idirect healthcheck apr16content.icicidirect.com/mailimages/idirect_healthcheck... · 2016. 4....

ICICI Securities Ltd. | Retail Equity Research

April 22, 2016

Monthly Update

Exclusivity launches, currency to drive Q4… Companies under the I-direct healthcare coverage are expected to post growth of 15.6% YoY to | 36,287 crore. US sales from the select pack are expected to grow 23.7% to | 11404.1 crore on the back of 1) |/US$ depreciation (8.4% YoY), 2) exclusivity launches (gGleevec by Sun and gGlumetza by Lupin) 3) continued sales traction from gAbilify to Torrent and Alembic post exclusivity and 4) consolidation of acquisitions. Domestic formulations from the select pack are likely to grow ~16% YoY to | 5652.6 crore due to base effect and growth in chronic segment. On the flip side, currency headwinds in other geographies like Europe and emerging economies such as Russia, Brazil and Venezuela continue to impact the overall performance negatively. On the companies front, we expect Alembic, Sun, Torrent and Lupin to register strong growth mainly due to robust US sales while Ajanta and Natco are likely to grow on the back of strong growth in domestic formulations. We expect EBITDA of the I-direct healthcare coverage to grow ~59% YoY to | 9343.2 crore. EBITDA margins are likely to expand ~700 bps to 25.7% due to a better product mix and base effect. We expect net profit of the I-direct healthcare coverage to grow ~53% YoY to | 6137.2 crore mainly due to a strong operational performance. On the regulatory front, four companies Lupin, Natco, Alembic Pharma and Glenmark revealed receipt of Form 483 observations during various earlier USFDA inspections for different facilities. Indoco received clearance (EIR) for the USFDA. On the other hand, Ipca received termination of contract notice from one of the sponsors - The Global Fund - on account of USFDA warning letters to its facilities. Sun Pharma forayed into the Japan prescription market by acquiring Novartis 14 established prescription brands for a cash consideration of US$293 million. Biocon also forayed into Japan when it received approval to sell its biosimilar insulin Glargine in Japan. Finally, the Indian Pharmaceutical Market (IPM) grew 12.6% in FY16. Among covered companies, Dr Reddy’s registered highest growth of 23.4% YoY followed by Glenmark, Alembic, Lupin and Torrent clocking growth of 23.0%, 17.8%, 17.0%, and 15.3%, respectively, in FY16. FY16 a bitter pill; negative returns for first time after FY09… After outperforming the broader indices for five fiscals, the Nifty Pharma Index underperformed, thanks to scores of USFDA related cGMP issues, which weighed on sentiments. Paradoxically, the fiscal witnessed 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 raised 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 quality aspects. We expect some spill over effect in the first half of FY17 as well. However, with most stocks down 30-35% from their peaks, we expect some accumulation as investors accept the new normal and some good Q4FY16 numbers. Note that the Nifty Pharma forward PE (FY18) has already corrected ~30% and is now quoting at 18.5x.

Health CheckSector View

Outperformer

Index Performance as on April 22, 2016

Return (%) 1M 3M YTD 1Y

CNX 500 3 6 -2 -5

Nifty 2 6 -1 -7

NSE Pharma 0 1 -6 -10

Return (%)

Stocks Performance Mcap

Company 1M 3M YTD 1Y 21-Apr

Sun Pharma.Inds. -3 4 0 -15 197251

Lupin 0 -10 -16 -11 69865

Dr Reddy's Labs 2 9 1 -12 53418

Aurobindo Pharma 2 -6 -13 13 44625

Cipla -1 -9 -19 -20 42379

Cadila Health. 1 10 1 -6 33865

Glaxosmit Pharma 4 17 12 16 31306

Divi's Lab. 12 2 -5 22 29233

Torrent Pharma. 4 7 2 23 24855

Glenmark Pharma. -4 5 -14 -12 22245

Apollo Hospitals -1 -2 -6 9 19098

Ajanta Pharma 5 22 10 6 12838

Alembic Pharma 0 -3 -12 23 11594

Wockhardt 5 -16 -34 -42 11127

Biocon 19 15 7 21 11073

Strides Arcolab 10 -1 -12 0 10084

Natco Pharma 1 -11 -19 13 8154

Pfizer 4 -22 -26 -22 7996

Ipca Labs. -13 -23 -33 -25 6258

Jubilant Life -12 13 -7 144 6072

Indoco Remedies -7 -9 -16 -24 2527

Unichem Labs. 4 2 -13 9 2116

Return (%)

MMarket cap in | crore

Price movement

50006000700080009000

100001100012000130001400015000

Apr-15 Jul-15 Oct-15 Jan-16 Apr-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 March, 2016

[5

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeAjanta Pharma Almotriptan Malate CNS Janssen Pharma Axert NAAurobindo Pharma Ibandronate Sodium Osteoporosis Hoffmann La Roche Boniva US$ 55 millionAurobindo Pharma Dexmedetomidine Hydrochloride Anesthesia Hospira Precedex US$ 59.1 millionAurobindo Pharma Naproxen Sodium Anti-inflammatory Alvogen Naprelan US$ 96 millionAurobindo Pharma Rivastigmine Tartrate CNS Novartis Exelon US$ 26.7 millionAurobindo Pharma Vancomycin HCl Antibiotic Fresenius Kab Vancomycin HCl US$ 160 millionAurobindo Pharma Pantoprazole Sodium Gastro Intestinal Wyeth Pharma Protonix US$ 93.5 millionAurobindo Pharma Valganciclovir Hydrochloride Antiviral Hoffmann La Roche Valcyte US$ 94 millionCadila Healthacre Acyclovir Antiviral Cipher Pharma Sitavig NACadila Healthacare Dextroamphetamine IR Tablets CNS Amedra Pharma Dexedrine US$ 40.6 millionCipla (Invagen Pharma) Olanzapine CNS Lilly Zyprexa US$ 3.2 billionGlenmark Pharma Frovatriptan Succinate CNS Endo Pharma Frova US$ 87.8 millionGlenmark Pharma Raloxifene Hydrochloride Osteoporosis Lilly Evista US$ 336.5 millionGlenmark Pharma Bendamustine Hydrochloride Anti-cancer Cephalon Treanda US$ 92.6 millionGlenmark Pharma Drospirenone; Ethinyl Estradiol Oral Contraceptive Bayer Healthcare Yaz US$ 347 millionGlenmark Pharma Levonorgestrel Oral-Contraceptive Teva Plan-B US$ 64 millionLupin Ethinyl Estradiol; Norethindrone Contraceptive Warner Chilcott Estrostep US$ 38.6 millionLupin Ethinyl Estradiol; Levonorgestrel Contraceptive Wyeth Pharms Alesse US$ 6.4 millionTaro Pharma Oxiconazole Nitrate Antiinfective Fougera Pharma Oxistat NA

Unichem Labs Quetiapine Fumarate CNS Astrazeneca Seroquel NA

Company Drug Name Therapeutic Area Innovator company Generic Version of Market Size

Alembic Pharma Olmesartan Medoxomil CVS Daiichi Sankyo Benicar NA

Cadila Healthcare Clofarabine Anti-cancer Genzyme Clolar NA

Glenmark Pharma Lacosamide Epilepsy UCB Inc Vimpat US$ 365 million

Tentative Approvals

Final Approvals

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

M&As, demergers and JVs

Strides to acquire Moberg Pharma Strides Shasun has agreed to acquire three brands from Sweden-based Moberg Pharma for US$10 million plus inventory value at closing to build its portfolio of over-the-counter (OTC) products. The three brands – JointFlex, Fergon and Vanquish –are marketed in the US, Australia and the Middle East. The deal will add ~US$6.1 million (~| 41 crore) to the Indian company’s revenue. Dr Reddy’s partners with TR Pharma to sell biosimilars in Turkish market DRL and TR Pharma partnered to manufacture biosimilar pharmaceuticals for the Turkish market. The deal is focused on the registration and commercialisation of three of DRL's biosimilar products in Turkey. TR-Pharma will register the drugs and produce APIs for the products. Dr Reddy’s enters into licensing pact with XenoPort Dr Reddy's Labs entered into a US licensing pact with XenoPort for the development and commercialisation of the latter's clinical-stage oral new chemical entity XP23829. Dr Reddy’s enters into licensing pact with Eisai Dr Reddy's Labs entered into a licensing pact with Japan's Eisai Co. Ltd for the development and commercialisation of the latter's investigational anticancer agent E7777 for an undisclosed sum. DRL enters into API supply, development agreement with Cutis Pharma Dr Reddy’s Labs entered into API supply and joint development agreements with the US-based Cutis Pharma to advance several programs in Cutis Pharma’s R&D portfolio, including RM-02, RM-03, and RM-06, toward FDA approval.


