idirect healthcheck jun16 -...

ICICI Securities Ltd. | Retail Equity Research

June 15, 2016

Monthly Update

US driven Q4; but largely on exclusivities... For Q4FY16, the I-direct pharma universe registered YoY revenue growth of 17.1% to | 36766.2 crore, driven by 27.8% YoY growth to | 11785.7 in the US and 14.4% YoY growth to | 7135.7 crore in domestic formulations (select pack). EBITDA for the universe grew 51.3% YoY to | 8897.5 crore. Higher growth vis-à-vis revenue was on account of margin expansion (547 bps YoY) as the stronger US traction nullified the currency impact in emerging markets and higher R&D spends. Adjusted net profit grew 38.0% YoY to | 5540.2 crore driven by the operational performance. The delta vis-à-vis EBITDA growth was on account of lower other income. On the revenue front, Natco Pharma (~103%), Lupin (~36%), Divi’s Labs (~34%), Syngene (~31%) and Torrent (~30%) were standout performers. On the other hand, Ipca, Dr Reddy’s and Jubilant reported a weak set of numbers due to lack of product approvals, impact of currency volatility and regulatory issues. US growth was driven by one-off opportunities at Lupin from gGlumetza (anti-diabetic), Torrent from gAbilify (CNS) and Sun Pharma from gGleevec (anti-cancer) besides consolidation of new acquisitions (Natrol by Aurobindo). Note that US growth has not captured gNexium (GI) traction for Cipla and gAbilify traction for Alembic for nondisclosure of specific traction. Companies like Aurobindo and Glenmark have also registered strong YoY growth whereas Cadila and Dr Reddy’s were laggards on account of the base effect, slowdown in product approvals and regulatory issues. Domestic growth was driven by strong volume growth, new product launches as well as base effect. Among companies, Cipla, Sun Pharma, Lupin, Ajanta, Glenmark, Dr Reddy’s and Unichem witnessed strong growth. The Indian pharmaceutical market (IPM) grew 7.7% in May 2016. Growth was mainly driven by price hikes – 5.0%, and new product launches – 2.9% while volumes declined 4.4%. The lower growth was mainly attributable to channel disturbances on account of 1) fixed dosage combinations (FDC) ban imposed by the government on 344 drugs as despite the stay by the Delhi High Court, some state governments continued with the order, 2) New price list for NLEM drugs based on WPI, which was negative in FY16 and 3) new additions in NLEM 2015 list. Accelerating approvals, plant resolution, low base to drive FY17 After outperforming the broader indices for five fiscals, the Nifty Pharma Index underperformed in FY16, thanks to scores of USFDA related cGMP issues, which weighed on sentiments. Paradoxically, the fiscal witnessed the highest number of USFDA product approvals in the last five years. Companies like Sun, Dr Reddy’s, Cadila and Ipca received warning letters. Scores of others received Form 483 observations for different facilities. What came as a surprise even for industry players was the frequency of inspections and the random nature of issues flagged in the scrutiny. This, we believe, is likely to be the ‘’new normal’’ for generic players and can be a blessing in disguise as they will be inclined to focus more rigorously on the quality aspects. We expect some spillover effect in H1FY17 as well. However, accelerated USFDA approvals (180 ANDA approvals in FY16 vs. 92 in FY15), plant resolution or at least key product site transfers from H2FY17 and low base, especially in emerging markets, will support FY17 growth. We expect the I-direct pharma universe sales, EBITDA and PAT to grow at a CAGR of 13.1%, 12.5% and 14.8%, respectively, in FY16E-18E.

Health CheckSector View

Neutral

Index Performance as on June 14, 2016

Return (%) 1M 3M YTD 1Y

CNX 500 3 8 1 3

Nifty 4 7 2 2

NSE Pharma -4 -8 -10 -5

Return (%)

Stocks Performance Mcap

Company 1M 3M YTD 1Y 13-Jun

Sun Pharma.Inds. -6 -13 -9 -8 180550

Lupin -9 -22 -21 -16 65359

Dr Reddy's Labs 6 -5 -1 -7 52603

Aurobindo Pharma -4 2 -14 18 44002

Cipla -11 -12 -27 -19 38004

Cadila Health. -2 -8 -2 -8 32709

Glaxosmit Pharma 2 7 5 8 29536

Divi's Lab. 5 12 -2 29 30161

Glenmark Pharma. -11 -7 -16 -12 21735

Torrent Pharma. -3 6 -6 6 22743

Apollo Hospitals -1 -7 -10 12 18283

Ajanta Pharma 3 12 19 9 13938

Biocon 14 48 38 60 14279

Alembic Pharma -5 -11 -20 -1 10483

Strides Arcolab -6 5 -14 0 9962

Wockhardt -1 -7 -40 -30 10212

Pfizer 3 5 -22 -5 8418

Natco Pharma 15 3 -10 29 9058

Syngene Int. 0 -4 -8 NA 7698

Jubilant Life -10 -9 -15 105 5583

Ipca Labs. -1 -15 -38 -28 5838

Indoco Remedies 8 0 -14 -21 2584

Unichem Labs. -1 7 -8 36 2225

Return (%)

MMarket cap in | crore

Price movement

50006000700080009000

100001100012000130001400015000

Jun-15 Sep-15 Dec-15 Mar-16 Jun-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 May, 2016

[5

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeAurobindo Pharma Fenofibrate CVS Skyepharma Triglide US$ 412 millionAurobindo Pharma Zolmitriptan CNS IPR Zomig US$ 46.7 millionAurobindo Pharma Hydromorphone Hydrochloride Pain Management Purdue Pharma Dilaudid US$ 50 millionAurobindo Pharma Bupivacaine Hydrochloride Anaesthetic App Pharms Sensorcaine US$ 5.6 millionAurobindo Pharma Methocarbamol Pain Management Eurohlth Intl Robaxin NAAjanta Pharma Zolmitriptan CNS IPR Zomig US$ 46.7 millionAjanta Pharma Voriconazole Anti-Infection PF Prism CV Vfend US$ 92.8 millionCadila Healthcare Glyburide Anti-diabetic Sanofi Aventis Diabeta NACadila Healthcare Voriconazole Anti-Infection PF Prism CV Vfend US$ 92.8 millionCadila Healthcare Amantadine Hydrochloride Antiviral Endo Pharma Symmetrel US$ 40.1 millionGlenmarrk Pharma Rufinamide Anti-Epilepsy Eisai Banzel US$ 121.8 millionLupin Ethinyl Estradiol; Northindrone Acetate Contraceptive Warner Chilcott Estrostep US$ 38.6 millionTaro Pharma Fluocinolone Acetonide Anti-inflammatory Medimetriks Pharma Synalar NA

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeAurobindo Pharma Dalfampridine Multiple Sclerosis Acorda Ampyra NAStrides Shasun Efavirenz Antivirtal Bristol Myers Squibb Sustiva US$ 150 millionStrides Shasun Roflumilast Anti-Inflammatory Astrazeneca Daliresp US$ 174 million

Final Approvals

Tentative Approvals

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

M&As, demergers, tie-ups and JVs

DRL enters into agreement with Teva DRL has entered into an agreement to buy eight generic drugs from Teva Pharma and Allergan Plc for US$350 million in cash. The deal consists of generic drugs awaiting USFDA approval and some that are already on the market, including complex generic products across diverse dosage forms. The branded versions of drugs under the deal had US sales of ~US$3.5 billion. The acquisition of this portfolio is contingent on closing the Teva/Allergan generics transaction and approval by the US Federal Trade Commission. DRL enters into consumer healthcare products Dr Reddy's Labs entered the branded consumer health products segment in the US market by acquiring six over-the-counter (OTC) brands from Ducere Pharma for an undisclosed amount. The brands acquired include Doan's, Bufferin, Nupercainal ointment, Cruex nail gel, comtrex and myoflex. These are mainly used in treating cough-and-cold, pain and dermatology. Sun Pharma sells two facilities to Frontida BioPharm Sun Pharma plans to sell its two oral solid dosage manufacturing plants in the US to Frontida BioPharm Inc. The sale is a part of the drugmaker’s plans to consolidate its manufacturing facilities in the US. As per the company, the impact of this development on Sun Pharma’s consolidated financials and operations is not material. Jubilant Life enters into pact with Checkpoint Therapeutics Jubilant Life Sciences entered into a US$180 million worldwide out-licensing deal with Checkpoint Therapeutics for patented compounds to be developed for cancer treatment. As per the agreement, Checkpoint will be responsible for all future pre-clinical, clinical development and commercialisation responsibilities. The pact includes an upfront payment of US$2 million and contingent pre-clinical, clinical and regulatory payments including commercial milestones totaling up to US$180 million.


Strides Shasun to divest UK arm Strides Shasun plans to divest the company's UK arm Shasun Pharma Solutions to its current management for an enterprise value of £25 million (~| 240 crore). The transaction is expected to be closed in Q2FY17. Strides Shasun completes acquisition in Kenya Strides Shasun has concluded the acquisition of a controlling stake in Universal Corporation, Kenya. With this acquisition, the company will get a strong presence in the key east African markets. It will complement its current capacity of six strategically located plants across major geographies in sub-Saharan Africa. Biocon to develop oral insulin drug on its own Notwithstanding US based pharma firm Bristol Myers Squibb (BMS) opting out of the joint project, Biocon will go ahead with the development of its oral insulin drug. Under the agreement, BMS and Biocon had agreed on jointly developing oral insulin, Tregopil. Post BMS divestment of diabetes portfolio to Astra Zeneca they continued with the programme until this stage where they had the option to take a decision. Since they no longer have a diabetes focus, they decided to exercise their option until this stage. IFC to invest ~US$68 million in Apollo International Finance Corporation (IFC), an arm of the World Bank, is likely to invest US$68 million in Apollo Health & Lifestyle Ltd (AHLL). AHLL is a subsidiary of Apollo Health Enterprises and includes a network of primary healthcare clinics across the country. Price cuts, new launches, recalls, approvals

DRL moves Delhi High court to fix ceiling prices for certain drugs Dr Reddy’s moved the Delhi High Court (HC) against the central government’s move to fix the ceiling price for several drugs. The government, through successive notifications under the Drug Price Control Order (DPCO), revised the price of certain drugs. Sun Pharma launches Derma OTC brand Sun Pharma has launched its sunscreen brand 'Suncros' through the company's global consumer healthcare business vertical. The company will focus on dermatology as the fourth engine of growth for its OTC business. Cipla receives approval to sell HIV drug in India Cipla received regulatory approval in India to sell its version of Truvada as a preventive that can be given to healthy people to reduce their risk of getting HIV. Glenmark launches Digihaler for COPD patients Glenmark Pharma has launched Digihaler, the country’s first digital dose inhaler (DDI), for asthma and chronic obstructive pulmonary disease (COPD) patients. This next-gen inhaler provides accurate digital dose counter along with low dose warning indicator to enable asthma and chronic obstructive pulmonary disease (COPD) patients to track adherence to their therapy. The device (Digihaler) will enable patients to track the number of doses that have been consumed while prominently placed indicators provide a low dose warning which is beneficial to patients. This will further enable doctors to determine the patient’s adherence to the prescribed therapy regime. Lupin recalls anti-bacterial injection Lupin has recalled over 54,000 vials of anti-bacterial injection Ceftriaxone manufactured at its Mandideep facility in Madhya Pradesh due to violation of current good manufacturing norms. According to the report on the USFDA website, it is a class III recall. The company also recalled 741.171 kg of Ceftriaxone Sodium (Sterile) active pharmaceutical ingredient as its API intermediates failed specifications.


