabetic 2021 1683 20.1 2010 0.6Respiratory 2214 1880 17.8 1792 23.5Pain 1724 1513 14.0 1795 -3.9CNS 1530 1335 14.7 1539 -0.6Derma 1520 1331 14.2 1509 0.7Gynaecological 1155 1046 10.3 1248 -7.5Hormones 424 342 23.9 442 -4.2Vaccines 432 378 14.3 422 2.5Anti-Neoplastics 374 350 6.8 418 -10.6Ophthal 344 322 6.8 361 -4.7Blood Related 276 240 14.8 305 -9.7Others 262 231 13.5 277 -5.5Urology 285 216 31.9 277 3.0Anti Malarials 158 151 4.9 180 -12.1Sex Stimulants 144 125 14.9 127 13.1Stomatologicals 97 92 5.9 102 -4.7

Source: AIOCD data base

Exhibit 5: Domestic formulations – quarterly growth trend

7.53.8

9.37.2

4.46.4

4.6

5.1

5.2

4.8

4.6

5.0

1.5

2.0

2.6

2.8

2.8

2.9

13.6

10.9

17.1

14.8

11.8

14.3

-1.01.03.05.07.09.0

11.013.015.017.019.0

Q2FY15 Q3FY15 Q4FY15 1QFY16 2QFY16 3QFY16

(%)

Volumes Price Increases New Products

[


Exhibit 6: Company wise growth trends in Q3FY16

10.2

24.6

4.8

17.815.7

13.0

23.5

12.414.8 14.8

4.0

13.1

9.26.7

10.1 9.312.7

10.9

-

5.0

10.0

15.0

20.0

25.0

30.0

Ajan

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Dr R

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's

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(%)



IPM grows 14.4% in CY15 • The Indian pharmaceutical market (IPM) registered growth of 14.4% YoY

to | 96289 crore in CY15 • The growth was driven by volume growth of 6.8%, price hikes of 4.9%

followed by and new product launches – 2.8% • Among our covered companies, Glenmark Pharma registered highest

growth of 25.5% YoY followed by Torrent, Lupin, Alembic Pharma, DRL, and Cipla clocking growth of 20.4%, 18.0%, 17.9%, 16.8% and 16.3%, respectively

• Therapy wise, eight therapies outpaced IPM growth. Notable among them with growth rates- anti-diabetic – 24.2%, urology – 19.6% gastro intestinal – 16.3%, CNS – 14.9%, dermatology – 17.7% and respiratory – 14.6%. The anti-malarias segment registered just 9.9%

Exhibit 7: Domestic formulations – quarterly growth trend

5.9

6.8

2.8

4.9

2.12.8

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

CY14 CY15

Volumes Price Increases New Products

[

Source: AIOCD data base, ICICIdirect.com Research; *Average of trailing four quarters

Exhibit 8: Company wise growth trends in CY15

12.2

17.9

6.4

16.3 16.8

6.1

25.5

6.79.2

18.0

8.5

15.714.2 14.0

20.4

11.1 11.6

-

5.0

10.0

15.0

20.0

25.0

30.0

Ajan

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(%)


Therapy wise performance (| crore) Therapy CY15 CY14 YoY (%)Anti-Infectives 14736 13410 9.9Cardiac 12022 10454 15.0Gastro Intestinal 11276 9698 16.3Vitamins 8603 7726 11.3Anti Diabetic 7759 6249 24.2Respiratory 7572 6607 14.6Pain 6651 5907 12.6CNS 5906 5143 14.9Derma 5759 4893 17.7Gynaecological 4707 4220 11.5Vaccines 1682 1430 17.6Hormones 1631 1453 12.2Anti-Neoplastics 1571 1397 12.5Ophthal 1394 1227 13.6Blood Related 1117 976 14.4Urology 1048 876 19.6Others 1039 838 24.1Anti Malarials 554 538 2.9Sex Stimulants 535 468 14.4Stomatologicals 393 364 7.9



Sun Pharmaceuticals

Stock Performance

507090

110130150

Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16

CNX Pharma Sun Pharma

Source: NSE, ICICIdirect.com Research Exhibit 9: Company growth vis-à-vis Indian pharma market growth

15.3

14.2

20.1 21

.9

18.6

12.7

15.6

13.2

13.3

10.2

22.4

9.1

11.9

15.8

11.1

10.7

14.4

18.4

16.0

23.1

17.2

11.2 11.9

17.7

4.0

9.2

0

5

10

15

20

25

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Sun Pharmaceutical Industries


Exhibit 10: Market share in Indian formulations market

9.0 9.2

8.48.7 8.9

9.3 9.3 9.08.5 8.4 8.4

8.8 8.8

6.0

6.6

7.2

7.8

8.4

9.0

9.6

10.2

10.8

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Sun Pharmaceutical Industries

Source: AIOCD data base, ICICIdirect.com Research * Included Ranbaxy’s sales

Exhibit 11: Top 10 brands performance (| crore) Brand Therapy Dec'15 Dec'14 Var. (%) Nov'15 Var. (%)

Volini Pain 21.6 18.7 15.5 21.3 1.4

Rosuvas Cardiac 14.9 12.1 23.1 12.9 15.8

Gemer Anti Diabetic 13.2 11.9 10.8 12.7 3.8

Levipil Neuro 13.0 10.9 19.5 12.3 5.2

Istamet Anti Diabetic 12.7 11.1 14.5 12.2 4.3

Susten Gynaecological 12.2 11.1 9.5 11.3 7.9

Pantocid Gastro Intestinal 11.9 10.9 8.9 11.1 7.1

Storvas Cardiac 10.7 9.5 12.8 9.4 14.2

Pantocid Dsr Gastro Intestinal 10.0 8.7 14.9 9.4 6.0

Aztor Cardiac 9.6 8.7 9.2 9.2 3.7


Exhibit 12: Contribution of therapies to domestic sales (MAT Dec’15) z

Neuro 26%

Cardiac26%

Gastro Intestinal18%

Anti-Infectives17%

Anti Diabetic13%


Exhibit 13: Therapy wise performance (| crore)

