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ICICI Securities Ltd. | Retail Equity Research

April 18, 2017

Monthly Update

Domestic growth, US exclusivities to drive Q4 For Q4FY17, the I-direct healthcare universe is expected to grow ~8% YoY to | 39516 crore mainly on the back of growth in domestic formulations, US exclusivities and consolidations. US sales (select pack) are expected to remain flat YoY at | 11834 crore. However, excluding Glenmark’s exclusivity, US sales are expected to decline 6.5% YoY mainly due to increased competition, higher base, and lack of meaningful approvals. On the domestic formulations front, sales are expected to grow ~11% YoY to | 7929 crore (select pack) due to volume growth and new launches. Excluding exclusivities and consolidation, revenues are likely to grow just ~3% due to the full blown impact of US base business price erosion. EBITDA of the I-direct healthcare universe is expected to grow 10% YoY to | 9616 crore. EBITDA margins are likely to grow just 47 bps YoY to 24.3%. Sharp price erosion in the US base business may be offset by US exclusivities and growth in emerging markets. Net profit is expected to increase ~9% YoY to | 5779 crore, in line with the operational performance. On the regulatory front, Divi’s Lab’s Vizag API plant (unit-II) received USFDA import alert. However, USFDA has exempted 12 APIs from the import alert. Indoco Remedies has received warning letters from the USFDA for its Goa plant 2 and 3. The two plants had received six USFDA observations (September 2016). The said warning letter pertains to two of the observations. Dr Reddy’s has received two observations from USFDA for its Srikakulam plant (API manufacturing). However, the company has not specified the nature of the observations. On the innovation front, Glenmark has reported positive results from phase 3 trial of GSP 301 (nasal spray in seasonal allergic rhinitis). As of January 2017, the annual value of the US nasal spray market was US$ 1.3 billion. Finally, the Indian pharmaceutical market (IPM) grew 10% in FY17. Among coverage companies, Ajanta and Unichem registered highest growth of 14.3% YoY followed by Indoco, Torrent, Glenmark and Cadila registering growth of 14.2%, 12.8%, 12.0%, and 11.7%, respectively, in FY17.

Positive news on cGMP front yet to outweigh other apprehensions

Almost all players with US franchisee from the I-direct universe have witnessed USFDA inspection/re-inspection in the past six months with higher number of positive outcomes. However, this has done little to lift sentiments as the pricing pressure in the US base business, ranging from high single digit to low double digit continues will weigh. Similarly, the strengthening of the rupee vis-à-vis the US dollar after recent events is also likely to weigh in the near term. Apart from this, other issues/uncertainty in the US like pricing probe by the Department of Justice (DoJ), adapting to the bidding process and imposition of border tax on imported drugs are other near term overhangs. Front loading of investments, although useful for long term growth strategy, is also likely to impact near term profitability. For the time being, attractive valuations and decent growth expectations for FY18, FY19 are likely to be on the backburner due to these apprehensions. In the long run, however, we expect the earnings momentum to pick up on the back of incremental product launches largely on speciality, biosimilar and injectables front in the US besides normalising of Indian formulations growth. We expect healthcare universe revenues, EBITDA and PAT to grow at a CAGR of 11%, 11% and 13%, respectively, in FY16-19E. The growth will be steered by US (~10% CAGR over FY16-19E) and Indian formulations (~13% CAGR over FY16-19E).

Health CheckSector View

Neutral

Index Performance as on April 18, 2017

Return (%) 1M 3M YTD 1Y

CNX 500 2 11 16 22

Nifty 0 9 12 16

NSE Pharma -2 0 2 -8

Return (%)

Stocks Performance Mcap

Company 1M 3M YTD 1Y 15-Mar

Sun Pharma.Inds. -5 4 7 -19 161936

Lupin -2 -5 -4 -10 64214

Cipla -4 -1 1 10 46259

Cadila Health. 2 27 26 37 46171

Dr Reddy's Labs -3 -10 -13 -14 44190

Aurobindo Pharma -5 -10 -2 -16 38352

Glenmark Pharma. 1 0 0 13 25175

Torrent Pharma. 2 12 12 0 24904

Glaxosmit Pharma -3 -3 -2 -28 22679

Biocon 0 13 18 100 22340

Natco Pharma 26 54 72 123 17361

Divi's Lab. -16 -13 -18 -38 17055

Apollo Hospitals -4 0 -1 -14 16321

Ajanta Pharma -2 -1 -1 17 15533

Jubilant Life 7 20 32 113 13325

Alembic Pharma 1 2 3 8 11577

Syngene Int. -1 -11 -7 38 10499

Strides Arcolab -2 -2 4 -2 9883

Pfizer 4 4 3 8 8559

Wockhardt 2 10 15 -27 8380

Ipca Labs. 12 12 15 26 7761

Unichem Labs. 4 6 13 23 2632

Indoco Remedies -8 -14 -9 -16 2193

Return (%)

Market cap in | crore

Global Index Performance

Company 1M 3M YTD 1Y 3Y 5Y

S&P 500 Pharm Index (US) -2 6 6 6 8 15

NASDAQ Biotechnology (US) -1 5 10 3 10 20

S&P Pharmaceuticals (US) 2 7 8 -3 2 13

DJ Pharma and Biotech (US) -2 5 7 5 9 17

DJ STOXX Healthcare (EU) 1 9 9 7 11 15

TOPIX Pharma Index (Japan) -2 1 0 -3 15 18

MSCI World Pharm & Biotech -1 6 8 1 5 14

BI Global Spectalty-Generic Pharm -5 -8 -12 -36 -12 2

NSE Pharma -2 0 2 -7 10 16

Return (%)

Research Analyst

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


Regulatory approvals

Exhibit 1: Summary of USFDA approvals for March, 2017 [5

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeCipla Lamivudine HIV Viiv Hlthcare Epivir US$ 346.3 millionCadila Healthcare Tizanidine Hydrochloride Pain Acorda Zanaflex US$ 58.6 millionUnichem Labs Rizatriptan Benzoate CNS Merck Maxalt-Mlt US $60 millionTaro Pharma Metronidazole Dermatology Galderma Labs Lp Metrogel NAAurobindo Pharma Dextromethorphan Hydrobromide; Guaifenesin Anti-Infective Reckitt Benckiser Mucinex Dm US$ 300 millionGlenmark Clobetasol Propionate Dermatology Hi Tech Pharma Embeline US$ 175.3 millionAurobindo Pharma Desogestrel; Ethinyl Estradiol Contraceptive Barr Kariva NAAurobindo Pharma Acetaminophen; Tramadol Hydrochloride Pain Janssen Pharms Ultracet US$ 97 millionLupin Tobramycin Anti-Infective Novartis Pharms Tobi US$ 133.6 millionAurobindo Pharma Meropenem Anti-Infective Astrazeneca Merrem US$ 118 millionCipla Abacavir Sulfate; Lamivudine HIV Viiv Hlthcare Epzicom US$ 388 millionLupin Abacavir Sulfate; Lamivudine HIV Viiv Hlthcare Epzicom US$ 388 millionAurobindo Pharma Abacavir Sulfate; Lamivudine HIV Viiv Hlthcare Epzicom US$ 388 million

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeDr Reddys Labs Clofarabine Oncology Genzyme Corp Clolar NACipla Darunavir Hydrate HIV Janssen Products Lp Prezista US$ 1851 millionAurobindo Pharma Tenofovir Disoproxil Fumarate ARV Gilead Sciences Viread US$ 591 millionCipla Darunavir Ethanolate HIV Janssen Products Lp Prezista US$ 1851 millionGlenmark Fingolimod CNS Novartis Gilenya US$ 3109 millionLupin Febuxostat CVS Takeda Pharma Uloric US$ 387 millionGlenmark Milnacipran Hydrochloride CNS Allergan Savella US$ 135 million

Final Approvals

Tentative Approvals

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

M&As, demergers, tie-ups and JVs

Torrent Pharma in fray to acquire Novartis assets As per media sources, Torrent Pharma is finalising a deal to acquire the domestic women’s healthcare portfolio of Novartis. The deal is valued at | 300 crore and could be concluded in eight weeks. Cipla signs agreement with MEDRx Cipla through its US subsidiary has signed a worldwide licensing agreement (except for East Asia) with MEDRx to further develop and commercialise MRX-4TZ (for muscle spasticity treatment). MEDRx is eligible to receive up to US$30 million cumulatively and will also receive tiered royalties on the net sales of commercialised licensed products. Apollo Hospitals collaborates to develop treatment protocols for colorectal surgery Apollo Hospital will be collaborating with the University College, London, and Cleveland Clinic, the US for developing treatment protocols for colorectal surgery. The collaboration that the hospital had entered into would help to go one step ahead and find new learning opportunities in the discipline. Cipla acquires South African pharma manufacturer Anmarate Cipla has acquired a 100% stake in Anmarate in South Africa for ZAR 26 million (~| 13 crore). The acquired company is engaged in manufacturing and distribution of pharmaceutical products and has a turnover of ZAR 2.5 million (~| 1.3 crore) (MAT February 2016). Novartis to sell respiratory drug portfolio As per media sources, various India Pharma companies are in the fray to acquire the respiratory drug portfolio of Novartis. The deal could fetch US$500 million in sales. Novartis may sell global or regional brand rights based on the interest of buyers.