Taro recalls 62,800 tubes of Topicort Taro is voluntarily recalling 62,800 tubes of Topicort Cream (desoximetasone) manufactured in Canada because the product may be subpotent. The steroid cream is used to treat skin irritations. According to the report on the USFDA website, it is a class III recall. DRL recalls Ondansetron tablets Dr Reddy’s has recalled over 50,000 bottles of Ondansetron tablets made at the company's Bachupally plant in India, on account of failed impurities/ degradation specifications. According to the report on the USFDA website, it is a class II recall. Lawsuits, court rulings, settlements, regulatory issues

Dr Reddy's under scanner for packaging violations in US The US Consumer Product Safety Commission has asked the nation’s Department of Justice to take action against DRL for its alleged failure to comply with packaging and reporting rules. As per the company, it has complied with all legal requirements and will defend itself against allegations. Sun Pharma receives grand jury subpoena from US Department of Justice Sun Pharma has received a grand jury subpoena from the anti-trust division of the US Department of Justice seeking documents from the company and its affiliates relating to corporate and employee records, generic products and pricing, communications with competitors and others regarding the sale of generic pharmaceutical products. As per the company, the inquiry is unlikely to have any material adverse impact on the consolidated operations or consolidated financial results of the company. Strides Shasun receives EIR for Bengaluru facility Strides Shasun has received Establishment Inspection Report (EIR) from the USFDA on closure of inspection of its oral dosage facility at Bengaluru (oral dosage forms manufacturing site). The site was inspected by the USFDA in February 2016. Lupin receives EIR for two of its facilities The USFDA has cleared Lupin's facilities at Mandideep and Aurangabad following its audit. Both plants had received observations from the US drug regulator during inspections in January and February. However, the company's Goa plant continues to be under FDA scanner. The company expects to close the findings in the next three to six months. Indoco receives EIR for Goa facility Indoco Remedies has received the Establishment Inspection Report (EIR) from USFDA for its sterile and solid dosages facility (Goa Plant II). This approval confirms the closure of inspection conducted in July, 2015. NPPA fixes ceiling price of 56 scheduled formulations National Pharmaceutical Pricing Authority (NPPA) has fixed/revised ceiling prices of a 56 scheduled medicines under Drugs (Price Control) Amendment Order, 2016, and retail prices of eight formulations under DPCO, 2013, according to the notifications. Others

Mylan, Biocon present Phase III Trastuzumab Biosimilar data at ASCO Biocon and Mylan have presented Phase III Trastuzumab Biosimilar data at the 2016 American Society of Clinical Oncology (ASCO) Annual Meeting in Chicago. The study confirmed the efficacy, safety and immunogenicity of MYL-1401O, the proposed biosimilar Trastuzumab co-developed by Biocon and Mylan. The positive outcomes of the global Phase III clinical study with of Trastuzumab for HER2-positive breast cancer patients would be a significant milestone for Biocon’s biosimilars development program.


Biocon to invest | 1060 crore to set up facility at Bengaluru Biocon will invest | 1060 crore to set up a manufacturing plant near Bengaluru. The Karnataka government cleared the company’s proposal to set up a plant to manufacture injectables, monoclonal antibodies and oral solid dosage (OSD) forms as part of its biosimilars, generics formulation and novel molecules businesses. Monoclonal antibodies are specific antibodies that are made in a lab to mimic the body’s immune system. Cadila Healthcare's to initiate a phase II clinical trial of Saroglitazar The USFDA approved Cadila Healthcare's plan to initiate a phase II clinical trial of Saroglitazar in patients with non-alcoholic Steatohepatitis (NASH) of the liver. Glenmark to raise ~US$200 million through FCCBs Glenmark Pharma plans to raise ~US$200 million (| 1,340 crore) in foreign currency convertible bonds. Glenmark is raising the fund to retire a part of its existing debt and also mobilise money for fresh capex plans. The company has ~US$450 million of debt. Apollo Hospitals launches fertility clinic in Chennai Apollo Hospitals has launched its first standalone fertility centre in Chennai. The new facility has come up at Anna Nagar and comprises advanced medical infrastructure, personalised patient care and other labs. The team of specialists includes experienced doctors in fertility, reproductive medicine, reproductive endocrinology, embryology, andrology and urology among others. Sun Pharma terminates pact with Daiichi Sankyo Sun Pharma's umbrella pact and transaction agreements signed with Daiichi Sankyo and its overseas subsidiaries have been terminated due to divestment of Ranbaxy by the Japanese firm. The agreements were executed between Daiichi and Ranbaxy, including their overseas subsidiaries, on June 12, 2013. As per the management, there is no material impact of the termination on standalone or consolidated operations/ financial operations. Q4FY16 Results

Lupin - Strong US sales lead robust Q4 Revenues grew 35.8% YoY to | 4181.2 crore mainly due to 58.7% YoY growth in the US to | 2187.1 crore led by gGlumetza exclusivity and price hike in gFortamet. EBITDA margins grew 706 bps to 32.7% driven by strong gross margins, which improved 539 bps to 74.3%. EBITDA grew 73.2% to | 1367.4 crore. Net profit grew 47.5% YoY to | 807.1 crore owing to a strong operational performance, which was partially offset by higher depreciation and taxation Unichem - margins seen under pressure during quarter Revenues grew 17.8% YoY to | 301.5 crore on account of 17.1% YoY growth in domestic sales to | 171.3 crore and 21.7% growth in export sales to | 100.7 crore. EBITDA margins increased 456 bps YoY to 10.4% due to high gross margins and low other expenditure. EBITDA increased 110.6% YoY to | 31.2 crore. Net profit witnessed a YoY increase of 186.7% to | 28.1 crore owing to tax write-back. Torrent Pharma - growth still driven by gAbilify sales Revenues grew 29.9% YoY to | 1499 crore mainly due to 129.5% YoY growth in the US to | 514 crore on the back of continued gAbilify windfall. EBITDA margins increased 1825 bps to 32.3%. EBITDA grew 198.9% YoY to | 484 crore. Net profit posted growth of 174.7% YoY to | 357 crore owing to a strong operating performance. Jubilant Life - registers strong margins amid flat revenues Revenues de-grew 2.3% YoY to | 1501. Revenues in the pharmaceutical business grew 10.1% YoY to | 839 crore while life science ingredients (LSI)


revenues de-grew 14.4% YoY to | 662. EBITDA margins increased 523 bps YoY to 21.3% on the back of a 112 bps YoY increase in pharma segment. EBITDA margins to 27.4% and 752 bps YoY increase in life science ingredients margins to 16%. EBITDA increased 29.4% YoY to | 320 crore. Adjusted net profit de-grew 29.2% to | 54 crore on the back of depreciation and higher taxation. Cipla - margins impacted by one-offs Revenues grew 5.6% YoY to | 3267 crore on account of 15.8% growth in domestic formulations to | 1258 crore. Export formulations grew 3.2% YoY to | 1744 crore. EBITDA margins declined 971 bps to 6.7% on account of 1) inventory write-off and reduction, 2) incremental R&D spending and 3) other one-offs. EBITDA de-grew 56.9% YoY to | 219 crore. Net profit de-grew 68.9% YoY to | 80.9 crore, mainly on account of a poor operational performance. Apollo - margins affected by expansion Revenues increased 16% YoY to | 1396 crore on the back of 8.5% YoY increase in healthcare business to | 787 crore and 27.4% YoY increase in pharmacy business to | 609 crore. EBITDA margins declined 133 bps to 13.2% due to higher marketing expenditure. EBITDA increased 5.3% YoY to | 184 crore. Adjusted net profit de-grew 1.7% to | 76 crore on account of higher interest cost and depreciation. Natco - Q4FY16 numbers driven by Hepatitis C group sales Revenues grew 102.7% YoY to | 407 crore mainly on account of strong traction from the Hepatitis-C segment and Venezuela tender sales (FY16 sales recorded in Q4). EBITDA margins declined 190 bps YoY to 22.7% mainly due to higher raw material and other expenditure. EBITDA grew 87% to | 93 crore. Adjusted net profit increased 158.9% YoY to | 60 crore mainly on the back of the strong operational performance and lower interest expenses. Indoco Remedies - margins decline on account of high R&D and one-offs Revenues grew 25.5% YoY to | 263 crore mainly due to 47.3% YoY growth in export formulations to | 111 crore. Domestic formulations grew 6.4% to | 131 crore. EBITDA margins declined 227 bps YoY to 15.5% mainly on account of an increase in employee expenditure and R&D spend. EBITDA grew 9.5% to | 41 crore. Net profit grew 6.7% YoY to | 20 crore. Divi’s Labs - registered healthy Q4FY16 numbers Revenues grew 34.1% YoY to | 1095 crore. The generics business grew 47% to | 566 crore. The custom synthesis (CS) business grew 25.7% at | 482 crore YoY. EBITDA margins increased 224 bps YoY to 36.3 due to a change in the product mix (skewed towards low margin generics). EBITDA increased 26.3% YoY to | 398 crore. Net profit witnessed YoY increase of 40.8% to | 322 crore owing to higher-than-expected sales growth and lower-than-expected tax rate. Sun –Q4 driven by robust growth in Taro and gGleevec exclusivity Revenues grew 7.8% QoQ to | 7634 crore due to 22.2% QoQ increase in US sales to | 3910 crore. US sales growth was due to gGleevec launch under exclusivity & Taro sales (US$265 million). Domestic sales fell 4.4% QoQ to | 1807 crore. EBITDA margins increased 239 bps QoQ to 33% due to strong margins in Taro. Taro’s EBITDA margins improved 119 bps QoQ to 69.8%. EBITDA grew 16.2% QoQ to | 2520 crore. Net profit grew 21% QoQ to | 1714 crore mainly due to a better operational performance and lower taxation. Aurobindo – Incremental product launches lead to strong US sales Revenues grew 18.5% YoY to | 3747 crore on account of 24.3% growth in the US to | 1666 crore. The Europe business grew 9.3% to | 841 crore. EBITDA margins increased 280 bps YoY to 23.5% on account of lower other


expenditure. EBITDA grew 34.5% to | 882 crore. Adjusted PAT grew 38.7% YoY to | 558 crore mainly due to a better operational performance. Ipca - Q4 numbers disappoint yet again Revenues de-grew 0.5% YoY to | 625 crore mainly due to 25.6% YoY de-growth in API sales to | 114 crore. Domestic formulations grew 9% to | 250 crore while export formulations grew 3.5% to | 249 crore. EBITDA margins increased 480 bps YoY to 10% on account of the low base in Q4FY15. Adjusted net profit in Q4FY16 was at | 43 crore against a net loss of | 31 crore in Q4FY15.


