first biosimilar approval received in us… - icici...

ICICI Securities Ltd. | Retail Equity Research

March 20, 2015

Monthly Update

First biosimilar approval received in US… In what could be termed as a major breakthrough in the global pharmaceuticals space, the USFDA approved the first biosimilar in the US. It has approved Filgrastim-sndz, under the trade name Zarxio. Sandoz Inc’s Zarxio is biosimilar to Amgen Inc’s Neupogen, which was originally licensed in 1991. In another first, the Drugs Controller General of India (DCGI) has given approval to Natco, Cadila and Hetero for generic version of Sovaldi (Hepatitis C) from the DCGI. Also, including these eight companies, it had signed a non-exclusive agreement with Gilead Sciences to manufacture and sell generic gSovaldi in 91 developing countries. In yet another first, Sun Pharma Advanced Research Company (SPARC) has received 505 2(b) NDA approval from the USFDA for Elepsia XR [(Levetiracetam extended-release tablets 1000 mg and 1500 mg], which will be manufactured by Sun Pharma at its Halol facility (Gujarat). Lupin’s manufacturing facility at Pithampur, near Indore received six USFDA observations (483s) in its January inspection. Despite observations, the company is continuously receiving USFDA product approval and site-transfer approvals from this facility. In a major respite to Natco, the US Supreme Court has denied further review for the generic version of Tamiflu oral capsules (Oseltamivir phosphate) at the behest of Gilead. Natco Pharma has partnered with Alvogen in the US for marketing this product. Finally, on the domestic formulations front, the Indian pharmaceutical market (IPM) registered strong growth of 18.9% YoY (down 0.8% MoM) to | 7194 crore for February. The YoY growth was mainly driven by robust volume growth – 10.1% (albeit on lower base) followed by price hikes – 5.6% and new product launches - 3.2%. Growth due to price hike of 5.6% was the steepest in the last 19 months. Drugs under NLEM list witnessed growth of 13.9% YoY to | 896 crore due to a recovery in volume and price hike while non-NLEM drugs posted growth of 20.0% to | 5971 crore. Buying spree continues in healthcare The sharp rally in healthcare stocks indicates a second re-rating in the current fiscal. This, we believe, is mainly on account of improved approval visibility, facility approvals for two major players Sun and Lupin despite Form 483 observations and return of the strong growth trend in domestic formulations. The BSEHC is now trading at ~70% premium vis-à-vis Sensex on a two-year forward basis. Despite muted Q3, only a handful of stocks witnessed a correction as most managements sounded optimistic about the product approval revival in the US. We expect pharma companies under our coverage to register a CAGR of 16%, 17% and 26% in revenues, EBITDA and PAT, respectively, in FY14-17E on an aggregate basis. Strong visibility on the back of a strong product basket and a reasonable base business growth continue to attract buying interest in the healthcare sector despite premium valuations.

Health CheckSector View

Outperformer

Index Performance as on March 19, 2015

Return (%) 1M 3M YTD 1Y

BSE 500 -2 6 5 41

Sensex -3 4 3 31

BSE Healthcare 11 22 19 71

Return (%)

Stocks Performance Mcap

Company 1M 3M YTD 1Y 19-Mar

Sun Pharma.Inds. 17 32 29 81 221639

Lupin 15 38 37 107 87668

Dr Reddy's Labs 1 8 6 24 58782

Cipla 6 16 14 85 57412

Aurobindo Pharma 17 12 9 132 36191

Cadila Health. 3 9 3 66 33681

Glaxosmit Pharma 2 9 2 24 27638

Divi's Lab. 8 8 6 31 24357

Glenmark Pharma. 11 17 14 58 23805

Wockhardt 29 107 87 325 20769

Apollo Hospitals 6 22 26 62 19752

Torrent Pharma. 3 10 2 113 19443

Natco Pharma 54 59 40 160 7108

Ajanta Pharma 16 35 35 213 11019

Pfizer 9 6 0 84 9900

Ipca Labs. 14 9 5 -7 9728

Biocon 0 2 5 3 8910

Strides Arcolab 27 30 21 272 6935

Indoco Remedies 14 23 15 158 3312

Jubilant Life -1 31 32 11 2552

Unichem Labs. -1 -13 -12 -3 1947

Elder Pharma -19 -10 -3 -48 208

Return (%)

Mcap: Market cap in | crore

Price movement

750085009500

1050011500125001350014500155001650017500

Mar-14 Jun-14 Sep-14 Dec-14 Mar-15

150001700019000210002300025000270002900031000

BSE Healthcare Sensex (RHS)

Research Analyst

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

Nandan Kamat [email protected]


Regulatory approvals

Exhibit 1: Summary of USFDA approvals for February 2015

[5

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeJubilant Life Sciences Cetirizine Hydrochloride Anti-allergic Mcneil Consumer Zyrtec US$ 1.3 billionLupin Bimatoprost Opthalmic Allergan Lumigan US$ 600 millionGlenmark Ethyl Estradiol; Levonorgestrel (Ashlyna) Oral Contraceptive Teva Seasonique US$ 161 millionJubilant Life Sciences Irbesartan Tablets CNS Sanofi-Aventis Avapro US$ 50 million

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeLupin Tenofovir Disoproxil Fumarate HIV Gilead Sciences Viread US$ 1 billion

Final Approvals

Tentative Approvals

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

Regulatory approvals / IP Issues

USFDA approves first biosimilar drug The US FDA has approved Zarxio (filgrastim-sndz) injection, the first biosimilar to be approved in the US. The agency found Sandoz’s Zarxio clinically comparable to Amgen’s chemotherapy agent Neupogen (Filgrastim), which is used to help prevent infections in cancer patients receiving chemotherapy. Natco, Cadila receive approval for gSovaldi in India Natco, Cadila and Hetero have received approval for the generic version of Sovaldi (Hepatitis C) from the DCGI. Also, including these eight companies, it has signed a non-exclusive agreement with Gilead Sciences to manufacture and sell generic gSovaldi for 91 developing nations. Natco expects it to garner ~| 40 crore of annual revenue from gSovaldi in India. First 505 2(b) NDA approval for SPARC in the US Sun Pharmaceuticals Advanced Research Company (SPARC) has received 505 2(b) NDA approval from the USFDA for Elepsia XR ((Levetiracetam extended-release tablets 1000 mg and 1500 mg) which will be manufactured by Sun Pharma at its Halol Facility (Gujarat). Law suits / Court rulings / Settlements

Cipla wins patent suit against Abbott in India Glenmark has won a patent case against Boehringer Ingelheim's lung drug Spiriva; Glenmark had filed a pre-grant opposition in September 2008 after Abbott was granted a patent for Humira drug. Cipla filed an opposition to Boehringer's patent on Spiriva in 2013, claiming the drug was "obvious" and did not constitute an invention under India's patent laws. Natco receives favorable ruling for gTamiflu patent in US The US Supreme Court has denied a further review for the generic version of Tamiflu oral capsules (Oseltamivir phosphate) at the behest of Gilead. Natco Pharma has partnered with Alvogen in the US for marketing this product. It has already received a tentative approval on March 14, 2014. Price cuts / New Launches / Recalls

Sun Pharma recalls Ketorolac Tromethamine drug in US Sun Pharma is voluntarily recalling 5,322 bottles of Ketorolac Tromethamine ophthalmic solution in the US market for failing to meet specifications. The drug is manufactured from the Halol facility in Gujarat. It has been classified as a Class-II recall.