Sun Pharma partners with AstraZeneca for diabetic drug distribution Sun Pharma entered into a partnership with AstraZeneca for distribution of the latter's diabetes medicine dapagliflozin in India. As part of the pact, Sun Pharma will sell AstraZeneca's dapagliflozin, a Type 2 diabetes medicine, under brand name Oxra. AstraZeneca India markets dapagliflozin under the brand name Forxiga. Both companies would promote market and distribute dapagliflozin in India under their respective brand names. Sun Pharma acquires 14 brands from Novartis in Japan Sun Pharma acquired 14 established prescription brands from Novartis in Japan. According to the agreements entered into between the parties, a wholly-owned subsidiary of Sun Pharma will acquire the portfolio consisting of 14 established prescription brands from Novartis for a cash consideration of US$ 293 million. These brands have combined annualised revenues of approximately US$160 million and address medical conditions across several therapeutic areas. Strides Shasun acquires three brands of Moberg Pharma Strides Shasun completed the acquisition of three brands of Sweden-based Moberg Pharma. It had entered into an agreement with Moberg Pharma, Sweden and its affiliates to acquire Jointflex, Fergon and Vanquish brands for a total consideration of US$ 10 million plus inventory value at closing. Biocon enters into agreement for rh-insulin in US market Biocon entered into an agreement with a Mexican firm to co-develop and commercialise generic recombinant human insulin (rh-insulin) for the US market. Through the pact with PiSA Labs, Biocon aims at capturing a share of the US$ 2 billion rh-insulin market in the US, currently dominated by players such as Eli Lilly and Sanofi. Lupin enters into a co-marketing agreement Lupin and Novartis entered into a co-marketing agreement to promote Novartis’s indacaterol/glycopyrronium (110 mcg/50 mcg) inhaler, a treatment for chronic obstructive pulmonary disease (COPD), under the brand name of Loftair. While Lupin will use its own specialty field force to promote Loftair inhaler, NHPL will continue to market indacaterol/glycopyrronium inhaler under its brand name Sequadra through its own sales force. Cipla invests additional US$3 million in Chase Pharma Cipla made an additional investment of US$3 million in US-based Chase Pharmaceuticals engaged in developing novel approaches to improve treatments for Alzheimer's disease. The company in May 2014 had invested $1.5 million to acquire 14.6% stake in Chase Pharmaceuticals. The investment done through Cipla (EU) Ltd, UK, was part of $21 million syndicate to finance Phase 2a and Phase 2b clinical trials for Chase's lead drug CPC 201 for treating the disease. Alembic forms JV with Orbicular for dermatology products Alembic Pharma entered into a joint venture with Orbicular Pharmaceutical Technologies to develop, manufacture and commercialise dermatology products for global markets. Alembic pharma and Orbicular will own 60% and 40% of the equity capital of Aleor, respectively, when the transaction is completed. Price cuts, new launches, recalls, tie-ups

Sun Pharma receives NDA approval for anti-inflammatory ophthalmic drug Sun Pharma received NDA approval from USFDA for its non-steroid drug BromSite used to treat inflammation and prevent pain in patients undergoing cataract surgery. The drug has been developed by InSite Vision which the company had acquired in November 2015. The US NSAID


ophthalmic market generates ~US$400 million in sales and ~4 million prescriptions, providing an attractive market for Sun Pharma to participate. Biocon receives approval to sell insulin Glargine in Japan Biocon received approval to sell its biosimilar insulin Glargine in Japan. The approval for insulin Glargine was obtained post successful completion of initial development of Biocon and local phase-III clinical studies in over 250 type-1 diabetes patients by its partner in Japan. The company aims to capture a significant share of the Japan’s US$144 million Glargine market (the second largest outside North America and Europe). DRL launches Sumatriptan injection in the US Dr Reddy's Laboratories has launched ZEMBRACE SymTouch (Sumatriptan injection) 3 mg in the US, approved by the USFDA in January 2016 for the acute treatment of migraine with or without aura in adults. Lawsuits, court rulings, settlements, regulatory issues

Ipca’s anti-malarial tender terminated by Global Fund Global Fund, a major contractor for Ipca’s anti-malarial tender for African markets, terminated the contract in light of the warning letter issued to the company by the USFDA on January 29, 2016. They will only source ACTs from other pre-qualified suppliers that have no outstanding issues with regulators. As per the management, the company may lose US$15-20 million (~4% of revenues) business in FY17 due to this development. Natco Pharma receives USFDA observations for API and formulations plants Natco Pharma received 483 Observations for its API manufacturing facility at Manali, near Chennai and the pharmaceutical formulations facility at Kothur, near Hyderabad but believes they are minor in nature. The company has already sent its response and compliance report for these observations and believes there will be no adverse impact to its current or future pipeline products coming from these facilities. Lupin receives Form 483 observations for Mandideep facility Lupin received Form 483 observations for its Mandideep manufacturing facility in Madhya Pradesh. The FDA issued its Form 483 to Lupin, conveying its concerns about manufacturing practices at the Mandideep plant. At an estimated US$200 million, Mandideep is the second largest contributor to Lupin’s US revenue after its Goa plant. Cadila receives WHO warning for its vaccines plant in Moraiya Cadila Healthcare received a Notice of Concern (NoC) or warning from WHO for violations of good manufacturing practices at its vaccine plant in Moraiya in Sanand district of Gujarat. WHO, in its inspection from 26-30 October, found data integrity issues at the plant that manufactures Lyssavac-N, an anti-rabies vaccine. Cadila has responded to WHO and has been implementing remedial measures. There is no significant impact on the business and there were no exports of this product to the US. Indoco receives EIR report from USFDA for its Goa manufacturing facility Indoco has received the establishment inspection report (approval) from US Food and Drug Administration (USFDA) for its solid dosages manufacturing facility at Goa (plant I). Plant I is a product manufacturing facility which includes solid dosages, creams, ointments and liquid dosages. The facility is already approved by UK-MHRA, MCC South Africa and TGA - Australia (for solid dosages, liquid orals and creams & ointments). Alembic Pharma receives four form 483 observations for its Panelav plant Alembic pharma received four minor observations (as a Form 483) from USFDA for its Panelav facility. This facility makes formulations. US accounts for nearly 80-85% of Alembic's international formulations business.


Glenmark receives USFDA observations for Pithampur plant Glenmark Pharma's Pithampur formulations facility received three Form 483 observations from USFDA post inspection in February, 2016, to which the company has responded by March 2016. Subsequently, the company received two product approvals from this plant. Pithampur formulations facility manufactures oral solids, semi solids and injectables. Others

Natco Pharma completes sale of pharmacy stores Natco Pharma completed sale of its ‘Save Mart Pharmacy Stores’ in the US. The stores were part of the non-core business of the company. Jubilant to receive an upfront payment through its investee company Jubilant Life Sciences will receive an upfront payment of US$4.6 million and contingent payments up to US$18 million based on the achievement of certain predetermined clinical and regulatory milestones from its 10% interest as a limited partner in one of the venture funds specialised in seeding and investing in early stage drug discovery firms. These payments are on account of an acquisition by a large pharma company of one of their investee companies having assets in early stage clinical development.


Exhibit 2: Patent litigations FY16 [5

Month Innovator ANDA Filer Brand Name API Used for

Apr-15 Eli Lilly Lupin Effient Prasugrel CVS

Apr-15 Horizon Pharma Lupin Pennsaid Diclofenac Osteoporosis

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

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

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

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

May-15 Takeda Zydus Pharma Daliresp Roflumilast CVS

May-15 Takeda Strides Daliresp Roflumilast CVS

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

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

May-15 Kowa Lupin Livalo Pitavastatin Calcium High Cholestrol

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

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

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

Jul-15 Eli Lilly Lupin Axiron Hypogonadism Testosterone

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

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

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

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

Sep-15 Jazz Pharma Lupin Xyrem Sodium Oxybate Narcolepsy

Sep-15 Gilead Sciences Inc. Lupin Tamiflu Oseltamivir Influenza

Sep-15 Horizon Pharma Lupin Pennsaid Diclofenac Osteoarthritis

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

Oct-15 Merck Lupin Beyaz Drospirenone Birth control

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

Oct-15 Takeda Pharma Aurobindo Prevacid lansoprazole Stomach ulcers

Oct-15 Janssen Pharma Aurobindo Xarelto Rivaroxaban Blood Thinner

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

Oct-15 Otsuka Pharma Zydus Pharma Abilify Aripiprazole Schizophrenia

Oct-15 AstraZeneca Alembic Pharma Brilinta Ticagrelor CVS

Nov-15 AstraZeneca InvaGen Pharma Brilinta Ticagrelor CVS

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

Nov-15 Allergan Aurobindo Pharma Acular LS Ketorolactromethamine Ocular Pain

Nov-15 Shire Pharma Lupin Lialda Mesalamine Ulcerative Colitis

Nov-15 Dexcel Pharma Sun Pharma Omeprazole Omeprazole GI

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

Nov-15 Cephalon Inc. Aurobindo Pharma Nuvigili Modafinil CNS

Nov-15 Cosmo Techs Lupin Uceris Budesonide GI

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

Nov-15 Vanda Pharma Lupin Fanapt Iloperidone Schizophrenia

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

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

Nov-15 Otsuka Pharma Alkem Labs Abilify Aripiprazole Schizophrenia

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

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

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

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

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

Dec-15 Otsuka Pharma Ajanta Pharma Abilify Aripiprazole Schizophrenia

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

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

Source: Bloomberg, ICICIdirect.com Research


IPM grows mere 6.4% in March – Lowest growth in FY16 • The Indian pharmaceutical market (IPM) grew 6.4% YoY to | 7917 crore

for March. The growth was mainly driven by price hikes – 5.1%, and new product launches – 6.6% while volumes declined 5.3% in March 2016

• Drugs under NLEM list registered flat growth (-0.1% YoY to | 950 crore) while non-NLEM drugs posted a growth of 7.2% to | 6585 crore. Volume decline in NLEM and Non-NLEM was 2.4% and 4.3%, respectively

• Among companies under I-Direct coverage, Lupin registered highest YoY growth of 20.6% followed by Sun, Glenmark, Alembic and Ajanta registering growth of 10.4%, 12.3%, 8.1% and 7.6%, respectively

• Therapy wise, 12 have outpaced IPM growth. Notable among them with growth rates- Urology – 31.6%, CVS– 13.8% and Gastrointestinal – 13.3%, while Respiratory and Anti-Infective segments de-grew by 4.6% and 1.8%.

