Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aurobindo-pharma-ltd" target="_blank" data-smartkarma-citation="entities:19974:1" rel="noopener">Aurobindo Pharma (ARBP IN)</a> has been issued six observations for its oral manufacturing unit by the FDA, which will further impact its business. The company closed its New Jersey facility.</li>
<li>Aurobindo’s recent acquisition of Veritaz Health for INR1.7 billion does not really fit for the company's high hope for the domestic formulation business. </li>
<li>Aurobindo shares are trading at a forward P/E of 10.9x, which is cheaper than the peers. However, the company is not expected to see multiple expansion in near future.  </li>
</ul>



Aurobindo Pharma (ARBP IN) has been issued six observations for its oral manufacturing unit by the FDA, which will further impact its business. The company closed its New Jersey facility.
Aurobindo’s recent acquisition of Veritaz Health for INR1.7 billion does not really fit for the company's high hope for the domestic formulation business. 
Aurobindo shares are trading at a forward P/E of 10.9x, which is cheaper than the peers. However, the company is not expected to see multiple expansion in near future.  


Aurobindo Pharma (ARBP IN): Regulatory Issues Continue to Haunt the Company

Dr. Reddy's Laboratories / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dr-reddy-s-laboratories-ltd" target="_blank" data-smartkarma-citation="entities:16406:1" rel="noopener">Dr. Reddy's Laboratories (DRRD IN)</a> is outperforming the domestic pharma industry and aims to expand its market share. Currently, India business contributes 19% of revenue. </li>
<li>The company’s largest revenue segment, the U.S. generic business continues to see pricing pressure. It plans to launch new products, including complex generics to combat the impact of price erosion.</li>
<li>Dr. Reddy also has around 13% revenue exposure to Russia and other CIS countries. Sharp depreciation of Russian currency will negatively impact revenue from the region.</li>
</ul>



Dr. Reddy's Laboratories (DRRD IN) is outperforming the domestic pharma industry and aims to expand its market share. Currently, India business contributes 19% of revenue. 
The company’s largest revenue segment, the U.S. generic business continues to see pricing pressure. It plans to launch new products, including complex generics to combat the impact of price erosion.
Dr. Reddy also has around 13% revenue exposure to Russia and other CIS countries. Sharp depreciation of Russian currency will negatively impact revenue from the region.


Dr. Reddy's Laboratories (DRRD IN): India Business Is the Only Bright Spot Amid Many Headwinds

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>The review period for the NIFTY 100 Index ended on 31 Jan. The rebalance will be effective after the close on 30 March and the announcement will come end February.</li>
<li>Potential inclusions are <a href="https://www.smartkarma.com/entities/zomato-media-pvt" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOMATO IN)</a>, <a href="https://www.smartkarma.com/entities/mindtree-ltd" target="_blank" data-smartkarma-citation="entities:7297:1" rel="noopener">Mindtree Ltd (MTCL IN)</a>, <a href="https://www.smartkarma.com/entities/srf-ltd" target="_blank" data-smartkarma-citation="entities:3601:1" rel="noopener">SRF Ltd (SRF IN)</a>, <a href="https://www.smartkarma.com/entities/indian-railway-catering-and-tourism-corporation-limited" target="_blank" data-smartkarma-citation="entities:33951:1" rel="noopener">Indian Railway Catering and Tourism (IRCTC IN)</a> and <a href="https://www.smartkarma.com/entities/tata-power-co-ltd" target="_blank" data-smartkarma-citation="entities:15618:1" rel="noopener">Tata Power (TPWR IN)</a>. </li>
<li>Potential deletions are <a href="https://www.smartkarma.com/entities/yes-bank-ltd" target="_blank" data-smartkarma-citation="entities:767:1" rel="noopener">Yes Bank (YES IN)</a>, <a href="https://www.smartkarma.com/entities/indraprastha-gas-ltd" target="_blank" data-smartkarma-citation="entities:6969:1" rel="noopener">Indraprastha Gas (IGL IN)</a>, <a href="https://www.smartkarma.com/entities/jindal-steel-power-ltd" target="_blank" data-smartkarma-citation="entities:6614:1" rel="noopener">Jindal Steel &amp; Power (JSP IN)</a>, <a href="https://www.smartkarma.com/entities/aurobindo-pharma-ltd" target="_blank" data-smartkarma-citation="entities:19974:1" rel="noopener">Aurobindo Pharma (ARBP IN)</a> and <a href="https://www.smartkarma.com/entities/hindustan-petroleum-corp" target="_blank" data-smartkarma-citation="entities:19342:1" rel="noopener">Hindustan Petroleum (HPCL IN)</a>. </li>
</ul>