Warning Letters / Import alerts / Letter 483s

Lupin’s Pithampur facility receives Form 483 observations from USFDA Lupin’s manufacturing facility at Pithampur, near Indore had received six USFDA observations (483s). The facility was audited by the USFDA in January, 2015. Despite observations, the company has continuously been receiving USFDA product approval and site-transfer approvals from this facility. M&As, demergers and JVs

Sun Pharma acquires GSK’s opiates business in Australia Sun Pharma has acquired the opiates business of GlaxoSmithKline (GSK) in Australia including manufacturing sites in Latrobe (Tasmania) and Port Fairy (Victoria) and its portfolio of opiates products along with inventory having annual sales of ~US$69.63 million in 2013. The business consists of analgesics made from raw materials found in opium poppy plants and includes two manufacturing sites in the states of Tasmania and Victoria. The business employs 185 staff, including 155 in Victoria state and 30 in Tasmania state.


Exhibit 2: Patent litigations in FY15 [5

Month Innovator ANDA Filer Brand Name API Used for Apr-14 Kowa Aurobindo Pharma Livalo Pitavastatin CVSApr-14 Medicines co Aurobindo Pharma Angiomax Bivalirudin AnginaApr-14 Kowa Aurobindo Pharma Livalo Pitavastatin CVSMay-14 Senju Pharmaceuticals Aurobindo Pharma Zymaxid Gatifloxacin ConjunctivitisMay-14 Otsuka Pharmaceutical Co. Alembic Pharma Abilify Aripiprazole SchizophraniaMay-14 Dr Reddy's Labs Purdue Pharmaceutical Product Intermezzo Zolpidem InsomniaMay-14 Otsuka Pharmaceutical Co. Cadila Healthcare Abilify Aripiprazole SchizophraniaMay-14 Otsuka Pharmaceutical Co. Aurobindo Pharma Abilify Aripiprazole SchizophraniaMay-14 AstraZeneca AB Aurobindo Pharma Onlyza Saxagliptin Type 2 DiabetesMay-14 AstraZeneca AB Glenmark Generics Onlyza Saxagliptin Type 2 DiabetesMay-14 AstraZeneca AB Wockhardt Onlyza Saxagliptin Type 2 DiabetesMay-14 Otsuka Pharmaceutical Co. Wockhardt Abilify Aripiprazole SchizophraniaMay-14 Forest Laboratories Inc. Ranbaxy Labs Namenda XR Memantine Alzheimer's diseaseJun-14 AstraZeneca Pharmaceuticals LP Sun Pharma Global FZE; Onglyza Saxagliptin DiabetesJun-14 Bristol-Myers Squibb Co. Aurobindo Pharma Reyataz Atazanavir HIVJun-14 Teva Women's Health Lupin Quartette Levonorgestre ContraceptiveJun-14 Forest Laboratories Inc Aurobindo Pharma Namenda XR Memantine Alzheimer's diseaseJun-14 Senju Pharma Lupin Pharma Inc. Prolensa Bromfenac Ocular InflammationJul-14 Pfizer Inc Aurobindo Pharma Tygacil Tygecycline InfectionJul-14 GlaxoSmithKline LLC Glenmark Generics Inc. Coreg Carvedilol High Blood PressureJul-14 Allos Therapuetics Inc Dr Reddy's Folotyn Pralatrexate LymphomaJul-14 Acorda Therapeutics Inc.; Aurobindo Pharma Ampyara Dalfampridine Multiple SyrosysJul-14 Alcon Pharmaceuticals Ltd. Aurobindo Pharma Vigamox Moxifloxacin Eye InfectionJul-14 Gilead Sciences Inc. Lupin Ltd. Atripla Efavirenz/Emtricitabine/Tenofovir HIVJul-14 AbbVie Inc. Aurobindo Pharma Norvir Ritonavir HIVJul-14 Alkermes Pharma Ltd. Sun Pharmaceuticals Focalin XR Dexmethylphenidate ADHDJul-14 Otsuka Pharma Co. Torrent Pharma Abilify Aripiprazole SchizophreniaJul-14 Astrazeneca AB Cadila Healthcare Nexium Esomeprazole Acid RefluxAug-14 Janssen Products LP Cipla Ltd. Prezista Darunavir HIVAug-14 Forest Labs Lupin Ltd. Namenda Memantine Hydrochloride Alzheimer's diseaseAug-14 Senju Pharma Ltd. Lupin Ltd. Prolensa Bromfenac Ocular InflammationAug-14 Novartis Pharma Dr. Reddy's Labs Gleevec Imatinib Mesylate Organ RejectionSep-14 Millenium Pharmaceuticals Glenmark Pharma Valcade Bortezomib Multiple MylomaSep-14 Teva Pharma Dr. Reddy's Labs Copaxon Glatiramer Acetate Multiple SclerosisSep-14 Reckitt Benckiser LLC Aurobindo Pharma Mucinex Guaifenesin MucusSep-14 Cephalon Inc. Dr. Reddy's Labs Treanda Bendamustine LeukemiaSep-14 Cephalon Inc. Sun Pharma Treanda Bendamustine LeukemiaOct-14 Novartis Pharma Dr. Reddy's Labs Gleevec Imatinib LeukemiaOct-14 Braintree Laboratory Inc. Taro Pharma Suprep Sodium Sulphate Bowel PreparationOct-14 Cephalon Inc. Wockhardt Treanda Bendamustine LeukemiaNov-14 Biomarin Pharma Dr. Reddy's Labs Kuvan Sapropterin Dihydrochloride phenylketonuriaNov-14 Otsuka Pharma Cadila Healthcare Abilify Aripiprazole schizophreniaNov-14 Otsuka Pharma Alembic Pharma Abilify Aripiprazole schizophrenia

Jan-15 iCeutica Lupin Ltd. Zorvolex Diclofenac Anti-Inflammatory

Jan-15 Senju Pharma Lupin Ltd. Prolensa Bromfenac Eye Inflammation

Jan-15 Sheonogi & Co. Aurobindo Pharma Doribax Doripenem Infection

Jan-15 Teva Pharma Dr. Reddy's Labs Copaxone Glatiramer Multiple Sclerosis

Feb-15 Roxane Laboratories Lupin Ltd. Roxane Calcium Acetate CCalcium Acetate Serum phosphorous Reductio

Feb-15 Cephalon Inc. Glenmark Generics Treanda Bendamustine Leukemia

Feb-15 Cephalon Inc. Dr. Reddy's Labs Treanda Bendamustine Leukemia

Source: Bloomberg, ICICIdirect.com Research


Robust IPM growth albeit on a lower base… • The Indian pharmaceutical market (IPM) registered strong growth of

18.9% YoY (-0.8% MoM) to | 7194 crore for February. The YoY growth was mainly driven by robust volume growth – 10.1% (albeit on lower base) followed by price hikes – 5.6% and new product launches - 3.2%.