Therapy Dec'15 Dec'14 YoY (%) Nov'15 QoQ (%)

Neuro 131.9 122.7 7.5 126.6 4.2

Cardiac 132.3 118.7 11.4 123.9 6.7

Gastro Intestinal 84.1 76.0 10.7 80.3 4.8

Anti-Infectives 88.2 79.4 11.1 86.0 2.5

Anti Diabetic 64.5 58.9 9.5 62.3 3.4

Pain 56.7 50.0 13.4 53.5 6.0

Derma 31.7 28.1 12.8 32.0 -0.9

Vitamins 29.6 25.1 18.2 29.0 2.2

Gynaecological 27.0 25.6 5.4 26.0 3.9

Respiratory 32.6 29.2 11.6 29.0 12.5


Acute : Chronic contribution (MAT Dec’15)

Acute, 3474.91,

41.0%

Chronic, 3860.34,

45.6%

Sub-Chronic, 1136.76,

13.4%


Brands contribution to domestic sales (MAT Dec ’15)

17%

9%

7%

9%58%

Top 10 11 to 20 21 to 30 31 to 50 Others



Cipla

Stock Performance

6080

100120140


CNX Pharma Cipla

Source: NSE, ICICIdirect.com Research

Exhibit 14: Company growth vis-à-vis Indian pharma market growth

15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1

11.9

13.6

13.3

24.1

24.8

25.4

15.9

16.7

11.6

11.0

4.6

21.0

15.8 16.7

0

5

10

15

20

25

30

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Cipla



5.05.1

5.2

5.1

5.3

4.8

4.6 4.6

4.85.0 4.9

5.15.2

4.2

4.4

4.6

4.8

5.0

5.2

5.4

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Cipla



Budecort Respiratory 18.6 13.4 38.4 14.0 33.0

Foracort Respiratory 18.5 16.3 13.8 17.9 3.3

Asthalin Respiratory 13.9 13.4 3.9 13.2 5.3

Seroflo Respiratory 12.2 12.8 -4.7 11.8 3.9

Duolin Respiratory 11.6 10.4 10.8 10.5 9.9

Azee Anti-Infectives 9.6 7.2 33.4 8.6 11.6

Aerocort Respiratory 8.6 9.1 -5.2 8.4 2.2

Montair Lc Respiratory 8.3 6.6 26.3 8.0 3.6

Advent Anti-Infectives 7.0 4.9 41.2 6.7 4.5

Phosome Anti-Infectives 6.8 1.3 445.3 2.5 169.2


Exhibit 17: Contribution of therapies to domestic sales (MAT Dec’15)

Respiratory30%

Anti-Infectives27%

Cardiac12%

Gastro Intestinal8%

Urology5%

Other18%



Therapy Dec'15 Dec'14 YoY (%) Nov'15 QoQ (%)Respiratory 145.8 126.7 15.0 134.0 8.8Anti-Infect ives 118.1 92.8 27.3 111.8 5.7

Cardiac 48.7 47.8 1.9 46.5 4.7Gastro Intestinal 31.3 25.0 25.0 29.0 7.9

Urology 19.1 16.9 13.2 18.1 5.4Neuro 14.5 13.3 9.2 13.8 4.7

Pain 12.5 9.6 29.4 12.7 -1.6

Derma 10.2 9.2 10.8 9.6 5.9

Ophthal 9.7 8.3 17.6 9.1 7.2

Vitamins 6.6 6.6 -0.5 6.1 8.4


Acute : Chronic contribution (MAT Dec ’15)

Acute, 2240.08,

46.6%

Chronic, 1979.25,

41.2%

Sub-Chronic, 584.62, 12.2%


Brands contribution to domestic sales (MAT Dec’15)

24%

12%

8%12%

44%




Dr Reddy’s Laboratories (DRL)