Q4FY16 Results Review

For Q4FY16, the I-direct pharma universe registered YoY revenue growth of 17.1% to | 36766.2 crore, driven by 27.8% YoY growth to | 11785.7 in the US and 14.4% YoY growth to | 7135.7 crore in domestic formulations (select pack). EBITDA for the universe grew 51.3% YoY to | 8897.5 crore. Higher growth vis-à-vis revenue was on account of margin expansion (547 bps YoY) as the stronger US traction nullified the currency impact in emerging markets and higher R&D spends. Adjusted net profit grew 38.0% YoY to | 5540.2 crore driven by the operational performance. The delta vis-à-vis EBITDA growth was on account of lower other income.

Exhibit 2: Actual s vs. estimates

Q4FY16E Q4FY16 Q4FY16E Q4FY16 Q4FY16E Q4FY16Ajanta Pharma 437.4 425.7 160.0 140.5 103.7 106.3Alembic Pharma 840.2 626.6 226.9 143.3 165.5 91.2Aurobindo Pharma 3644.7 3746.8 865.9 882.3 557.4 562.9Biocon 860.5 978.8 197.1 213.1 102.5 92.5Cadila Healthcare 2488.8 2449.1 497.8 581.4 359.9 388.1Divi's Lab 963.2 1095.4 378.3 397.9 281.0 322.2Cipla 3195.7 3266.5 565.4 219.0 299.1 80.9Dr. Reddys 3913.2 3756.2 976.4 810.4 578.2 499.6Glenmark 1849.6 2281.3 391.5 302.6 210.1 171.5Indoco Remedies 268.5 263.4 46.7 40.8 23.1 20.0IPCA Labs 695.3 624.6 118.2 63.5 62.4 42.5Jubilant Life Sc. 1499.8 1501.3 341.5 320.2 134.1 54.2Lupin 4033.0 4181.2 1129.2 1367.4 810.6 807.1Natco Pharma 312.8 407.0 79.8 92.5 47.4 60.2Sunpharma 7604.8 7634.2 2531.4 2520.3 1817.3 1713.7Syngene International 316.1 331.5 106.2 103.1 70.6 66.5Torrent Pharma 1558.6 1499.0 483.2 484.0 379.4 357.0Unichem Laboratories 311.1 301.5 38.1 31.2 28.1 28.1Apollo Hospitals 1494.1 1396.3 209.7 183.8 106.9 75.7Total 36287.4 36766.2 9343.3 8897.5 6137.3 5540.2

CompanyRevenues EBITDA Net profit

Source: Company, ICICIdirect.com Research

Exhibit 3: Quarterly performance of I-direct healthcare coverage

Company Q4FY16 Q4FY15 Var.(%) Q4FY16 Q4FY15 Var.(%) Q4FY16 Q4FY15 Var.(%)Ajanta Pharma 425.7 371.5 14.6 140.5 130.4 7.7 106.3 79.9 33.0Alembic Pharma 626.6 503.0 24.6 143.3 98.7 45.2 91.2 70.9 28.5Aurobindo Pharma 3746.8 3162.1 18.5 882.3 656.1 34.5 562.9 403.8 39.4Biocon 978.8 837.3 16.9 213.1 184.9 15.3 92.5 114.7 -19.4Cadila Healthcare 2449.1 2288.2 7.0 581.4 495.9 17.2 388.1 349.2 11.1Divi's Lab 1095.4 817.1 34.1 397.9 315.1 26.3 322.2 228.9 40.8Cipla 3266.5 3092.7 5.6 219.0 507.7 -56.9 80.9 259.7 -68.9Dr. Reddys 3756.2 3870.4 -3.0 810.4 825.6 -1.8 499.6 514.4 -2.9Glenmark 2281.3 1775.8 28.5 302.6 281.4 7.5 171.5 197.7 -13.2Indoco Remedies 263.4 209.9 25.5 40.8 37.3 9.5 20.0 18.8 6.7IPCA Labs 624.6 627.9 -0.5 63.5 33.7 88.6 42.5 -30.6 LPJubilant Life Sc. 1501.3 1536.5 -2.3 320.2 247.4 29.4 54.2 76.6 -29.2Lupin 4181.2 3078.2 35.8 1367.4 789.4 73.2 807.1 547.0 47.5Natco Pharma 407.0 200.8 102.7 92.5 49.5 87.0 60.2 23.3 158.9Sunpharma 7634.2 6157.0 24.0 2520.3 792.4 218.1 1713.7 886.9 93.2Syngene International 331.5 251.8 31.7 103.1 83.4 23.6 66.5 55.6 19.6Torrent Pharma 1499.0 1154.0 29.9 484.0 162.0 198.9 357.0 130.0 174.7Unichem Laboratories 301.5 256.0 17.8 31.2 14.8 110.6 28.1 9.8 186.7Apollo Hospitals 1396.3 1203.7 16.0 183.8 174.5 5.3 75.7 77.0 -1.7Total 36766.2 31394.0 17.1 8897.5 5880.0 51.3 5540.2 4013.6 38.0

ProfitRevenues EBITDA

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

On the revenue front, Natco Pharma (~103%), Lupin (~36%), Divi’s Labs (~34%), Syngene (~31%) and Torrent (~30%) were the standout performers. On the other hand, Ipca, Dr Reddy’s and Jubilant reported a weak set of numbers due to lack of product approvals, impact of currency volatility and regulatory issues.

Geographical/segmental performance in Q4FY16

(| crore) Q4FY16 Q4FY15 Var. (%) Q3FY16 Var. (%)Ajanta 116.7 97.6 19.5 128.0 -8.9Alembic 259.6 232.1 11.8 288.3 -9.9Biocon 101.0 98.0 3.1 104.5 -3.3Cadila 767.4 679.7 12.9 713.0 7.6Glenmark 539.8 440.6 22.5 488.0 10.6Indoco 130.8 123.0 6.4 135.7 -3.6Ipca 249.5 229.0 9.0 308.4 -19.1Lupin 761.5 663.7 14.7 871.2 -12.6Cipla 1258.0 1086.0 15.8 1194.0 5.4Dr Reddy's 526.7 474.4 11.0 580.5 -9.3Sun Pharma 1806.5 1569.0 15.1 1890.3 -4.4Torrent 447.0 399.0 12.0 446.0 0.2Unichem 171.3 146.2 17.1 188.9 -9.3Total 7135.7 6238.2 14.4 7336.8 -2.7

India

(| crore) Q4FY16 Q4FY15 Var. (%) Q3FY16 Var. (%)Aurobindo 1666.3 1340.5 24.3 1570.6 6.1Cadila 961.0 978.9 -1.8 1071.7 -10.3Glenmark 652.0 536.3 21.6 608.9 7.1Lupin 2187.1 1377.9 58.7 1404.9 55.7Dr Reddy's 1895.0 1715.4 10.5 1941.7 -2.4Sun Pharma 3910.3 3047.7 28.3 3200.3 22.2Torrent 514.0 224.0 129.5 558.0 -7.9

Total 11785.7 9220.7 27.8 10356.0 13.8

US

(| crore) Q4FY16 Q4FY15 Var. (%) Q3FY16 Var. (%)Aurobindo 840.7 769.1 9.3 778.6 8.0Cadila 70.6 74.0 -4.6 76.2 -7.3Glenmark 270.5 243.3 11.2 176.4 53.4Dr Reddy's 175.9 234.1 -24.9 193.7 -9.2Lupin 125.4 89.1 40.7 101.0 24.2Torrent 190.0 209.0 -9.1 195.0 -2.6Total 1673.1 1618.6 3.4 1520.9 10.0

Europe

(| crore) Q4FY16 Q4FY15 Var. (%) Q3FY16 Var. (%)Cadila 55.3 54.7 1.1 54.4 1.7Glenmark 241.6 181.0 33.5 123.7 95.3Torrent 119.0 140.8 -15.5 118.0 0.8Total 415.9 376.5 10.5 296.1 40.5

Latin America

(| crore) Q4FY16 Q4FY15 Var. (%) Q3FY16 Var. (%)Aurobindo 774.6 676.5 14.5 695.2 11.4Alembic 166.9 85.3 95.7 101.2 64.9Cadila 92.2 87.0 6.0 83.8 10.0Glenmark 222.9 154.7 44.0 145.0 53.7Indoco 12.0 13.0 -7.6 13.3 -9.7Ipca Labs 114.2 153.6 -25.6 144.6 -21.0Lupin 283.8 307.5 -7.7 276.0 2.8Cipla 204.0 205.0 -0.5 143.0 42.7Dr Reddy's 576.6 741.5 -22.2 508.2 13.5Sun Pharma 392.5 298.2 31.6 461.2 -14.9Unichem 20.1 21.5 -6.5 21.2 -5.2Total 2859.8 2743.8 4.2 2592.7 10.3

API


US growth was driven by one-off opportunities at Lupin from gGlumetza (anti-diabetic), Torrent from gAbilify (CNS) and Sun Pharma from gGleevec (anti-cancer) besides consolidation of new acquisitions (Natrol by Aurobindo). Note that US growth has not captured gNexium (GI) traction for Cipla and gAbilify traction for Alembic for nondisclosure of specific traction. Companies such as Aurobindo and Glenmark have also registered strong YoY growth whereas Cadila and DRL were laggards on account of base effect, slowdown in product approvals and regulatory issues. Domestic growth was driven by strong volume growth, new product launches as well as base effect. Among companies, Cipla, Sun Pharma, Lupin, Ajanta, Glenmark, DRL and Unichem witnessed strong growth during the quarter.