• Growth on account of price hike of 5.6% was the steepest in the last 19 months

• Drugs under NLEM list witnessed growth of 13.9% YoY to | 896 crore due to recovery in volume and price hike while non-NLEM drugs posted growth of 20.0% to | 5971 crore

• Among our covered companies, Ipca has registered highest growth of 35.9% YoY followed by Glenmark, Torrent, Cipla and Lupin clocking growth of 33.3%, 30.8%, 24.0% and 23.2% respectively.

• Therapy wise, nine therapies have outpaced the IPM growth and 18 therapies have recorded double digit growth. Notable among them with growth rates are: anti-diabetic – 32.7%, respiratory – 25.4%, gastro intestinal – 19.1% dermatology- 18.0% and cardiac – 18.2%.

• In all, 144 new brands were launched in February • On a MAT basis, IPM growth stood at 11.8% YoY to | 85012 crore • MNC companies grew 17.6% while domestic companies grew 19.4% in

February 2015 Exhibit 3: Domestic formulations - growth trend

7.1

5.7 7.

4

11.2 13

.0

9.7 10

.5

13.9

12.7

20.0

20

18.9

11.4

-5

0

5

10

15

20

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market [

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 4: Companies growth in domestic market in February 2015

30.8

15.818.8

24.0

15.2 16.0

7.6

16.1

33.3

5.6

35.9

23.2

2.6

22.6

13.5

30.7

-10

0

10

20

30

40

Woc

khar

dt

Unic

hem

Torr

ent

Sun

Phar

ma

Pfize

r

Nov

artis

Lupi

n

Ipca

Lab

s

Indo

co

GSK

Phar

ma

Glen

mar

k

Dr. R

eddy

s

Cipl

a

Cadi

la

Bioc

on

Ajan

ta

(%)


Therapy wise performance (| crore) Therapy Feb'15 Feb'14 YoY (%) Jan'15 QoQ (%)Anti-Infectives 1150 962 19.6 1064 8.1Cardiac 896 769 16.6 960 -6.6Gastro Intestinal 796 668 19.1 793 0.4Vitamins 615 535 14.9 614 0.1Respiratory 659 525 25.4 622 5.9Anti Diabetic 580 437 32.7 614 -5.5Pain 479 414 15.7 480 -0.2CNS 431 379 13.8 458 -5.9Derma 406 344 18.0 430 -5.7Gynaecological 349 316 10.4 361 -3.3Ophthal 127 108 17.2 125 1.3Hormones 118 106 11.2 123 -4.4Vaccines 133 102 30.5 135 -2.1Anti-Neoplastics 109 101 7.9 122 -10.7Blood Related 75 68 9.1 77 -2.9Others 90 65 38.3 85 5.2Urology 74 58 26.7 79 -6.8Anti Malarials 34 28 19.5 35 -3.3Sex Stimulants 43 38 15.0 46 -6.5Stomatologicals 32 26 21.1 31 2.6

Source: AIOCD data base

Top brands in Indian pharma market Brand Company Therapy Feb'15 Feb'14 Gr. (%)Augmentin GSK Anti-Infectives 291.6 270.9 7.7Becosules Pfizer Vitamins 239.9 230.5 4.1Corex Pfizer Respiratory 226.8 226.5 0.1Clavam Alkem Anti-Infectives 222.4 203.1 9.5Lantus Sanofi Anti Diabetic 217.1 166.5 30.4Galvus Met Novartis Anti Diabetic 183.4 136.7 34.1Manforce Mankind Sex Stimulants 181.5 185.9 -2.4Skinlite Zydus Derma 180.0 142.7 26.2Taxim Alkem Anti-Infectives 175.0 150.5 16.3Taxim O Alkem Anti-Infectives 170.6 158.3 7.7

Source: AIOCD data base; Date as per MAT February 15 & February 14 Industry acute to chronic therapy ratio percentage…

Acute, 59359.8,

69.9%Chronic, 25566.3,

30.1%

Source: AIOCD data base ; As per AIOCD MAT February 2015


Sun Pharmaceuticals

Stock Performance

80

125

170

Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15

BSE Healthcare Sun Pharma

Source: NSE, ICICIdirect.com Research Exhibit 5: Company growth vis-à-vis Indian pharma market growth

7.1

6.7 8.

9

12.4 13

.9

9.3 10

.4

19.9

6.1

10.7

13.5

12.1

18.9

18.6

15.8

10.0

16.5 17

.6

15.3

14.4

9.9

9.7

14.8

21.6

13.5 15

.8

0

5

10

15

20

25

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Sun Pharmaceutical Industries


Exhibit 6: Market share in Indian formulations market

5.5

5.7

5.3

5.5

5.2

5.35.2

4.9

5.5

5.7 5.7

5.9

5.4

4.8

5.0

5.2

5.4

5.6

5.8

6.0

6.2

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Sun Pharmaceutical Industries


Exhibit 7: Top 10 brands performance (| crore) Brand Therapy Feb'15 Feb'14 Var. (%) Jan'15 Var. (%)

Gemer Anti Diabetic 10.6 9.3 14 12.1 -13

Pantocid Gastro Intestinal 10.3 8.6 20 11.2 -7

Susten Gynaecological 10.6 8.3 28 10.8 -2

Levipil Neuro 10.1 7.4 35 11.3 -11

Istamet Anti Diabetic 10.8 6.8 59 11.8 -9

Aztor Cardiac 8.1 6.5 24 9.0 -10

Pantocid Dsr Gastro Intestinal 8.2 6.1 34 8.7 -5

Glucored Anti Diabetic 5.5 5.2 5 6.1 -10

Montek-Lc Respiratory 6.6 4.9 34 7.1 -8

Oxetol Neuro 5.0 4.3 16 5.7 -12


Exhibit 8: Contribution of therapies to domestic sales (MAT Feb’15) z

Neuro 34%

Cardiac23%

Gastro Intestinal19%

Anti Diabetic15%

Gynaecological9%


Exhibit 9: Therapy wise performance (| crore)

Therapy Feb'15 Feb'14 YoY (%) Jan'15 QoQ (%)

Neuro 104.2 87.5 19 117.1 -11

Cardiac 70.5 62.8 12 79.4 -11

Gastro Intestinal 57.9 45.5 27 62.7 -8

Anti Diabetic 47.2 37.8 25 52.7 -10

Gynaecological 25.0 27.9 -11 26.5 -6

Ophthal 16.5 14.7 12 18.0 -8

Pain 16.0 14.0 15 17.6 -9

Respiratory 17.5 14.7 19 19.0 -8

Vitamins 11.0 8.7 26 11.6 -6

Hormones 7.8 8.8 -11 9.3 -16


Acute : Chronic contribution (MAT Feb’15)

Acute, 2029.9,

44%

Chronic, 2596.8,

56%

Brands contribution to domestic sales (MAT Feb’15)

21%

11%8%

11%

49%

Top 10 11 to 20 21 to 30 31 to 50 Others



Cipla

Stock Performance

80

110

140

170

200


BSE Healthcare Cipla

Source: NSE, ICICIdirect.com Research

Exhibit 10: Company growth vis-à-vis Indian pharma market growth

7.1

6.7 8.