Stock Performance

60

80

100

120

140

Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16CNX Pharma Dr. Reddys



15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1 11

.923.0

22.3 24

.2

34.4

35.0

22.9

32.2

27.0

14.9

7.6

21.0

12.6 14.0

-10

0

10

20

30

40

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Dr. Reddys Laboratories



2.4

2.2 2.2

2.3 2.3

2.4

2.32.2

2.1

2.3

2.3 2.3

2.4

1.9

2.0

2.1

2.2

2.3

2.4

2.5

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Dr. Reddys Laboratories



Omez Gastro Intestinal 10.6 9.0 18.0 10.3 2.9

Omez D Gastro Intestinal 7.9 6.8 16.6 8.2 -3.6

Grafeel Anti-Neoplastics 6.8 3.0 127.5 8.3 -17.7

Reditux Anti-Neoplastics 5.5 3.5 59.2 3.9 40.0

Nise Pain 5.5 4.9 13.0 5.2 5.3

Econorm Gastro Intestinal 5.5 4.7 16.3 4.2 28.5

Stamlo Cardiac 5.4 5.3 1.6 5.2 4.1

Mintop Derma 5.3 4.8 10.6 5.1 4.5

Razo D Gastro Intestinal 5.1 3.9 28.4 4.4 14.6

Clamp Anti-Infectives 4.3 3.6 18.6 4.0 8.6




Cardiac15%

Anti-Neoplastics

11%Respiratory9%

Anti-Infectives8%

Other35%





Cardiac 27.6 27.5 0.5 25.8 6.9

Anti-Neoplastics 25.7 15.6 65.1 24.8 3.6

Respiratory 18.2 19.1 -4.3 17.3 5.2

Anti-Infectives 16.3 13.8 17.9 16.1 1.0

Pain 13.5 11.9 13.3 12.4 8.9

Anti Diabetic 13.5 12.2 10.7 12.0 12.2

Derma 14.9 12.4 19.9 13.4 11.7

Urology 8.5 6.9 22.4 7.2 17.5

Stomatologicals 6.3 5.9 7.1 5.4 15.6



Acute, 1105.74,

50.0%

Chronic, 661.37, 29.9%

Sub-Chronic, 444.52, 20.1%



30%

16%

9%12%

33%




Lupin

Stock Performance

6080

100120140


CNX Pharma Lupin



15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

9.118

.1

14.9

22.8

19.1

16.1 18

.5

25.1

21.2

12.4

22.2

7.5

15.0

22.4

11.9

-4

4

12

20

28

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Lupin



3.4 3.33.2

3.0

3.63.8 3.8 3.7

3.4 3.4 3.3 3.43.5

2.32.52.72.93.13.33.53.73.9

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Lupin



Gluconorm-G Anti Diabetic 12.4 10.2 21.9 11.3 9.8

Budamate Respiratory 9.8 7.7 27.4 8.4 17.2

Tonact Cardiac 8.2 8.0 3.7 7.6 8.9

Esiflo Respiratory 5.3 4.7 13.0 4.6 13.6

Rablet-D Gastro Intestinal 4.7 4.1 14.2 3.8 23.3

Ramistar Cardiac 4.3 4.4 -0.6 3.9 11.3

Telekast-L Respiratory 4.2 3.9 9.5 3.6 17.7

R-Cinex Anti-Infectives 4.1 4.1 0.0 3.9 7.4

Rablet Gastro Intestinal 4.1 3.8 8.6 3.7 9.7

Cetil Anti-Infectives 3.9 2.7 42.9 3.4 14.9



Cardiac25%

Anti-Infectives22%

Respiratory12%

Anti Diabetic11%

Gastro Intestinal8%

Other22%




Cardiac 71.4 63.8 12.0 65.6 8.8

Anti-Infectives 60.9 52.5 16.0 58.4 4.2

Respiratory 42.7 35.7 19.5 37.5 13.8

Anti Diabetic 31.9 26.8 18.7 28.9 10.1


Vitamins 14.3 13.9 2.8 14.1 1.6

Neuro 14.5 13.8 5.5 13.2 10.2

Pain 12.3 11.0 11.4 11.8 3.9

Gynaecological 9.5 6.8 40.4 8.8 8.6

Ophthal 1.8 1.6 15.0 1.6 18.9



Acute, 1050.59,

31.6%

Chronic, 1611.89,

48.4%Sub-

Chronic, 666.92, 20.0%



20%

11%

9%13%

47%




Cadila Healthcare

Stock Performance

60

80

100

120

140


CNX Pharma Cadila Healthcare



15.3

14.2

20.1 21

.9

18.6

12.7

15.6

13.2

13.3

10.2

22.4

9.1

11.9

14.3

8.6 9.

8

13.8 15

.3

11.0

15.1

13.2

12.7 14

.5

23.3

4.0

6.8

0

5

10

15

20

25

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Cadila Healthcare



3.94.0

3.83.9

3.9

3.83.9

3.8

3.8

3.8 3.8

3.83.8

3.63.73.73.83.83.93.94.04.0

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Cadila Healthcare



Skinlite Derma 17.0 20.9 -18.5 13.2 28.5

Atorva Cardiac 11.6 10.6 9.5 11.3 3.3

Deriphyllin Respiratory 9.3 8.4 11.2 9.3 -0.3

Mifegest Kit Gynaecological 9.3 7.8 18.5 8.3 11.7

Pantodac Gastro Intestinal 7.2 7.4 -2.6 7.7 -6.2

Ocid Gastro Intestinal 6.4 2.6 152.4 5.7 12.5

Clopitorva Cardiac 5.7 3.9 43.8 5.4 5.2

Amlodac Cardiac 5.3 5.5 -3.6 5.1 4.0

Thrombophob Cardiac 5.2 4.0 31.8 4.8 9.3

Dexona Hormones 5.1 3.3 52.0 4.8 6.0



Cardiac18%


Gynaecological12%

Respiratory10%

Derma8%

Other38%




Cardiac 57.8 54.4 6.1 55.7 3.8

Gastro Intestinal 42.4 37.2 14.0 42.7 -0.6

Gynaecological 34.4 34.0 1.2 33.4 2.9

Respiratory 38.4 33.7 14.1 36.0 6.7

Derma 28.2 30.8 -8.5 25.0 12.6

Pain 20.8 20.4 1.8 21.8 -4.9

Anti-Infectives 21.5 17.5 23.0 20.8 3.5


Vitamins 12.6 11.1 14.2 12.7 -0.6

Anti Malarials 4.1 6.2 -33.7 6.2 -33.5



Acute, 1635.91,

44.3%

Chronic, 1308.54,

35.4%Sub-

Chronic, 751.34, 20.3%



26%

13%

8%11%

42%




GlaxoSmithKline Pharmaceuticals

Stock Performance

6080

100120140


CNX Pharma GSK Pharma



15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1 11

.9

0.8

2.6 6.

6 10.8 12

.9

0.7

2.1

-1.7 -0.3

2.6

23.9

7.2 8.

2

-5

0

5

10

15

20

25

30

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Glaxosmithkline Pharmaceuticals



3.4

3.3 3.3

3.43.4

3.2 3.2

3.1

3.2

3.3

3.5

3.4

3.3

3.0

3.2

3.4

3.6

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Glaxosmithkline Pharmaceuticals