• In all, 200 new brands were launched in March 2016 • On a MAT basis, IPM growth was at 12.6% YoY to | 98414 crore • Domestic companies have grown 7.2% while MNC companies have

grown merely 2.0% in March 2016. Exhibit 3: Domestic formulations - growth trend

21.7

18.6

12.8 15

.6

13.2

13.4

9.4

10.3

22.7

20

12.3

12.0

6.4

-5

0

5

10

15

20

25

Mar

-15

Apr-1

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

(%)

Indian Pharma Market

[

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 4: Company’s growth in domestic market in March, 2016

14.5

6.1

0.73.5 2.0

7.6 8.1 3.5 7.0

10.4

-6.1

1.5

20.614.1

12.3

2.4

-15

-5

5

15

25

Ajan

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Alem

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Bioc

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Cipl

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DRL

Glen

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Indo

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Ipca

Lab

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Lupi

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Nov

artis

Pfize

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Sun

Phar

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Torre

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Unic

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(%)


Therapy wise performance (| crore) Therapy Mar' 16 Mar' 15 YoY (%) Mar' 16 MoM (%)Anti-Infectives 1132 1152 -1.8 1214 -6.7Cardiac 1034 922 12.2 1054 -1.8Gastro Intestinal 928 849 9.3 937 -1.0Vitamins / Minerals / N 694 645 7.7 691 0.6Anti Diabetic 666 588 13.2 671 -0.7Respiratory 610 639 -4.6 701 -13.0Pain / Analgesics 526 502 4.8 536 -1.9NEURO / CNS 511 449 13.8 520 -1.9Derma 483 427 13.3 495 -2.4Gynaecological 408 381 7.2 410 -0.5Hormones 135 128 6.0 140 -3.2Vaccines 127 136 -6.9 119 6.3Anti-Neoplastics 123 133 -7.9 120 2.4Ophthal 128 113 12.9 119 7.1Blood Related 91 85 7.5 88 4.1Others 89 80 11.0 87 1.3Urology 98 75 31.6 94 4.8Anti Malarials 30 38 -21.8 33 -9.6Sex Stimulants / Rejuv 46 42 7.7 50 -8.8Stomatologicals 32 31 5.2 33 -2.5 Source: AIOCD data base

Top brands in Indian pharma market Brand Company Therapy Mar' 16 Mar' 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 Feb 16 & Feb 15 Industry acute to chronic therapy ratio percentage…

Acute, 47401.09,

48.2%

Chronic, 30989.65,

31.5%Sub-

Chronic, 20023.62,

20.3%

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


IPM grows 9.2% in Q4FY16 – slowest quarter in FY16 • The Indian pharmaceutical market (IPM) registered growth of 9.2% YoY

to | 24093 crore in Q4FY16. • The growth was driven by volume growth – 1.4%, price hikes – 5.0% and

new product launches – 2.9%. • Among companies under I-Direct coverage, DRL registered highest YoY

growth of 21.9% followed by Lupin, Glenmark, Alembic, and Sun Pharma clocking growth of 17.2%, 15.4%, 14.8% and 12.4%, respectively

• Therapy wise, 11 therapies have outpaced the IPM growth. Notable among them with growth rates- Urology – 29.1%, CNS – 14.6%, Anti -Diabetic – 13.8%, Dermatology – 13.6% and gastro intestinal – 12.5%. While, Anti-malarial de-grew 10.2% in Q4FY16.

• In all, 663 new brands were launched in Q4FY16.

Therapy wise performance (| crore) Therapy Q4FY16 Q4FY15 YoY (%) Q3FY16 QoQ (%)Anti-Infectives 3546 3373 5.1 3970 -10.7Cardiac 3125 2786 12.2 3051 2.4Gastro Intestinal 2766 2458 12.5 2780 -0.5Vitamins 2043 1894 7.9 2098 -2.6Anti Diabetic 2006 1763 13.8 2033 -1.3Respiratory 2054 1936 6.1 2216 -7.3Pain 1596 1479 7.9 1739 -8.2CNS 1548 1350 14.6 1535 0.9Derma 1476 1299 13.6 1545 -4.5Gynaecological 1203 1112 8.2 1188 1.3Hormones 417 381 9.4 433 -3.7Vaccines 372 412 -9.8 430 -13.6Anti-Neoplastics 356 381 -6.6 375 -5.0Ophthal 359 321 11.6 346 3.8Blood Related 269 241 11.5 283 -4.7Others 260 234 11.0 264 -1.6Urology 283 219 29.1 271 4.5Anti Malarials 94 104 -10.2 167 -43.9Sex Stimulants 145 134 8.1 144 0.7Stomatologicals 99 92 7.7 100 -0.8

Source: AIOCD data base

Exhibit 5: Domestic formulations – quarterly growth trend

2.5

8.4 6.64.2

6.7

1.4

5.1

5.24.8

4.6

5.0

5.0

3.3

3.33.3

3.0

3.0

2.9

10.9

16.814.8

11.9

14.7

9.3

-1.01.03.05.07.09.0

11.013.015.017.019.0

Q3FY15 Q4FY15 1QFY16 2QFY16 3QFY16 4QFY16

(%)

Volumes Price Increases New Products

[


Exhibit 6: Company wise growth trends in Q4FY16

8.4

14.8

10.38.4

21.9

1.1

15.4

3.97.3

17.2

13.5

1.6

(3.0)

12.4

6.74.4

7.6

(5.0)

-

5.0

10.0

15.0

20.0

25.0

Ajan

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Cipl

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Dr R

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Glen

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IPM grows 12.6% in FY16 • The Indian pharmaceutical market (IPM) registered growth of 12.6% YoY

to | 98414 crore in FY16. • The growth was driven by volume growth – 4.7%, price hikes – 4.9%

followed by new product launches – 3.1% • Among companies under I-Direct coverage, DRL registered highest

growth of 23.4% YoY followed by Glenmark, Alembic, Lupin and Torrent clocking growth of 23.0%, 17.8%, 17.0%, and 15.3% respectively.

• Therapy wise, eight therapies have outpaced IPM growth. Notable among them with growth rates- anti-diabetic – 20.7%, Dermatology – 16.6%, Urology – 15.9%, CNS – 15.7%, Gastrology – 15.1, and CVS – 14.1%. Anti-malarias segment registered de-growth of 2.1%

• In all, 2855 new brands were launched in FY16

Exhibit 7: Domestic formulations – quarterly growth trend

1.5

4.72.4

4.9

2.9

2.33.1

7.0

3.7

12.613.0

6.7

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

FY14 FY15 FY16

Volumes Price Increases New Products[

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

Exhibit 8: Company wise growth trends in FY16

10.6

17.8

5.4

13.4

23.4

4.8

23.0

4.15.9

17.0

10.9 10.57.4

12.715.3

9.1

13.7

(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

Sun

Phar

ma

Torr

ent

Unic

hem

Cadi

la

(%)


Therapy wise performance (| crore) Therapy FY16 FY15 YoY (%)Others 1073 857 25.3Anti Diabetic 8004 6631 20.7Derma 6006 5153 16.6Blood Related 1159 1000 15.9Urology 1074 926 15.9CNS 6110 5282 15.7Gastro Intestinal 11565 10051 15.1Cardiac 12276 10756 14.1Sex Stimulants 546 485 12.5Ophthal 1436 1278 12.3Vaccines 1671 1498 11.5Pain 6793 6103 11.3Gynaecological 4928 4445 10.9Respiratory 7687 6935 10.8Hormones 1652 1493 10.6Vitamins 8643 7883 9.6Anti-Infectives 14933 13859 7.8Stomatologicals 402 376 7.0Anti-Neoplastics 1564 1472 6.3Anti Malarials 561 573 -2.1