9 12.4 13

.9

9.3 10

.4

19.9

6.1

10.7 13

.5

12.1

18.9

0.8 7.5 8.2

7.2 12

.4

10.4

15.4

38.8

10.3

8.3 13

.5

13.2

24.0

0

5

10

15

20

25

30

35

40

45

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Cipla



5.15.0 5.0

4.74.6

4.8

5.0

5.5

5.14.9

5.1 5.25.3

4.04.24.44.64.85.05.25.45.6

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Cipla



Foracort Respiratory 15.5 11.7 32 16.8 -8

Asthalin Respiratory 13.0 11.8 10 13.5 -4

Seroflo Respiratory 12.1 9.6 26 12.4 -2

Budecort Respiratory 13.4 9.9 35 13.8 -3

Duolin Respiratory 10.8 8.2 32 10.7 1

Aerocort Respiratory 8.2 7.4 11 8.7 -5

Novamox Anti-Infectives 8.0 6.1 31 6.6 22

Azee Anti-Infectives 8.5 5.7 48 6.7 27

Montair Lc Respiratory 6.9 4.8 42 6.3 9

Dytor Cardiac 5.5 3.9 41 5.7 -3


Exhibit 13: Contribution of therapies to domestic sales (MAT Feb’15)

Respiratory31%

Anti-Infectives27%

Cardiac13%

Gastro Intestinal7%

Urology4%

Other18%



Therapy Feb'15 Feb'14 YoY (%) Jan'15 QoQ (%)Respiratory 124.1 99.8 24 125.4 -1Anti-Infect ives 100.7 78.4 28 94.5 7

Cardiac 48.0 39.5 22 48.2 0Gastro Intestinal 27.0 22.0 23 24.8 9

Urology 17.4 11.5 51 18.0 -3Ophthal 11.6 10.1 15 11.5 1

Neuro 12.7 10.6 20 13.4 -5

Pain 9.9 7.3 36 8.9 12

Derma 7.3 7.0 4 8.0 -8

Vitamins 6.8 6.8 1 7.1 -3



Acute, 2515.3,

59%Chronic, 1746.1,

41%


25%

12%9%

12%

42%




Dr Reddy’s Laboratories

Stock Performance

70

100

130

160


BSE Healthcare Dr. Reddys



7.1

6.7 8.

9 12.4 13

.9

9.3 10

.4

19.9

6.1

10.7 13

.5

12.1

18.9

6.9

-0.2

6.3 10

.3

17.6

10.6

16.8 18.0

3.0

9.4 12

.8

12.4 16

.1

-10

0

10

20

30

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Dr. Reddys Laboratories



2.2

2.1

2.0

2.12.2

2.1

2.1 2.1

2.0

2.1

2.2

2.12.1

1.9

2.0

2.0

2.1

2.1

2.2

2.2

2.3

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Dr. Reddys Laboratories



Omez Gastro Intestinal 9.0 7.4 22 8.7 3

Omez D Gastro Intestinal 5.6 5.2 8 5.4 4

Nise Pain 5.0 3.9 28 4.5 11

Stamlo Cardiac 5.2 4.3 22 5.1 3

Econorm Gastro Intestinal 4.7 4.0 17 4.6 2

Stamlo Beta Cardiac 4.1 3.8 9 3.9 5

Mintop Derma 4.1 3.3 27 4.9 -15

Razo D Gastro Intestinal 3.9 3.4 15 3.8 1

Reditux Anti-Neoplastics 3.0 3.3 -10 2.8 7

Razo Gastro Intestinal 3.3 3.2 3 3.1 7




Cardiac17%

Anti-Neoplastics

11%Anti-Infectives8%

Pain 8%

Other33%




Gastro Intestinal 34.0 29.3 16 33.5 1

Cardiac 25.2 21.6 17 26.3 -4

Anti-Neoplastics 15.4 14.2 8 13.5 14

Anti-Infectives 14.4 10.8 34 12.3 18

Pain 11.2 9.9 14 10.9 3

Anti Diabetic 11.3 9.1 24 12.0 -6

Derma 11.2 10.6 5 12.1 -8

Respiratory 8.8 6.9 27 8.4 5

Urology 5.7 5.3 7 6.9 -18

Stomatologicals 5.3 5.2 3 5.3 1



Acute, 1245.4,

69%

Chronic, 547.2, 31%


31%

16%9%

12%

32%




Lupin

Stock Performance

75

115

155


BSE Healthcare Lupin



7.1

6.7 8.

9 12.4 13.9

9.3 10

.4

19.9

6.1 10

.7

12.1

1.8

-19.

0

20.8 23

.0

13.3

8.5

19.8

10.5 13

.7 18.3

9.2

23.218

.9

13.5

-24-20-16-12

-8-4048

1216202428

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Lupin



3.1

2.4

3.7 3.7 3.7

3.43.2

3.3 3.4 3.5 3.4 3.43.3

2.32.52.72.93.13.33.53.73.9

Feb-

14

Mar

-14

Apr

-14

May

-14

Jun-

14

Jul-1

4

Aug

-14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Lupin



Gluconorm-G Anti Diabetic 9.6 9.1 5 10.5 -9

Tonact Cardiac 7.3 5.5 33 8.4 -12

Budamate Respiratory 7.0 4.4 61 6.7 5

Ramistar Cardiac 4.0 3.3 20 4.4 -11

R-Cinex Anti-Infectives 3.4 3.5 -2 3.7 -7

Rablet-D Gastro Intestinal 3.7 2.7 37 4.1 -10

Rablet Gastro Intestinal 3.3 2.8 19 3.7 -9

Esiflo Respiratory 4.3 2.7 57 4.4 -2

Merotrol Anti-Infectives 2.6 2.6 1 2.5 5

Tazar Anti-Infectives 2.7 2.6 2 2.7 -3



Cardiac24%

Anti-Infectives24%Respiratory

12%

Anti Diabetic10%

Gastro Intestinal8%

Other22%




Cardiac 57.8 46.1 26 64.1 -10

Anti-Infectives 51.2 46.6 10 51.0 0

Respiratory 32.6 23.2 40 32.3 1

Anti Diabetic 24.9 20.3 23 27.2 -9


Vitamins 12.8 10.7 20 13.3 -4

Neuro 12.6 10.5 19 13.5 -7

Pain 10.8 8.2 31 10.9 -1

Gynaecological 6.5 5.1 28 6.8 -4

Derma 1.6 1.1 49 1.7 -2



Acute, 1514.6,

53%

Chronic, 1351.6,

47%


20%

12%

9%

13%

46%




Cadila Healthcare

Stock Performance

5080

110140170200230


BSE Healthcare Cadila Healthcare



7.1

6.7

8.9

12.4 13

.9

9.3 10

.4

19.9

6.1

10.7

13.5

12.1

18.9

4.0

7.2

9.7

8.9 11

.4

9.3 9.8

14.0

2.9

8.5

13.1

7.4 7.6

0

5

10

15

20

25

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Cadila Healthcare



4.2 4.2

4.1

3.9 3.9

3.83.9

3.7

3.8

4.04.0 4.0

3.8

3.6

3.8

4.0

4.2

4.4

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)