The review period for the NIFTY 100 Index ended on 31 Jan. The rebalance will be effective after the close on 30 March and the announcement will come end February.
Potential inclusions are Zomato (ZOMATO IN), Mindtree Ltd (MTCL IN), SRF Ltd (SRF IN), Indian Railway Catering and Tourism (IRCTC IN) and Tata Power (TPWR IN). 
Potential deletions are Yes Bank (YES IN), Indraprastha Gas (IGL IN), Jindal Steel &amp; Power (JSP IN), Aurobindo Pharma (ARBP IN) and Hindustan Petroleum (HPCL IN). 


NIFTY100/NIFTY NEXT50 Index Rebalance Preview: Five Potential Changes in March

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

External broker reports(aggregated public sources)

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<p>Learnings at Goa to enhance remediation measures at other sites as well After almost 4.5 years of regulatory hurdles, LPC received a favorable classification (Voluntary Action Indicated or VAI) for its Goa facility from the USFDA. This is a big relief from a compliance standpoint, given the reasonable contribution in the base business as well as double digit ANDAs pending approval from the Goa site. We expect 21% earnings CAGR over FY21-23E and raise our 12-month forward P/E to 25x (to factor Goa compliance) from 24x earlier and arrive at our TP to INR990/share.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Learnings at Goa to enhance remediation measures at other sites as well After almost 4.5 years of regulatory hurdles, LPC received a favorable classification (Voluntary Action Indicated or VAI) for its Goa facility from the USFDA. This is a big relief from a compliance standpoint, given the reasonable contribution in the base business as well as double digit ANDAs pending approval from the Goa site. We expect 21% earnings CAGR over FY21-23E and raise our 12-month forward P/E to 25x (to factor Goa compliance) from 24x earlier and arrive at our TP to INR990/share.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Lupin is a multinational pharma company engaged in manufacturing &amp; marketing branded &amp; generic formulations, APIs, biotech products as well as OTC medicines</li><li>EIR for the Goa facility (with voluntary action initiated or VAI status) could provide a significant respite in Lupin’s intense drive to address pending compliance issues</li><li>We value Lupin at Rs 1015 i.e. 27.5xP/E FY23E EPS.</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Lupin is a multinational pharma company engaged in manufacturing &amp; marketing branded &amp; generic formulations, APIs, biotech products as well as OTC medicinesEIR for the Goa facility (with voluntary action initiated or VAI status) could provide a significant respite in Lupin’s intense drive to address pending compliance issuesWe value Lupin at Rs 1015 i.e. 27.5xP/E FY23E EPS.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Lupin: Respite in Long-Drawn CGMP Overhaul with Goa EIR

India

Lupin Limited manufactures bulk actives and formulations. The principal bulk actives manufactured by it include Rifampicin, Pyrazinamide, Ethambutol (anti-TB), Cephalosporins (anti-infectives) and cardiovasculars. The company also possesses competencies in phytomedicines, in which medicines are made out of plant and herbal resources supported by the discipline of modern medicine.

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Lupin Ltd (LPC IN)

Aurobindo Pharma (ARBP IN): Regulatory Issues Continue to Haunt the Company

Aurobindo's U.S. business is under continued pressure and fresh regulatory issue regarding its oral manufacturing facility further delays the...

Tina Banerjee

Dr. Reddy's Laboratories (DRRD IN): India Business Is the Only Bright Spot Amid Many Headwinds

Despite price erosion headwinds in North America generics and revenue exposure to Russia, Dr. Reddy’s Laboratories look attractive due to its...

Tina Banerjee

NIFTY100/NIFTY NEXT50 Index Rebalance Preview: Five Potential Changes in March

There could be 5 changes to the NIFTY100 Index at the March rebalance. Plus there will be 2 migrations between the NIFTY and NIFTY NEXT50 indices....

Brian Freitas

USFDA regulatory hurdle crossed at Goa

Learnings at Goa to enhance remediation measures at other sites as well After almost 4.5 years of regulatory hurdles, LPC received a favorable...

Motilal Oswal

Lupin: Respite in Long-Drawn CGMP Overhaul with Goa EIR

Lupin is a multinational pharma company engaged in manufacturing & marketing branded & generic formulations, APIs, biotech products as well as OTC...

ICICI Securities Limited

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