Exhibit 4: I-direct Healthcare Universe revenue trend

31391

33971 34843 3458136766

15000

20000

25000

30000

35000

Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16

| cr

ore

Revenues

Source: Company, ICICIdirect.com, Research

Exhibit 5: I-direct Healthcare Universe EBITDA trend

5891

8832 8978 8791 8897

0

2000

4000

6000

8000

10000

12000


| cr

ore

EBITDA


Exhibit 6: I-direct Healthcare Universe profits trend

4030

5280 5439 55405584

0

1000

2000

3000

4000

5000

6000


| cr

ore

Profits


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

18.8

26.0 25.424.2

12.815.5 16.1 15.1

25.8

15.6

5

10

15

20

25

30


%

EBITDA Margins (%) PAT Margins (%)



Exhibit 8: Deviation from estimates/Change in outlook post Q4FY16 numbers [5

Company Initial Rating Current RatingDeviation from

estimates RemarksAjanta Pharma BUY BUY Inline

Apollo Hospitals HOLD HOLD Below Lower than expected growth in Hospital segment

Aurobindo Pharma BUY BUY Inline Alembic Pharma BUY HOLD Below Lower than expected gAbilify sales in US; Higher R&D and caoex guidanceBiocon HOLD HOLD Above Higher than expected Biosimilar sales led by strong sales in insulin segment and launch of

Trastuzumab in emerging marketsCadila Healthcare BUY BUY Above Higher than expected sales in EMs and JVs. EBITDA margins were better than expected due

to higher gross margins and lower other expensesCipla BUY HOLD Below Margins were impacted by 1) inventory write-off and reduction, 2) incremental R&D spending

and 3) other one-offs.. Divi's labs BUY BUY Above Higher than expected sales in generic business

Dr Reddy's Labs BUY BUY Below Q4 was largely impacted by one-offs on account of remedial expanses, Venezuela adjustment and volatility in entire RoW and European businesses

Glenmark Pharma BUY BUY Below Margins were impacted on account of one-off expenses pertaining to sitagliptin and azelaic acid litigation. Ex one-off EBITDA was ~20% of total revenues

Indoco Remedies BUY BUY Below Miss in margins was mainly due to higher than expected R&D expenses

Ipca labs BUY HOLD Below Miss vis-à-vis our expectations was due seasonality impact. Also higher than expected remedial cost and employee expenses have impacted EBITDA

Jubilant Life Sciences HOLD BUY Below One-off impairment charges and higher taxation impacted PAT

Lupin BUY BUY Inline

Natco Pharma BUY BUY Above Beat vis-à-vis our expectation was due to higher than expected sales in Hepatitis C segment and Venezuela tender business

Sun Pharma HOLD HOLD Inline

Torrent Pharma BUY BUY Inline

Unichem Labs BUY BUY Inline

Source: Bloomberg, ICICIdirect.com Research


Exhibit 9: Patent litigations (12 months) [5

Month Innovator ANDA Filer Brand Name API Used for

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

Jan-16 Dow Pharma Taro Pharma Onexton Cindamycin Phosphate and Benzoyl Peroxide Acne

Jan-16 Cubist Pharma Dr. Reddy's Labs Cubicin Daptomycin Antibiotic

Feb-16 Bayer Pharma InvaGen Pharma Xarelto Rivaroxaban Blood Thinner

Feb-16 Bristol Myers Squibb Cipla Reyataz Atazanavir HIV

Feb-16 Janssen Products LP Lupin Prezista Darunavir HIV

Mar-16 Shire Canada Lupin Daliresp Roflumilast Respiratory

Mar-16 Daiichi Sankyo Torrent Pharma Benicar Olmesartan Anti-depressant

Apr-16 Daiichi Sankyo Alembic Pharma Benicar Olmesartan Anti-depressant

May-16 Daiichi Sankyo Aurobindo Pharma Benicar Olmesartan Anti-depressant Source: Bloomberg, ICICIdirect.com Research


IPM grows mere 7.7% in May • The Indian pharmaceutical market (IPM) grew 7.7% YoY to | 8449 crore

in May. The growth was mainly driven by price hikes- 5.0%, and new product launches- 2.9% while volumes declined 4.4%

• Fixed dosage combination (FDCs) related market de-grew 14.6% to | 196 crore

• Drugs under NLEM list registered growth of 2.6% to | 1010 crore while non-NLEM drugs posted growth of 8.6% to | 7046 crore. Volume growth in NLEM was 0.8% while declining 3.1% in non-NLEM

• Among companies under I-direct coverage, Ajanta and Alembic have registered decent growth of 13.1% and 11.3%, respectively. Cipla, Sun Indoco, Glenmark and DRL registering growth of 6.4%, 5.6%. 5.2%, 4.7% and 4.1%, respectively, while Lupin de-grew 2.8%

• Therapy wise, 14 therapies outpaced IPM growth. Notable among them with growth rates- diabetic – 19.2%, CNS – 14.9%, Derma – 14.2% and CVS – 13.2% and Anti-Infective -- 6.0%

• In all, 360 new brands were launched in May 2016 • On a MAT basis, IPM growth was at 11.1% YoY to | 99476 crore.

Domestic companies have grown 7.9% while MNC companies have grown 7.0% in Mau 2016

Exhibit 10: Domestic formulations - growth trend

12.9 15

.8

13.4

13.6

10.5

6.6

22.9

9.6 12

.5

20

12.3

3.6

7.7

-5

0

5

10

15

20

25

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market

[

Source: AIOCD data base, ICICIdirect.com Research

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

9.4

4.6 5.2

7.3

3.2

13.111.3

6.4

4.54.7

0.3

3.7

-2.8

9.5

2.01.4

-5

0

5

10

15

Aja

nta

Ale

mbi

c

Bioc

on

Cadi

la

Cipl

a

DRL

Glen

mar

k

GSK

Phar

ma

Indo

co

Ipca

Lab

s

Lupi

n

Nov

artis

Pfize

r

Sun

Phar

ma

Torre

nt

Unic

hem

(%)


Therapy wise performance (| crore) Therapy May' 16 May' 15 YoY (%) Apr' 16 MoM (%)Anti-Infectives 1156 1126 2.7 1162 -0.5Cardiac 1093 992 10.2 1103 -0.9Gastro Intestinal 1051 992 5.9 1046 0.5Vitamins 798 727 9.8 777 2.7Anti Diabetic 741 645 14.9 728 1.7Pain 575 547 5.1 578 -0.5CNS 539 489 10.3 541 -0.2Respiratory 524 522 0.6 576 -8.9Derma 516 475 8.6 516 0.0Gynaecological 446 412 8.4 442 1.0Hormones 144 129 12.0 139 3.5Vaccines 134 129 4.2 132 1.6Ophthal 134 122 9.7 137 -2.2Anti-Neoplastics 133 131 1.3 122 9.3Others 115 81 42.8 108 6.6Others 104 96 8.5 99 5.4Urology 101 91 11.3 100 0.5Sex Stimulants 46 42 9.7 49 -6.2Stomatologicals 37 33 13.8 36 2.8Anti Malarials 33 38 -13.2 32 1.1 Source: AIOCD data base

Top brands in Indian pharma market Brand Company Therapy May' 16 May' 15 Gr. (%)Augmentin GSK Anti-Infectives 317.5 319.0 -0.5Corex Pfizer Respiratory 310.9 228.6 36.0Spasmo Prox Wockhardt GI 309.3 178.2 73.5Lantus Sanofi Anti Diabetic 273.0 220.8 23.6Galvus Met Novartis Anti Diabetic 272.1 187.5 45.1Clavam Alkem Anti-Infectives 239.9 225.4 6.4Becosules Pfizer Vitamins 228.6 243.8 -6.2Volini Sun Pharma Pain 217.0 212.1 2.3Foracort Cipla Respiratory 196.1 169.1 16.0Synflorix GSK Vaccines 195.1 151.9 28.5

Source: AIOCD data base; Date as per MAT May 16 & May 15 Industry acute to chronic therapy ratio percentage…

Acute, 47758.82,

48.0%

Chronic, 31453.56,

31.6%Sub-

Chronic, 20263.51,

20.4%

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


Sun Pharmaceuticals

Stock Performance

507090

110130150

Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16

CNX Pharma Sun Pharma

Source: NSE, ICICIdirect.com Research Exhibit 12: Company growth vis-à-vis Indian pharma market growth

12.9

15.8

13.4

13.6

10.5

22.9

9.6

12.5

9.6

12.3

6.6

3.6

7.7

14.5

21.7

15.9

10.0 10.8

16.6

3.0

8.2

6.7

18.7

12.3

5.2 5.6

0

5

10

15

20

25

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Sun Pharmaceutical Industries


Exhibit 13: Market share in Indian formulations market

9.1 9.1 8.98.4 8.3 8.3

8.7 8.7 8.9 8.9 9.0 8.9 9.0

6.06.67.27.88.49.09.6

10.210.811.412.0

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Sun Pharmaceutical Industries

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

Exhibit 14: Top 10 brands performance (| crore) Brand Therapy May' 16 May' 15 Var. (%) Apr' 16 Var. (%)

Volini Pain 19.3 14.7 31.1 20.5 -5.9

Rosuvas Cardiac 17.2 12.7 35.2 16.4 4.8

Istamet Anti Diabetic 15.4 13.1 17.5 14.8 4.1

Gemer Anti Diabetic 14.7 13.5 9.3 14.2 4.1

Levipil Neuro 14.3 12.2 17.2 12.9 10.3

Susten Gynaecological 13.2 13.2 -0.5 13.9 -5.2

Pantocid Gastro Intestinal 11.6 11.9 -2.7 12.0 -3.6

Revital H Vitamins 10.8 6.7 61.0 11.7 -7.5

Pantocid Dsr Gastro Intestinal 10.0 10.2 -2.4 10.3 -3.4

Storvas Cardiac 9.7 10.3 -5.5 10.5 -7.5


Exhibit 15: Contribution of therapies to domestic sales (MAT May’16)

z

Cardiac29%

Neuro 27%

Gastro Intestinal19%

Anti-Infectives18%

Derma7%


Exhibit 16: Therapy wise performance (| crore)

Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Cardiac 144.9 129.6 11.8 141.8 2.2

Neuro 132.7 126.7 4.8 129.5 2.5

Gastro Intestinal 91.7 90.0 1.8 91.4 0.3

Anti-Infectives 79.4 77.3 2.7 77.8 2.0

Derma 37.8 33.5 12.8 36.3 4.2

Anti Diabetic 70.4 66.4 6.0 68.0 3.5

Gynaecological 29.5 31.1 -5.0 30.3 -2.7

Pain 52.9 49.8 6.3 54.2 -2.3

Respiratory 23.4 23.6 -1.0 24.8 -5.7

Vitamins 31.7 27.2 16.9 32.7 -2.8


Acute : Chronic contribution (MAT Apr’16)

Acute, 3562.32,

41.1%

Chronic, 3915.49,

45.2%

Sub-Chronic, 1190.45,

13.7%

Source: AIOCD data base

Brands contribution to domestic sales (MAT Apr ’16)

17%

9%

7%

10%

57%

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


Acute : Chronic contribution (MAT May’16)

Acute, 3572.42,

41.0%

Chronic, 3941.39,

45.3%

Sub-Chronic, 1196.07,

13.7%


Brands contribution to domestic sales (MAT May ’16)

19%

9%

7%

9%

56%




Cipla

Stock Performance

6080

100120140


CNX Pharma Cipla

Source: NSE, ICICIdirect.com Research

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

12.9 15

.8

13.4

13.6

10.5

22.9

9.6

12.5

9.6

12.3

6.6

3.6

7.7

15.9 16.7

11.6

11.1

4.6

21.0

15.9 16.7

10.0 11

.6

3.5

2.1 6.