Skinlite Derma 16.6 13.8 20 19.5 -15

Atorva Cardiac 9.4 7.4 27 10.0 -5

Mifegest Kit Gynaecological 8.4 13.4 -37 9.1 -8

Deriphyllin Respiratory 8.3 7.6 9 7.6 9

Pantodac Gastro Intestinal 7.3 7.1 2 7.5 -2

Amlodac Cardiac 5.7 5.7 0 6.1 -6

Aten Cardiac 4.5 5.9 -23 5.9 -24

Falcigo Anti Malarials 3.9 3.7 4 4.5 -15

Dexona Hormones 3.6 5.0 -27 3.5 5

Primolut N Gynaecological 4.6 3.9 19 4.3 8



Cardiac18%


Gynaecological12%

Respiratory10%

Derma8%

Other38%




Cardiac 48.6 45.0 8 53.8 -10

Gastro Intestinal 34.3 35.6 -4 36.0 -5

Gynaecological 31.8 33.1 -4 35.6 -11

Respiratory 30.7 26.9 14 30.3 1

Derma 24.6 20.2 22 28.3 -13

Pain 20.3 19.4 5 20.0 2


Vitamins 12.0 9.4 28 11.6 3


Hormones 5.5 6.6 -18 5.4 1



Acute, 2263.8, 68%

Chronic, 1054.5, 32%


27%

13%9%

11%

40%




GlaxoSmithKline Pharmaceuticals

Stock Performance

80

110

140

170


BSE Healthcare GSK Pharma



7.1

6.7 8.

9 12.4 13

.9

9.3 10

.4

19.9

6.1

10.7 13

.5

12.1

18.9

-10.

3 -2.6

-4.1

1.4

2.6

-2.3

8.8

21.0 18

.7

11.1

7.2 10

.2

5.6

-15

-10

-5

0

5

10

15

20

25

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Glaxosmithkline Pharmaceuticals



3.7 3.8

3.63.6 3.6 3.6

3.7

3.6

3.4 3.4 3.43.3 3.3

3.0

3.2

3.4

3.6

3.8

4.0

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Glaxosmithkline Pharmaceuticals



Augmentin Anti-Infectives 28.4 22.9 24 23.2 22

Calpol Pain 12.5 10.1 23 10.7 18

Zinetac Gastro Intestinal 12.2 10.9 11 12.2 0

Synflorix Vaccines 13.4 8.9 51 16.6 -19

Ceftum Anti-Infectives 9.6 8.5 12 8.9 7

Eltroxin Hormones 9.2 9.4 -2 10.0 -8

Betnovate N Derma 9.7 9.3 5 10.7 -9

Betnovate C Derma 9.7 8.5 15 12.3 -21

T Bact Derma 6.7 5.9 13 7.3 -8

Betnesol Hormones 7.8 5.2 48 8.7 -11



Anti-Infectives25%

Derma20%Vaccines

12%

Pain 9%

Vitamins 7%

Other27%





Derma 46.8 42.8 9 53.0 -12

Vaccines 28.2 27.3 3 29.6 -5

Pain 21.3 17.9 19 20.2 5

Vitamins 16.4 16.2 2 16.3 1

Hormones 17.6 15.7 12 19.6 -10


Respiratory 16.5 13.9 18 14.7 12

Cardiac 6.2 6.5 -5 6.8 -8

Ophthal 5.0 5.0 -1 5.5 -10



Acute, 2602.0,

87%

Chronic, 391.2, 13%


46%

17%

9%

11%

17%




Wockhardt

Stock Performance

050

100150200250300350400


BSE Healthcare Wockhardt


7.1

6.7 8.9 12

.4

13.9

9.3 10

.4

19.9

6.1 10

.7 13.5

12.1 18

.9

-14.

4

-15.

3

-14.

9

8.5

30.7

19.0

-2.6

-5.1

5.0

1.8

-7.6

-17.

1-19.

6

-30

-20

-10

0

10

20

30

40

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Wockhardt



1.34

1.18 1.18 1.161.10

1.201.25

1.09

1.171.11

1.17

1.38

1.47

1.01.11.11.21.21.31.31.41.41.51.5

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Wockhardt



Spasmo Proxyvon PluGastro Intestinal 18.7 14.5 29 14.7 27

Practin Vitamins 6.4 4.9 NA 7.0 -9

Bro Zedex Respiratory 5.5 5.2 6 4.8 15

Tryptomer Neuro 4.4 3.7 17 3.7 19

Zedex Respiratory 4.2 3.4 24 4.0 7

Methycobal Vitamins 3.0 3.1 -6 3.1 -6

Ace Proxyvon Pain 2.6 1.9 43 2.6 0

Decdan Hormones 1.6 2.5 -37 1.1 41

Biovac V Vaccines 11.3 0.0 #DIV/0! 10.2 11

Aziwok Anti-Infectives 2.2 1.4 61 1.9 15



Vitamins 18%


Respiratory15%Derma

9%

Anti-Infectives8%

Other32%




Vitamins 15.8 15.7 1 16.5 -4


Respiratory 16.8 13.5 24 14.5 15

Derma 7.7 5.5 40 8.0 -4

Anti-Infectives 5.6 5.3 6 6.6 -14

Neuro 7.0 5.9 20 6.4 10

Pain 5.9 4.8 24 5.8 1

Anti Diabetic 5.4 5.3 3 6.2 -12

Vaccines 13.8 1.6 772 13.3 4

Hormones 1.8 2.9 -37 1.3 39



Acute, 812.2, 80%

Chronic, 209.0, 20%


50%

17%

9%

9%

15%




Glenmark Pharmaceuticals

Stock Performance

60

100

140

180

Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15BSE Healthcare Glenmark



7.1

6.7 8.

9 12.4 13

.9

9.3 10

.4

19.9

6.1

10.7 13

.5

12.1

18.9

17.5

12.4

11.3 14

.9 17.9

9.8

9.1

27.1

2.6

20.3 21.5

21.3

33.3

0

5

10

15

20

25

30

35

40

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Glenmark Pharmaceuticals



2.22.1

2.1

1.92.0

2.12.1

2.4

2.2

2.5 2.52.4

2.5

1.9

2.1

2.3

2.5

2.7

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Glenmark Pharmaceuticals



Telma Cardiac 13.2 10.5 26 13.3 -1

Telma H Cardiac 10.5 8.5 24 10.8 -2

Ascoril Plus Respiratory 10.2 8.1 27 9.1 12

Candid-B Derma 5.9 4.6 27 6.6 -11

Candid Derma 4.7 3.3 41 4.6 2

Zitamet Anti Diabetic 6.1 2.5 149 6.2 -1

Telma Am Cardiac 5.3 3.8 37 5.2 3

Zita(Glenmark) Anti Diabetic 4.4 1.8 151 4.2 7

Ascoril Ls Respiratory 4.6 2.5 83 3.5 30

Candid Mouth Derma 2.5 1.9 31 2.3 8



Derma29%

Cardiac23%

Respiratory15%

Anti-Infectives14%

Anti Diabetic8%

Other11%




Derma 45.1 37.4 21 47.5 -5

Cardiac 40.3 31.6 27 40.8 -1

Respiratory 34.1 23.3 46 28.9 18


Anti Diabetic 15.1 9.1 66 15.0 1


Vitamins 3.7 3.1 21 3.8 -3

Pain 3.6 3.2 12 3.8 -4


Ophthal 2.7 1.9 40 2.4 13


Acute : Chronic contribution (MAT Feb’15) 668.8, 37%

Acute, 1149.1,

63%


37%

13%10%

12%

28%




Torrent Pharmaceuticals

Stock Performance

80

170

260


BSE Healthcare Torrent Pharma



7.1

6.7 8.