Augmentin Anti-Infectives 27.7 29.0 -4.5 25.4 9.0

Synflorix Vaccines 17.7 14.4 22.9 15.2 16.4

Betnovate C Derma 15.6 11.2 40.0 15.1 3.2

Betnovate N Derma 14.8 11.9 24.5 14.1 5.3

Calpol Pain 14.1 11.6 21.7 15.6 -9.3

Rotarix Vaccines 12.2 7.6 60.7 12.1 1.4

Eltroxin Hormones 11.9 9.9 20.0 10.5 13.4

Zinetac Gastro Intestinal 11.6 12.5 -6.9 13.4 -12.8

Betnesol Hormones 11.6 8.9 30.2 13.5 -13.9

Ceftum Anti-Infectives 10.2 10.8 -5.5 9.7 4.8



Anti-Infectives24%

Derma21%

Vaccines13%

Pain 9%

Hormones8%

Other25%




Anti-Infectives 64.7 63.9 1.4 61.0 6.1

Derma 56.5 55.0 2.7 55.1 2.6

Vaccines 42.1 25.9 62.5 38.3 9.9

Pain 24.1 21.0 15.0 25.1 -3.7

Hormones 24.2 19.5 23.9 24.8 -2.4

Vitamins 18.5 18.3 0.8 18.5 -0.2

Gastro Intestinal 13.3 15.1 -12.0 15.1 -12.3

Respiratory 18.5 16.7 10.9 17.6 5.2

Cardiac 5.6 7.3 -23.8 5.0 11.3




Acute, 2060.12,

64.9%

Chronic, 433.18, 13.6%Sub-

Chronic, 680.61, 21.4%



51%

15%

9%

10%

15%




Wockhardt

Stock Performance

050

100150200250300350400


CNX Pharma Wockhardt


15.3

14.2 20

.1

21.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1 11

.9

-2.2

44.8

29.2

19.9

31.9

29.1

22.2

36.0

24.4

42.2

50.4

38.3

29.7

-10

0

10

20

30

40

50

60

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Wockhardt



1.16

1.37

1.47

1.40

1.281.24

1.28

1.37 1.361.40

1.42 1.401.34

1.01.11.11.21.21.31.31.41.41.51.5

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Wockhardt



Spasmo Proxyvon PluGastro Intestinal 24.7 12.9 90.7 27.9 -11.7

Practin Vitamins 6.6 4.9 34.2 6.0 10.4

Bro Zedex Respiratory 5.2 4.7 NA 5.6 -6.7

Tryptomer Neuro 5.0 3.5 41.5 4.6 9.2

Zedex Respiratory 4.2 4.0 3.8 4.0 3.7

Methycobal Vitamins 3.6 3.1 16.3 3.4 6.4

Biovac V Vaccines 3.5 2.6 NA 3.3 6.1

Ace Proxyvon Pain 3.0 2.5 21.4 2.8 6.0

Biovac A Vaccines 3.0 3.2 -7.0 2.8 5.8

Aziwok Anti-Infectives 2.1 2.0 6.1 2.2 -3.2


Exhibit 42: Contribution of therapies to domestic sales (MAT Dec’15) Gastro Intestinal