Biocon enters into partnership with Eisai Biocon will sell Parit (anti-ulcer drug; rabeprazole) in India after Eisai ends its 12-year partnership with GSK. Biocon has partnered with Japanese drug firm Eisai Pharma to market Parit in India. Dr Reddy's partners with Integra Lifesciences Dr Reddy's Labs has entered into an exclusive distribution agreement with Integra Lifesciences to market and distribute Duragen products (regenerative technology) for neurosurgery patients in India. It has been used in more than 1.8 million patients worldwide. Sun Pharma acquires Thallion Pharma Sun Pharma has entered into an agreement to acquire Thallion Pharma (Canadian pharmaceutical corporation) for C$2.7 million (~| 13 crore). Dr Reddy's partners with CytoSorbents Corp Dr Reddy's Laboratories has entered into a partnership with CytoSorbents Corporation for acquiring the exclusive rights to distribute CytoSorb for intensive care, cardiac surgery and other hospital applications in South Africa. It is a blood purification therapy that reduces excessive levels of inflammatory mediators in critically-ill and cardiac surgery patients. Jubilant Lifesciences to acquire cancer and body imaging company in US As per media sources, Jubilant Lifesciences is in the process of acquisition of a cancer and body imaging company in US for US$150-200 million (~| 1000-1300 crore). The acquisition will be done through the arm Jubilant DraxImage Inc and funded via internal accruals. Price cuts, new launches, recalls, approvals

Cadila recalls bottles of Atenolol tablets Cadila Healthcare has recalled 9561 bottles of Atenolol Tablets (CVS) from the US due to presence of foreign tablet in a bottle of atenolol 50 mg. This recall has been classified under Class II recall. Sun Pharma recalls Testosterone Cypionate Injection Sun Pharma has recalled 83,188 single does vials of Testosterone Cypionate Injection from US due to presence of particulate matter. This recall has been classified under Class II recall. Dr Reddy's recalls Rivastigmine Tartrate capsules Dr Reddy's has recalled 1,728 bottles of Rivastigmine Tartrate Capsules from the US, due to cross-contamination with other products. This recall has been classified under Class III recall. Lupin recalls Quinapril tablets Lupin has recalled 15,168 bottles of Quinapril Tablets from the US due to failed impurities/degradation specifications. This recall has been classified under Class III recall. Lawsuits, court rulings, settlements, regulatory issues

Cadila’s Changodar plant receives USFDA clearance Cadila Healthcare’s topicals manufacturing plant at Changodar (near Ahmedabad) received zero Form 483 from USFDA, post its inspection on April 3-7, 2017. The company has filed 17 products with the USFDA from this manufacturing site. Dr Reddy’s Srikakulam plant receives observations from USFDA Dr Reddy’s has received two observations from USFDA for its Srikakulam plant (API manufacturing). However, the company has not specified the nature of the observations.


India imposes anti-dumping duty on Chinese API The Government of India has imposed anti-dumping duty on Chinese API of Amoxicillin. Indoco Remedies receives USFDA warning letter Indoco Remedies has received a warning letter from the USFDA for its Goa plant 2 and 3. The two plants were earlier given six observations by the USFDA (September 2016). The said warning letter pertains to two of the observations. Lupin, Sandoz to pay penalty in multidistrict litigation case As per media sources, Sandoz and Lupin will pay a combined US$6.7 million to exit multidistrict litigation accusing them of striking a deal with a Valeant Pharmaceuticals Corp unit to delay launching their generic versions of the acne medication Solodyn. Lupin to pay fine in Australia for patent infringement On the lines of an adverse court ruling for Lupin, its Australian arm, Generic Health, is liable to pay an amount of A$30 million to Bayer Pharmaceuticals for causing loss of revenue, due to infringement of Bayer's patent for a contraceptive called Yasmin. Sun Pharma receives positive verdict from DoP Sun Pharma has received positive verdict from the Department of Pharmaceuticals (DoP) on revision of ceiling prices of nitrofurantoin 100 mg capsule as the DoP has directed the NPPA to re-fix and re-notify the price of the capsule under Para 4 and without applying WPI change in ascertaining the ceiling price. Import alert for Divis Labs' Vishakhapatnam Unit-II Divi’s Lab’s unit-II (which includes EOU, SEZ and DSN SEZ) of the Vizag API plant in Andhra Pradesh received an import alert from the USFDA. USFDA, however, has exempted 12 APIs from the import alert. USFDA had inspected this plant between November 29 and December 6, 2016 and issued a Form 483 to the unit with five observations. Vizag unit II accounts for 60-65% of overall sales of which US accounts for 30-32% of the pie. Unichem Laboratories receives observation for its Goa plant Unichem Laboratories’ Goa plant was inspected by USFDA from March 14-20, 2017. The company has been handed a few observations, which are procedural in nature as per the management. The company had to reply to USFDA with corrective response to the observations in 15 days. Alembic Pharma facility receives no observation Alembic Pharma’s Baroda plant (bioequivalence facility) has received zero form 483 observation from the USFDA, during its inspection from March 13-17, 2017. Sun Pharma Dadra facility receives 11 observations As per media sources, Sun Pharma’s Dadra Unit has been served 11 observations by USFDA. The Dadra formulations unit deals in oral dosage and is the second largest facility after Halol. It was earlier inspected in January 2015 by the USFDA and had several non-critical observations. The company is yet to reveal the nature of the current observations. Dr Reddy’s SEZ API facility cleared by USFDA with no observation USFDA has completed the inspection of Dr Reddy’s Srikakulam API plant (SEZ facility) with no Form 483 observations, conducted in April 10-14.


Others

Cadila Healthcare acquires shares held by subsidiary Cadila Healthcare has acquired all shares held by its subsidiary companies in 1) Zydus Pharma USA 2) Zydus Healthcare USA 3) Zydus Noveltech US and 4) Bremer Pharma Germany. Hence, all companies have become direct overseas subsidiary companies. Glenmark Pharma reports positive phase 3 trial Glenmark has reported positive results from phase 3 trial of GSP 301 (nasal spray in seasonal allergic rhinitis). As of January 2017 the annual value of the US nasal spray market was US$1.3 billion. Apollo Hospitals undergoes succession planning As per media sources, the Apollo Hospitals group, to ensure smooth succession of management is creating a trust. As per current discussions, each of the four daughters of the founder Prathap C Reddy is expected to hold chairmanship for a fixed period in rotation. Sun Pharma partner seeks approval for Phase III clinical trials Sun Pharma’s European partner Almirall has sought regulatory approval for Phase III clinical trials of Tildrakizumab (anti-inflammation) from the European Medicines Agency (EMA). The drug is currently being evaluated for the treatment of moderate-to-severe plaque psoriasis.


