Pharma/ Biotechnology Investments Specialist, Vasuda Capital Management

Dr. Bhavneesh Sharma, MD, MBA

Pharma/ Biotechnology Investments Specialist

Vasuda Capital Management

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/3918" target="_blank" data-smartkarma-citation="entities:3918:1">Cipla Ltd (CIPLA IN)</a> is India’s third largest pharmaceutical company. Cipla’s common stock is not the cheapest among peers, looking at the forward EV/EBITDA or forward P/E ratio. Moreover, its profitability measures like operating margin, return on equity, and five-year revenue growth (CAGR) are not enough. Cipla's low presence in the U.S. market compared to its peers may explain underperformance.We rate Cipla’s common stock neutral for now. We prefer <a href="https://www.smartkarma.com/entities/19974" target="_blank" data-smartkarma-citation="entities:19974:1">Aurobindo Pharma Ltd (ARBP IN)</a>, but will keep Cipla on our watchlist. We feel bullish about Cipla's restructuring efforts and plans for further U.S. expansion.

Cipla Ltd (CIPLA IN) is India’s third largest pharmaceutical company. Cipla’s common stock is not the cheapest among peers, looking at the forward EV/EBITDA or forward P/E ratio. Moreover, its profitability measures like operating margin, return on equity, and five-year revenue growth (CAGR) are not enough. Cipla's low presence in the U.S. market compared to its peers may explain underperformance.We rate Cipla’s common stock neutral for now. We prefer Aurobindo Pharma Ltd (ARBP IN), but will keep Cipla on our watchlist. We feel bullish about Cipla's restructuring efforts and plans for further U.S. expansion.

Cipla: Not the Best Among Peers but Catching up Fast, Keep on Watchlist.

Zydus Lifesciences Ltd / Equity Bottom-Up

Nonalcoholic fatty liver disease (NAFLD), a disorder characterized by fatty changes (and fibrosis in later stages) is expected to affect about 20 to 30% of the world's population. The disorder has been found to be linked to metabolic syndrome, which is characterized by diabetes, obesity and dyslipidemia. Non-alcoholic steatohepatitis (NASH) belongs to a more advanced stage of the spectrum of disorders under NAFLD. NASH is believed to be the second largest cause of liver transplants in the U.S…

Nonalcoholic fatty liver disease (NAFLD), a disorder characterized by fatty changes (and fibrosis in later stages) is expected to affect about 20 to 30% of the world's population. The disorder has been found to be linked to metabolic syndrome, which is characterized by diabetes, obesity and dyslipidemia. Non-alcoholic steatohepatitis (NASH) belongs to a more advanced stage of the spectrum of disorders under NAFLD. NASH is believed to be the second largest cause of liver transplants in the U.S…

Saroglitazar: Targeting Non-Alcoholic Steatohepatitis, a Potential US$35-40 Billion Market.

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

India-based Laurus Labs has filed for a listing on the BSE and NSE, and reportedly plans to raise up to Rs300 crore for debt repayment and general corporate purposes. The company manufactures active pharmaceutical ingredients (APIs) for medications used to treat HIV, Hepatitis C, and cancer. The primary customers are the world’s largest generic pharmaceutical manufacturers. This Insight will provide an overview of the company, and we will follow up with a view of the offering after the announcement of the offering’s terms.

India-based Laurus Labs has filed for a listing on the BSE and NSE, and reportedly plans to raise up to Rs300 crore for debt repayment and general corporate purposes. The company manufactures active pharmaceutical ingredients (APIs) for medications used to treat HIV, Hepatitis C, and cancer. The primary customers are the world’s largest generic pharmaceutical manufacturers. This Insight will provide an overview of the company, and we will follow up with a view of the offering after the announcement of the offering’s terms.

<a href="https://www.smartkarma.com/entities/12914" target="_blank" data-smartkarma-citation="entities:12914:1">Cadila Healthcare Ltd (CDH IN)</a> is the 4th largest pharmaceutical company in India and 9th largest generic drug company in the U.S. At FY 2018 P/E ratio of 25x, the share price could be worth INR 479.55 (at FY 2018 sell-side consensus EPS estimate of INR 19.182, excluding extraordinary items), representing about 31% potential upside. The company also pays 0.86% dividend. Consensus sell-side analyst estimate for the stock price is INR 398.63 (35 analysts). The common stock also appears undervalued at the current price using the reverse DCF approach.