24%

Vitamins 15%

Respiratory12%

Vaccines9%

Neuro 7%

Other33%





Vitamins 16.5 13.8 19.1 15.2 8.0

Respiratory 17.4 15.1 15.3 16.8 3.9

Vaccines 6.5 5.8 12.3 6.1 6.7

Neuro 8.7 6.8 27.9 7.8 11.9

Anti-Infectives 8.0 6.1 31.4 8.0 -0.4

Derma 7.0 8.4 -17.2 6.9 1.2

Pain 7.1 5.8 22.0 6.9 2.8

Anti Diabetic 6.8 4.8 42.7 7.1 -4.1

Hormones 2.4 1.9 26.3 2.2 7.1



Acute, 929.06, 70.9%

Chronic, 242.18, 18.5%

Sub-Chronic, 138.25, 10.6%



56%15%

8%

8%

13%




Glenmark Pharmaceuticals

Stock Performance

6080

100120140160180200

Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16CNX Pharma Glenmark



15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1 11

.9

21.6

21.4 24

.2 28.2 30

.3

29.9 34

.6

30.9

28.0

13.1

43.6

11.5

18.6

05

101520253035404550

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Glenmark Pharmaceuticals



2.42.4

2.3 2.3 2.32.2

2.32.4 2.3

2.42.5 2.5

2.6

1.9

2.1

2.3

2.5

2.7

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Glenmark Pharmaceuticals



Telma Cardiac 16.1 12.8 25.9 13.9 15.6

Telma H Cardiac 12.9 10.3 24.9 10.9 18.2

Ascoril Plus Respiratory 12.0 9.8 22.1 10.1 18.1

Candid-B Derma 7.6 7.1 6.7 7.3 3.6

Telma Am Cardiac 6.9 5.0 37.0 6.0 13.5

Ascoril Ls Respiratory 6.1 3.7 66.6 5.3 15.6

Candid Derma 5.8 4.8 19.1 6.3 -8.4

Zita Plus Anti Diabetic 3.8 0.0 #DIV/0! 2.7 40.7

Zitamet Anti Diabetic 3.4 6.0 -43.9 4.7 -28.8

Zita(Glenmark) Anti Diabetic 3.2 4.7 -32.0 3.7 -12.4



Derma28%

Cardiac22%

Respiratory16%

Anti-Infectives14%

Anti Diabetic9%

Other11%




Derma 59.4 50.8 16.9 54.6 8.9

Cardiac 48.2 39.7 21.2 41.9 15.0

Respiratory 41.2 31.9 29.4 36.6 12.6

Anti-Infectives 26.4 25.9 1.8 26.5 -0.5

Anti Diabetic 16.4 15.0 9.1 16.3 0.4

Vitamins 5.3 3.8 38.8 4.7 12.5


Pain 4.3 3.7 16.6 4.0 7.9


Otologicals 3.4 2.4 42.1 3.1 9.9



Acute, 921.31, 40.3%

Chronic, 853.96, 37.4%

Sub-Chronic, 510.12, 22.3%



36%

13%10%

12%

29%




Torrent Pharmaceuticals

Stock Performance

80100120140160180200


CNX Pharma Torrent Pharma



15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1 11

.9

30.7

21.1

30.9

30.5

28.8

27.4

28.3

18.3 21

.7

16.0 19

.8

5.3

3.7

0

5

10

15

20

25

30

35

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Torrent Pharmaceuticals



2.422.34

2.392.32

2.432.49 2.51

2.36

2.25 2.242.182.22 2.24

2.0

2.4

2.8

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Torrent Pharmaceuticals



Shelcal Vitamins 13.6 14.6 -7.0 12.8 6.3

Chymoral Forte Pain 8.3 8.0 4.1 7.9 5.1

Nikoran Cardiac 7.6 7.2 5.5 6.7 14.0

Nebicard Cardiac 5.3 4.4 21.9 4.9 8.6

Dilzem Cardiac 5.2 5.5 -6.4 4.7 9.3

Azulix-Mf Anti Diabetic 4.9 4.6 6.7 4.5 8.1

Nexpro Rd Gastro Intestinal 4.7 4.3 10.1 4.2 11.4

Nexpro Gastro Intestinal 4.1 4.2 -3.7 3.7 10.1

Shelcal Ct Vitamins 3.5 2.3 53.5 3.4 3.9

Alprax Neuro 3.4 3.3 5.8 3.2 6.2



Cardiac29%

Neuro 16%

Vitamins 15%


Pain 8%

Other17%




Cardiac 56.4 53.8 4.9 52.0 8.6

Neuro 31.6 29.8 5.9 29.9 5.7

Vitamins 26.8 24.6 8.9 26.1 2.5


Pain 13.5 12.1 11.4 13.1 3.4

Anti Diabetic 11.3 11.3 -0.7 10.9 3.0

Anti-Infectives 8.0 12.1 -33.7 8.2 -2.1

Derma 4.6 4.2 9.0 4.8 -5.3

Gynaecological 3.0 3.2 -6.1 3.1 -1.9

Urology 0.7 0.6 16.7 0.8 -5.8


Acute : Chronic contribution (MAT Dec ‘ 15)

Acute, 567.74, 25.3%

Chronic, 1126.90,

50.3%Sub-

Chronic, 546.24, 24.4%



33%

13%9%

12%

33%




Ipca Laboratories

Stock Performance

6080

100120140


CNX Pharma Ipca



15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1 11

.9

12.9

28.6

35.9

12.2 14

.5

-5.5

3.6

25.8

6.3

-5.8

-0.1 3.

0

11.8

-10-505

10152025303540

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Ipca Laboratories



1.2 1.2 1.2 1.2 1.2 1.3 1.2 1.31.3

1.5 1.4

1.3 1.2

1.0

1.2

1.4

1.6

1.8

2.0

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Ipca Laboratories



Zerodol Sp Pain 8.2 4.9 67.2 7.3 12.9

Zerodol P Pain 7.0 5.4 31.1 4.9 42.6

Hcqs Anti Malarials 5.2 4.3 20.2 4.8 7.0

Larinate Anti Malarials 3.2 3.9 -17.2 5.2 -37.3

Glycinorm M Anti Diabetic 3.1 2.6 19.7 2.9 6.3

Folitrax Anti-Neoplastics 2.8 2.2 23.1 2.4 13.8

Rapither-Ab Anti Malarials 2.2 2.0 15.1 3.3 -30.9

Azibact Anti-Infectives 2.2 1.9 13.6 2.0 11.7

Lariago Anti Malarials 2.0 1.7 14.2 2.9 -31.4

Zerodol Pain 2.0 1.9 4.9 2.3 -14.4



Pain 25%

Anti Malarials20%

Cardiac17%

Gastro Intestinal8%

Anti-Infectives6%

Other24%




Pain 28.2 21.3 32.3 25.3 11.5

Anti Malarials 16.3 15.7 3.7 21.7 -25.0

Cardiac 17.8 16.8 6.2 17.3 2.9


Anti-Infectives 6.5 6.8 -5.3 5.9 10.3

Anti Diabetic 5.8 5.2 11.5 5.3 8.8

Respiratory 5.7 4.8 17.7 4.9 15.0


Neuro 3.8 4.1 -7.6 3.2 17.5

Derma 3.3 3.4 -5.0 3.0 8.2



Acute, 831.64, 67.0%

Chronic, 336.77, 27.1%

Sub-Chronic,

72.87, 5.9%



37%

15%11%

13%

24%




Biocon

Stock Performance

60

80

100

120

140

Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16CNX Pharma Biocon



15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

22.4

9.1 11

.9

7.2

18.8

10.2

17.5

11.6

11.7

3.7 4.

8 6.0 7.3

-11.

2

10.0

-0.8

5.2

-15

-10

-5

0

5

10

15

20

25

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Biocon



0.360.38

0.350.36

0.330.34

0.36

0.34 0.33

0.31

0.33 0.340.32

0.27

0.29

0.31

0.33

0.35

0.37

0.39

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Biocon



Insugen Anti Diabetic 7.4 7.0 6.9 7.1 5.3

Basalog Anti Diabetic 5.1 3.8 33.9 4.9 5.9

Canmab Anti-Neoplastics 1.5 1.0 52.5 0.8 104.2

Blisto Mf Anti Diabetic 1.5 1.7 -13.3 1.5 -3.5

Insugen R Anti Diabetic 1.4 1.2 24.7 1.4 1.5

Abraxane Anti-Neoplastics 1.4 3.0 -53.6 0.3 327.0

Erypro Blood Related 1.4 1.0 40.4 1.2 15.7

Insugen N Anti Diabetic 0.7 0.8 -11.7 0.7 4.3

Psorid Anti-Neoplastics 0.6 0.3 133.9 0.8 -23.2

Statix Cardiac 0.5 0.3 31.2 0.3 30.2



Anti Diabetic61%

Anti-Neoplastics

19%

Cardiac6%

Blood Related6%

Derma3%

Other 5%




Anti Diabetic 17.6 15.8 11.2 16.8 4.6

Anti-Neoplastics 5.7 6.5 -12.1 4.1 38.1

Cardiac 1.5 2.0 -27.0 1.4 2.4

Blood Related 1.4 1.0 41.7 1.2 15.9

Derma 0.8 0.6 39.8 0.9 -6.9

Anti-Infectives 0.5 0.4 37.6 0.7 -24.0

Others 0.3 0.3 -2.1 0.3 -3.8


Vitamins 0.2 0.2 -14.0 0.1 20.8

Hormones 0.0 0.1 -81.5 0.0 -55.6



Acute, 63.23, 19.3%

Chronic, 239.62, 73.1%

Sub-Chronic,

25.11, 7.7%



75%11%

6%

6%

2%




Pfizer

Stock Performance

80110140170200230


CNX Pharma Pfizer


15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1 11

.9

25.4

26.4

23.0

18.2

18.8

11.8

20.3

17.3 19

.7

9.9

25.4

3.5 0.

