In today’s briefing:
- Paradigm Biopharmaceuticals (PAR AU): Concerns on First Potentially Commercialized Product
- Ipca Laboratories: Two for One Share Stock Split
- Chunlizhengda Medical Instruments (1858.HK) – Conservative About the Outlook
- Pick of the Week: Abbott India Ltd
Paradigm Biopharmaceuticals (PAR AU): Concerns on First Potentially Commercialized Product
- Paradigm Biopharmaceuticals (PAR AU) is re-pioneering patent expired, existing drug molecule pentosan polysulfate sodium as a potential treatment of osteoarthritis, under the brand name Zilosul.
- With a current addressable patient population of 72 million people, Zilosul has an annual revenue potential of more than $10 billion, if approved.
- Inherent safety concern on the existing FDA-approved indication and Paradigm’s financial capability are the near-term overhangs on the commercialization prospect of the drug.
Ipca Laboratories: Two for One Share Stock Split
- The Ipca Laboratories stock has been sub-divided from one existing equity share of Rs 2 each face value into two equity shares of Rs 1 each face value
- Consequently, Ipca Lab’s share price has dropped to ~Rs 1099/share from ~Rs 2200/share.
- Hence, our target price has also now been revised to Rs 1245/share post this corporate action.
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.
Chunlizhengda Medical Instruments (1858.HK) – Conservative About the Outlook
- Last year end, Beijing Chunlizhengda Medical Instruments (1858 HK) was listed on the SSE STAR Market, but fell on debut.
- The major concerns include performance slowdown, loss of bidding in centralized procurement, problematic sales model, poor gross profit margin, single products risk and weak innovation capability and international business.
- Our view is that there is no immediate prospect of significant improvement. With too many uncertainties and concerns, we are conservative about Chunlizhengda’s outlook despite the large A/H premium.
Pick of the Week: Abbott India Ltd
- Revenue growth of Abbott India Ltd (AIL) for FY21 has outpaced the Indian Pharma Market (IPM) growth by 100 bps majorily contributed by addition of new products
- AIL has leadership position in 9 top brands out of 10 in their respective therapies
- We recommend BUY with a TP of Rs 20,000/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.
Before it’s here, it’s on Smartkarma