4

0

5

10

15

20

25

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Cipla



4.8

4.6 4.6

4.85.0 4.9

5.15.2

5.15.2

4.9

5.2

4.8

4.2

4.4

4.6

4.8

5.0

5.2

5.4

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Cipla



Foracort Respiratory 16.6 14.9 10.9 18.3 -9.6

Budecort Respiratory 12.9 10.5 22.6 14.1 -8.7

Seroflo Respiratory 10.5 10.9 -4.1 11.3 -7.3

Asthalin Respiratory 9.7 10.2 -5.2 11.4 -15.5

Duolin Respiratory 9.5 8.4 12.0 10.7 -12.0

Aerocort Respiratory 7.6 8.1 -6.7 9.0 -15.3

Dytor Cardiac 7.1 6.2 13.3 6.5 9.5

Montair Lc Respiratory 6.3 5.7 10.1 7.1 -12.1

Emeset Gastro Intestinal 6.2 6.5 -4.5 6.3 -1.8

Urimax Urology 5.9 5.2 13.2 5.6 5.2



Respiratory29%

Anti-Infectives27%

Cardiac12%

Gastro Intestinal8%

Urology5%

Other19%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Respir at ory 113.1 108.0 4.8 128.0 -11.6

Anti-Infect ives 102.3 96.7 5.8 113.7 -10.1

Cardiac 52.1 49.6 5.0 54.7 -4.8

Gast ro Intes tina l 35.0 31.3 12.1 37.2 -5.9Urology 20.0 18.8 6.5 20.0 0.1

Neuro 14.6 14.3 2.1 15.2 -4.1

Pain 12.8 11.5 11.1 13.7 -7.0

Derma 10.1 9.3 8.6 11.5 -12.5

Ophtha l 10.7 10.0 7.2 11.4 -5.6

Vitamins 8.5 8.1 5.5 8.9 -4.3



Acute, 2356.37,

47.8%

Chronic, 1963.95,

39.8%

Sub-Chronic, 612.89, 12.4%



24%

12%

8%12%

44%




Dr Reddy’s Labs

Stock Performance) Stock Performance

60

80

100

120

140


CNX Pharma Dr. Reddys


12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6 12

.3

6.6

3.6 7.

7

23.8

33.1

28.0

16.1

8.7

31.6

24.1 28

.1

27.9 33

.3

7.9

-0.5

4.5

-10

0

10

20

30

40

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Dr. Reddys Laboratories



2.32.5

2.3 2.3 2.3

2.6 2.6 2.7

2.42.22.3

2.7

2.2

1.7

1.9

2.1

2.3

2.5

2.7

2.9

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Dr. Reddys Laboratories



Omez Gastro Intestinal 10.9 11.2 -2.2 10.3 5.6

Omez D Gastro Intestinal 7.4 7.8 -5.6 7.4 -0.5

Razo D Gastro Intestinal 6.5 3.4 87.6 5.9 8.6

Econorm Gastro Intestinal 6.2 6.9 -10.2 6.4 -2.6

Grafeel Anti-Neoplastics 5.6 4.2 33.4 3.9 43.0

Nise Pain 5.4 5.9 -7.8 4.9 9.3

Stamlo Cardiac 4.9 5.3 -6.1 5.1 -3.9

Razo Gastro Intestinal 3.9 3.5 11.2 3.6 10.0

Atarax Respiratory 3.8 2.8 37.1 3.7 4.2

Stamlo Beta Cardiac 3.8 4.5 -14.3 4.3 -11.5




Cardiac15%

Anti-Neoplastics

11%Respiratory

8%

Anti-Infectives8%

Other35%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Gastro Intestinal 44.9 43.2 3.9 42.7 5.0

Cardiac 26.6 28.3 -6.2 27.9 -4.6

Anti-Neoplastics 20.3 19.2 5.7 18.3 11.1

Respiratory 13.6 12.7 6.8 14.1 -3.2

Anti-Infectives 13.9 12.6 10.0 14.3 -3.3

Derma 12.2 10.7 14.5 12.5 -2.8

Pain 12.5 12.9 -3.0 12.0 3.8

Anti Diabetic 13.3 12.4 7.7 13.1 1.6

Urology 7.6 6.8 12.0 8.1 -6.0

Stomatologicals 6.4 6.3 1.0 6.4 -0.5



Acute, 1186.42,

49.4%

Chronic, 723.47, 30.1%

Sub-Chronic, 490.61, 20.4%



30%

16%

9%12%

33%




Lupin

Stock Performance

6080

100120140


CNX Pharma Lupin



12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6 12

.3

3.6

15.4 18

.0

24.6

20.8

12.0

21.7

7.1

14.4

13.0

18.4 20

.5

-4.4

-2.8

6.6

7.7

-12

-4

4

12

20

28

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Lupin



3.7 3.8 3.7

3.4 3.3 3.3 3.33.4 3.5 3.4 3.4 3.4 3.4

2.32.52.72.93.13.33.53.73.9

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Lupin



Gluconorm-G Anti Diabetic 14.3 12.3 16.2 13.3 7.7

Tonact Cardiac 8.4 8.4 -0.5 8.7 -4.1

Budamate Respiratory 7.3 7.4 -1.3 7.4 -1.8

Rablet-D Gastro Intestinal 4.8 5.1 -5.1 5.0 -4.6

Rablet Gastro Intestinal 4.1 4.5 -7.8 4.5 -7.2

Cetil Anti-Infectives 3.8 2.9 32.8 3.4 12.0

Esiflo Respiratory 3.8 4.7 -19.6 4.0 -4.7

R-Cinex Anti-Infectives 3.7 4.7 -21.8 3.9 -5.5

Ramistar Cardiac 3.7 4.8 -22.6 4.6 -20.5

Gluconorm-Pg Anti Diabetic 3.5 3.9 -10.2 3.3 7.9



Cardiac26%

Anti-Infectives21%

Respiratory12%

Anti Diabetic11%

Gastro Intestinal8%

Other22%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Cardiac 72.2 73.5 -1.8 73.8 -2.3

Anti-Infectives 55.2 62.3 -11.5 55.4 -0.4

Respiratory 31.8 33.8 -5.8 33.3 -4.5

Anti Diabetic 36.4 32.5 11.9 34.1 6.5

Gastro Intestinal 22.8 24.4 -6.6 23.3 -2.5

Vitamins 15.6 17.9 -12.8 15.4 1.5

Neuro 14.7 14.6 0.7 14.9 -1.5

Pain 12.7 14.1 -9.7 12.2 4.4

Gynaecological 10.6 9.8 8.1 9.8 8.5

Ophthal 2.2 2.1 3.0 2.1 5.0



Acute, 1076.25,

31.5%

Chronic, 1673.88,

49.0%Sub-

Chronic, 669.21, 19.6%


Brands contribution to domestic sales (MAT May’16)

20%

11%

9%13%

47%




Cadila Healthcare

Stock Performance

60

80

100

120

140


CNX Pharma Cadila Healthcare


12.9 15

.8

13.4

13.6

10.5

22.9

9.6

12.5

9.6

12.3

6.6

3.6

7.714

.9 17.5

16.7

16.6 18

.6

27.0

7.1

11.0

6.8

11.6

7.3

2.2 4.6

0

5

10

15

20

25

30

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Cadila Healthcare



4.0 4.0

3.9

4.0

3.93.9

3.93.9 3.9

3.9

4.0

4.0

3.9

3.8

3.8

3.9

3.9

4.0

4.0

4.1

4.1

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Cadila Healthcare



Skinlite Derma 16.3 14.1 15.8 16.7 -2.2

Atorva Cardiac 11.0 10.0 10.5 11.6 -4.7

Mifegest Kit Gynaecological 10.4 14.5 -28.5 12.9 -19.5

Pantodac Gastro Intestinal 9.5 7.5 26.0 8.9 5.8

Deriphyllin Respiratory 8.1 7.7 4.4 8.6 -5.9

Zyrop Blood Related 5.5 6.0 -8.4 5.0 9.1

Ocid Gastro Intestinal 5.4 3.6 49.5 4.9 9.8

Amlodac Cardiac 5.4 6.9 -21.8 5.8 -6.7

Aten Cardiac 5.3 5.3 0.3 5.1 4.1

Clopitorva Cardiac 5.0 3.8 30.3 5.1 -2.2



Cardiac17%


Gynaecological11%

Respiratory10%Pain

10%

Other38%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Cardiac 55.6 52.8 5.2 56.2 -1.2

Gastro Intestinal 47.3 42.3 11.8 47.6 -0.7

Gynaecological 34.6 40.4 -14.3 38.0 -9.0

Respiratory 30.4 28.8 5.7 32.3 -5.7

Pain 32.1 27.7 15.8 33.7 -4.5

Derma 26.9 24.7 9.0 27.0 -0.2

Anti-Infectives 23.4 21.4 9.4 25.4 -7.7


Vitamins 14.5 12.7 14.2 14.1 2.8

Anti Malarials 4.7 6.9 -32.1 3.9 20.0



Acute, 1076.25,

31.5%

Chronic, 1673.88,

49.0%Sub-

Chronic, 669.21, 19.6%



20%

11%

9%13%

47%




GlaxoSmithKline

Stock Performance

6080

100120140


CNX Pharma GSK Pharma



12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6 12

.3

6.6

3.6

7.7

3.4

4.8

1.3

2.7

5.8

27.2

9.9 11.9 9.