9

-10

-5

0

5

10

15

20

25

30

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Pfizer



3.253.33

3.042.98 3.00

2.872.93 2.96 2.95 2.92 2.96 2.922.93

2.4

2.6

2.8

3.0

3.2

3.4

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Pfizer



Corex Respiratory 30.0 22.9 30.9 29.6 1.3

Becosules Vitamins 14.9 23.7 -36.9 16.8 -11.0

Magnex Anti-Infectives 11.9 12.6 -5.3 11.3 5.3

Gelusil Mps Gastro Intestinal 11.5 13.6 -15.2 10.6 9.3

Minipress Xl Cardiac 10.7 11.3 -5.1 10.1 5.9

Dolonex Pain 9.7 10.9 -10.3 10.6 -7.8

Mucaine Gastro Intestinal 8.6 7.1 21.4 8.3 3.0

Wysolone Hormones 7.9 8.2 -3.5 9.1 -12.8

Corex Dx Respiratory 7.4 5.4 37.6 6.1 21.7

Dalacin C Anti-Infectives 6.6 6.2 5.6 5.7 14.5



Anti-Infectives17%

Respiratory13%

Vitamins 11%

Gastro Intestinal11%Hormones

9%

Other39%




Anti-Infectives 42.0 39.0 7.6 39.0 7.6

Respiratory 39.7 30.4 30.7 37.7 5.4

Vitamins 19.9 29.0 -31.2 21.7 -8.3

Gastro Intestinal 25.0 26.3 -4.7 23.3 7.3

Hormones 21.2 21.5 -1.2 21.8 -2.7

Gynaecological 19.2 17.2 11.5 17.7 8.4

Cardiac 16.3 19.2 -15.3 14.7 10.6

Neuro 18.8 15.5 21.1 16.0 17.3

Pain 14.8 16.2 -8.7 15.6 -5.1

Vaccines 7.2 6.8 6.3 6.2 16.4



Acute, 1857.71,

64.8%

Chronic, 443.45, 15.5%

Sub-Chronic, 566.81, 19.8%



50%

19%

10%

10%

11%


Source: AIOCD data base l


Decartis India

Stock Performance

80

130

180


CNX Pharma Novartis India



15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1

11.9

6.7

1.1

2.6 5.