Exhibit 2: Patent litigations [5

Month Innovator ANDA Filer Brand Name API Used for Aug-16 Lupin InvaGen Pharma Antara fenofibrate hypercholesterolemiaAug-16 Reckitt Benckiser Inc. Sun Pharma Mucinex guaifenesin / pseudoephedrine hydrochloride bronchial congestionAug-16 Dexcel Aurobindo Prilosec Omeprazole HeartburnSep-16 Pfizer Aurobindo Toviaz fesoterodine fumarate overactive bladderSep-16 Arena Pharma Lupin Belviq lorcaserin weight lossSep-16 Brigham and Women's Hospital InSun Pharma Sensipar cinacalcet hydrochloride hyper parathyroidismSep-16 Brigham and Women's Hospital InStrides Inc. Sensipar cinacalcet hydrochloride hyper parathyroidismSep-16 Brigham and Women's Hospital InCipla Sensipar cinacalcet hydrochloride hyper parathyroidismSep-16 Eli Lilly and Co., ICOS Corp. Cipla Cialis tadalafil erectile dysfunctionSep-16 Brigham and Women's Hospital InAurobindo Sensipar cinacalcet hydrochloride hyper parathyroidismSep-16 Eli Lilly and Co., ICOS Corp. Alembic Pharma Cialis tadalafil erectile dysfunctionOct-16 Amgen Inc. Ajanta Pharma Sensipar cinacalcet calcium reducerOct-16 Amgen Inc. Dr Reddy's Lab Sensipar cinacalcet calcium reducerOct-16 UCB, Inc. Cadila Healthcare Vimpat lacosamide partial-onset seizuresOct-16 Astellas Pharma Lupin Myrbetriq mirabegron overactive bladderOct-16 Astellas Pharma Cadila Healthcare Myrbetriq mirabegron overactive bladderOct-16 Astellas Pharma Aurobindo Pharma Myrbetriq mirabegron overactive bladderOct-16 AstraZeneca AB Glenmark Pharma Nexium 24HR esomeprazole magnesium treatment of acid refluxOct-16 Celgene Corp. Dr Reddy's Lab Revlimid lenalidomide multiple myelomaOct-16 Otsuka Pharma Zydus Pharma Abilify Aripiprazole SchizophreniaOct-16 Onyx Therapeutics Cipla Kyprolis carfilzomib multiple myelomaOct-16 Eli Lilly Cipla Axiron Hypogonadism TestosteroneOct-16 Galderma Lab Sun Pharma Oracea doxycycline infectionsOct-16 Eli Lilly Cipla Axiron Hypogonadism TestosteroneOct-16 Indoco Remedies Zydus Pharma Abilify Aripiprazole SchizophreniaOct-16 Eli Lilly Cipla Axiron Hypogonadism TestosteroneNov-16 Onyx Therapeutics Dr Reddy's Lab Kyprolis carfilzomib multiple myelomaNov-16 Onyx Therapeutics Cadila Kyprolis carfilzomib multiple myelomaNov-16 Indoco Remedies Zydus Pharma Abilify Aripiprazole SchizophreniaNov-16 UCB Inc Cadila Neupro rotigotine ParkinsonNov-16 Amarin Pharma Dr Reddy's Lab Vascepa icosapent ethy hypertri- glyceridemiaNov-16 Medicis Pharma Dr Reddy's Lab Solodyn minocycline infectionsDec-16 Sanofi-Aventis Torrent Pharma AUBAGIO teriflunomide multiple sclerosisDec-16 AstraZeneca AB Cipla Nexium 24HR esomeprazole treatment of acid refluxDec-16 Sanofi-Aventis Glenmark AUBAGIO teriflunomide multiple sclerosisDec-16 Sanofi-Aventis Alembic Pharma AUBAGIO teriflunomide multiple sclerosisDec-16 Wyeth Pharma Alembic Pharma BOSULIF bosutinib leukemiaDec-16 Sanofi-Aventis Aurobindo AUBAGIO teriflunomide multiple sclerosisDec-16 Eli Lilly and Co., ICOS Corp. Ajanta Pharma CIALIS tadalafil erectile dysfunctionDec-16 Astellas Pharma Cadila XTANDI enzalutamide prostate cancerDec-16 Cephalon, Inc. Cipla Abraxane paclitaxel breast cancerJan-17 Sanofi-Aventis Biocon AUBAGIO teriflunomide multiple sclerosisJan-17 Sanofi-Aventis Teva Pharma AUBAGIO teriflunomide multiple sclerosisJan-17 Sanofi-Aventis MSN Laboratories AUBAGIO teriflunomide multiple sclerosisJan-17 Sanofi-Aventis Hetero Labs AUBAGIO teriflunomide multiple sclerosisJan-17 Sanofi-Aventis Zydus Pharma (USA) AUBAGIO teriflunomide multiple sclerosisJan-17 AbbVie Inc Aurobindo Pharma KALETRA ritonavir HIVJan-17 Novartis AG Aurobindo Pharma GILENYA fingolimod multiple sclerosisJan-17 Novartis AG Aurobindo Pharma GILENYA fingolimod multiple sclerosisJan-17 Shionogi Inc Aurobindo Pharma FORTAMET metformin Type 2 diabetesJan-17 Dow Pharma Taro Pharma ONEXTON cindamycin phosphate, benzoyl peroxide AcneJan-17 Aptalis Pharma Zydus Pharma (USA) CANASA mesalamine Ulcerative proctitisFeb-17 Pfizer Inc Torrent Pharma TOVIAZ glatiramer acetate IncontinenceFeb-17 Biomarin Pharma Dr. Reddy's Lab KUVAN sapropterin PhenylketonuriaFeb-17 AstraZeneca AB Dr. Reddy's Lab FASLODEX fulvestrant Breast cancerFeb-17 iCeutica Pty Ltd Lupin Ltd VIVLODEX meloxicam Osteoarthritis painFeb-17 Pfizer Inc Sun Pharma XELJANZ XR tofacitinib citrate Rheumatoid arthritisMar-17 Pfizer Inc Cadila Healthcare XELJANZ XR tofacitinib citrate Rheumatoid arthritisMar-17 Dow Pharma Taro Pharma Onexton cindamycin phosphate, benzoyl peroxide AcneMar-17 Novartis, Mitsubishi Tanabe PharmAlembic GILENYA fingolimod multiple sclerosisMar-17 Teva Lupin PROAIR HFA albuterol sulfate RespiratoryMar-17 ViiV Healthcare;Vertex Pharma Lupin LEXIVA fosamprenavir HIVMar-17 Alcon Research Lupin PAZEO olopatadine conjunctivitis

Source: Bloomberg, ICICIdirect.com Research


IPM grows 9.6% YoY in March as demo affect fades • The Indian pharmaceutical market (IPM) grew 9.6% YoY to | 8989 crore

for March. IPM growth was mainly driven by volumes – 4.5%, new product launches – 3.4% and price hikes- 1.7%

• The fixed dosage combination (FDCs) related market de-grew 24.9% resulting in a 0.9% squeeze to overall growth

• Drugs under NLEM list declined 5.7% to | 926 crore while non-NLEM drugs posted growth of 12% to | 7648 crore. Volume growth in NLEM and non-NLEM was 5.4% and 3.2%, respectively

• Among companies under I-direct coverage, Ajanta Pharma, Cadila, Dr Reddy’s Glenmark, Indoco, Natco, Ipca, Lupin, Sun and Torrent Pharma have registered higher than industry growth rate

• Therapy wise, nine therapies have outpaced IPM growth. Notable among them with growth rates- anti-diabetic – 23.1%, cardiac – 11.6% and derma – 16.6%. On the other hand, anti-Infectives stayed flat YoY

• In all, 273 new brands were launched in February 2017 • On a MAT basis, IPM growth was at 10.3% YoY to | 111135 crore • Domestic and MNC companies have grown at 10.3% and 7.1%

respectively in March 2017 Exhibit 3: Domestic formulations - growth trend [

8.3

5.8

10.1 11

.4

10.1

8.2

17.7

13.7

9.3

20

7.6

7.2 9.

6

-5

0

5

10

15

20

25

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 4: Companies growth in domestic market in March, 2017

1.3

12.1

18.7

-1.5

9.2

13.8

1.4

6.3

12.0

15.7

9.3

13.1

10.1 8.511.1

10.5

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10

15

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Therapy wise performance (| crore) Therapy Mar' 17 Mar' 16 YoY (%) Feb' 17 MoM (%)Anti-Infectives 1186 1177 0.8 1207 -1.7Cardiac 1174 1052 11.6 1150 2.1GI 1037 949 9.3 1027 1.0Vitamins 777 728 6.8 763 1.9Anti Diabetic 860 699 23.1 814 5.6Respiratory 665 617 7.8 714 -6.9Pain 591 544 8.5 599 -1.4Neuro 551 523 5.3 553 -0.4Derma 560 480 16.6 549 2.0Gynaecological 483 435 11.2 482 0.4Anti-Neoplastics 172 167 2.9 198 -13.1Ophthal 173 167 4.1 163 6.1Vaccines 177 134 31.5 167 5.6Hormones 150 138 8.7 154 -2.6Blood Related 109 96 13.0 115 -5.4Urology 106 95 11.1 104 1.8Others 97 86 12.9 99 -2.0Sex Stimulants 56 46 22.2 60 -6.3Anti Malarials 26 30 -13.7 27 -4.7Stomatologicals 39 37 4.5 38 3.7

Source: AIOCD data base

Top brands in Indian pharma market Brand Company Therapy Mar' 17 YoY (%)Mixtard Abbott Anti Diabetic 512.0 10.3Glycomet Gp USV Anti Diabetic 415.0 1.1Spasmo ProxyvoWockhardt GI 377.0 25.4Lantus Sanofi India Anti Diabetic 341.0 17.6Galvus Met Novartis Anti Diabetic 328.0 24.8Liv 52 Himalaya GI 296.0 20.9Janumet MSD Anti Diabetic 285.0 13.6Augmentin Gsk Anti-Infectives 283.0 18.0Clavam Alkem Anti-Infectives 281.0 -10.8Monocef Aristo Anti-Infectives 277.0 15.6

Source: AIOCD data base Industry acute to chronic therapy ratio percentage…

Acute, 53287, 47.9%

Chronic, 35158, 31.6%

Sub-Chronic, 22689, 20.4%

Source: AIOCD data base; As per AIOCD MAT Mar 2017


IPM grows 8.8% in Q4FY17 • The Indian pharmaceutical market (IPM) grew 8.8% YoY to | 27075

crore in Q4FY17. The growth was mainly driven by volumes increase – 4% followed by new product launches – 3.3% and price hikes- 1.4%

• The fixed dosage combination (FDCs) related market de-grew 31.4% to | 488 crore

• Drugs under the NLEM list declined 6.3% to | 2828 crore while non-NLEM drugs posted growth of 11.2% to | 23018 crore. Volume growth in NLEM was 4.2% while for non-NLEM the growth was 1.4%

• Among companies under I-direct coverage, Ajanta, Glenmark, Indoco, Lupin, Torrent and Cadila have outperformed IPM growth

• Therapy wise, 11 therapies have outpaced IPM growth. Notable among them with growth rates- anti diabetic –19.4%, cardiac – 10.6%, and derma – 14.4%

• Domestic companies have grown 9.2%, while MNC companies have grown 7.3% in Q4FY17

Exhibit 5: Domestic formulations - quarterly growth trend

8.4 6.63.8

6.7

2.1-0.6

7.75.1 4

5.24.8

4.6

5.0

5.0

4.4

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1.91.4

3.3

3.6

3.3

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15.0

10.5

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13.5

10.48.8

3.3

-3.0-1.01.03.05.07.09.0

11.013.015.017.019.0

Q4FY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17

(%)

Volumes Price Increases New Products

[


Exhibit 6: Company wise growth trends in Q4FY17

13.6

(0.9)

5.63.8

2.1

6.4

14.917.5

6.08.1

3.7

(0.8)

9.9 9.612.5

8.712.1 13.3

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Therapy wise performance (| crore) Therapy Q4FY17 Q4FY16 YoY (%) Q3FY17 QoQ (%)Anti-Infectives 3584 3681 -2.6 4057 -11.7Cardiac 3506 3171 10.6 3523 -0.5GI 3093 2818 9.8 3094 0.0Anti Diabetic 2510 2101 19.4 2538 -1.1Vitamins 2303 2131 8.1 2429 -5.2Respiratory 2141 2076 3.1 2332 -8.2Pain 1792 1648 8.7 1953 -8.2Derma 1674 1464 14.4 1731 -3.3Neuro 1672 1577 6.0 1716 -2.6Gynaecological 1441 1282 12.3 1416 1.7Anti-Neoplastics 581 473 22.8 653 -11.2Vaccines 506 399 26.8 511 -1.0Ophthal 495 471 5.2 486 2.0Hormones 457 426 7.3 494 -7.5Blood Related 346 286 21.2 353 -1.9Urology 313 276 13.2 321 -2.6Others 295 253 16.8 321 -8.0Sex Stimulants 176 145 20.8 160 9.9Stomatologicals 116 114 2.5 120 -3.0Anti Malarials 74 94 -21.6 139 -46.9