Sun Pharmaceuticals

Stock Performance

507090

110130150

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

CNX Pharma Sun Pharma

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

21.7

18.6

12.8

15.6

13.2

13.4

10.3

22.7

9.4

12.3

9.4

12.0

6.4

13.1

16.9

14.5

21.7

15.9

10.0 10.8

16.5

3.0

8.2

6.7

18.7

12.3

0

5

10

15

20

25

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Sun Pharmaceutical Industries


Exhibit 10: Market share in Indian formulations market

8.6 8.79.2 9.1 8.9

8.4 8.3 8.38.7 8.7

9.0 8.9 9.1

6.0

6.6

7.2

7.8

8.4

9.0

9.6

10.2

10.8

Mar

-15

Apr-1

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

(%)

Sun Pharmaceutical Industries

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

Exhibit 11: Top 10 brands performance (| crore) Brand Therapy Mar' 16 Mar' 15 Var. (%) Feb' 16 Var. (%)

Volini Pain 14.7 15.6 -5.5 16.9 -13.0

Gemer Anti Diabetic 13.5 11.6 16.8 12.8 5.7

Susten Gynaecological 13.2 11.7 13.0 12.6 5.1

Istamet Anti Diabetic 13.1 11.5 14.2 12.6 4.0

Rosuvas Cardiac 12.7 11.5 10.5 12.7 -0.2

Levipil Neuro 12.2 10.7 13.5 11.6 4.6

Pantocid Gastro Intestinal 11.9 11.2 6.7 11.9 0.0

Storvas Cardiac 10.3 9.2 11.9 10.4 -0.7

Pantocid Dsr Gastro Intestinal 10.2 9.4 8.7 9.8 3.6

Aztor Cardiac 9.9 8.7 13.4 9.9 -0.5


Exhibit 12: Contribution of therapies to domestic sales (MAT Mar’16) z

Cardiac31%

Neuro 30%

Gastro Intestinal21%

Derma13%

Vitamins 5%


Exhibit 13: Therapy wise performance (| crore)

Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Cardiac 136.2 114.7 18.8 135.1 0.9

Neuro 123.1 113.2 8.7 126.6 -2.7

Gastro Intestinal 84.0 77.8 8.0 85.0 -1.2

Derma 55.0 50.5 9.1 57.4 -4.0

Vitamins 19.4 16.3 18.8 19.4 -0.1

Pain 46.7 40.2 16.2 47.2 -1.0

Anti Diabetic 19.2 18.1 5.7 19.1 0.2

Respiratory 30.4 27.2 11.6 30.5 -0.5

Gynaecological 15.9 17.2 -7.5 18.0 -11.8

Hormones 18.9 18.4 2.8 20.2 -6.7


Acute : Chronic contribution (MAT Mar’16)

Acute, 3555.05,

41.2%

Chronic, 3893.90,

45.1%

Sub-Chronic, 1182.48,

13.7%


Brands contribution to domestic sales (MAT Mar ’16)

17%

9%

7%

10%

57%

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

21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4

12.3

9.4 12

.0

6.4

24.8

25.4

15.9

16.7

11.6

11.1

4.6

21.0

15.9 16.7

10.0 11

.6

3.5

0

5

10

15

20

25

30

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Cipla



5.1

5.3

4.8

4.6 4.6

4.85.0 4.9

5.15.2

5.15.2

4.9

4.2

4.4

4.6

4.8

5.0

5.2

5.4

Mar

-15

Apr-1

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

(%)

Cipla



Foracort Respiratory 16.1 15.5 4.0 16.8 -3.9

Budecort Respiratory 13.0 13.3 -2.1 15.8 -17.7

Asthalin Respiratory 11.2 12.3 -9.2 12.1 -7.4

Seroflo Respiratory 10.2 11.3 -9.5 11.1 -8.2

Duolin Respiratory 10.1 9.7 4.8 12.5 -18.8

Aerocort Respiratory 7.7 7.8 -1.7 8.2 -6.4

Montair Lc Respiratory 7.2 6.5 10.7 7.5 -3.9

Azee Anti-Infectives 6.5 7.4 -12.4 8.2 -20.6

Advent Anti-Infectives 6.1 5.8 5.2 7.1 -14.6

Dytor Cardiac 6.0 5.8 4.0 5.9 0.9


Exhibit 17: Contribution of therapies to domestic sales (MAT Mar’16)

Respiratory29%

Anti-Infectives27%

Cardiac12%

Gastro Intestinal8%

Urology5%

Other19%



Therapy M ar ' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Respir at ory 122.0 119.8 1.9 134.3 -9.1

Anti-Infect ives 100.4 96.7 3.8 118.2 -15.1

Cardiac 47.5 48.8 -2.5 47.5 0.2

Gast ro Intes tina l 29.2 25.9 13.0 31.5 -7.2Urology 17.8 17.8 0.0 18.0 -1.0

Neuro 13.7 13.6 0.8 13.8 -0.3

Pain 11.5 10.4 10.7 12.3 -6.6

Derma 9.8 8.6 13.7 10.4 -5.5

Ophtha l 9.6 8.6 11.1 9.4 1.8

Vitamins 7.0 5.9 17.8 7.0 -0.6



Acute, 2304.33,

47.0%

Chronic, 1992.60,

40.7%

Sub-Chronic, 602.88, 12.3%


Brands contribution to domestic sales (MAT Mar’16)

24%

12%

8%12%

44%




Dr Reddy’s Laboratories (DRL)

Stock Performance

60

80

100

120

140


CNX Pharma Dr. Reddys



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4 12

.3

9.4 12

.0

6.4

34.4

35.0

22.9

32.2

27.0

14.9

7.6

30.4

23.2 27

.1

27.1

32.5

7.0

-10

0

10

20

30

40

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Dr. Reddys Laboratories



2.3 2.3 2.3

2.4

2.32.2

2.5

2.72.6

2.6

2.3 2.3 2.3

2.02.12.22.32.42.52.62.72.8

Mar

-15

Apr-1

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

(%)

Dr. Reddys Laboratories



Omez Gastro Intestinal 10.0 9.0 11.4 11.6 -13.5

Omez D Gastro Intestinal 7.7 6.3 21.1 9.1 -16.2

Razo D Gastro Intestinal 6.6 4.0 63.6 7.0 -6.4

Econorm Gastro Intestinal 5.9 4.7 23.5 7.4 -20.7

Grafeel Anti-Neoplastics 5.7 2.9 97.4 5.1 12.6

Stamlo Cardiac 5.7 5.1 12.3 6.8 -16.5

Mintop Derma 4.4 4.3 2.2 5.3 -16.8

Nise Pain 4.3 5.1 -14.8 5.0 -14.2

Razo Gastro Intestinal 4.0 3.7 9.1 4.2 -4.2

Stamlo Beta Cardiac 3.6 4.5 -19.5 3.9 -7.8




Cardiac15%

Anti-Neoplastics

11%Respiratory9%

Anti-Infectives8%

Other34%



Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Gastro Intestinal 43.1 36.4 18.3 49.3 -12.6

Cardiac 28.6 25.8 11.0 31.7 -9.8

Anti-Neoplastics 18.4 18.4 0.3 21.7 -15.0

Respiratory 15.6 17.4 -10.4 20.1 -22.2

Anti-Infectives 13.1 13.9 -5.9 17.5 -25.2

Pain 11.6 11.5 0.9 13.7 -15.2

Derma 13.6 11.5 18.1 15.7 -13.3

Anti Diabetic 12.3 12.5 -1.6 13.8 -10.7

Urology 8.0 6.4 25.2 8.2 -3.0

Stomatologicals 6.1 5.9 3.4 7.0 -13.8



Acute, 1186.92,

50.0%

Chronic, 706.95, 29.8%

Sub-Chronic, 481.97, 20.3%



30%

16%

9%12%

33%




Lupin

Stock Performance

6080

100120140


CNX Pharma Lupin



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4 12

.3

12.019

.1

16.0 18

.0

24.7

20.8

12.0

21.7

7.1

14.4

13.0

18.4 20

.6

9.4

6.4

-4

4

12

20

28

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Lupin



3.0

3.63.8 3.8 3.7

3.4 3.4 3.3 3.33.4 3.5 3.4 3.4

2.3

2.52.7

2.9

3.1

3.33.5

3.7

3.9

Mar

-15

Apr-1

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

(%)

Lupin



Gluconorm-G Anti Diabetic 12.4 9.5 29.6 12.8 -3.8

Tonact Cardiac 8.4 6.9 21.4 9.1 -6.8

Budamate Respiratory 7.4 6.0 23.2 7.0 6.5

Rablet-D Gastro Intestinal 5.1 3.6 41.0 4.8 6.1

Ramistar Cardiac 4.8 3.8 26.2 4.9 -3.3

R-Cinex Anti-Infectives 4.8 4.3 12.0 4.7 1.2

Esiflo Respiratory 4.7 3.5 36.0 4.0 19.2

Rablet Gastro Intestinal 4.5 3.4 32.4 4.7 -4.3

Gluconorm-Pg Anti Diabetic 3.9 2.7 46.6 3.5 11.0

L-Cin Anti-Infectives 3.7 2.8 32.9 3.7 1.1



Cardiac25%

Anti-Infectives22%

Respiratory12%

Anti Diabetic11%

Gastro Intestinal8%

Other22%



Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Cardiac 70.3 56.9 23.5 70.0 0.4