9

0.0

2.7

9.3

14.1 16

.0

19.1

10.1

10.1

9.7

0

5

10

15

20

25

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Novartis India



1.38

1.33

1.26 1.251.23 1.24

1.28

1.351.32

1.34

1.38

1.331.36

1.2

1.2

1.3

1.3

1.4

1.4

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Novartis India



Galvus Met Anti Diabetic 25.7 16.6 55.0 23.9 7.2

Voveran Pain 15.6 12.5 24.6 15.7 -0.9

Galvus Anti Diabetic 9.9 8.3 19.2 9.9 0.3

Rabipur (Novartis) Vaccines 9.5 7.3 29.4 8.4 12.8

Otrivin Respiratory 6.8 7.8 -12.7 4.5 49.2

Tegrital Neuro 4.9 5.0 -1.7 4.5 8.9

Voveran Pain 3.4 2.5 36.1 3.1 12.0

Regestrone Gynaecological 3.2 4.0 -19.5 2.8 12.0

Genteal Ophthal 2.4 2.6 -4.1 2.6 -5.3

Methergin Gynaecological 2.4 2.6 -10.5 2.3 2.2



Anti Diabetic30%

Pain 19%

Vitamins 9%

Respiratory9%

Vaccines8%

Other25%




Anti Diabetic 36.2 25.6 41.5 34.3 5.3

Pain 21.8 18.4 18.5 21.5 1.4

Vitamins 9.1 10.4 -12.3 9.6 -5.5

Respiratory 10.9 14.4 -24.3 8.1 34.2

Vaccines 9.6 7.5 28.2 8.6 12.5

Gynaecological 7.7 8.8 -12.5 7.3 5.6

Neuro 7.3 8.1 -9.7 7.1 3.4

Anti-Infectives 4.3 4.3 -0.6 4.3 -0.2

Ophthal 3.0 3.3 -9.1 3.4 -10.7




Acute, 596.42, 47.4%

Chronic, 483.72, 38.5%

Sub-Chronic, 177.46, 14.1%



71%

14%

6%5%4%




Unichem Laboratories

Stock Performance

70100130160


CNX Pharma Unichem Labs



15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1

11.9

6.6

13.6 16

.7

12.9

12.4

20.5

2.7

11.1

0.6

26.6

2.5

3.8

11.0

0

5

10

15

20

25

30

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Unichem Laboratories



0.930.98

0.940.96

0.94

1.000.97

0.88 0.88

0.93

0.86 0.88

0.89

0.80

0.90

1.00

1.10

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Unichem Laboratories



Losar H Cardiac 7.4 7.5 -1.1 6.3 18.5

Ampoxin Anti-Infectives 6.5 5.1 29.6 6.4 2.5

Losar Cardiac 5.8 6.0 -2.4 5.2 11.8

Unienzyme Gastro Intestinal 4.1 4.2 -2.8 4.7 -11.3

Vizylac Gastro Intestinal 2.3 2.1 8.7 2.2 6.9

Serta Neuro 2.1 1.9 9.9 1.7 26.4

Trika Neuro 2.1 2.7 -22.9 2.1 -0.7

Telsar Cardiac 1.6 1.5 5.8 1.5 9.1

Unistar (Unichem) Cardiac 1.6 1.3 17.8 1.5 4.9

Arkamin Cardiac 1.5 1.1 41.4 1.0 54.0



Cardiac41%

Anti-Infectives18%


Neuro 13%

Pain 4% Other

11%




Cardiac 33.2 31.6 5.2 29.3 13.6

Anti-Infectives 13.5 10.8 25.7 13.2 2.5


Neuro 10.5 9.7 8.7 9.3 13.8

Pain 3.1 2.5 26.5 2.8 10.7

Anti Diabetic 3.0 2.4 24.4 2.5 18.1

Vitamins 2.0 1.6 22.9 1.7 13.2

Respiratory 2.0 1.9 6.9 1.9 4.9

Derma 1.5 1.2 26.5 1.5 2.3

Gynaecological 0.4 0.4 -13.7 0.4 -2.4



Acute, 333.27, 37.5%

Chronic, 502.02, 56.5%

Sub-Chronic,

53.87, 6.1%



49%

12%9%

11%

19%




Indoco Remedies

Stock Performance

6080

100120140


CNX Pharma Indoco



15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1 11

.9

8.6

8.9

18.9 22

.0

2.4

2.6

1.2

11.0

3.4

-1.5

-6.7

16.0

10.1

-10

-5

0

5

10

15

20

25

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Indoco Remedies



0.70.7

0.8

0.7

0.70.7

0.7

0.7 0.7 0.7

0.7 0.70.7

0.60.60.60.70.70.70.70.70.80.8

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indoco Remedies



Febrex Plus Respiratory 6.4 5.9 9.3 6.5 -0.6

Cyclopam Gastro Intestinal 3.2 3.0 9.0 3.4 -5.0

Oxipod Anti-Infectives 3.2 2.1 54.3 3.5 -8.8

Sensodent-K Stomatologicals 2.8 3.6 -20.6 2.7 3.7

Atm Anti-Infectives 2.7 2.2 24.7 2.8 -1.2

Karvol Plus Respiratory 2.6 2.2 19.3 2.7 -3.4

Cital Urology 2.3 1.8 26.7 2.6 -13.1

Sensodent-Kf Stomatologicals 2.0 1.8 9.6 2.1 -1.3

Cloben G Derma 1.7 1.4 23.0 1.9 -11.7

Sensoform Stomatologicals 1.6 2.0 -19.6 1.7 -4.3


Exhibit 82: Contribution of therapies to domestic sales (MAT Dec’15) Respiratory

19%

Anti-Infectives17%

Stomatologicals16%


Vitamins 6%

Other28%




Respiratory 12.8 11.5 11.3 12.8 -0.1

Anti-Infectives 10.8 8.2 30.7 11.2 -3.7

Stomatologicals 9.5 9.8 -2.4 9.2 3.7


Vitamins 3.3 3.0 11.2 3.3 0.4

Urology 2.6 2.0 31.6 2.9 -10.3

Derma 2.4 1.9 27.7 2.5 -3.8

Pain 2.4 2.2 12.7 2.4 2.3

Ophthal 2.2 2.0 9.6 1.9 13.1

Anti Diabetic 1.8 2.1 -11.2 1.6 13.9



Acute, 560.14, 82.0%

Chronic, 41.55, 6.1%

Sub-Chronic, 81.57, 11.9%



48%

16%

8%

10%

18%




Ajanta Pharma

Stock Performance

80

130

180230

280


CNX Pharma Ajanta



15.3

14.2

20.1 21

.9

18.6

12.7

15.6

13.2

13.3

10.2

22.4

9.1

11.9

19.9

16.2

15.4

10.0

14.6

10.4

9.5

10.9

18.3

12.6

9.9

6.5

14.3

0

5

10

15

20

25

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Ajanta Pharma



0.51 0.500.51

0.470.46

0.49 0.48 0.470.49

0.460.45

0.510.52

0.4

0.4

0.4

0.5

0.5

0.5

0.5

0.5

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Ajanta Pharma



Melacare Derma 5.1 4.9 4.3 3.6 42.2

Met Xl Cardiac 4.3 3.8 11.9 4.2 1.4

Atorfit Cv Cardiac 2.9 2.4 20.9 3.2 -7.2

Feburic Pain 1.3 1.0 28.6 1.1 12.9

Rosufit Cv Cardiac 1.2 0.8 54.1 1.2 2.1

Soft Drops Ophthal 1.2 1.1 9.0 1.3 -11.9

Met Xl Am Cardiac 1.1 0.9 25.1 1.1 5.6

Rosutor Gold Cardiac 0.8 0.3 158.6 0.7 14.1

Cinod Cardiac 0.8 0.6 18.9 0.8 -2.1

Vertizac Neuro 0.6 0.5 20.3 0.6 5.2



Cardiac34%

Derma23%

Ophthal22%

Vitamins 6%

Pain 5%

Others10%




Cardiac 14.4 11.5 25.0 14.5 -0.5

Derma 10.8 10.4 4.5 8.9 21.1

Ophthal 8.9 8.4 5.8 8.7 1.9

Vitamins 2.5 2.3 9.0 2.5 -0.7

Pain 2.1 1.9 12.7 1.9 10.8

Gastro Intestinal 1.0 1.1 -9.2 1.1 -3.0

Neuro 0.9 0.8 14.6 0.9 7.9

Ophthal 0.6 0.5 17.8 0.7 -8.2

Anti-Infectives 0.7 0.3 172.7 0.7 -0.8

Respiratory 0.3 0.4 -18.3 0.3 9.2



Acute, 189.20, 40.5%

Chronic, 226.26, 48.5%

Sub-Chronic, 51.44, 11.0%



42%

13%9%

13%

23%




Alembic Pharma

Stock Performance

80100120140160180200


CNX Pharma Alembic Pharma



15.3

14.2

20.1 21

.9

18.6

12.7 15

.6

13.2

13.3

10.2

22.4

9.1 11

.9

11.4

6.6

19.4

19.1

17.0

19.7

15.2

18.1 21

.2

6.0

31.4

18.8

24.0

0

5

10

15

20

25

30

35De

c-14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Indian Pharma Market Alembic Pharma



1.361.33

1.42

1.351.29

1.27 1.26

1.32

1.411.43 1.45

1.50 1.51

1.11.21.21.31.31.41.41.51.51.6

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

(%)

Alembic Pharma


Exhibit 91: Top 10 brands performance (| crore) Brand Therapy Dec'15 Dec'14 Var. (%) Nov'15 Var. (%)Azithral Anti-Infectives 13.8 10.9 26.6 13.2 4.5Althrocin Anti-Infectives 6.7 7.8 -13.7 6.4 5.0Roxid Anti-Infectives 5.1 4.6 12.1 5.0 3.0Gestofit Gynaecological 4.6 3.5 33.1 3.8 20.1Wikoryl Respiratory 4.3 3.4 26.1 4.1 6.3Zeet Respiratory 3.2 2.2 42.6 2.5 25.3Ulgel Gastro Intestinal 3.0 2.3 34.0 3.2 -6.1Rekool D Gastro Intestinal 2.8 2.2 25.7 2.8 1.8Glycodin Respiratory 2.2 1.6 33.6 1.8 16.8Rekool Gastro Intestinal 2.1 1.7 28.2 2.0 5.1