9

12.4 13

.9

9.3 10

.4

19.9

6.1

10.7 13

.5

12.1

18.9

3.8

3.3

1.2

4.7

12.2

10.9

8.4

18.5

6.0

23.2

31.2

21.3

30.8

0

5

10

15

20

25

30

35

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Torrent Pharmaceuticals



2.20 2.17

2.252.22

2.28 2.28

2.13 2.14

2.262.32

2.462.38

2.41

1.9

2.0

2.1

2.2

2.3

2.4

2.5

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Torrent Pharmaceuticals



Shelcal Vitamins 16.8 8.0 110 15.3 10

Chymoral Forte Pain 9.5 4.2 128 8.7 9

Nikoran Cardiac 6.5 5.1 28 6.4 2

Dilzem Cardiac 5.1 4.7 8 5.4 -6

Nebicard Cardiac 4.2 3.6 17 4.5 -6

Nexpro Rd Gastro Intestinal 4.1 2.9 42 4.1 -1

Azulix-Mf Anti Diabetic 3.8 3.1 20 4.0 -6

Nexpro Gastro Intestinal 3.6 2.8 28 3.7 -3

Alprax Neuro 2.8 3.3 -14 3.1 -9

Domstal Gastro Intestinal 2.7 2.5 10 3.0 -9



Cardiac31%

Neuro 16%Gastro Intestinal

15%

Vitamins 13%

Anti-Infectives7%

Other18%




Cardiac 50.2 42.0 19 51.7 -3

Neuro 26.8 22.7 18 27.9 -4


Vitamins 27.1 16.6 64 24.4 11


Pain 13.5 6.6 106 12.5 8

Anti Diabetic 9.5 7.5 26 10.0 -5

Derma 3.7 2.7 37 3.8 -1


Urology 0.6 0.6 6 0.6 -6



Acute, 947.0, 49%

Chronic, 987.1, 51%


32%

14%9%

12%

33%




Ipca Laboratories

Stock Performance

60

120

180


BSE Healthcare Ipca



7.1

6.7 8.9 12

.4

13.9

9.3 10.4

19.9

6.1 10

.7 13.5

12.1 18

.9

-21.

6

23.7

0.2

7.6

8.3

2.0

-2.3

-22.

5

-19.

8

-19.

8

-19.

0

35.9

-3.0

-30

-20

-10

0

10

20

30

40

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Ipca Laboratories



1.1

1.7

1.41.5 1.5

1.5 1.51.6

1.41.3

1.2 1.2 1.2

1.0

1.2

1.4

1.6

1.8

2.0

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Ipca Laboratories



Zerodol Sp Pain 5.3 3.5 52 5.0 5

Zerodol P Pain 3.9 3.1 25 4.6 -15

Hcqs Anti Malarials 4.9 3.1 58 5.1 -5

Larinate Anti Malarials 2.1 2.4 -12 3.6 -40

Rapither-Ab Anti Malarials 2.6 1.9 34 2.9 -11

Lariago Anti Malarials 2.5 1.6 55 2.0 27

Glycinorm M Anti Diabetic 2.2 2.0 12 2.4 -8

Folitrax Anti-Neoplastics 2.2 1.7 33 2.3 -4

Lumerax Anti Malarials 1.2 1.3 -4 1.6 -23

Azibact Anti-Infectives 2.2 1.6 32 1.7 26



Pain 23%

Anti Malarials21%

Cardiac17%

Gastro Intestinal8%

Anti-Infectives7%

Other24%




Pain 19.9 15.1 32 20.2 -1

Anti Malarials 15.5 11.7 33 17.3 -11

Cardiac 15.6 12.1 29 16.7 -7



Anti Diabetic 4.6 4.1 11 5.1 -9

Respiratory 5.1 3.5 43 4.1 23

Neuro 3.7 2.3 64 3.6 4

Derma 3.2 2.4 32 3.4 -6




Chronic, 333.7, 27%

Acute, 880.9, 73%


34%

16%

11%

14%

25%




Biocon

Stock Performance

6080

100120140160180

Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15BSE Healthcare Biocon



7.1

6.7 8.9 12

.4

13.9

9.3 10.4

19.9

6.1

13.5

12.1 18

.9

40.5 45

.6

10.7

32.5

41.7 47

.9

29.4

11.9

27.3

5.2

-2.7

4.1

15.5

15.2

-10

0

10

20

30

40

50

60

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Biocon



0.35

0.39

0.36

0.37

0.40

0.360.36

0.39

0.38

0.36 0.36

0.38

0.340.330.340.350.360.370.380.390.400.41

Feb-

14

Mar

-14

Apr

-14

May

-14

Jun-

14

Jul-1

4

Aug

-14

Sep-

14

Oct-1

4

Nov-

14

Dec-

14

Jan-

15

Feb-

15

(%)

Biocon



Insugen Anti Diabetic 6.2 4.7 32 7.1 -13

Basalog Anti Diabetic 3.9 2.4 61 4.1 -6

Abraxane Anti-Neoplastics 1.3 0.9 51 1.5 -11

Blisto Mf Anti Diabetic 1.5 1.5 0 1.8 -14

Insugen R Anti Diabetic 1.2 0.8 47 1.3 -7

Erypro Blood Related 1.3 0.6 109 0.8 72

Insugen N Anti Diabetic 0.7 0.5 53 0.8 -13

Biomab Egfr Anti-Neoplastics 0.3 1.2 -71 0.7 -48

Canmab Anti-Neoplastics 1.1 0.0 3217 1.2 -11

Clotide Cardiac 0.2 0.4 -55 0.2 -19


Exhibit 58: Contribution of therapies to domestic sales (MAT Feb’15) Other

5%Anti-Infectives

4%Blood Related

4%

Cardiac10%

Anti-Neoplastics

19%

Anti Diabetic58%




Anti Diabetic 15.0 11.3 32 16.6 -10

Anti-Neoplastics 4.2 3.2 29 5.8 -29

Cardiac 1.9 2.7 -29 2.1 -9

Blood Related 1.3 0.6 109 0.8 72

Anti-Infectives 0.8 2.1 -63 0.8 -6

Derma 0.7 0.8 -3 0.7 1

Others 0.4 0.2 57 0.3 17

Vitamins 0.2 0.2 29 0.2 21


Pain 0.0 0.1 -83 0.0 -8



Acute, 86.8, 28%

Chronic, 227.7, 72%


71%

12%

7%

7%

3%



Pfizer

Stock Performance

80110140170200230


BSE Healthcare Pfizer


7.1

6.7 8.

9 12.4 13.9

9.3 10

.4

19.9

6.1 10

.7 13.5

12.1

18.9

4.7 9.