Anti-Infectives 56.1 51.8 8.4 57.7 -2.7

Respiratory 34.4 29.1 18.2 35.9 -4.2

Anti Diabetic 30.8 23.6 30.2 31.5 -2.4


Vitamins 13.9 12.9 7.7 13.6 2.4

Neuro 14.0 10.9 29.1 14.2 -1.3

Pain 11.1 10.5 6.0 11.6 -4.0

Gynaecological 9.8 6.2 58.6 10.0 -2.2

Ophthal 1.9 1.4 34.6 1.9 0.7



Acute, 1089.06,

31.6%

Chronic, 1671.59,

48.6%Sub-

Chronic, 681.85, 19.8%



20%

11%

9%13%

47%




Cadila Healthcare

Stock Performance

60

80

100

120

140


CNX Pharma Cadila Healthcare



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4

12.3

9.4

12.0

6.4

17.3

17.8

14.5 17

.0

16.3

16.3 18

.2

26.3

6.6

10.4

6.2

10.7

6.1

0

5

10

15

20

25

30

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Cadila Healthcare



4.0 4.0

4.0 3.9

3.9

3.9

3.9

3.9

3.93.9

3.9

3.9

4.0

3.8

3.8

3.9

3.9

4.0

4.0

4.1

Mar

-15

Apr-1

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

(%)

Cadila Healthcare



Skinlite Derma 14.7 15.6 -5.4 17.7 -16.8

Atorva Cardiac 11.2 10.4 7.4 11.5 -3.2

Mifegest Kit Gynaecological 10.2 10.7 -4.0 11.6 -12.2

Pantodac Gastro Intestinal 9.2 7.3 25.0 8.7 5.4

Deriphyllin Respiratory 8.7 8.8 -1.2 10.0 -12.8

Sovihep Anti-Infectives 6.1 0.0 #DIV/0! 2.8 114.5

Amlodac Cardiac 5.6 6.7 -16.4 5.6 -0.4

Clopitorva Cardiac 5.3 4.1 29.6 5.4 -1.0

Dexona Hormones 5.2 3.5 45.4 5.9 -12.8

Aten Cardiac 5.0 6.0 -17.7 4.9 2.4



Cardiac17%


Gynaecological11%

Respiratory10%Derma

10%

Other39%



Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Cardiac 54.9 51.2 7.2 55.4 -0.8

Gastro Intestinal 43.7 37.4 16.7 42.8 2.0

Gynaecological 34.8 35.0 -0.6 36.5 -4.7

Respiratory 34.0 31.8 7.1 37.4 -9.1

Derma 29.2 28.1 3.9 32.3 -9.6

Pain 25.7 23.0 11.8 24.7 4.2

Anti-Infectives 26.5 16.8 57.2 20.9 26.5

Anti-Neoplastics 16.1 23.4 -31.5 13.6 18.2

Vitamins 13.6 13.6 0.3 14.0 -3.0

Anti Malarials 3.7 5.9 -37.4 5.6 -34.4



Acute, 1740.24,

45.1%

Chronic, 1346.88,

34.9%Sub-

Chronic, 769.99, 20.0%



25%

13%

8%11%

43%




GlaxoSmithKline Pharmaceuticals

Stock Performance

6080

100120140


CNX Pharma GSK Pharma



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4 12

.3

9.4 12

.0

6.4

10.8 12

.9

0.7

2.1

-1.7

-0.3

2.6

23.9

7.2

8.2

6.1 3.

8

-6.1

-10

-5

0

5

10

15

20

25

30

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Glaxosmithkline Pharmaceuticals



3.43.4

3.2 3.2

3.1

3.2

3.3

3.5

3.4

3.3

3.2

3.13.03.0

3.2

3.4

3.6

Mar

-15

Apr-1

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

(%)

Glaxosmithkline Pharmaceuticals



Augmentin Anti-Infectives 24.3 30.1 -19.4 27.8 -12.5

Synflorix Vaccines 19.0 14.4 31.7 15.8 19.8

Calpol Pain 13.3 13.4 -1.0 13.8 -3.8

Betnovate N Derma 13.1 9.6 36.7 12.8 2.3

Zinetac Gastro Intestinal 11.6 12.3 -5.9 13.4 -13.6

Betnovate C Derma 11.0 10.6 3.8 14.1 -22.2

Eltroxin Hormones 10.6 10.6 -0.1 11.5 -8.1

Ceftum Anti-Infectives 9.7 10.6 -8.4 10.1 -3.8

Rotarix Vaccines 9.3 6.6 39.7 8.7 6.3

Betnesol Hormones 7.5 9.3 -19.3 8.4 -10.7



Anti-Infectives25%

Derma20%

Vaccines14%

Pain 9%

Hormones8%

Other24%



Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Anti-Infectives 58.3 64.2 -9.2 62.6 -7.0

Derma 42.0 50.6 -16.9 47.6 -11.6

Vaccines 41.7 31.1 34.1 35.2 18.5

Pain 22.8 21.9 3.9 23.1 -1.2

Hormones 18.7 20.7 -9.9 20.7 -9.6

Vitamins 17.1 18.7 -8.2 17.1 0.3

Gastro Intestinal 13.6 14.5 -6.1 15.5 -12.5

Respiratory 14.0 16.6 -16.0 16.1 -13.4

Cardiac 4.2 6.2 -32.7 4.4 -5.3

Gynaecological 2.9 2.8 4.1 3.0 -1.3


Acute : Chronic contribution (MAT Mar 16)

Acute, 2052.33,

64.5%

Chronic, 438.54, 13.8%

Sub-Chronic, 691.11, 21.7%



53%

15%

8%

10%

14%




Wockhardt

Stock Performance

050

100150200250300350400


CNX Pharma Wockhardt


21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4 12

.3

9.4 12

.0

6.4

44.8

36.0

50.4

29.1

22.2

29.2

24.4

42.2

38.3

29.7

9.9

5.5

2.5

0

10

20

30

40

50

60

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Wockhardt



1.40

1.28 1.24 1.281.37 1.35

1.40 1.42 1.391.34 1.38 1.35

1.38

1.0

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

Mar

-15

Apr-1

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

(%)

Wockhardt



Spasmo Proxyvon PluGastro Intestinal 22.3 22.3 0.2 23.4 -4.5

Biovac V Vaccines 6.9 7.6 -8.8 6.3 10.7

Practin Vitamins 6.0 7.1 NA 6.9 -13.5

Tryptomer Neuro 3.9 4.0 -3.0 4.1 -5.7

Methycobal Vitamins 3.5 3.0 18.2 3.3 8.4

Bro Zedex Respiratory 3.3 5.0 -33.9 4.4 -24.2

Biovac A Vaccines 2.8 3.3 NA 3.2 -11.5

Zedex Respiratory 2.8 3.6 -22.3 3.4 -17.8

Ace Proxyvon Pain 2.7 2.5 7.0 2.9 -7.5

Wosulin Anti Diabetic 1.9 1.6 19.5 1.6 15.2


Exhibit 42: Contribution of therapies to domestic sales (MAT Mar’16) Gastro Intestinal

25%

Vitamins 15%

Respiratory12%

Neuro 8%

Vaccines8%

Other32%



Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Gastro Intestinal 27.2 24.0 13.6 26.0 4.8

Vitamins 16.5 15.7 5.1 15.8 3.8

Respiratory 12.1 15.2 -20.4 16.4 -26.3

Neuro 9.4 7.3 29.1 9.0 4.1

Vaccines 5.4 11.0 -50.5 6.1 -10.1

Anti-Infectives 6.5 6.1 7.9 8.7 -25.0

Derma 6.6 7.6 -12.7 7.3 -9.5

Pain 7.1 6.0 17.8 7.9 -9.7

Anti Diabetic 7.8 5.1 53.9 7.9 -0.7

Hormones 2.3 2.1 10.3 2.3 1.1



Acute, 933.20, 70.3%

Chronic, 251.50, 18.9%

Sub-Chronic, 143.19, 10.8%



56%

14%

8%

8%

14%




Glenmark Pharmaceuticals

Stock Performance

6080

100120140160180200


CNX Pharma Glenmark



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4 12

.3

9.4 12

.0

6.4

28.3 30

.3

29.9 34

.6

30.9

28.0

13.1

43.6

11.5

18.6

16.3 19

.6

10.4

05

101520253035404550

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Glenmark Pharmaceuticals



2.3 2.32.2

2.32.4 2.3

2.42.5 2.5

2.62.5

2.5

2.3

1.9

2.1

2.3

2.5

2.7

Mar

-15

Apr-1

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

(%)