Cadila Healthcare Ltd (CDH IN) is the 4th largest pharmaceutical company in India and 9th largest generic drug company in the U.S. At FY 2018 P/E ratio of 25x, the share price could be worth INR 479.55 (at FY 2018 sell-side consensus EPS estimate of INR 19.182, excluding extraordinary items), representing about 31% potential upside. The company also pays 0.86% dividend. Consensus sell-side analyst estimate for the stock price is INR 398.63 (35 analysts). The common stock also appears undervalued at the current price using the reverse DCF approach.

Cadila Healthcare: Potential More than 30% Upside.

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

<ul><li>From a demand perspective, Asia’s population is growing as is longevity. On the supply side, Asia’s number of doctors, nurses, hospitals and medical equipment diverge across the region, and still trail the per capita averages of the 34 OECD member countries. </li><li>For a shorter-term perspective, over the past five weeks, four Healthcare stocks (Cordlife Group, iX Biopharma, UG Healthcare Corporation &amp; Health Management International) have released Annual Reports whilst a secondary listing (Techcomp Holdings) has released an Interim Report.</li><li>Within these reports, there are examples of how the Healthcare Sector is adapting to Asia Pacific demographics, maintaining an ongoing focus on Research &amp; Development, monitoring pharmaceutical &amp; food regulation trends, collaborating with communities to build business channels, expansion of production lines and pursuing value chain management in manufacturing and distribution. </li></ul>

From a demand perspective, Asia’s population is growing as is longevity. On the supply side, Asia’s number of doctors, nurses, hospitals and medical equipment diverge across the region, and still trail the per capita averages of the 34 OECD member countries. For a shorter-term perspective, over the past five weeks, four Healthcare stocks (Cordlife Group, iX Biopharma, UG Healthcare Corporation &amp; Health Management International) have released Annual Reports whilst a secondary listing (Techcomp Holdings) has released an Interim Report.Within these reports, there are examples of how the Healthcare Sector is adapting to Asia Pacific demographics, maintaining an ongoing focus on Research &amp; Development, monitoring pharmaceutical &amp; food regulation trends, collaborating with communities to build business channels, expansion of production lines and pursuing value chain management in manufacturing and distribution. 

India

Cadila Healthcare Ltd. manufactures, and markets healthcare solutions ranging from formulations, active pharmaceutical ingredients, vaccines, diagnostics, health and dietetic foods, animal healthcare to cosmeceuticals.  The Company's products are available in tablets, capsules, injections, liquids, dry syrups, powders, granules, and ointments.

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Zydus Lifesciences Ltd (ZYDUSLIF IN)

Cipla: Not the Best Among Peers but Catching up Fast, Keep on Watchlist.

Cipla Ltd (CIPLA IN) is India’s third largest pharmaceutical company. Cipla’s common stock is not the cheapest among peers, looking at the forward...

Dr. Bhavneesh Sharma, MD, MBA

Saroglitazar: Targeting Non-Alcoholic Steatohepatitis, a Potential US$35-40 Billion Market.

Nonalcoholic fatty liver disease (NAFLD), a disorder characterized by fatty changes (and fibrosis in later stages) is expected to affect about 20...

Dr. Bhavneesh Sharma, MD, MBA

Laurus Labs IPO Overview

India-based Laurus Labs has filed for a listing on the BSE and NSE, and reportedly plans to raise up to Rs300 crore for debt repayment and general...

Kemp Dolliver, CFA

Cadila Healthcare: Potential More than 30% Upside.

Cadila Healthcare Ltd (CDH IN) is the 4th largest pharmaceutical company in India and 9th largest generic drug company in the U.S. At FY 2018 P/E...

Dr. Bhavneesh Sharma, MD, MBA

Key Drivers of Asia's Healthcare Sector

From a demand perspective, Asia’s population is growing as is longevity. On the supply side, Asia’s number of doctors, nurses, hospitals and...

Singapore Exchange Ltd (SGX)

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