9

6.9

-3.5

-6.4

0.3

-10

-5

0

5

10

15

20

25

30

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Glaxosmithkline Pharmaceuticals



3.3 3.33.2

3.33.4

3.53.4 3.4 3.3

3.1 3.1 3.0 3.1

2.4

2.6

2.8

3.0

3.2

3.4

3.6

3.8

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Glaxosmithkline Pharmaceuticals



Augmentin Anti-Infectives 20.5 24.7 -16.7 23.2 -11.5

Synflorix Vaccines 18.5 14.0 32.2 17.9 3.2

Zinetac Gastro Intestinal 15.0 14.4 4.4 14.0 6.9

Calpol Pain 13.1 11.5 13.3 14.9 -12.0

Eltroxin Hormones 12.7 10.9 16.9 11.0 15.7

Betnovate N Derma 11.5 11.7 -1.4 12.2 -5.9

Betnovate C Derma 11.0 14.9 -26.6 10.7 2.2

Rotarix Vaccines 10.0 3.1 223.9 9.6 3.9

Ceftum Anti-Infectives 9.9 10.7 -7.1 10.1 -1.6

T Bact Derma 8.8 8.6 2.3 1.2 613.9


Exhibit 40: Contribution of therapies to domestic sales (MAT May’16) Anti-Infectives

23%

Derma19%

Vaccines14%

Pain 9%

Respiratory8%

Other27%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Anti-Infectives 53.7 58.6 -8.4 59.0 -9.0

Derma 49.2 60.3 -18.3 43.5 13.1

Vaccines 44.5 25.9 71.6 42.0 6.0

Pain 23.7 22.0 7.5 24.4 -3.2

Respiratory 17.5 17.6 -0.3 19.1 -8.2

Hormones 19.9 20.6 -3.3 19.4 2.7

Vitamins 21.1 20.1 4.7 20.3 3.8

Gastro Intestinal 17.0 17.1 -0.2 16.6 2.5

Cardiac 4.8 5.9 -19.0 4.1 16.1

Gynaecological 3.5 2.8 22.1 3.3 5.1


Acute : Chronic contribution (MAT May’ 16)

Acute, 2122.81,

65.3%

Chronic, 427.39, 13.1%

Sub-Chronic, 700.97, 21.6%



52%

15%

9%

10%

14%




Wockhardt

Stock Performance

050

100150200250300350400


CNX Pharma Wockhardt


12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6 12

.3

6.6

3.6 7.

722.2 24

.4 29.736

.0

29.2

42.2 50

.4

38.3

9.9

5.5

2.5 4.

8 9.4

0

10

20

30

40

50

60M

ay-1

5

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Wockhardt



1.24 1.281.37 1.35

1.39 1.42 1.391.34 1.37 1.38 1.35

1.26

1.29

1.01.11.21.31.4

1.51.61.71.8

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Wockhardt



Spasmo Proxyvon PluGastro Intestinal 22.5 22.3 0.7 23.8 -5.5

Practin Vitamins 8.9 6.0 49.1 8.0 12.2

Tryptomer Neuro 5.8 3.9 NA 6.1 -5.9

Methycobal Vitamins 4.9 3.5 37.2 4.6 6.8

Bro Zedex Respiratory 3.2 3.3 -2.0 3.4 -3.8

Biovac V Vaccines 3.0 6.9 -56.5 2.9 2.4

Wosulin Anti Diabetic 3.0 1.9 NA 2.9 1.8

Biovac A Vaccines 2.5 2.8 -10.7 2.5 1.9

Libotryp Neuro 2.5 1.5 71.3 2.3 11.3

Ace Proxyvon Pain 2.2 2.7 -17.8 2.2 -0.1




Vitamins 15%

Respiratory12%

Neuro 8%

Anti-Infectives7%

Other33%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Gastro Intestinal 24.8 24.5 1.4 25.7 -3.4

Vitamins 20.5 15.8 30.0 19.0 7.7

Respiratory 9.4 10.3 -9.4 10.0 -6.1

Neuro 10.6 7.1 48.6 10.6 -0.8

Anti-Infectives 5.6 5.8 -3.6 7.0 -20.0

Vaccines 5.6 9.8 -42.9 5.5 2.3

Derma 7.5 6.4 18.4 7.3 2.8

Pain 6.9 6.2 10.9 6.8 1.5

Anti Diabetic 8.5 6.0 42.3 8.4 1.7

Hormones 2.8 2.0 40.4 2.7 1.6



Acute, 930.04, 69.3%

Chronic, 263.60, 19.6%

Sub-Chronic, 148.49, 11.1%



56%

14%

8%

8%

14%




Glenmark Pharmaceuticals

Stock Performance

6080

100120140160180200


CNX Pharma Glenmark



12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6 12

.3

6.6

3.6 7.

7

29.9 34

.6

30.9

28.0

13.1

43.6

11.5

18.6

16.3 19

.6

10.4

4.5

4.7

05

101520253035404550

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Glenmark Pharmaceuticals



2.22.3

2.4 2.32.4

2.5 2.5

2.62.5

2.42.3

2.3

2.1

1.9

2.1

2.3

2.5

2.7

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Glenmark Pharmaceuticals



Telma Cardiac 13.0 13.4 -2.7 12.7 2.3

Telma H Cardiac 12.2 10.3 18.5 13.1 -6.7

Candid Derma 10.2 8.7 17.4 11.2 -9.4

Candid-B Derma 7.2 6.5 10.8 8.3 -13.7

Telma Am Cardiac 6.5 5.8 11.8 7.1 -8.3

Ascoril Plus Respiratory 5.5 5.5 0.5 8.6 -35.9

Zitamet Plus Anti Diabetic 3.2 0.0 NA 2.9 9.2

Onabet Derma 3.1 2.4 29.4 3.2 -2.9

Zita Plus Anti Diabetic 2.7 0.0 NA 2.4 13.9

Bon K2 Vitamins 2.7 2.6 0.9 2.7 -1.5



Derma29%

Cardiac23%

Respiratory15%

Anti-Infectives13%

Anti Diabetic9%

Other11%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Derma 57.2 51.8 10.2 61.2 -6.6

Cardiac 44.8 41.3 8.6 46.2 -3.0

Respiratory 19.8 20.1 -1.4 26.4 -25.0

Anti-Infectives 22.0 23.7 -7.0 22.9 -3.9

Anti Diabetic 14.5 15.5 -6.7 14.5 0.2

Vitamins 6.0 4.5 33.8 5.6 6.1

Gastro Intestinal 4.8 5.1 -5.2 5.4 -11.6

Pain 4.0 3.7 8.8 4.0 1.6

Gynaecological 3.5 3.1 14.7 3.8 -6.4

Otologicals 2.4 2.8 -14.4 2.3 1.9



Acute, 931.50, 39.1%

Chronic, 899.55, 37.8%

Sub-Chronic, 549.64, 23.1%



35%

13%10%

13%

29%




Torrent Pharmaceuticals

Stock Performance

4080

120160200


CNX Pharma Torrent Pharma


12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6 12

.3

6.6

3.6

7.7

27.4

28.3

18.3 21

.7

16.0

19.9

5.4

3.8 7.

4 10.2

2.4

-3.0

1.4

-5

0

5

10

15

20

25

30

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Torrent Pharmaceuticals



2.48 2.50

2.352.25 2.23 2.17 2.21 2.23

2.30 2.352.232.27

2.34

1.6

2.0

2.4

2.8

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Torrent Pharmaceuticals



Shelcal Vitamins 16.3 18.2 -10.4 16.0 1.9

Chymoral Forte Pain 9.6 10.3 -6.7 9.9 -2.7

Nikoran Cardiac 7.3 6.4 13.8 7.3 1.0

Dilzem Cardiac 5.9 5.4 10.4 5.3 10.7

Azulix-Mf Anti Diabetic 5.8 4.7 23.1 5.1 11.7

Nebicard Cardiac 5.4 4.9 8.9 5.5 -1.6

Shelcal Ct Vitamins 4.5 3.0 52.4 4.4 4.2

Nexpro Rd Gastro Intestinal 4.4 4.4 0.5 4.4 -0.8

Nexpro Gastro Intestinal 4.0 3.9 1.2 3.8 4.8

Deplatt-A Cardiac 3.3 3.1 8.9 2.9 15.0



Cardiac29%

Neuro 16%

Vitamins 16%


Pain 8%

Other16%




Neuro 32.1 30.8 4.1 31.2 2.7

Vitamins 32.5 30.3 7.2 31.5 3.3


Pain 15.7 15.2 3.4 15.5 1.5

Anti Diabetic 12.6 10.9 15.9 11.6 9.4

Anti-Infectives 6.2 10.1 -38.5 6.4 -2.7

Derma 5.2 4.4 17.7 5.6 -7.5

Gynaecological 3.1 3.8 -17.0 2.7 15.1

Urology 1.0 0.8 NA 0.9 10.7


Acute : Chronic contribution (MAT May ‘ 16)

Acute, 550.43, 24.2%

Chronic, 1159.51,

51.0%Sub-

Chronic, 562.61, 24.8%



32%

14%9%

12%

33%




Ipca Laboratories

Stock Performance

5075

100125150


CNX Pharma Ipca


12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6 12

.3

6.6

3.6

7.7

-5.8

-5.5

-0.1

3.0

3.6 6.3 11

.5

1.5

3.3

25.8

11.8

9.1

3.7

-10

-5

0

5

10

15

20

25

30

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Ipca Laboratories



1.3 1.2 1.3 1.31.5 1.4

1.3 1.2 1.2 1.2 1.2 1.2 1.2

0.6

0.81.0

1.2

1.4

1.61.8

2.0

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Ipca Laboratories



Zerodol Sp Pain 7.5 7.1 6.2 7.8 -3.5

Zerodol P Pain 5.9 5.5 8.0 7.9 -25.5

Hcqs Anti Malarials 5.5 4.8 13.9 5.9 -6.2

Glycinorm M Anti Diabetic 3.3 2.9 15.3 3.1 5.6

Folitrax Anti-Neoplastics 3.0 2.5 21.5 2.7 9.9

Larinate Anti Malarials 2.9 2.6 14.5 2.5 18.7

Rapither-Ab Anti Malarials 2.5 3.6 -28.9 2.9 -13.6

Zerodol Pain 2.3 2.4 -3.7 2.5 -9.9

Perinorm Gastro Intestinal 2.1 2.2 -5.9 1.8 20.8

Ctd Cardiac 2.0 1.6 24.6 2.0 -3.1



Pain 26%

Anti Malarials19%

Cardiac17%

Gastro Intestinal8%

Anti-Infectives6%

Other24%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Pain 27.3 26.0 5.2 30.0 -9.0

Anti Malarials 15.8 17.1 -7.7 16.4 -3.7

Cardiac 19.0 17.3 10.2 18.5 2.7


Anti-Infectives 5.5 6.2 -11.3 5.7 -2.0

Anti Diabetic 5.8 5.4 7.0 5.7 1.5

Respiratory 3.0 3.2 -6.8 3.5 -14.3


Neuro 3.7 3.3 12.5 3.6 4.0

Derma 2.7 2.4 10.0 2.8 -4.5



Acute, 842.34, 66.4%

Chronic, 349.06, 27.5%

Sub-Chronic,

76.67, 6.0%



37%

16%11%

13%

23%




Biocon

Stock Performance

6080

100120140160180

Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16CNX Pharma Biocon



12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6

6.6

3.6

7.7

3.7

4.8

12.3

6.0 7.