IPM grows 10% in FY17 • The Indian pharmaceutical market (IPM) registered growth of 10% YoY to

| 111135 crore in FY17 • The growth was driven by volume growth – 4%, price hikes – 2.6%

followed by new product launches – 3.3% • Among companies under I-direct coverage, Ajanta, Indoco and Unichem

registered highest growth of 14.4-14.5% YoY followed by Torrent, Glenmark, Lupin, Sun and Cadila clocking growth of 13.2%, 11.8%, 11.6%, 10.9 and 10.9% respectively

• Therapy wise, 11 therapies have outpaced IPM growth. Notable among them with growth rates- anti-diabetic – 19.3%, cardiac – 11.4%, GI – 10.4% and vitamins 10.2%

Exhibit 7: Domestic formulations – quarterly growth trend

7.04.0

3.7

2.6

2.3 3.4

3.3

7.0

4.9

13.0 13.1

10.0

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

FY15 FY16 FY17

Volumes Price Increases New Products [

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

Exhibit 8: Company wise growth trends in FY17

14.4

6.9 7.9 7.64.7

(1.1)

11.814.4

8.811.6

4.91.9

11.7 10.913.2 14.5

8.910.9

(7.0)

(2.0)

3.0

8.0

13.0

18.0

23.0

28.0

Ajan

ta

Alem

bic

Bioc

on

Cipl

a

Dr R

eddy

's

GSK

Phar

ma

Glen

mar

k

Indo

co

Ipca

Lupi

n

Nov

artis

Pfize

r

Sano

fi In

dia

Sun

Phar

ma

Torre

nt

Unic

hem

Woc

khar

dt

Cadi

la

(%)


Therapy wise performance (| crore) Therapy FY17 FY16 YoY (%)Anti-Infectives 15979 15291 4.5Cardiac 13753 12342 11.4GI 12924 11707 10.4Anti Diabetic 9770 8189 19.3Vitamins 9840 8926 10.2Respiratory 8412 7707 9.1Pain 7622 6933 9.9Derma 6638 5945 11.7Neuro 6745 6146 9.7Gynaecological 5755 5195 10.8Anti-Neoplastics 2380 2049 16.2Vaccines 1949 1786 9.1Ophthal 2007 1876 7.0Hormones 1849 1714 7.9Blood Related 1371 1246 10.0Urology 1290 1140 13.2Others 1204 1012 19.0Sex Stimulants 620 546 13.5Stomatologicals 491 458 7.2Anti Malarials 535 557 -4.0



Sun Pharmaceuticals

507090

110130150

Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17

CNX Pharma Sun Pharma

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

8.3

5.8

10.1

8.2

11.4

17.7

13.7

9.3

15.5

7.6

10.1

7.2 9.

6

5.5

5.4

3.4

7.7

20.5

17.2

13.7

20.5

9.5

9.5

8.1

12.5

11.1

0

5

10

15

20

25

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Sun Pharma


Exhibit 10: Market share in Indian formulations market

8.7 8.6 8.6 8.6 8.5 8.4 8.4 8.58.8 8.8

8.6 8.6 8.7

6.06.57.07.58.08.59.09.5

10.0

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Sun Pharma


Exhibit 11: Top 10 brands performance (| crore) Brand Therapy Mar' 17 Mar' 16 Var. (%) Feb' 17 Var. (%)

Istamet Anti Diabetic 18.9 14.8 27.6 17.4 8.6

Volini Pain 18.4 17.2 7.2 18.4 0.3

Rosuvas Cardiac 18.0 16.0 12.8 18.3 -1.3

Gemer Anti Diabetic 16.0 12.8 24.9 16.0 0.2

Levipil Neuro 14.9 12.7 17.4 14.5 3.3

Susten Gynaecological 14.3 13.5 5.4 13.8 3.4

Pantocid Gastro Intestinal 11.7 11.2 4.3 11.5 1.9

Pantocid Dsr Gastro Intestinal 10.3 9.7 6.8 9.8 5.7

Revital H Vitamins 9.5 9.8 -2.6 11.4 -16.5

Storvas Cardiac 9.1 11.4 -19.5 9.1 0.5


Exhibit 12: Contribution of therapies to domestic sales (MAT Mar’17)

z

Cardiac30%

Neuro

Gastro Intestinal

18%

Anti-Infectives17%

Derma8%


Exhibit 13: Therapy wise performance (| crore)

Therapy Mar' 17 Mar' 16 YoY (%) Feb' 17 MoM (%)

Cardiac 152.4 136.1 11.9 149.4 2.0

Neuro 141.5 123.1 15.0 135.9 4.1

Gastro Intestinal 92.1 83.3 10.5 90.2 2.1

Anti-Infectives 78.1 84.1 -7.2 84.2 -7.2

Derma 45.4 33.6 35.0 73.9 -38.5

Anti Diabetic 76.6 64.2 19.4 51.5 48.9

Vitamins 30.0 28.5 5.4 42.9 -30.1

Pain 52.5 50.1 4.7 31.4 67.2

Respiratory 29.5 24.5 20.8 29.6 -0.4

Gynaecological 32.2 30.7 4.8 31.0 3.9


Acute : Chronic contribution (| crore; MAT Mar’17)

Acute, 3766, 39.5%

Chronic, 4435, 46.5%

Sub-Chronic,

1336, 14.0%


Brands contribution to domestic sales (MAT Mar’17)

18%

9%

7%

10%

56%

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

8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7 10

.1

7.1

9.9

3.7

2.1

5.8

8.6

19.8

19.5

10.2

6.3

10.7

2.7 5.

1

3.3

6.2

0

5

10

15

20

25

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Cipla



4.8

5.0

4.6 4.6

4.94.8

4.7 4.74.8

4.94.8

4.9

4.6

4.0

4.2

4.4

4.6

4.8

5.0

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Cipla



Foracort Respiratory 19.0 16.1 17.9 19.2 -1.0

Duolin Respiratory 15.3 10.1 51.3 15.1 1.3

Budecort Respiratory 11.9 13.0 -8.3 12.7 -6.2

Seroflo Respiratory 11.9 10.2 16.1 12.5 -5.4

Asthalin Respiratory 11.2 11.2 0.6 12.2 -7.8

Aerocort Respiratory 8.5 7.7 9.7 8.8 -3.6

Montair Lc Respiratory 7.8 7.2 8.2 8.9 -12.9

Dytor Cardiac 7.2 6.0 19.6 7.4 -3.5

Urimax D Urology 6.7 5.3 26.5 6.9 -1.9

Urimax Urology 6.1 4.9 24.0 5.9 2.8



Respiratory31%

Anti-Infectives25%

Cardiac12%

Gastro Intestinal

8%

Urology5%

Other19%



Therapy Mar ' 17 Mar' 16 YoY (%) Feb' 17 MoM (% )

Respiratory 133.2 122.0 9.2 139.6 -4.6

Ant i- Infectives 99.1 100.5 -1.3 103.4 -4.2

Cardiac 53.1 48.3 1 0.1 55.3 -3.9

Gastro Intest inal 30.3 27.6 9.7 31.7 -4.5

Urology 22.3 17.8 2 5.0 21.7 2.6

Neuro 15.6 15.0 3.7 16.5 -5.5

Ophthal 14.8 14.2 4.4 14.6 1.2

Pain 12.3 11.5 6.6 11.9 2.9

Derma 9.8 10.1 -3.0 10.3 -4.8

Gynaecological 6.7 7.5 -1 0.0 6.8 -0.6



Acute, 2398, 45.5%

Chronic, 2206, 41.8%

Sub-Chronic,

672, 12.7%



24%

12%

8%12%

44%




Dr Reddy’s Labs

Stock Performance) Stock Performance

6080

100120140


CNX Pharma Dr. Reddys


8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7 10

.1

7.1 9.

9

6.3

-1.6

3.9

1.5 5.

2

17.3

22.6

11.2

7.5

4.9

-2.7

0.5

-3.3

-5

0

5

10

15

20

25

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Dr. Reddys Lab



2.32.1 2.1 2.3 2.2 2.3

2.42.2 2.3 2.4 2.3 2.3 2.3

0.6

1.1

1.6

2.1

2.6

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Dr. Reddys Lab



Omez Gastro Intestinal 8.9 10.0 -11.5 8.7 1.6

Omez D Gastro Intestinal 8.2 7.7 7.5 9.0 -8.0

Econorm Gastro Intestinal 6.2 5.9 5.2 5.1 22.1

Atarax Respiratory 5.3 3.6 48.3 5.4 -1.6

Razo D Gastro Intestinal 4.9 4.6 7.7 5.3 -6.6

Razo Gastro Intestinal 4.6 4.0 16.0 4.6 0.7

Stamlo Cardiac 4.3 5.7 -24.2 5.0 -13.6

Ketorol Pain 4.2 3.1 37.8 4.2 0.4

Nise Pain 4.0 4.3 -7.5 3.8 5.7

Stamlo Beta Cardiac 3.9 3.6 9.0 4.1 -4.8


Exhibit 22: Contribution of therapies to domestic sales (MAT Mar’17) Gastro

Intestinal21%

Anti-Neoplastics

14%

Cardiac14%

Respiratory9%

Anti-Infectives8%

Other34%





Anti-Neoplastics 26.3 18.7 41.0 27.4 -4.1

Cardiac 27.7 28.6 -3.0 28.6 -2.9

Respiratory 20.4 15.6 30.4 20.5 -0.5

Anti-Infectives 15.5 13.0 19.2 15.4 0.6

Anti Diabetic 13.9 12.3 12.8 13.8 0.4

Pain 12.8 11.9 7.5 12.6 1.1

Derma 12.6 13.2 -4.9 11.6 8.3

Urology 8.3 8.0 3.6 7.3 14.6

Stomatologicals 6.4 6.1 6.2 6.1 6.1



Acute, 1307, 52.5%

Chronic, 674, 27.1%

Sub-Chronic,

509, 20.5%



27%

16%

10%

13%

34%




Lupin

Stock Performance

6080

100120140


CNX Pharma Lupin



8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7 10

.1

7.1 9.