1

8.8

11.0

9.9

6.7

3.3

24.1

10.0

34.1

24.8

26.1

22.6

-10-505

10152025303540

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Pfizer



2.963.07

3.012.92

2.84 2.89 2.832.94 2.89

3.09

3.283.36

3.06

2.4

2.6

2.8

3.0

3.2

3.4

3.6

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Pfizer



Becosules Vitamins 19.9 18.0 10 20.0 0

Corex Respiratory 20.4 18.3 12 23.3 -12

Magnex Anti-Infectives 14.2 7.5 89 16.0 -11

Gelusil Mps Gastro Intestinal 11.2 8.9 27 14.0 -20

Dolonex Pain 9.6 8.6 12 10.8 -11

Minipress Xl Cardiac 9.4 7.9 19 10.8 -13

Wysolone Hormones 7.3 6.1 20 8.3 -13

Mucaine Gastro Intestinal 7.1 6.0 19 7.5 -5

Dalacin C Anti-Infectives 5.4 4.7 16 5.8 -7

Solu Medrol Hormones 5.3 4.1 27 5.8 -10



Anti-Infectives17%

Respiratory11%

Vitamins 11%


Hormones9%

Other42%




Anti-Infectives 40.8 28.8 41 42.7 -5

Respiratory 27.7 22.9 21 30.4 -9

Vitamins 24.2 21.6 12 24.3 0


Hormones 18.8 15.2 23 21.4 -12

Cardiac 16.1 13.4 20 19.7 -18

Gynaecological 15.8 14.0 13 18.3 -14

Pain 13.8 12.5 10 16.0 -14

Neuro 15.3 10.9 40 15.9 -4

Vaccines 6.2 3.9 58 7.4 -16



Acute, 2173.9,

85%

Chronic, 390.0, 15%


49%

19%

10%

10%

12%


Source: AIOCD data base l


Novartis India

Stock Performance

80

130

180


BSE Healthcare Novartis India



7.1

6.7 8.

9 12.4 13

.9

9.3 10

.4

19.9

6.1

10.7 13

.5

12.1

18.9

-1.9

-4.7

0.1

-0.9

-1.9

-2.4

-0.5

13.5

5.9 6.8

1.1

2.6

5.2

-10

-5

0

5

10

15

20

25

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Novartis India



1.471.44

1.47

1.37 1.36 1.351.31

1.35

1.43

1.34

1.401.35

1.27

1.2

1.2

1.3

1.3

1.4

1.4

1.5

1.5

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Novartis India



Galvus Met Anti Diabetic 15.1 12.1 25 17.0 -11

Voveran Pain 9.4 10.0 -6 10.8 -13

Galvus Anti Diabetic 7.7 6.0 28 8.3 -8

Rabipur (Novartis) Vaccines 8.2 6.9 18 7.7 6

Otrivin Respiratory 6.4 7.1 -10 6.8 -6

Tegrital Neuro 4.3 5.1 -16 4.6 -7

Regestrone Gynaecological 4.0 2.6 54 3.3 23

Methergin Gynaecological 2.3 2.2 8 2.4 -5

Genteal Ophthal 2.1 1.8 19 2.1 1

Syntocinon Gynaecological 1.8 1.9 -5 2.0 -9



Anti Diabetic26%

Pain 19%

Respiratory12%

Vitamins 10%

Gynaecological8%

Other25%




Anti Diabetic 23.4 18.8 25 26.3 -11

Pain 16.7 17.1 -2 17.6 -5

Respiratory 11.8 14.2 -17 12.9 -9

Vitamins 8.0 8.1 -1 8.1 -1

Gynaecological 8.4 7.0 19 7.9 6

Neuro 6.9 7.8 -11 7.6 -9

Vaccines 8.2 6.9 19 7.8 6

Anti-Infectives 3.4 4.0 -16 4.3 -21

Ophthal 2.5 2.2 16 2.5 -2

Cardiac 1.0 1.4 -30 1.1 -7



Acute, 753.5, 65%

Chronic, 409.4, 35%


63%

16%

7%

7%7%




Unichem Laboratories

Stock Performance

70

100

130

160


BSE Healthcare Unichem Labs



7.1

6.7 8.

9 12.4 13.9

9.3 10

.4

19.9

6.1

10.7 13

.5

12.1

18.9

0.9

5.5

5.6

15.9

9.2 12

.9

12.0

12.8

-15.

9

2.9

3.8 6.6

13.5

-20

-15

-10

-5

0

5

10

15

20

25

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Unichem Laboratories



1.00 1.010.99

1.01

0.940.98

0.91

0.98

0.86

0.96 0.95 0.95

0.99

0.80

0.90

1.00

1.10

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Unichem Laboratories



Losar H Cardiac 9.4 6.0 57 6.7 40

Ampoxin Anti-Infectives 5.7 4.8 18 6.0 -5

Losar Cardiac 4.9 4.1 18 5.8 -15

Unienzyme Gastro Intestinal 4.5 3.8 21 4.7 -4

Vizylac Gastro Intestinal 2.1 1.8 17 2.0 7

Trika Neuro 3.1 2.1 46 3.3 -6

Serta Neuro 1.5 1.5 -6 1.8 -20

Telsar Cardiac 1.2 1.3 -5 1.5 -18

Unistar (Unichem) Cardiac 1.3 1.4 0 1.7 -19

Telsar-H Cardiac 1.0 1.0 1 1.3 -17



Cardiac43%

Anti-Infectives18%

Neuro 12%


Pain 4% Other

11%




Cardiac 30.5 26.7 14 31.5 -3


Neuro 8.9 7.8 14 10.2 -13


Pain 2.3 2.0 14 2.5 -10

Anti Diabetic 1.9 2.2 -11 2.4 -19

Respiratory 2.0 1.7 12 1.9 3

Vitamins 1.5 1.2 23 1.6 -4

Derma 1.0 1.0 -2 1.2 -17

Gynaecological 0.4 0.5 -30 0.5 -26



Acute, 344.2, 42%

Chronic, 471.3, 58%


48%

13%

10%

11%

18%




Indoco Remedies

Stock Performance

80

180

280


BSE Healthcare Indoco



7.1

6.7 8.

9 12.4 13

.9

9.3 10

.4

19.9

6.1

10.7 13

.5

12.1

18.9

7.1

2.7

9.8

17.0

16.6

8.5

17.5 18

.8

34.4

6.1

4.8 8.

6

8.9

0

5

10

15

20

25

30

35

40

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Indoco Remedies



0.8

0.7

0.8

0.70.8 0.8

0.8

0.9

0.8

0.70.7

0.70.8

0.70.70.70.80.80.80.80.80.90.9

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indoco Remedies



Febrex Plus Respiratory 6.5 5.5 19 5.9 11

Cyclopam Gastro Intestinal 3.2 3.0 7 3.0 7

Sensodent-K Stomatologicals 3.4 2.4 37 3.7 -9

Oxipod Anti-Infectives 2.4 2.0 23 2.0 20

Cital Urology 2.3 1.8 28 1.9 17

Atm Anti-Infectives 2.3 1.9 20 2.0 16

Sensoform Stomatologicals 2.0 1.4 42 2.2 -8

Cloben G Derma 1.3 1.2 8 1.4 -6

Sensodent-Kf Stomatologicals 1.7 1.3 29 1.8 -9

Cyclopam Gastro Intestinal 1.5 1.2 24 1.5 -1



Respiratory19%

Stomatologicals17%

Anti-Infectives16%Gastro Intestinal

14%

Vitamins 5%

Other29%




Respiratory 12.2 9.9 24 11.2 9

Stomatologicals 9.4 7.3 29 10.3 -8



Vitamins 3.0 2.1 44 3.1 -3

Ophthal 2.4 2.3 7 2.5 -3

Urology 2.5 1.9 30 2.1 16

Pain 2.0 2.2 -8 2.1 -3

Derma 1.9 1.8 8 2.0 -4

Anti Diabetic 2.0 1.7 13 2.1 -8



Acute, 610.6, 93%

Chronic, 45.5, 7%


48%

17%

8%

10%

17%




Ajanta Pharma

Stock Performance

50100150200250300350400


BSE Healthcare Ajanta



7.1

6.7 8.9 12

.4

13.9

9.3 10.4 19

.9

6.1 10

.7 13.5

12.1 18

.9

90.0

74.6 82

.0

70.1

16.0

14.619

.9

33.1

54.159

.5

76.981

.1

70.2

010

2030

4050

6070

8090

100

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Indian Pharma Market Ajanta Pharma