3

-11.

2

10.0

-0.8

5.2

5.3

11.3 14

.5

7.7 9.

4

-15

-10

-5

0

5

10

15

20

25

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Biocon



0.340.36

0.34 0.33

0.31

0.330.32

0.34

0.36

0.34

0.38

0.350.35

0.27

0.29

0.31

0.33

0.35

0.37

0.39

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Biocon



Insugen Anti Diabetic 7.8 7.0 12.2 7.5 4.0

Basalog Anti Diabetic 5.3 4.1 28.0 5.1 2.8

Erypro Blood Related 2.4 1.6 53.5 1.9 29.9

Canmab Anti-Neoplastics 1.5 1.7 -13.1 2.2 -32.7

Insugen R Anti Diabetic 1.4 1.3 8.3 1.4 0.3

Blisto Mf Anti Diabetic 1.2 1.5 -19.7 1.2 -2.8

Abraxane Anti-Neoplastics 1.1 1.4 -21.7 1.7 -35.1

Biomab Egfr Anti-Neoplastics 1.0 0.2 502.6 1.0 -4.9

Psorid Anti-Neoplastics 0.7 0.5 55.7 0.6 26.0

Insugen N Anti Diabetic 0.6 0.8 -23.2 0.6 6.9



Anti Diabetic59%

Anti-Neoplastics

22%

Blood Related6%

Cardiac5%

Derma3%

Other 5%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Anti Diabetic 17.6 16.0 9.9 17.0 3.7

Anti-Neoplastics 6.1 5.5 9.9 7.2 -16.2

Blood Related 2.4 1.6 54.5 1.9 28.9

Cardiac 1.5 1.6 -5.9 1.5 2.4

Derma 0.7 0.8 -14.9 0.7 -2.0

Anti-Infectives 0.4 0.6 -39.8 0.6 -37.5


Others 0.3 0.2 25.4 0.2 41.2

Vitamins 0.1 0.2 -29.6 0.1 12.3

Pain 0.1 0.0 240.1 0.0 162.8



Acute, 69.06, 20.3%

Chronic, 242.94, 71.3%

Sub-Chronic,

28.73, 8.4%



76% 11%

6%

5%

2%




Pfizer

Stock Performance

4080

120160200


CNX Pharma Pfizer


12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6 12

.3

6.6

3.6

7.7

11.8

20.3

17.3 19

.7

9.9

25.4

3.5

0.9

-3.4

5.1

3.5

2.8

7.3

-10

-5

0

5

10

15

20

25

30

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Pfizer



2.872.93

2.96 2.942.91

2.952.91 2.92 2.93

2.842.90

2.97

2.86

2.4

2.6

2.8

3.0

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Pfizer



Corex Respiratory 22.4 19.8 13.1 27.6 -18.8

Becosules Vitamins 19.1 22.4 -14.5 18.8 2.0

Minipress Xl Cardiac 12.3 10.1 22.0 15.4 -20.1

Dolonex Pain 11.3 10.2 10.5 10.8 4.6

Gelusil Mps Gastro Intestinal 10.4 11.3 -8.3 10.6 -1.7

Magnex Anti-Infectives 10.3 11.0 -6.2 9.4 9.7

Mucaine Gastro Intestinal 10.2 7.9 30.4 9.7 5.0

Wysolone Hormones 8.9 6.3 41.6 7.8 14.6

Folvite Blood Related 7.5 6.1 23.2 7.3 3.3

Ovral L Gynaecological 5.9 4.3 37.2 6.0 -1.0



Anti-Infectives16%

Respiratory14%


Vitamins 10%Hormones

9%

Other41%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Anti-Infectives 32.5 34.4 -5.4 34.6 -6.1

Respiratory 28.7 24.7 16.5 34.3 -16.3


Vitamins 24.6 28.0 -12.2 24.2 1.7

Hormones 22.3 18.4 21.1 20.9 6.6

Gynaecological 20.8 17.1 21.6 21.0 -1.2

Neuro 18.4 15.9 15.8 19.6 -6.4

Cardiac 18.0 16.3 10.2 21.2 -15.1

Pain 16.4 15.1 8.4 15.0 8.7

Blood Related 7.9 6.7 18.4 7.7 2.6



Acute, 1884.77,

64.9%

Chronic, 456.49, 15.7%

Sub-Chronic, 561.72, 19.3%



50%

19%

10%

10%

11%




Novartis

Stock Performance

40

90

140

190


CNX Pharma Novartis India



12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6 12

.3

6.6

3.6

7.7

-7.1 -1.0

3.1

4.2

-1.7

7.8

0.0

-2.0

-2.7

4.2

3.7

9.55.5

-10

-5

0

5

10

15

20

25

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Novartis India



1.12

1.16

1.221.18 1.20

1.24

1.20 1.201.19 1.18

1.22 1.23

1.13

1.1

1.1

1.2

1.2

1.3

1.3

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Novartis India



Galvus Met Anti Diabetic 24.5 17.8 37.8 25.2 -2.9

Voveran Pain 18.0 13.5 33.0 19.5 -7.9

Galvus Anti Diabetic 9.7 9.2 5.6 10.1 -3.3

Rabipur (Novartis) Vaccines 6.4 8.5 -25.4 11.0 -42.4

Tegrital Neuro 4.6 4.5 2.4 5.0 -8.2

Voveran Pain 3.3 2.7 19.4 3.4 -4.3

Regestrone Gynaecological 2.9 3.0 -1.6 3.0 -3.0

Genteal Ophthal 2.4 2.7 -13.1 2.5 -6.9

Syntocinon Gynaecological 2.3 1.7 33.6 2.0 10.8

Methergin Gynaecological 2.2 2.5 -10.9 2.5 -12.7



Anti Diabetic32%

Pain 20%Vitamins

9%

Vaccines8%

Respiratory8%

Other23%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Anti Diabetic 34.8 27.6 26.0 35.9 -2.9

Pain 22.8 18.0 26.8 24.4 -6.7

Vitamins 8.9 9.1 -2.2 9.6 -7.8

Vaccines 6.4 8.6 -26.4 11.0 -42.5

Gynaecological 7.7 7.3 4.9 7.8 -1.9

Neuro 4.6 5.8 -19.7 5.1 -8.7

Anti-Infectives 4.0 4.2 -3.4 3.6 12.8

Ophthal 3.0 3.2 -7.9 3.1 -3.8

Respiratory 1.6 1.5 9.3 1.8 -12.4

Cardiac 0.8 1.1 -20.5 0.8 1.8



Acute, 520.36, 43.7%

Chronic, 502.12, 42.2%

Sub-Chronic, 167.09, 14.0%



78%

12%4%4%2%




Unichem Laboratories

Stock Performance

70100130160


CNX Pharma Unichem Labs



12.9 15

.8

13.4

13.6

10.5

22.9

9.6

12.5

9.6 12

.3

6.6

3.6

7.7

20.5

2.7

11.1

0.6

26.6

2.5

11.0

5.3 5.8

2.2

1.5

3.2

12.40

5

10

15

20

25

30

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Unichem Laboratories



0.990.97

0.88 0.88 0.86 0.87 0.880.92

0.94 0.950.92

0.900.89

0.80

0.90

1.00

1.10

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Unichem Laboratories



Losar H Cardiac 8.2 7.3 12.8 7.9 3.1

Unienzyme Gastro Intestinal 6.1 7.4 -18.1 5.2 16.7

Losar Cardiac 5.5 5.3 3.9 5.8 -5.4

Ampoxin Anti-Infectives 5.4 7.0 -23.1 5.1 4.2

Vizylac Gastro Intestinal 3.8 3.6 4.7 2.8 32.7

Serta Neuro 2.0 1.7 16.2 2.0 -1.6

Trika Neuro 1.8 2.2 -17.2 2.0 -8.8

Unistar (Unichem) Cardiac 1.7 1.5 17.1 1.6 9.8

Telsar Cardiac 1.5 1.6 -3.1 1.3 15.0

Ranx Cardiac 1.4 0.9 57.5 1.4 2.8



Cardiac43%

Anti-Infectives17%

Neuro 13%


Pain 4% Other

11%




Anti-Infectives 11.8 13.6 -13.0 11.0 6.9

Neuro 10.5 9.6 10.3 11.2 -5.9


Pain 3.2 2.9 10.8 3.0 9.8

Anti Diabetic 3.3 2.4 38.4 3.3 2.1

Vitamins 1.7 2.2 -20.4 1.8 -3.3

Respiratory 1.5 1.9 -18.0 1.6 -2.5

Derma 1.9 1.3 55.1 1.9 4.2

Gynaecological 0.4 0.6 -35.4 0.4 -0.3



Acute, 325.13, 36.1%

Chronic, 519.57, 57.7%

Sub-Chronic,

55.05, 6.1%



46%

13%9%

11%

21%




Indoco Remedies

Stock Performance

6080

100120140


CNX Pharma Indoco



12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6 12

.3

6.6

3.6

7.7

2.6

1.2

3.7

-1.3

-6.4

16.2

10.3

5.2

11.0

5.6

5.4

0.7

-1.0

-10

-5

0

5

10

15

20

25

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Indoco Remedies



0.70.7

0.7 0.7 0.7

0.70.7

0.7 0.7 0.7

0.7

0.6

0.7

0.60.60.60.70.70.70.70.70.8

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indoco Remedies



Febrex Plus Respiratory 4.2 5.1 -17.7 4.3 -0.9

Cital Urology 3.9 3.3 17.2 3.9 0.4

Cyclopam Gastro Intestinal 3.8 4.0 -5.7 3.6 4.6

Sensodent-K Stomatologicals 3.0 2.5 23.9 3.2 -4.3

Oxipod Anti-Infectives 2.6 2.3 12.3 2.6 -3.0

Cloben G Derma 1.9 1.6 16.2 1.8 4.8

Atm Anti-Infectives 1.9 2.0 -5.2 1.9 -1.7

Cyclopam Gastro Intestinal 1.8 1.9 -9.1 1.7 3.9

Sensodent-Kf Stomatologicals 1.8 1.5 15.7 1.7 2.1

Sensoform Stomatologicals 1.7 1.5 15.0 1.7 1.5


Exhibit 85: Contribution of therapies to domestic sales (MAT May’16) Respiratory

18%

Anti-Infectives18%

Stomatologicals16%


Vitamins 7%

Other27%



Therapy May' 16 May' 15 YoY (%) Apr' 16 QoQ (%)Respiratory 7.1 7.9 -10.6 7.5 -5.2