Glenmark Pharmaceuticals



Telma Cardiac 16.2 12.8 26.4 16.5 -1.8

Telma H Cardiac 11.5 9.8 17.5 11.8 -2.3

Ascoril Plus Respiratory 6.9 8.8 -21.8 9.5 -27.4

Telma Am Cardiac 6.5 4.9 32.8 6.5 -0.7

Candid Derma 6.5 4.8 33.9 5.5 17.2

Candid-B Derma 6.4 5.6 15.1 6.9 -7.0

Ascoril Ls Respiratory 4.0 4.0 0.3 5.1 -21.0

Onabet Derma 3.2 1.9 66.2 3.3 -3.3

Dubagest Gynaecological 2.7 2.2 20.6 2.9 -5.9

Momate Derma 2.4 2.0 19.0 2.5 -2.4



Derma29%

Cardiac23%

Respiratory15%

Anti-Infectives13%

Anti Diabetic8%

Other12%



Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Derma 53.7 42.8 25.5 55.4 -3.1

Cardiac 46.6 38.8 20.1 47.4 -1.7

Respiratory 27.8 28.9 -3.8 35.6 -21.8

Anti-Infectives 22.9 25.3 -9.5 25.4 -9.9

Anti Diabetic 9.9 14.8 -33.0 10.6 -6.0

Vitamins 5.0 3.6 38.4 5.3 -4.9


Pain 4.1 3.4 18.0 4.1 -0.3

Gynaecological 3.4 3.1 11.6 3.6 -5.3

Otologicals 2.2 2.4 -7.9 2.4 -8.4



Acute, 950.94, 40.2%

Chronic, 879.10, 37.2%

Sub-Chronic, 534.17, 22.6%



36%

13%10%

13%

28%




Torrent Pharmaceuticals

Stock Performance

4080

120160200


CNX Pharma Torrent Pharma



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4 12

.3

9.4 12

.0

6.4

30.5

28.8

27.4

28.3

18.3 21

.7

16.0

19.9

5.4

3.8 7.

4 10.2

2.4

0

5

10

15

20

25

30

35

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Torrent Pharmaceuticals



2.32

2.432.48 2.50

2.36

2.25 2.232.18 2.21 2.24

2.302.36

2.23

2.0

2.4

2.8

Mar

-15

Apr-1

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

(%)

Torrent Pharmaceuticals



Shelcal Vitamins 18.2 14.7 23.6 19.8 -8.0

Chymoral Forte Pain 10.3 9.8 4.5 9.9 3.9

Nikoran Cardiac 6.4 6.3 1.9 6.8 -5.3

Dilzem Cardiac 5.4 5.1 4.7 5.7 -6.4

Nebicard Cardiac 4.9 4.3 16.0 5.1 -3.3

Azulix-Mf Anti Diabetic 4.7 4.2 10.9 4.7 -0.6

Nexpro Rd Gastro Intestinal 4.4 4.2 4.1 4.2 4.6

Nexpro Gastro Intestinal 3.9 4.1 -3.3 4.1 -3.7

Domstal Gastro Intestinal 3.2 2.6 20.2 2.9 8.4

Veloz D Gastro Intestinal 3.2 2.8 13.4 2.9 8.8



Cardiac29%

Neuro 16%

Vitamins 15%


Pain 8%

Other17%




Neuro 29.6 27.2 8.8 30.9 -4.2

Vitamins 28.1 24.3 15.6 30.6 -8.3


Pain 14.0 13.9 1.0 14.5 -2.9

Anti Diabetic 10.6 10.1 4.8 11.5 -8.0

Anti-Infectives 6.6 10.8 -39.1 7.3 -10.5

Derma 5.1 3.8 34.2 5.3 -3.9

Gynaecological 2.6 3.0 -11.5 3.0 -12.4

Anti-Neoplastics 0.4 0.0 NA 0.7 -31.2


Acute : Chronic contribution (MAT Mar‘ 16)

Acute, 562.20, 24.7%

Chronic, 1153.12,

50.7%Sub-

Chronic, 560.49, 24.6%



33%

13%9%

12%

33%




Ipca Laboratories

Stock Performance

5075

100125150


CNX Pharma Ipca



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4 12

.3

9.4 12

.0

6.4

12.2 14

.5

-5.8

-5.5

-0.1

3.6

11.8

9.1 11

.5

3.0

25.8

6.3

1.5

-10

-5

0

5

10

15

20

25

30

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Ipca Laboratories



1.2 1.2 1.3 1.2 1.31.3

1.5 1.4

1.3 1.2 1.2 1.2 1.2

1.0

1.2

1.4

1.6

1.8

2.0

Mar

-15

Apr-1

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

(%)

Ipca Laboratories



Zerodol Sp Pain 7.1 5.7 24.5 6.7 5.2

Zerodol P Pain 5.5 4.0 35.2 5.2 4.5

Hcqs Anti Malarials 4.8 5.1 -4.3 5.9 -18.4

Rapither-Ab Anti Malarials 3.6 2.7 33.0 3.4 6.2

Glycinorm M Anti Diabetic 2.9 2.4 20.6 2.3 23.1

Larinate Anti Malarials 2.6 2.2 16.3 2.1 23.4

Folitrax Anti-Neoplastics 2.5 2.3 6.6 2.8 -10.9

Zerodol Pain 2.4 1.8 32.7 2.0 18.8

Perinorm Gastro Intestinal 2.2 1.3 72.3 1.6 38.3

Lariago Anti Malarials 2.1 2.8 -25.9 2.6 -21.0



Pain 26%

Anti Malarials19%

Cardiac17%

Gastro Intestinal8%

Anti-Infectives6%

Other24%



Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Pain 24.2 20.8 16.4 26.8 -9.8

Anti Malarials 13.9 16.1 -13.9 15.3 -9.3

Cardiac 18.6 16.4 13.4 18.3 1.7


Anti-Infectives 5.1 6.8 -25.1 6.3 -18.8

Anti Diabetic 5.3 4.8 10.0 5.5 -4.1

Respiratory 3.8 4.3 -10.2 5.3 -27.3

Anti-Neoplastics 4.8 4.6 4.7 4.6 5.2

Neuro 3.6 4.5 -19.9 3.4 4.5

Derma 2.8 2.8 0.3 3.2 -11.7



Acute, 841.44, 66.7%

Chronic, 345.27, 27.4%

Sub-Chronic,

74.38, 5.9%



36%

16%11%

13%

24%




Biocon

Stock Performance

60

80

100

120

140

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



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4

9.4 12

.0

6.4

11.6

11.7

12.3

3.7 4.

8 6.0

7.3

-11.

2

10.0

-0.8

5.2

5.3

11.3 14

.5

-15

-10

-5

0

5

10

15

20

25

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Biocon



0.36

0.330.34

0.36

0.34 0.330.31

0.330.32

0.34

0.36

0.38

0.34

0.27

0.29

0.31

0.33

0.35

0.37

0.39

0.41

Mar

-15

Apr-1

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

(%)

Biocon



Insugen Anti Diabetic 7.1 6.9 2.9 6.9 3.2

Basalog Anti Diabetic 4.9 4.5 10.4 4.7 4.2

Biomab Egfr Anti-Neoplastics 2.4 0.0 6565.5 1.4 69.0

Canmab Anti-Neoplastics 2.2 2.0 8.6 1.6 34.7

Abraxane Anti-Neoplastics 2.1 1.3 59.1 1.1 85.9

Blisto Mf Anti Diabetic 1.4 1.6 -7.9 1.4 2.2

Insugen R Anti Diabetic 1.4 1.3 8.5 1.4 -2.5

Erypro Blood Related 1.4 1.2 9.7 1.4 -1.2

Psorid Anti-Neoplastics 0.7 0.4 60.8 0.6 5.1

Insugen N Anti Diabetic 0.6 0.8 -23.0 0.6 -6.9



Anti Diabetic60%

Anti-Neoplastics

21%

Blood Related6%

Cardiac5%

Derma3%

Other 5%



Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)

Anti Diabetic 16.7 16.4 1.3 16.2 3.0

Anti-Neoplastics 9.0 5.1 78.8 6.8 33.4

Blood Related 1.4 1.3 10.9 1.4 -0.2

Cardiac 1.5 1.9 -17.9 1.4 11.1

Derma 0.7 0.7 -10.8 0.8 -20.3

Anti-Infectives 0.7 0.7 -6.1 0.7 -6.8


Others 0.3 0.2 43.9 0.2 7.7

Vitamins 0.1 0.3 -45.6 0.2 -9.5

Pain 0.0 0.0 251.1 0.0 24.6



Acute, 68.12, 20.3%

Chronic, 240.86, 71.7%

Sub-Chronic,

27.14, 8.1%



76% 11%

6%5%

2%




Pfizer

Stock Performance

4080

120160200


CNX Pharma Pfizer


21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4 12

.3

9.4 12

.0

6.4

18.2

18.8

11.8

20.3

17.3 19

.7

9.9

25.4

3.5

0.9

-3.4

5.1

3.5

-10

-5

0

5

10

15

20

25

30

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Pfizer



2.98 3.00

2.872.93 2.96 2.95 2.91 2.95 2.91 2.92 2.94

2.852.90

2.4

2.6

2.8

3.0

3.2

Mar

-15

Apr-1

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

(%)