9

20.8

10.1 11

.8

4.6

11.2 12

.5

19.7 21

.2

17.5

5.5

8.6

5.4

9.9

0

5

10

15

20

25

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Lupin



3.33.3 3.3

3.1 3.2 3.2

3.5

3.6

3.3 3.3 3.3 3.33.3

3.0

3.2

3.4

3.6

3.8

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Lupin



Gluconorm-G Anti Diabetic 14.9 11.8 26.3 14.7 1.4

Budamate Respiratory 9.0 7.2 25.8 8.3 8.2

Tonact Cardiac 7.4 8.2 -10.5 7.0 5.0

Esiflo Respiratory 4.7 4.0 18.3 4.4 6.1

Rablet-D Gastro Intestinal 4.7 4.2 12.4 5.6 -15.8

Ivabrad Cardiac 4.2 3.3 26.4 4.0 5.6

Rablet Gastro Intestinal 4.1 4.0 1.7 4.1 0.8

Telekast-L Respiratory 4.0 3.2 24.9 3.8 6.3

Clopitab-A Cardiac 3.6 3.2 14.4 3.4 6.9

Ondero Anti Diabetic 3.6 1.5 137.1 3.2 11.3


Exhibit 27: Contribution of therapies to domestic sales (MAT Mar’17) 25%

Anti-Infectives19%

Anti Diabetic13%Respiratory

13%

Gastro Intestinal

8%

Other22%




Cardiac 75.5 70.3 7.4 71.8 5.3

Anti-Infectives 51.3 56.3 -8.8 50.0 2.6

Anti Diabetic 44.2 30.8 43.6 42.3 4.6

Respiratory 41.0 34.9 17.7 40.4 1.6

Gastro Intestinal 23.0 20.8 10.8 23.6 -2.5

Vitamins 13.6 13.6 0.0 13.3 1.9

Neuro 14.5 14.0 3.5 14.3 1.2

Pain 12.1 11.1 8.2 11.9 1.1

Gynaecological 12.0 9.8 22.2 11.8 1.8

Urology 2.2 1.5 49.2 2.3 -4.8



Acute, 1183, 32.2%

Chronic, 1828, 49.8%

Sub-Chronic,

658, 17.9%



20%

11%

8%12%

49%




Cadila Healthcare

Stock Performance

6080

100120140


CNX Pharma Cadila Healthcare


8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7

10.1

7.1

9.9

11.5

7.4

10.1

5.6 7.

1

10.3

15.2

15.6

18.1

12.3

17.3

10.6

10.2

02468

101214161820

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Cadila Healthcare



4.4 4.3 4.24.1

4.0 4.04.2

4.44.3

4.44.5

4.44.4

3.0

3.4

3.8

4.2

4.6

5.0

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Cadila Healthcare



Skinlite Derma 19.0 14.7 29.2 17.8 7.0

Mifegest Kit Gynaecological 13.3 10.2 29.5 9.6 38.7

Atorva Cardiac 9.4 11.2 -15.7 9.9 -4.5

Pantodac Gastro Intestinal 9.3 9.2 2.1 8.9 4.8

Deriphyllin Respiratory 8.8 8.7 0.7 10.5 -16.4

Thrombophob Pain 5.8 4.5 30.6 6.2 -6.0

Formonide Respiratory 5.6 5.2 7.2 6.1 -8.9

Aten Cardiac 5.6 6.1 -8.4 5.1 9.4

Deca Durabolin Hormones 5.5 0.0 NA 5.6 -1.5

Amicin Anti-Infectives 5.4 4.1 32.2 6.1 -11.6


Exhibit 32: Contribution of therapies to domestic sales (MAT Mar’17) Anti-Infectives

15%

Cardiac15%

Gastro Intestinal

12%

Respiratory10%

Gynaecological10%

Other38%




Anti-Infectives 54.3 53.6 1.3 54.0 0.6

Cardiac 58.7 55.5 5.8 59.7 -1.6


Respiratory 40.3 36.8 9.7 42.5 -5.0

Gynaecological 43.8 38.4 14.0 40.8 7.4

Pain 35.7 33.6 6.3 36.3 -1.6

Derma 33.1 25.3 30.9 31.3 5.8

Anti-Neoplastics 20.5 16.2 26.8 20.4 0.7

Vitamins 17.2 13.8 24.3 17.6 -2.0

Hormones 14.3 6.7 112.0 15.8 -9.2



Acute, 2317, 49.3%

Chronic, 1507, 32.1%

Sub-Chronic,

875, 18.6%



21%

12%

9%

12%

46%




GlaxoSmithKline

Stock Performance

6080

100120140


CNX Pharma GSK Pharma



8.1

5.5

9.7

7.8 11

.0

17.4

13.5

9.1

15.7

7.7 10

.1

7.1 9.

9

-6.2

-8.6 -0

.7

-6.7

3.6

-3.3

-5.4

5.0 6.

34.3

-10.

5

-0.4

8.8

-15

-10

-5

0

5

10

15

20

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market GSK Pharma



3.1 3.1 3.0 2.9 3.0 3.0 2.9 2.9 3.0 3.03.2 3.2 3.1

0.6

1.1

1.6

2.1

2.6

3.1

3.6

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

GSK Pharma



Augmentin Anti-Infectives 24.0 24.3 -1.3 25.4 -5.7

Synflorix Vaccines 23.5 19.0 23.5 24.9 -5.7

Betnovate N Derma 15.8 13.1 20.6 15.0 4.8

Betnovate C Derma 14.3 11.0 30.6 13.6 5.7

Calpol Pain 12.8 13.3 -3.3 12.7 0.7

Eltroxin Hormones 12.2 10.6 15.9 12.2 0.1

Zinetac Gastro Intestinal 11.7 11.6 1.1 13.9 -15.8

Ceftum Anti-Infectives 10.0 9.7 3.6 9.6 4.3

Rotarix Vaccines 8.1 9.3 -13.2 8.4 -3.7

Havrix (Pead.) Vaccines 7.7 5.0 55.3 8.1 -5.4



22%

Vaccines18%

Derma18%

Pain 10%

Vitamins 8%

Other24%




Anti-Infectives 56.6 58.3 -2.9 59.3 -4.6

Vaccines 55.7 51.5 8.3 56.3 -1.0

Derma 62.3 42.1 48.1 57.7 8.0

Pain 21.1 22.8 -7.7 20.6 2.2

Vitamins 22.3 17.6 26.3 21.2 5.3

Hormones 20.2 18.7 8.3 20.7 -2.2

Respiratory 17.7 20.0 -11.5 20.1 -11.7


Cardiac 4.0 4.2 -5.5 4.4 -10.7

Gynaecological 1.8 2.9 -40.2 1.6 6.8



Acute, 2200, 65.8%

Chronic, 421, 12.6%

Sub-Chronic,

724, 21.6%



50%

17%

9%

11%

13%




Wockhardt

Stock Performance

050

100150200250300350400


CNX Pharma Wockhardt


8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7

10.1

7.1

9.9

2.9

4.8

9.3

1.0

2.41.