Anti-Infectives 8.7 8.1 6.9 8.5 2.1

Stomatologicals 9.9 8.3 19.8 9.8 1.7


Vitamins 4.6 4.2 10.4 4.0 14.5

Urology 4.4 3.6 21.4 4.2 3.4

Derma 2.4 2.2 11.8 2.3 3.3

Pain 2.6 2.2 16.5 2.3 9.9

Ophthal 2.2 2.2 1.8 2.1 7.6

Anti Diabetic 1.9 1.7 12.8 1.7 12.5



Acute, 569.74, 82.3%

Chronic, 41.00, 5.9%

Sub-Chronic, 81.85, 11.8%



47%

16%

9%

11%

17%




Ajanta Pharmaceuticals

Stock Performance

4090

140190240290


CNX Pharma Ajanta



12.9

15.8

13.4

13.6

10.5

22.9

9.6

12.5

9.6

12.3

6.6

3.6

7.7

9.5

10.0

18.3

14.3

10.9

12.6

9.9

6.5 6.9

10.5

7.6

7.6

13.1

0

5

10

15

20

25

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Ajanta Pharma



0.49 0.48 0.470.48

0.460.45

0.51 0.52

0.490.51

0.48 0.48

0.51

0.4

0.4

0.4

0.5

0.5

0.5

0.5

0.5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Ajanta Pharma



Met Xl Cardiac 4.9 3.8 30.7 3.4 45.8

Melacare Derma 3.1 3.6 -13.5 3.2 -1.2

Atorfit Cv Cardiac 2.9 3.0 -1.3 2.9 1.1

Soft Drops Ophthal 1.4 1.2 19.6 1.2 17.4

Feburic Pain 1.3 0.9 44.0 1.2 5.9

Rosufit Cv Cardiac 1.2 0.9 32.3 1.3 -5.4

Met Xl Am Cardiac 1.2 1.0 22.8 1.2 5.1

Cinod Cardiac 0.9 0.7 24.9 0.8 7.3

Rosutor Gold Cardiac 0.9 0.4 93.9 0.8 3.8

Olopat Ophthal 0.8 0.7 22.8 0.8 4.2



Cardiac34%

Ophthal23%

Derma22%

Vitamins 6%

Pain 5%

Others10%




Ophthal 9.9 8.9 11.4 9.8 0.6

Derma 8.4 8.7 -3.2 8.6 -1.8

Vitamins 2.2 2.4 -7.8 2.2 1.4

Pain 2.1 1.9 11.3 2.0 5.6


Neuro 0.9 0.9 -0.6 0.7 19.4

Anti-Infectives 0.7 0.5 53.0 0.7 13.3

Ophthal 0.9 0.5 70.1 0.7 22.9

Anti Diabetic 0.5 0.0 NA 0.5 -5.0



Acute, 191.48, 39.6%

Chronic, 235.73, 48.7%

Sub-Chronic, 56.73, 11.7%



43%

12%10%

12%

23%




Alembic Pharmaceuticals

Stock Performance

406080

100120140160180200


CNX Pharma Alembic Pharma



12.9 15

.8

13.4

13.6

10.5

22.9

9.6 12

.5

9.6 12

.3

6.6

3.6

7.715

.2 18.1

17.0

21.2 24

.0

6.0

31.4

18.8

23.0

13.7

8.1

5.7

11.3

0

5

10

15

20

25

30

35

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Indian Pharma Market Alembic Pharma



1.26 1.26

1.32

1.41 1.43 1.441.49 1.50 1.49

1.44

1.371.32 1.31

1.11.21.21.31.31.41.41.51.51.6

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

(%)

Alembic Pharma


Exhibit 94: Top 10 brands performance (| crore)

Brand Therapy May' 16 May' 15 Var. (%) Apr' 16 Var. (%)

Azithral Anti-Infectives 8.7 9.8 -10.7 9.0 -2.9

Althrocin Anti-Infectives 6.6 5.4 23.3 5.8 14.3

Gestofit Gynaecological 5.3 4.6 16.5 5.3 0.5

Roxid Anti-Infectives 4.1 4.3 -4.6 4.3 -3.2

Ulgel Gastro Intestinal 2.7 2.6 2.8 2.7 -0.7

Wikoryl Respiratory 2.5 2.2 12.0 2.7 -6.4

Richar Gynaecological 2.3 1.4 62.8 2.0 16.5

Rekool D Gastro Intestinal 2.3 2.4 -1.9 2.5 -6.2

Rekool Gastro Intestinal 2.0 1.7 21.9 2.0 3.0

Rekool L Gastro Intestinal 1.9 1.9 -2.0 1.9 -3.7



Anti-Infectives24%


Cardiac14%

Respiratory13%

Gynaecological11%

Other24%



Anti-Infectives 22.8 23.0 -0.9 22.5 1.5


Cardiac 16.8 13.7 22.1 17.6 -4.8

Respiratory 9.7 10.2 -5.2 11.2 -13.5

Gynaecological 13.7 11.4 21.0 13.4 2.3

Vitamins 8.5 6.5 32.4 8.4 1.8

Anti Diabetic 7.4 6.0 24.1 7.7 -4.5

Pain 4.7 3.8 22.9 4.5 5.1

Derma 2.0 2.2 -7.1 2.1 -4.4

Urology 2.4 1.8 30.6 2.3 2.2

Apr' 16 QoQ (%)Therapy May' 16 May' 15 YoY (%)



Acute, 831.89, 59.8%

Chronic, 300.17, 21.6%

Sub-Chronic, 257.93, 18.6%



36%

14%10%

13%

27%



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

0

5

10

15

20

25

30

35

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Mar

-13

Mar

-14

Mar

-15

Mar

-16

x

CNX Pharma Sensex [

Source: Company, ICICIdirect.com Research

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

Code (|) (|) (| Cr) FY16P FY17E FY18E FY16P FY17E FY18E FY16P FY17E FY18E FY16P FY17E FY18E FY16P FY17E FY18E

Ajanta Pharma AJAPHA 1557 1,780 Buy 13701.5 45.7 52.4 63.6 34.1 29.7 24.5 22.7 19.3 16.8 43.7 37.9 35.6 34.4 30.0 28.2

Apollo Hospitals APOHOS 1328 1,420 Hold 18469.6 22.2 35.0 49.2 59.8 38.0 27.0 26.6 19.2 15.3 8.2 10.9 13.3 8.9 12.6 15.4

Aurobindo Pharma AURPHA 750.1 990 Buy 43893.6 33.9 37.7 45.1 22.1 19.9 16.6 24.8 22.0 18.5 25.0 24.6 26.4 28.1 24.3 22.9

Alembic Pharma ALEMPHA 551 620 Hold 10394.8 38.2 19.6 28.3 14.5 28.1 19.5 12.6 23.9 17.3 58.0 24.8 29.7 51.5 22.3 26.2

Biocon BIOCON 713.5 545 Hold 14269.0 22.1 28.3 30.5 32.3 25.2 23.4 8.7 7.3 6.0 9.1 10.9 11.1 10.9 12.7 12.5

Cadila Healthcare CADHEA 319 390 Buy 32667.6 15.0 15.5 20.6 21.3 20.6 15.5 14.2 14.1 11.0 27.9 24.6 29.5 28.6 24.4 26.3Cipla CIPLA 482.2 470 Hold 38748.1 18.8 19.9 26.2 25.7 24.2 18.4 16.6 14.8 11.9 12.1 13.1 16.0 12.7 12.1 14.1

Divi's Laboratories DIVLAB 1113 1,260 Buy 29545.3 41.7 45.8 52.4 26.7 24.3 21.3 19.2 16.9 15.3 30.6 29.1 28.4 25.8 23.6 22.6

Dr Reddy's Labs DRREDD 2974 3,480 Buy 52819.3 142.1 139.2 174.0 20.9 21.4 17.1 13.1 12.8 9.7 15.1 15.1 18.3 18.9 16.1 16.8

Glenmark Pharma GLEPHA 858 1,000 Buy 21722.6 32.2 41.4 50.1 26.7 20.7 17.1 17.0 13.9 11.4 16.2 18.8 20.3 21.2 21.7 21.0

Indoco Remedies INDREM 280.2 365 Buy 2582.0 9.3 15.1 20.4 30.1 18.6 13.7 16.1 11.6 9.2 13.2 19.7 24.4 14.7 20.9 24.2

Ipca Laboratories IPCLAB 464 455 Hold 5852.5 10.0 24.1 30.4 46.3 19.2 15.2 17.9 11.1 8.6 5.8 12.4 14.5 5.5 12.0 13.3

Jubilant Life Sciences VAMORG 349.7 405 Buy 5570.7 26.0 41.6 56.1 13.5 8.4 6.2 7.6 6.1 4.8 12.0 15.1 17.8 14.2 18.9 20.6

Lupin LUPIN 1451 1,850 Buy 65407.8 50.4 66.0 74.1 28.8 22.0 19.6 19.4 13.5 12.1 18.6 22.5 23.1 20.7 22.1 19.9

Natco Pharma NATPHA 516.1 600 Buy 8988.3 8.9 10.9 13.0 57.9 47.1 39.6 30.0 26.9 22.8 16.1 16.4 17.3 12.0 13.0 13.7

Sun Pharma SUNPHA 753 785 Hold 181156.4 23.4 26.2 31.3 32.1 28.7 24.0 20.8 18.1 14.9 18.6 19.5 20.1 18.0 17.3 17.6

Syngene International SYNINT 399 445 Buy 7971.0 8.8 11.1 15.6 43.3 34.2 24.3 26.1 20.5 17.0 19.5 13.3 16.7 20.7 21.2 23.5

Torrent Pharma TORPHA 1342 1,650 Buy 22703.4 115.5 67.8 75.0 11.6 19.8 17.9 8.3 14.2 12.1 51.1 27.0 26.8 57.7 27.0 24.4

Unichem Laboratories UNILAB 249.3 310 Buy 2265.1 12.3 15.5 22.1 20.3 16.0 11.3 14.5 11.6 8.4 13.8 16.2 20.4 11.7 13.4 16.8

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

25.9%Premium


RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Add, Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Sector view: Over weight compared to index Equal weight compared to index Under weight compared to index Index here refers to BSE 500

Pankaj Pandey Head – Research [email protected]

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

[email protected]


ANALYST CERTIFICATION We /I, Siddhant Khandekar CA-INTER Mitesh Shah MS (Finance) Nandan Kamat MBA Finance, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.

Terms & conditions and other disclosures: ICICI Securities Limited is a Sebi registered Research Analyst having registration no. INH000000990. ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com. ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. 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) Nandan Kamat MBA 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) Nandan Kamat MBA 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.

idirect healthcheck jun16 -...

Documents