0.53

0.50 0.50 0.50 0.500.49

0.470.46

0.51

0.53

0.51 0.510.52

0.4

0.4

0.4

0.5

0.5

0.5

0.5

0.5

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

(%)

Ajanta



Met Xl Cardiac 3.6 3.7 -2.0 4.0 -8.5

Melacare Derma 3.0 4.2 -29.7 4.3 -30.0

Atorfit Cv Cardiac 2.6 2.1 25.5 2.7 -1.5

Soft Drops Ophthal 1.0 0.9 8.3 1.0 -6.9

Met Xl Am Cardiac 1.1 0.9 23.0 1.0 8.2

Feburic Pain 0.9 0.8 6.2 0.9 -1.5

Rosufit Cv Cardiac 0.8 0.6 44.7 0.9 -5.4

Peroclin Derma 0.7 0.4 78.5 0.7 4.0

Metaspan Vitamins 0.6 0.5 36.9 0.6 17.3

Melacare Plus Derma 0.6 0.5 41.1 0.7 -7.8



Others9%Pain

5%

Vitamins 6%

Ophthal 24%

Derma25%

Cardiac31%




Cardiac 11.9 9.6 24 12.2 -2

Derma 8.7 9.5 -8 9.5 -8

Ophthal 9.2 7.2 29 8.6 7

Vitamins 2.6 1.7 58 2.2 22

Pain 1.7 1.4 21 1.7 -2

Gastro Intestinal 1.0 1.2 -14 1.0 4

Neuro 0.8 0.7 17 0.8 0

Respiratory 0.4 0.4 -12 0.3 10


Others 0.2 0.1 66 0.2 -4



Acute, 217.8, 51%

Chronic, 207.3, 49%


21%

12%

9%14%

44%




Exhibit 85: Two year forward P/E of BSE Healthcare Index vs. Sensex

0

5

10

15

20

25

30

Mar

-07

Aug

-07

Jan-

08

Jun-

08

Nov

-08

Apr

-09

Sep-

09

Feb-

10

Jul-1

0

Dec-

10

May

-11

Oct-1

1

Mar

-12

Aug

-12

Jan-

13

Jun-

13

Nov

-13

Apr

-14

Sep-

14

Feb-

15

x

BSE Healthcare Index Sensex

77.1% premium

[

Source: Company, ICICIdirect.com Research

ICICIdirect.com coverage universe (Healthcare) ICICIdirect Healthcare coverage Universe

I-Direct CMP TP Rating M CapCode (|) (|) (| Cr) FY14 FY15E FY16E FY14 FY15E FY16E FY14 FY15E FY16E FY14 FY15E FY16E FY14 FY15E FY16E

Ajanta Pharma AJAPHA 1130 3220 BUY 10789.8 66.2 75.0 85.6 17.1 15.1 13.2 29.3 25.5 21.1 44.9 40.6 38.1 39.4 32.8 28.9

Apollo Hospitals APOHOS 1414 1455 BUY 20066.5 22.8 26.8 36.8 62.1 52.8 38.4 31.2 27.7 19.7 11.6 12.0 15.5 10.6 11.5 14.2

Aurobindo Pharma AURPHA 1169 1303 BUY 35643.2 47.3 57.4 70.5 24.7 20.4 16.6 18.4 15.2 12.3 24.1 23.4 24.4 31.3 31.6 28.6

Biocon BIOCON 436 410 HOLD 8837.2 22.4 22.0 22.6 19.5 19.8 19.3 13.1 13.1 11.5 13.4 11.6 12.9 13.7 12.3 12.9

Cadila Healthcare CADHEA 1608 1634 HOLD 32693.5 39.2 51.1 66.2 41.0 31.5 24.3 29.0 21.6 16.8 15.9 19.0 21.7 23.4 24.6 25.4

Cipla CIPLA 698 648 HOLD 56846.5 17.3 15.9 21.7 40.4 43.8 32.1 27.0 24.5 19.7 15.5 14.8 17.2 13.8 11.5 13.7

Dr Reddy's Labs DRREDD 3237 3332 HOLD 58153.7 126.7 130.7 150.5 26.8 26.0 22.5 17.6 16.3 14.3 19.2 18.7 20.1 23.7 19.9 19.5

Glenmark Pharma GLEPHA 833 824 HOLD 23023.1 20.0 22.1 34.7 41.6 37.7 24.0 19.4 20.7 13.7 16.0 17.4 23.8 18.3 17.7 23.1

Indoco Remedies INDREM 348 375 BUY 3303.5 6.3 9.5 13.3 55.4 36.7 26.1 27.9 19.0 14.7 16.6 21.8 28.1 12.6 16.4 19.4

Ipca Laboratories IPCLAB 761 622 HOLD 9649.4 37.9 25.6 31.8 20.1 29.7 23.9 12.6 16.6 16.1 27.6 16.1 17.8 24.4 14.7 16.0

Jubilant Life Sciences VAMORG 160 138 SELL 2587.6 6.8 -6.5 20.0 23.4 -24.7 8.0 6.5 11.7 5.6 10.1 4.5 7.6 4.2 -3.5 7.6

Lupin LUPIN 1902 1866 BUY 86060.9 41.0 54.4 61.0 46.4 34.9 31.2 29.6 22.6 20.3 34.5 34.7 32.0 26.5 27.4 24.6

Natco Pharma NATPHA 1950 1354 HOLD 7175.1 30.3 32.5 44.9 54.3 50.6 36.6 41.3 34.3 27.7 15.3 16.7 18.7 14.1 13.5 16.1

Sun Pharma SUNPHA 1034 1036 BUY 216276.5 29.0 34.8 39.9 35.6 29.7 25.9 22.2 21.6 18.4 32.4 31.2 28.8 27.0 25.3 23.1

Torrent Pharma TORPHA 1135 1165 HOLD 19326.9 39.2 47.2 50.4 28.9 24.0 22.5 20.5 18.3 14.6 28.5 21.4 26.7 34.9 32.4 28.0

Unichem Laboratories UNILAB 209 206 HOLD 1950.5 18.7 6.4 13.2 11.2 32.9 15.9 10.8 17.9 11.1 15.7 6.5 12.8 20.7 7.1 14.0

RoNW (%)Company

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


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Pankaj Pandey Head – Research [email protected]

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