8

10.7

4.1

17.9 18

.8

13.5

11.6

10.9

02468

101214161820

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Wockhardt



1.3 1.3 1.2 1.2 1.2 1.2 1.3 1.3 1.4 1.4 1.4 1.4 1.3

0.00.20.40.60.81.01.21.41.6

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Wockhardt



Spasmo Proxyvon PluGastro Intestinal 33.8 26.0 30.0 38.3 -11.7

Practin Vitamins 7.2 6.1 17.5 6.5 9.9

Tryptomer Neuro 4.1 5.2 -20.6 5.4 -24.3

Biovac A Vaccines 3.9 2.4 66.9 3.2 24.2

Bro Zedex Respiratory 3.9 4.0 -2.3 4.2 -7.2

Biovac V Vaccines 3.9 3.0 27.4 3.0 31.0

Methycobal Vitamins 3.7 4.2 -13.5 4.0 -8.0

Wosulin Anti Diabetic 2.7 2.7 1.9 2.4 11.2

Zedex Respiratory 2.7 2.6 2.5 3.0 -12.2

Butaproxyvon Pain 2.5 2.0 23.6 3.4 -25.1


Exhibit 42: Contribution of therapies to domestic sales (MAT Mar’17) Gastro

Intestinal28%

Vitamins 15%Respiratory

12%

Neuro 8%

Anti Diabetic7%

Other30%





Vitamins 16.8 16.2 3.8 15.7 6.7

Respiratory 13.2 12.1 8.9 15.0 -12.2

Neuro 8.0 9.4 -14.6 9.4 -15.0

Anti Diabetic 7.6 7.9 -4.0 7.6 0.1

Derma 6.7 6.7 0.4 6.4 4.7

Anti-Infectives 6.9 6.6 5.3 7.0 -0.9

Vaccines 8.9 5.4 63.6 7.1 25.6

Pain 7.8 7.1 10.0 8.0 -2.3

Blood Related 2.1 0.8 154.0 3.8 -44.1



Acute, 1001, 69.2%

Chronic, 287,

19.8%

Sub-Chronic,

158, 10.9%



56%

14%

8%

8%

14%



Glenmark Pharmaceuticals

Stock Performance

6080

100120140160180200


CNX Pharma Glenmark



8.1

5.5

9.7

7.8 11

.0

17.4

13.5

9.1

15.7

7.7

7.114

.9

8.6

8.7

7.6 8.6

21.0

11.9

7.8

19.7

6.0

15.8

13.5 15

.4

10.1

9.9

-4

4

12

20

28

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Glenmark Pharma



2.42.3

2.2

2.3 2.3

2.42.3

2.42.5 2.5

2.62.5

2.5

2.1

2.2

2.3

2.4

2.5

2.6

2.7

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Glenmark Pharma



Telma H Cardiac 14.7 11.9 23.2 14.2 3.3

Telma Cardiac 14.3 16.9 -15.0 13.6 5.3

Ascoril Plus Respiratory 9.6 7.2 33.0 11.4 -16.5

Telma Am Cardiac 8.3 6.8 22.1 7.6 9.3

Candid Derma 7.7 6.8 14.4 6.2 24.0

Candid-B Derma 7.2 6.7 6.7 6.6 7.6

Ascoril Ls Respiratory 4.8 4.2 13.3 5.6 -14.7

Zitamet Plus Anti Diabetic 3.9 2.4 58.4 4.0 -2.7

Onabet Derma 3.6 3.3 8.5 3.8 -6.1

Canditral Anti-Infectives 3.4 2.4 44.2 3.6 -5.4



Derma28%

Cardiac22%

Respiratory16%

Anti-Infectives14%

Anti Diabetic7%

Other13%




Derma 60.9 55.1 10.5 59.2 3.0

Cardiac 52.8 48.5 8.8 50.2 5.2

Respiratory 35.2 28.3 24.4 43.4 -18.8

Anti-Infectives 30.5 23.8 28.4 31.8 -4.1

Anti Diabetic 14.0 14.1 -0.7 13.9 0.8


Gynaecological 6.2 4.7 30.8 6.1 0.5

Vitamins 4.6 5.1 -8.8 4.4 3.6

Pain 3.8 4.2 -9.0 3.8 0.0

Ophthal 2.5 2.3 10.5 2.6 -3.6



Acute, 1104, 41.7%

Chronic, 923, 34.8%

Sub-Chronic,

623, 23.5%



34%

12%10%

14%

30%




Torrent Pharmaceuticals

Stock Performance

4080

120160200


CNX Pharma Torrent Pharma


8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7

10.1

7.1

9.9

11.4

6.6

14.6

4.2

6.3

10.2

17.0

21.2 21

.9

14.5 17

.0

9.9 11

.5

0

5

10

15

20

25

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Torrent Pharma



2.3 2.3 2.32.4

2.32.2 2.2 2.2

2.3 2.3 2.3 2.32.3

1.5

1.7

1.9

2.1

2.3

2.5

2.7

2.9

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Torrent Pharma



Shelcal Vitamins 13.2 12.8 3.1 13.9 -5.3

Chymoral Forte Pain 8.2 6.7 22.2 8.6 -4.7

Nikoran Cardiac 7.5 7.7 -3.2 7.7 -2.1

Azulix-Mf Anti Diabetic 7.3 4.3 68.2 7.1 3.4

Nebicard Cardiac 6.8 4.9 40.1 6.7 2.1

Dilzem Cardiac 6.4 5.9 7.7 6.3 2.0

Nexpro Rd Gastro Intestinal 5.9 4.7 25.0 5.7 2.2

Nexpro Gastro Intestinal 4.8 4.1 17.1 4.8 0.0

Deplatt Cv Cardiac 3.6 3.4 7.9 3.5 2.7

Lamitor Neuro 3.6 3.0 18.4 3.4 3.6



Cardiac30%

Neuro 17%

Gastro Intestinal

15%

Vitamins 14%

Anti Diabetic7%

Other17%




Cardiac 62.8 57.4 9.4 63.9 -1.8

Neuro 36.8 32.9 12.0 37.3 -1.2


Vitamins 26.9 26.4 1.8 28.1 -4.2

Anti Diabetic 16.5 11.4 44.6 16.0 2.7

Pain 14.0 12.7 10.9 14.9 -5.5

Anti-Infectives 6.1 7.5 -19.1 6.5 -7.1

Derma 6.4 6.0 6.7 7.0 -8.3

Gynaecological 2.3 2.4 -2.0 2.3 2.3

Respiratory 0.9 0.5 77.3 0.9 -4.5



Acute, 582, 22.8%

Chronic, 1366, 53.5%

Sub-Chronic,

606, 23.7%



32%

14%

9%12%

33%




Ipca Laboratories

Stock Performance

5075

100125150


CNX Pharma Ipca


8.1

5.5

9.7

7.8 11

.0

17.4

13.5

9.1

15.7

7.7 10

.1

7.1 9.

9

2.2

3.0

3.0

4.1

17.9

28.8

8.7

4.9

8.8

2.0

3.0

12.9

2.9

0

5

10

15

20

25

30

35

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Ipca Lab



1.1 1.2 1.2 1.21.3

1.4 1.4 1.31.2 1.1 1.1 1.1 1.2

0.0

0.5

1.0

1.5

2.0

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Ipca Lab



Zerodol Sp Pain 8.3 7.2 14.9 8.7 -3.9

Hcqs Anti Malarials 6.1 5.4 12.8 6.4 -5.7

Zerodol P Pain 5.0 4.4 14.2 5.1 -1.2

Glycinorm M Anti Diabetic 3.6 2.9 25.5 3.2 13.2

Folitrax Anti-Neoplastics 3.2 2.8 13.6 2.8 11.4

Zerodol Th Pain 2.6 1.8 42.5 2.5 4.8

Saaz Gastro Intestinal 2.3 1.7 36.3 2.0 16.2

Larinate Anti Malarials 2.1 1.6 32.7 2.4 -11.1

Zerodol Pain 2.1 2.0 8.9 2.2 -2.7

Perinorm Gastro Intestinal 2.1 1.5 41.0 1.8 13.4



Pain 26%

Anti Malarials19%Cardiac

16%

Gastro Intestinal

8%

Anti-Infectives6%

Other25%




Pain 27.6 24.2 14.2 27.8 -0.5

Anti Malarials 14.1 13.8 1.9 13.9 1.6

Cardiac 19.3 18.8 2.5 18.3 5.7


Anti-Infectives 5.8 5.1 13.0 6.7 -13.4

Anti Diabetic 6.4 5.3 20.6 5.7 12.7


Neuro 5.1 3.6 42.2 4.6 9.4

Respiratory 4.4 3.8 13.4 4.7 -6.6

Derma 4.4 2.8 56.2 4.4 0.4



Acute, 896, 65.4%

Chronic, 378, 27.6%

Sub-Chronic, 96,

7.0%



37%

16%11%

13%

23%




Biocon

Stock Performance

60100140180220

Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17CNX Pharma Biocon



8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7 10

.1

7.1 9.