Pfizer



Becosules Vitamins 22.4 20.2 10.9 23.4 -4.3

Corex Respiratory 19.8 22.7 -12.7 21.5 -8.0

Gelusil Mps Gastro Intestinal 11.3 11.3 -0.1 11.5 -1.6

Magnex Anti-Infectives 11.0 12.2 -9.5 14.4 -23.7

Dolonex Pain 10.2 8.9 15.6 11.2 -8.3

Minipress Xl Cardiac 10.1 9.3 8.6 10.9 -7.2

Mucaine Gastro Intestinal 7.9 7.7 2.5 8.5 -8.1

Wysolone Hormones 6.3 7.3 -13.8 7.5 -15.5

Folvite Blood Related 6.1 5.8 4.6 6.4 -4.1

Dalacin C Anti-Infectives 5.8 5.4 7.3 5.9 -0.6



Anti-Infectives17%

Respiratory14%


Vitamins 10%

Hormones9%

Other39%



Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Anti-Infectives 37.1 37.3 -0.4 40.2 -7.7

Respiratory 33.5 29.6 13.2 31.7 5.4


Vitamins 22.6 25.0 -9.6 20.6 9.6

Hormones 19.9 18.8 5.6 20.0 -0.9

Gynaecological 17.8 16.7 6.8 18.7 -4.8

Neuro 18.1 15.3 18.7 17.9 1.4

Cardiac 11.5 15.7 -26.7 14.4 -20.2

Pain 14.6 13.3 9.2 14.4 1.1

Vaccines 8.2 7.4 11.4 6.6 25.1



Acute, 1874.49,

65.1%

Chronic, 443.98, 15.4%

Sub-Chronic, 561.27, 19.5%



50%

19%

10%

10%

11%


Source: AIOCD data base l


Novartis India

Stock Performance

40

90

140

190


CNX Pharma Novartis India



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4

12.3

9.4

12.0

6.4

5.9

0.0

2.7

9.3

14.1 16

.0

9.7

19.0

10.2

10.0

16.7

14.1

10.1

0

5

10

15

20

25

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Novartis India



1.251.23 1.23

1.28

1.351.32

1.34

1.37

1.331.35 1.34

1.311.34

1.2

1.2

1.3

1.3

1.4

1.4

Mar

-15

Apr-1

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

(%)

Novartis India



Galvus Met Anti Diabetic 17.8 16.1 10.5 17.3 2.7

Voveran Pain 13.5 11.1 21.5 15.2 -11.4

Galvus Anti Diabetic 9.2 8.0 14.7 8.3 10.5

Rabipur (Novartis) Vaccines 8.5 8.6 -0.8 8.4 1.9

Tegrital Neuro 4.5 4.1 9.5 4.5 0.2

Otrivin Respiratory 4.2 5.8 -26.6 5.5 -22.7

Regestrone Gynaecological 3.0 3.9 -24.2 3.2 -6.7

Voveran Pain 2.7 2.3 17.2 2.6 4.5

Genteal Ophthal 2.7 2.7 0.2 2.9 -6.0

Methergin Gynaecological 2.5 2.7 -6.6 3.0 -16.3



Anti Diabetic31%

Pain 20%

Vitamins 9%

Respiratory8%

Vaccines8%

Other24%



Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Anti Diabetic 34.5 24.8 39.0 33.1 4.2

Pain 22.3 16.4 35.8 21.0 6.0

Vitamins 9.2 8.2 12.7 9.4 -1.6

Respiratory 8.3 10.6 -21.8 9.1 -8.9

Vaccines 10.6 8.7 21.3 11.3 -6.0

Gynaecological 6.9 8.5 -19.1 7.4 -7.2

Neuro 6.2 6.7 -7.0 6.9 -9.7

Anti-Infectives 3.6 3.8 -7.3 4.2 -15.8

Ophthal 2.7 3.4 -22.2 2.3 13.5

Cardiac 0.9 1.0 -16.8 0.9 -0.6



Acute, 610.27, 47.1%

Chronic, 508.88, 39.3%

Sub-Chronic, 176.65, 13.6%



71%

14%

6%5%4%




Unichem Laboratories

Stock Performance

70100130160


CNX Pharma Unichem Labs



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4

12.3

9.4 12

.0

6.412

.9

12.4

20.5

2.7

11.1

0.6

26.6

2.5

11.0

5.3 5.8

13.0

2.0

0

5

10

15

20

25

30

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Unichem Laboratories



0.93 0.94

1.000.97

0.88 0.88 0.86 0.88 0.89 0.900.92 0.94 0.89

0.80

0.90

1.00

1.10

Mar

-15

Apr-1

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

(%)

Unichem Laboratories



Unienzyme Gastro Intestinal 7.4 6.4 15.2 6.4 15.0

Losar H Cardiac 7.3 7.4 -2.3 7.5 -2.8

Ampoxin Anti-Infectives 7.0 5.9 17.9 6.9 0.3

Losar Cardiac 5.3 5.2 2.6 5.8 -8.2

Vizylac Gastro Intestinal 3.6 2.8 28.0 3.3 9.6

Trika Neuro 2.2 2.5 -10.4 2.5 -12.0

Serta Neuro 1.7 1.9 -11.4 1.7 -0.8

Telsar Cardiac 1.6 1.3 25.4 1.6 0.4

Unistar (Unichem) Cardiac 1.5 1.3 12.7 1.5 0.2

Telsar-H Cardiac 1.2 1.2 1.1 1.2 0.0



Cardiac42%

Anti-Infectives18%

Neuro 13%


Pain 4% Other

11%




Anti-Infectives 10.5 11.6 -10.2 12.1 -13.5

Neuro 10.3 9.0 14.5 10.1 2.0

Gastro Intestinal 7.5 10.6 -28.7 7.2 4.3

Pain 3.0 2.2 34.1 2.9 4.8

Anti Diabetic 2.9 2.0 39.2 2.9 -2.0

Vitamins 1.8 1.6 9.5 1.5 16.3

Respiratory 1.4 1.8 -20.7 1.7 -17.1

Derma 1.8 0.9 92.1 1.7 5.4

Gynaecological 0.4 0.4 22.9 0.6 -21.8



Acute, 331.30, 37.0%

Chronic, 509.53, 56.9%

Sub-Chronic,

55.15, 6.2%



47%

13%9%

11%

20%




Indoco Remedies

Stock Performance

6080

100120140


CNX Pharma Indoco



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4 12

.3

9.4 12

.0

6.4

22.0

2.4

2.6

1.2

3.7

-1.3

-6.4

0.7

16.2

10.3

11.0

5.6

5.4

-10

-5

0

5

10

15

20

25

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Indoco Remedies



0.7

0.70.7

0.7

0.7 0.7 0.7

0.70.7

0.7 0.7 0.7

0.7

0.60.60.60.70.70.70.70.70.8

Mar

-15

Apr-1

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

(%)

Indoco Remedies



Febrex Plus Respiratory 5.1 6.2 -16.6 5.8 -10.6

Cyclopam Gastro Intestinal 4.0 3.1 32.4 3.5 14.6

Cital Urology 3.3 2.6 25.0 3.0 10.8

Sensodent-K Stomatologicals 2.5 3.2 -23.7 3.1 -20.0

Oxipod Anti-Infectives 2.3 2.5 -8.5 2.5 -6.8

Atm Anti-Infectives 2.0 2.3 -15.5 2.1 -6.2

Cyclopam Gastro Intestinal 1.9 1.5 30.4 1.7 16.1

Cloben G Derma 1.6 1.3 19.8 1.7 -4.7

Sensodent-Kf Stomatologicals 1.5 1.8 -15.3 1.8 -13.5

Sensoform Stomatologicals 1.5 1.8 -18.7 1.7 -12.3


Exhibit 82: Contribution of therapies to domestic sales (MAT Mar’16) Respiratory

18%

Anti-Infectives18%

Stomatologicals16%


Vitamins 7%

Other27%



Therapy Mar' 16 Mar' 15 YoY (%) Feb' 16 QoQ (%)Respiratory 9.1 11.0 -17.7 11.3 -20.0

Anti-Infectives 9.5 8.8 8.5 10.7 -11.3

Stomatologicals 9.1 9.4 -3.5 9.0 0.4


Vitamins 4.0 4.0 1.0 4.0 0.6

Urology 3.7 2.8 31.2 3.1 21.1

Derma 2.2 1.9 16.3 2.3 -3.1

Pain 2.3 2.1 9.0 2.5 -7.3

Ophthal 2.0 1.9 6.4 2.2 -7.0

Anti Diabetic 1.8 1.9 -3.7 1.8 -3.5



Acute, 567.44, 82.2%

Chronic, 41.21, 6.0%

Sub-Chronic, 81.71, 11.8%



48%

16%

8%

10%

18%




Ajanta Pharma

Stock Performance

4090

140190240290


CNX Pharma Ajanta



21.7

18.6

12.8

15.6

13.2

13.4

10.3

22.7

9.4

12.3

9.4

12.0

6.4

15.4

9.5 10

.9

9.9

10.4

10.0

18.3

12.6

6.5

14.3

6.9

10.5

7.6

0

5

10

15

20

25

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Ajanta Pharma



0.480.46

0.49 0.48 0.470.48

0.460.45

0.51 0.52

0.490.51

0.48

0.4

0.4

0.4

0.5

0.5

0.5

0.5

0.5

Mar

-15

Apr-1

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

(%)