Anti-Infectives26%


Respiratory13%

Cardiac13%

Gynaecological10%

Other24%



Anti-Infectives 31.0 27.6 12.2 30.0 3.3Gastro Intestinal 16.3 13.4 21.0 16.2 0.1Respiratory 20.9 14.7 42.4 19.1 9.4Cardiac 16.5 11.8 40.3 15.3 7.6Gynaecological 12.5 9.7 28.6 11.4 9.2Vitamins 7.2 6.3 13.7 6.7 7.4Anti Diabetic 7.2 5.3 36.4 6.9 4.2Pain 4.2 3.6 17.5 4.4 -3.6Derma 2.4 2.0 19.1 2.6 -5.7Urology 2.4 2.2 7.7 2.3 3.2

Nov'15 QoQ (%)Therapy Dec'15 Dec'14 YoY (%)



Acute, 820.44, 61.8%

Chronic, 271.42, 20.4%

Sub-Chronic, 236.15, 17.8%



39%

13%9%

13%

26%




Exhibit 94: One year forward P/E of CNX Pharma vs. Sensex

0

5

10

15

20

25

30

35

40

Mar

-06

Oct-0

6

May

-07

Dec-

07

Jul-0

8

Feb-

09

Sep-

09

Apr-1

0

Nov

-10

Jun-

11

Jan-

12

Aug-

12

Mar

-13

Oct-1

3

May

-14

Dec-

14

x

CNX Pharma Sensex [

Source: Company, ICICIdirect.com Research

ICICIdirect.com coverage universe (Healthcare) Company I-Direct CMP TP Rating M Cap

Code (|) (|) (| Cr) FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E

Ajanta Pharma AJAPHA 1171 1900 Buy 10294.8 36.0 44.9 54.3 32.5 26.1 21.6 23.0 20.2 16.4 50.3 46.5 41.4 37.8 34.2 31.1

Apollo Hospitals APOHOS 1348 1340 Hold 18980.1 23.7 28.8 34.1 59.8 50.7 42.8 29.6 25.0 20.5 9.9 11.5 12.9 10.4 11.5 12.3

Aurobindo Pharma AURPHA 799 990 Buy 47578.5 28.1 32.5 37.5 32.2 28.1 23.3 30.7 25.7 21.9 23.4 25.3 26.6 31.7 27.9 24.8

Alembic Pharma ALEMPHA 620 790 Buy 11688.0 15.1 33.4 28.2 41.0 18.6 22.0 32.1 15.5 18.4 30.8 49.4 33.9 32.2 47.2 31.1

Biocon BIOCON 454 470 Hold 10038.0 20.4 24.6 27.1 22.2 18.4 16.7 25.6 15.7 19.2 12.5 13.2 13.1 0.0 0.0 0.0

Cadila Healthcare CADHEA 305 415 Buy 31582.5 11.2 14.6 16.1 27.2 20.9 18.9 28.6 22.1 20.0 27.0 27.9 25.0 0.0 0.0 0.0Cipla CIPLA 591 750 Buy 48925.3 14.7 22.3 28.2 44.3 29.2 23.1 24.5 18.2 14.7 13.8 15.9 18.1 10.9 14.6 16.0

Divi's Laboratories DIVLAB 1073 1340 Hold 28593.6 32.1 41.2 47.3 33.4 26.0 22.7 35.7 27.8 24.2 29.4 31.7 31.0 24.4 26.2 25.3

Dr Reddy's Labs DRREDD 2870 4080 Buy 50088.7 129.0 144.3 148.8 23.7 21.2 20.6 15.0 12.7 11.8 16.7 17.2 16.8 22.3 20.0 17.1

Glenmark Pharma GLEPHA 765.1 1140 Buy 23444.5 23.1 34.1 44.7 56.8 33.2 20.9 24.0 17.3 13.7 13.3 20.2 23.4 21.7 25.7 25.6

Indoco Remedies INDREM 300 400 Buy 2850.2 9.0 10.9 17.2 35.9 29.5 18.8 18.2 15.5 11.3 16.4 17.4 24.5 16.0 17.0 22.2

Ipca Laboratories IPCLAB 612.6 700 Hold 7765.7 20.2 13.8 31.4 35.7 52.3 23.0 18.7 25.3 14.6 11.5 7.1 14.2 11.4 7.5 14.9

Jubilant Life Sciences VAMORG 290 335 Buy 5412.4 -3.6 30.3 42.5 NA 9.6 6.8 16.0 8.3 6.8 5.8 13.3 15.3 -0.4 16.6 19.4

Lupin LUPIN 1712 2200 Buy 76633.9 53.6 45.0 67.3 31.9 38.0 25.4 33.2 39.6 26.5 35.1 20.4 28.1 27.1 19.2 23.2

Natco Pharma NATPHA 504 630 Buy 9275.0 8.3 7.5 10.7 82.4 82.1 58.0 54.2 43.6 34.9 15.4 13.4 15.8 17.9 10.5 13.2

Sun Pharma SUNPHA 784.6 825 Hold 189428.7 19.8 19.3 25.8 42.2 48.2 30.8 23.8 23.3 18.0 18.8 18.0 20.8 18.6 15.9 18.1

Torrent Pharma TORPHA 1320 1800 Buy 22401.7 44.4 99.0 71.0 32.9 14.4 20.6 26.1 10.3 14.4 20.1 39.7 24.1 30.2 45.4 26.2

Unichem Laboratories UNILAB 224.8 330 Buy 2208.4 8.3 12.7 18.2 31.5 20.7 14.4 23.0 13.2 9.9 8.5 15.1 19.0 8.7 12.1 15.5

RoE (%)EPS (|) PE(x) EV/EBITDA (x) RoCE (%)

50.0% Premium


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