9

11.1

7.4

7.4

3.4

3.6

10.7

11.1

3.4

26.9

10.7

10.3

3.6

2.9

0

5

10

15

20

25

30

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Biocon



0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.30.3

0.0

0.2

0.4

0.6

0.8

1.0

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Biocon



Insugen Anti Diabetic 9.0 7.1 26.0 8.2 9.5

Basalog Anti Diabetic 6.0 4.9 22.3 5.2 15.0

Canmab Anti-Neoplastics 2.5 2.2 12.5 1.7 42.2

Insugen R Anti Diabetic 1.9 1.4 36.5 1.7 8.2

Erypro Blood Related 1.5 1.4 10.3 1.9 -21.4

Blisto Mf Anti Diabetic 1.4 1.4 -3.0 1.2 19.6

Psorid Anti-Neoplastics 1.0 0.7 45.2 0.7 28.9

Insugen N Anti Diabetic 0.7 0.6 15.5 0.6 3.9

Metadoze-Ipr Anti Diabetic 0.6 0.4 37.6 0.4 43.0

Statix Cardiac 0.5 0.4 17.2 0.4 18.6



Anti Diabetic58%

Anti-Neoplastics

21%

Blood Related9%

Cardiac5%

Derma3%

Other 4%




Anti Diabetic 20.5 16.7 22.9 18.1 13.2

Anti-Neoplastics 4.6 9.0 -48.6 5.7 -18.3

Blood Related 1.6 1.4 12.2 2.0 -22.1

Cardiac 1.8 1.5 14.1 1.3 32.7

Derma 0.8 0.7 28.7 0.8 0.6

Anti-Infectives 1.1 0.7 62.8 0.9 20.8

Others 0.3 0.3 -2.3 0.2 19.6

Gastro Intestinal 0.0 0.1 -59.9 0.1 -73.3

Vitamins 0.1 0.1 -32.2 0.1 9.7

Pain 0.1 0.0 207.0 0.1 90.8



Acute, 71, 19.5%

Chronic, 263, 72.4%

Sub-Chronic, 29,

8.1%



79%

10%

5%

5%

1%




Pfizer

Stock Performance

4080

120160200


CNX Pharma Pfizer


8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7

10.1

7.1

9.9

3.6

2.4

7.6

-0.9

2.8

6.9

2.4

0.4

6.4

-3.3

-1.7

0.9

-1.5

-5

0

5

10

15

20

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Pfizer



2.8 2.92.8

2.7 2.7 2.6 2.6 2.7 2.6 2.6 2.5 2.6 2.5

2.0

2.4

2.8

3.2

3.6

4.0

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Pfizer



Becosules Vitamins 16.5 17.9 -7.9 16.9 -2.3

Prevenar 13 Vaccines 14.2 4.1 243.9 11.0 29.9

Minipress Xl Cardiac 12.5 6.3 97.9 11.2 11.6

Dolonex Pain 11.3 10.9 3.8 11.1 2.0

Magnex Anti-Infectives 11.1 10.9 1.8 11.0 1.6

Gelusil Mps Gastro Intestinal 10.2 10.6 -3.1 11.1 -8.2

Mucaine Gastro Intestinal 9.4 8.7 7.4 9.0 4.3

Wysolone Hormones 7.4 6.6 11.7 7.9 -6.8

Corex Dx Respiratory 7.0 5.7 22.5 7.5 -7.6

Folvite Blood Related 6.4 6.4 -0.5 5.8 10.3


Exhibit 67: Contribution of therapies to domestic sales (MAT Mar’17) Anti-Infectives14%

Respiratory11%

Gastro Intestinal

10%

Vitamins 10%

Hormones9%

Other46%




Anti-Infectives 32.9 37.1 -11.3 33.9 -3.0

Respiratory 12.6 33.5 -62.3 17.3 -27.1


Vitamins 20.9 22.6 -7.6 21.1 -0.8

Hormones 20.1 19.9 1.5 20.7 -2.8

Gynaecological 21.7 17.8 21.7 22.0 -1.5

Cardiac 18.0 11.5 56.4 17.5 3.2

Neuro 18.2 18.2 0.3 18.0 1.4

Pain 15.2 14.5 4.2 14.9 1.9

Vaccines 19.7 8.2 140.7 15.4 28.5



Acute, 1877, 63.9%

Chronic, 480, 16.4%

Sub-Chronic,

580, 19.7%



49%

20%

10%

10%

11%




Novartis

Stock Performance

40

90

140

190


CNX Pharma Novartis India



8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7 10

.1

7.1

9.9

21.7

18.2

14.5

4.9

4.5 5.

5

14.1

4.8

8.8

0

5

10

15

20

25

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Novartis India



1.0 1.0 1.0 1.0 0.9 0.9 1.0 1.01.0

1.00.9

1.01.0

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Novartis India



Galvus Met Anti Diabetic 33.2 24.4 35.6 26.4 25.4

Voveran Pain 17.4 16.6 5.3 20.3 -14.3

Galvus Anti Diabetic 9.8 9.4 4.3 9.4 4.6

Tegrital Neuro 4.5 4.8 -6.3 4.7 -4.3

Voveran Pain 2.9 3.2 -10.1 2.9 -2.0

Methergin Gynaecological 2.4 2.0 17.7 2.5 -4.1

Regestrone Gynaecological 2.4 2.6 -9.8 2.5 -6.5

Syntocinon Gynaecological 2.1 2.0 7.2 2.3 -8.8

Citro Macalvit Vitamins 1.8 1.7 9.4 1.7 4.8

Calcium Sandoz Vitamins 1.8 1.6 15.9 1.6 15.3



Anti Diabetic42%

Pain 26%

Vitamins 10%

Gynaecological8%

Neuro 5%

Other9%




Anti Diabetic 43.3 34.5 25.8 36.2 19.6

Pain 21.0 21.3 -1.0 24.1 -12.9

Vitamins 9.0 8.7 3.7 8.4 7.7

Gynaecological 7.0 6.9 2.7 7.4 -5.4

Neuro 4.5 4.8 -7.7 4.7 -4.3

Anti-Infectives 2.2 3.6 -38.6 2.2 -1.7

Respiratory 1.6 2.0 -20.4 1.5 3.4

Cardiac 1.2 0.9 35.3 0.9 31.6


Ophthal 0.2 0.5 -61.3 0.2 6.5



Acute, 411, 38.1%

Chronic, 519, 48.1%

Sub-Chronic,

148, 13.7%



84%

9%3%

3%1%




Unichem Laboratories

Stock Performance

70100130160


CNX Pharma Unichem Labs



8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7 10

.1

7.1

9.9

2.9

8.5 11

.1 12.5

16.2

18.3

27.1

20.8 21

.7

10.7

7.9 8.2 9.1

0

5

10

15

20

25

30

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Unichem Lab



0.9 0.9

0.90.9

0.9 0.9

0.9

0.90.9

0.9 0.9

0.90.9

0.80.80.90.90.90.90.90.90.90.90.90.9

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Unichem Lab


Exhibit 76: Top 10 brands performance (| crore)

Brand Therapy Mar' 17 Mar' 16 Var. (%) Feb' 17 Var. (%)

Losar H Cardiac 7.6 7.0 9.2 8.7 -12.6

Losar Cardiac 6.2 5.4 14.4 6.0 4.1

Unienzyme Gastro Intestinal 5.5 4.4 23.5 4.8 13.6

Ampoxin Anti-Infectives 5.2 4.9 5.1 5.3 -1.6

Vizylac Gastro Intestinal 2.6 2.1 27.0 2.4 10.1

Trika Neuro 2.1 1.9 10.2 2.1 2.4

Serta Neuro 2.0 1.9 3.2 1.8 5.8

Unistar (Unichem) Cardiac 1.7 1.5 9.8 1.7 -2.5

Arkamin Cardiac 1.6 1.4 14.4 1.8 -13.8

Telsar Cardiac 1.3 1.6 -15.3 1.4 -2.9



Cardiac42%

Anti-Infectives16%

Neuro 14%

Gastro Intestinal

12%

Anti Diabetic5%

Other11%




Cardiac 33.6 31.7 6.2 34.5 -2.4

Anti-Infectives 11.2 10.6 6.1 11.8 -5.3

Neuro 11.6 10.5 10.9 11.5 0.9


Anti Diabetic 4.7 3.1 52.3 4.6 2.0

Pain 3.0 3.0 -0.1 2.9 6.1

Vitamins 1.7 1.8 -6.2 1.9 -10.3

Derma 1.5 1.8 -16.2 1.7 -9.7

Respiratory 1.5 1.4 2.1 1.7 -12.4

Gynaecological 0.2 0.4 -38.2 0.2 4.0



Acute, 342,

34.5%

Chronic, 590,

59.5%

Sub-Chronic, 60, 6.0%



32%

14%

9%12%

33%




Indoco Remedies

Stock Performance

6080

100120140


CNX Pharma Indoco



8.1

5.5

9.7

7.8 11

.0

17.4

13.5

9.1

15.7

7.7 10

.1

7.1 9.

9

11.3

29.3

1.9

0.0

5.7

34.5

18.0

6.3 8.