Ajanta Pharma



Met Xl Cardiac 3.8 3.6 3.7 3.2 18.0

Melacare Derma 3.6 3.6 0.0 3.7 -2.3

Atorfit Cv Cardiac 3.0 2.4 23.0 2.8 6.4

Soft Drops Ophthal 1.2 1.0 21.6 1.1 8.0

Met Xl Am Cardiac 1.0 1.0 3.2 0.9 11.2

Rosufit Cv Cardiac 0.9 0.9 0.4 0.9 5.2

Feburic Pain 0.9 0.8 5.9 0.9 -0.6

Cinod Cardiac 0.7 0.7 -0.9 0.7 6.6

Olopat Ophthal 0.7 0.6 9.3 0.6 10.6

Peroclin Derma 0.6 0.5 37.5 0.6 3.8



Cardiac33%

Derma23%

Ophthal23%

Vitamins 6%

Pain 5%

Others10%




Derma 8.1 8.5 -3.8 9.9 -18.1

Ophthal 9.4 8.2 14.5 9.5 -0.9

Vitamins 2.1 2.1 -0.5 2.3 -9.1

Pain 1.8 1.7 6.7 2.0 -8.6


Neuro 0.8 0.8 0.6 0.7 1.4

Anti-Infectives 0.6 0.3 109.3 0.6 -5.6

Ophthal 0.7 0.5 36.2 0.6 5.1

Respiratory 0.2 0.4 -45.2 0.2 -5.3



Acute, 188.46, 39.6%

Chronic, 231.20, 48.6%

Sub-Chronic, 56.40, 11.8%



42%

13%10%

12%

23%




Alembic Pharma

Stock Performance

406080

100120140160180200


CNX Pharma Alembic Pharma



21.7

18.6

12.8 15

.6

13.2

13.4

10.3

22.7

9.4 12

.3

9.4 12

.0

6.4

19.1

19.7

15.2 18

.1

31.4

17.0 21

.2

6.0

18.8

24.0

23.0

13.7

8.1

0

5

10

15

20

25

30

35

Mar

-15

Apr-1

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

(%)

Indian Pharma Market Alembic Pharma



1.35

1.291.27 1.26

1.32

1.411.43 1.44

1.49 1.50 1.49

1.44

1.37

1.11.21.21.31.31.41.41.51.51.6

Mar

-15

Apr-1

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

(%)

Alembic Pharma


Exhibit 91: Top 10 brands performance (| crore)

Brand Therapy Mar' 16 Mar' 15 Var. (%) Feb' 16 Var. (%)

Azithral Anti-Infectives 9.8 11.3 -13.8 10.8 -10.0

Althrocin Anti-Infectives 5.4 6.7 -19.7 6.8 -21.3

Gestofit Gynaecological 4.6 3.8 21.6 4.3 5.4

Roxid Anti-Infectives 4.3 4.6 -7.0 4.5 -5.1

Ulgel Gastro Intestinal 2.6 2.5 6.5 3.1 -15.6

Rekool D Gastro Intestinal 2.4 2.1 12.0 2.2 6.5

Wikoryl Respiratory 2.2 3.1 -26.7 2.7 -17.2

Glisen Mf Anti Diabetic 1.9 1.7 9.6 2.0 -3.2

Rekool L Gastro Intestinal 1.9 1.8 7.5 1.9 -1.9

Sharkoferrol Vitamins 1.8 1.7 10.4 2.0 -6.2



Anti-Infectives24%


Cardiac13%

Respiratory13%

Gynaecological10%

Other26%



Anti-Infectives 24.3 27.1 -10.4 27.1 -10.6


Cardiac 15.7 12.3 27.5 16.5 -4.3

Respiratory 13.6 14.1 -3.8 17.0 -20.3

Gynaecological 11.8 9.6 22.0 12.3 -4.7

Vitamins 7.5 5.5 35.8 7.7 -1.7

Anti Diabetic 7.2 5.3 35.0 7.3 -1.6

Pain 4.3 3.6 19.6 4.4 -4.2

Derma 1.9 2.2 -11.5 2.2 -13.1

Urology 2.4 2.1 14.6 2.3 5.5

Feb' 16 QoQ (%)Therapy Mar' 16 Mar' 15 YoY (%)



Acute, 833.39, 60.7%

Chronic, 290.69, 21.2%

Sub-Chronic, 248.69, 18.1%



37%

14%9%

13%

27%



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

0

5

10

15

20

25

30

35

40

45

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Mar

-13

Mar

-14

Mar

-15

x

CNX Pharma Sensex [

Source: Company, ICICIdirect.com Research

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

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

Ajanta Pharma AJAPHA 1478 1,780 Buy 13007.0 36.0 45.0 50.0 41.0 32.8 29.6 24.2 20.2 18.0 50.3 46.3 40.5 37.8 34.3 29.2

Apollo Hospitals APOHOS 1376 1,420 Hold 19145.7 23.7 27.6 34.6 58.0 49.9 39.7 27.6 23.9 18.9 9.9 11.2 13.0 10.4 11.1 12.5

Aurobindo Pharma AURPHA 768 990 Buy 44920.5 28.1 33.9 37.7 27.3 22.6 20.4 30.7 25.1 22.0 23.4 24.7 25.0 31.7 28.7 24.7

Alembic Pharma ALEMPHA 611 790 Buy 11514.5 15.1 42.1 28.5 40.5 14.5 21.4 32.2 11.9 17.4 30.7 59.7 32.3 32.1 54.8 29.4

Biocon BIOCON 551 510 Hold 11011.0 20.4 23.3 26.0 27.0 23.7 21.2 7.2 6.3 5.3 10.4 11.7 13.0 12.5 12.5 12.7

Cadila Healthcare CADHEA 328 405 Buy 33604.4 11.2 14.7 15.3 29.3 22.4 21.5 19.9 14.8 14.4 20.7 26.2 24.4 27.0 28.0 23.9Cipla CIPLA 532 690 Buy 42736.0 14.7 21.5 25.7 36.2 24.8 20.7 19.4 15.6 13.1 13.8 14.8 16.5 10.9 14.1 14.8

Divi's Laboratories DIVLAB 1091 1,320 Buy 28969.3 32.1 40.2 46.7 34.0 27.2 23.4 22.3 18.7 15.9 29.4 31.3 31.1 24.4 25.6 25.1

Dr Reddy's Labs DRREDD 3132 3,880 Buy 53437.7 129.0 146.8 143.3 24.3 21.3 21.9 14.5 11.8 11.6 16.7 18.0 16.6 22.3 20.3 16.5

Glenmark Pharma GLEPHA 784 975 Buy 22133.9 23.1 28.9 39.7 33.9 27.2 19.8 20.7 15.7 12.9 13.3 17.7 21.1 21.7 21.7 23.3

Indoco Remedies INDREM 277 390 Buy 2552.1 9.0 9.3 15.6 30.8 29.9 17.8 15.9 14.8 10.7 16.4 15.4 22.2 16.0 14.7 20.8

Ipca Laboratories IPCLAB 494 515 Hold 6239.3 19.9 12.1 24.7 24.8 40.9 20.0 13.5 18.2 12.2 11.5 6.7 11.7 11.4 6.6 12.2

Jubilant Life Sciences VAMORG 384 375 Hold 6110.0 -0.6 31.0 43.0 NA 12.4 8.9 15.9 8.1 6.5 5.8 13.4 15.8 NA 17.1 19.5

Lupin LUPIN 1559 2,200 Buy 70236.9 53.6 50.5 71.2 29.1 30.9 21.9 17.8 19.6 13.3 35.1 22.4 28.7 27.1 21.2 24.0

Natco Pharma NATPHA 470 630 Buy 8177.5 8.3 7.5 11.6 56.5 63.0 40.3 35.3 29.3 21.6 15.4 13.0 16.5 17.9 10.0 13.8

Sun Pharma SUNPHA 833 845 Hold 200360.2 19.8 23.6 28.4 42.0 35.3 29.3 24.5 21.6 18.0 18.8 20.0 21.1 18.6 18.8 19.1

Syngene International SYNINT 399 445 Buy 7971.0 8.8 11.3 14.9 43.5 33.6 25.6 26.7 21.0 16.5 19.5 21.3 24.1 20.7 21.8 23.0

Torrent Pharma TORPHA 1457 1,650 Buy 24649.4 44.4 115.3 67.1 32.8 12.6 21.7 24.4 8.4 13.3 20.1 43.7 24.4 30.2 50.3 24.0

Unichem Laboratories UNILAB 232 310 Buy 2109.4 8.3 11.5 15.9 28.0 20.3 14.6 19.5 12.1 9.8 8.5 13.6 16.7 8.7 11.0 13.8

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

48.2% 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]


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