5

5.0

17.5 15

.5 17.9

0

5

10

15

20

25

30

35

40

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Indoco Remedies



0.70.6 0.6

0.7

0.8 0.80.7 0.7 0.7 0.7

0.7 0.7 0.7

0.50.60.60.70.70.80.80.90.91.01.01.11.1

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indoco Remedies



Febrex Plus Respiratory 6.1 4.8 26.8 6.9 -11.3

Cyclopam Gastro Intestinal 4.1 3.3 26.9 3.9 7.3

Oxipod Anti-Infectives 3.7 3.1 19.7 4.0 -7.3

Cital Urology 3.1 3.4 -9.7 3.3 -6.2

Sensodent-K Stomatologicals 2.8 2.7 2.2 3.0 -6.5

Atm Anti-Infectives 2.5 2.2 14.2 2.6 -5.2

Cyclopam Gastro Intestinal 2.1 1.7 26.8 2.1 1.1

Cloben G Derma 1.9 1.6 17.1 1.8 6.3

Karvol Plus Respiratory 1.6 1.5 8.4 2.0 -21.6

Sensoform Stomatologicals 1.5 1.6 -6.8 1.5 1.2


Exhibit 82: Contribution of therapies to domestic sales (MAT Mar’17) Respiratory

19%

Anti-Infectives18%

Stomatologicals

16%

Gastro Intestinal

14%

Vitamins 8%

Other25%




Respiratory 10.9 9.1 19.9 12.8 -14.9

Anti-Infectives 10.9 9.5 14.5 11.9 -8.6

Stomatologicals 9.6 9.1 5.2 9.6 -0.6


Vitamins 6.1 4.1 50.8 5.8 5.7

Urology 3.5 3.7 -7.6 3.6 -4.7

Ophthal 3.7 2.7 35.5 3.7 0.4

Pain 2.8 2.3 21.0 2.7 0.9

Derma 2.6 2.2 18.6 2.5 3.8

Anti Diabetic 2.4 1.8 35.9 2.5 -3.7



Acute, 648,

82.1%

Chronic, 44, 5.6%

Sub-Chronic,

97, 12.3%



48%

15%

9%

10%

18%




Ajanta Pharmaceuticals

Stock Performance

4090

140190240290


CNX Pharma Ajanta



8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7

10.1

7.1

9.9

13.6

20.0

18.8

18.8

14.0 15

.7

7.5

11.8 13

.5

11.1

19.2

9.4

13.4

0

5

10

15

20

25

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Ajanta Pharma



0.6 0.6 0.7 0.70.6 0.6 0.6 0.6 0.6 0.7 0.7 0.6

0.6

0.00.10.20.30.40.50.60.70.8

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Ajanta Pharma



Met Xl Cardiac 6.6 5.0 31.0 6.8 -3.3

Atorfit Cv Cardiac 4.1 3.7 8.6 4.0 2.5

Melacare Derma 3.4 3.6 -6.8 3.7 -8.3

Rosufit Cv Cardiac 1.5 1.4 9.4 1.6 -7.9

Feburic Pain 1.7 1.4 21.9 1.8 -3.1

Met Xl Am Cardiac 1.6 1.3 23.9 1.5 4.5

Soft Drops Ophthal 1.6 1.2 27.4 1.5 5.1

Rosutor Gold Cardiac 1.4 1.0 34.4 1.3 10.4

Cinod Cardiac 1.4 1.0 38.7 1.3 2.2

Olopat Ophthal 0.9 0.8 6.9 0.8 14.8



Cardiac37%

Ophthal 24%

Derma19%

Pain 5%

Vitamins 5%

Others10%




Cardiac 21.7 17.5 23.9 21.7 -0.2

Ophthal 14.9 12.1 23.5 14.5 3.1

Derma 9.5 9.6 -0.6 10.3 -7.6

Pain 2.6 2.4 8.7 2.7 -3.6

Vitamins 2.4 2.7 -9.2 2.5 -4.7

Neuro 1.2 1.2 -3.1 1.2 -5.7


Anti-Infectives 1.2 0.8 51.5 1.1 8.1

Anti Diabetic 1.2 0.6 109.9 1.2 0.5

Respiratory 0.4 0.4 11.1 0.4 6.9



Acute, 267, 38.5%

Chronic, 350, 50.5%

Sub-Chronic, 76,

11.0%



44%

11%9%

12%

24%




Alembic Pharmaceuticals

Stock Performance

406080

100120140160180200


CNX Pharma Alembic Pharma



8.1

5.5

9.7

7.8

11.0

17.4

13.5

9.1

15.7

7.7 10

.1

7.1 9.

9

7.9

4.7

12.1

11.9

18.0 20

.3

11.3

6.4

4.2

-2.4

-1.7

-2.6 1.1

-5

0

5

10

15

20

25M

ar-1

6

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Indian Pharma Market Alembic



1.3

1.3 1.31.3

1.41.4

1.4 1.4

1.3 1.31.3

1.31.2

1.1

1.2

1.2

1.3

1.3

1.4

1.4

1.5

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

(%)

Alembic


Exhibit 91: Top 10 brands performance (| crore)

Brand Therapy Mar' 17 Mar' 16 Var. (%) Feb' 17 Var. (%)

Azithral Anti-Infectives 10.2 10.1 0.8 11.5 -11.4

Althrocin Anti-Infectives 5.3 5.8 -7.9 5.5 -2.7

Gestofit Gynaecological 4.7 4.5 3.8 4.4 5.7

Wikoryl Respiratory 4.4 3.7 18.1 4.8 -8.5

Roxid Anti-Infectives 3.6 4.4 -18.5 3.6 -0.2

Rekool D Gastro Intestinal 2.4 2.4 -1.0 2.4 -0.3

Ulgel Gastro Intestinal 2.1 2.3 -6.0 2.1 1.5

Richar Gynaecological 2.0 1.6 21.5 1.9 4.4

Glisen Mf Anti Diabetic 1.9 1.9 2.3 1.8 6.4

Tellzy Ch Cardiac 1.8 1.4 28.4 1.8 -3.9



22%

Cardiac15%Gastro

Intestinal13%

Respiratory13%

Gynaecological12%

Other25%



Therapy Mar' 17 Mar' 16 YoY (%) Feb' 17 MoM (%)Anti-Infectives 23.1 24.3 -5.0 24.7 -6.5Cardiac 17.2 15.8 8.9 17.6 -2.1Gastro Intestinal 13.7 14.3 -4.3 13.5 1.0Respiratory 13.6 13.6 0.4 15.5 -12.1Gynaecological 13.3 11.8 13.0 12.9 3.6Vitamins 8.5 8.9 -4.9 8.5 0.3Anti Diabetic 8.7 7.3 19.6 8.6 1.3Pain 3.4 4.3 -20.5 3.5 -4.6Urology 3.0 2.4 26.0 3.2 -5.5Derma 1.7 1.9 -12.2 1.8 -7.9



Acute, 833,

56.6%

Chronic 231.46, 18.8%

Sub-Chronic 214.35, 17.4%



44%

11%9%

12%

24%



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

05

1015202530354045

Apr

-07

Oct-0

7

Apr

-08

Oct-0

8

Apr

-09

Oct-0

9

Apr

-10

Oct-1

0

Apr

-11

Oct-1

1

Apr

-12

Oct-1

2

Apr

-13

Oct-1

3

Apr

-14

Oct-1

4

Apr

-15

Oct-1

5

Apr

-16

Oct-1

6

Apr

-17

x

CNX Pharma Sensex

18% Premium

[

Source: Company, ICICIdirect.com Research

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

Code (|) (|) (| Cr) FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E

Ajanta Pharma AJAPHA 1764 1,960 Buy 15525.0 45.4 57.3 63.7 72.1 38.8 30.8 27.7 24.5 42.9 38.3 34.1 31.0 34.2 32.1 27.7 25.1

Alembic Pharma ALEMPHA 614 615 Hold 11570.2 38.2 22.1 24.6 30.7 16.1 27.8 25.0 20.0 51.5 26.1 23.2 24.8 44.9 21.9 20.8 22.0

Apollo Hospitals APOHOS 1173 1,440 Buy 16316.6 22.2 22.5 35.2 50.0 52.8 52.1 33.3 23.4 8.2 8.1 11.1 14.7 8.9 8.4 11.8 14.7

Aurobindo Pharma AURPHA 656 965 Buy 38451.5 33.9 38.7 39.5 49.1 19.3 17.0 16.6 13.4 23.3 23.6 20.9 22.6 28.1 24.6 20.3 20.5

Biocon BIOCON 1120 1,120 Buy 22404.0 23.1 32.8 34.3 44.2 48.4 34.2 32.6 25.3 9.1 13.0 13.6 16.5 11.4 14.5 13.6 15.4

Cadila Healthcare CADHEA 451 425 Hold 46145.2 15.0 12.2 16.9 21.5 30.1 36.9 26.6 21.0 26.7 15.2 20.1 23.0 28.6 19.9 22.9 23.8Cipla CIPLA 576 575 Hold 46376.0 18.5 17.2 24.3 31.4 31.2 33.5 23.7 18.3 12.0 10.5 13.9 16.4 12.5 10.6 13.2 14.9

Divi's Lab DIVLAB 642 700 Hold 17051.0 41.8 41.1 42.8 47.8 15.4 15.6 15.0 13.4 30.7 26.8 24.4 23.7 25.9 21.6 19.3 18.6

Dr Reddy's Labs DRREDD 2667 2,930 Hold 44179.8 141.4 74.7 114.7 154.5 18.9 35.7 23.2 17.3 17.3 7.0 11.5 15.1 20.6 10.0 13.6 15.8

Glenmark Pharma GLEPHA 892 1,155 Buy 25169.4 32.2 61.9 54.0 60.4 27.7 14.4 16.5 14.8 16.2 26.9 20.7 21.9 21.2 29.3 20.5 18.8

Indoco Remedies INDREM 241 235 Hold 2219.0 9.4 8.7 12.7 15.6 25.7 27.6 18.9 15.4 12.9 9.5 13.9 16.1 14.8 12.4 15.8 16.8

Ipca Laboratories IPCLAB 617 560 Hold 7778.4 10.0 15.0 24.1 31.1 61.5 41.0 25.6 19.8 5.7 9.8 12.7 14.8 5.5 7.8 11.3 13.0

Jubilant Life JUBLIF 836 810 Buy 13311.1 26.0 37.0 51.1 68.0 32.2 22.6 16.4 12.3 12.0 14.1 15.6 18.5 14.2 17.1 19.4 20.7

Lupin LUPIN 1424 1,760 Buy 64300.0 50.4 61.7 67.2 83.6 28.2 23.1 21.2 17.0 18.6 20.2 20.8 23.9 20.7 20.9 19.2 19.9

Natco Pharma NATPHA 995 870 Buy 17343.6 8.5 25.3 14.8 18.2 117.3 39.3 67.4 54.7 16.0 33.0 17.6 19.2 11.9 27.2 14.0 15.0

Sun Pharma SUNPHA 675 765 Buy 161984.1 23.4 30.3 29.9 35.3 28.8 22.3 22.6 19.1 18.6 19.3 17.3 17.9 18.0 19.4 16.5 16.8

Syngene Int. SYNINT 523 570 Hold 10451.0 11.1 15.0 16.7 20.2 49.3 36.4 32.7 26.9 13.2 17.4 18.0 20.6 21.0 22.6 20.5 20.4

Torrent Pharma TORPHA 1471 1,475 Buy 24896.0 107.8 57.0 62.1 77.4 13.6 25.8 23.7 19.0 46.7 21.5 23.7 26.4 53.8 23.5 21.4 22.2

Unichem Lab UNILAB 289 285 Hold 2622.7 12.3 12.9 17.4 23.5 23.4 22.4 16.6 12.3 13.8 14.3 16.1 18.8 11.7 11.1 13.3 15.6

RoE (%)EPS (|) PE(x) RoCE (%)


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]

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[email protected]


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