us pricing pressure steeper than expected

ICICI Securities Ltd. | Retail Equity Research

May 18, 2017

Monthly Update

US pricing pressure steeper than expected The Q4 numbers released by Glenmark Pharma and Dr Reddy’s have once again showcased continuing (and perhaps worsening) pricing pressure in the US base business. Both the managements indicated high single digit to low double digit price erosion in the US in the backdrop of client consolidation and intense competition, mainly in the oral segment. In a major development, the government has, on record, made its intention to mandate doctors to write generic names of medicines on the prescription. This move is intended to bring down drug prices and expand access to affordable health solutions. The Medical Council of India has warned doctors of action if they fail to adhere to its guideline on prescribing drugs in generic names. The Medical Council of India's (MCI's) directive comes after Prime Minister Narendra Modi spoke of putting in place a legal framework to ensure doctors prescribed low cost generic medicines to patients. On the M&A front, Jubilant Life has acquired radio-pharmacy business of Triad Isotopes in the US. Triad recorded revenues in excess of US$225 million in CY16 with positive EBITDA and operates the second largest radio-pharmacy network in the US with more than 50 pharmacies. On the US regulatory front, Biocon’s Bangalore plant has received eight USFDA observations, Lupin’s Aurangabad and Goa plants received three and eight observations, respectively, while Dr Reddy’s Hyderabad (Bachupally) plant 3 received 11 observations. Aurobindo’s Unit 3 plant also received six observations. On the innovation front, the USFDA has cleared Glenmark’s investigational new drug (IND) application to initiate a Phase 1 study of GBR 1342 (oncology). It has also received IND approval for its proposed biosimilar GBR310 (respiratory). Finally, the Indian pharmaceutical market (IPM) grew 8.3% YoY to | 9474 crore for April. IPM growth was mainly driven by volumes – 3.4%, new product launches – 3.2% and price hikes- 1.4%. On a MAT basis, IPM growth was at 10.5% YoY to | 111859 crore. No respite on US pricing front; subdued start to Q4 earnings Almost all players with US franchisee from the I-direct universe are facing intense competition in existing products and client consolidation in the US, leading to price erosion to high single digit to low double digit. Increased USFDA scrutiny and frequencies of inspection/re-inspection is also somewhat delaying key approvals. Apart from this, strengthening of the rupee vis-à-vis the US dollar is also likely to weigh in the near term. Similarly, other issues/uncertainty in the US like pricing probe by the Department of Justice (DoJ), adapting to the bidding process and imposition of border tax on imported drugs are other near term overhangs. Front loading of investments, although useful for long term growth strategy, is also likely to impact near term profitability. For the time being, attractive valuations and decent growth expectations for FY18, FY19 are likely to be on the backburner due to these apprehensions. In the long run, however, we expect the earnings momentum to pick up on the back of incremental product launches largely on speciality, biosimilar and injectables front in the US besides normalising of Indian formulations growth.

Health CheckSector View

Neutral

Index Performance as on May 17, 2017

Return (%) 1M 3M YTD 1Y

CNX 500 4 10 20 27

Nifty 4 8 16 21

NSE Pharma -2 -4 0 -9

Return (%)

Stocks Performance Mcap

Company 1M 3M YTD 1Y 17-May

Sun Pharma.Inds. -5 -4 3 -19 155026

Lupin -9 -11 -13 -20 58534

Cadila Health. 7 8 36 51 49590

Cipla -2 -5 -1 8 45340

Dr Reddy's Labs 2 -7 -12 -10 44822

Aurobindo Pharma -5 -7 -8 -20 36196

Torrent Pharma. -9 6 1 -4 22607

Glaxosmit Pharma -9 -10 -11 -29 20593

Glenmark Pharma. -20 -25 -20 -17 20126

Biocon -10 -10 5 60 19981

Apollo Hospitals 10 2 10 -3 18057

Natco Pharma -3 24 64 111 16559

Divi's Lab. -3 -17 -21 -43 16525

Ajanta Pharma -6 -6 -7 4 14525

Jubilant Life -8 8 21 96 12148

Alembic Pharma 0 10 2 6 11499

Syngene Int. -7 -6 -14 23 9683

Strides Arcolab -6 -12 -2 -11 9301

Pfizer -6 1 -4 -2 8041

Wockhardt -10 -3 3 -28 7503

Ipca Labs. -10 4 3 22 6924

Unichem Labs. -9 -1 3 4 2404

Indoco Remedies -8 -18 -16 -18 2011

Return (%)

Market cap in | crore

Global Indices Performance

Company 1M 3M YTD 1Y 3Y 5Y

S&P 500 Pharm Index (US) 0 1 7 6 8 15

NASDAQ Biotechnology (US) 2 0 12 15 9 20

S&P Pharmaceuticals (US) 1 1 9 5 1 13

DJ Pharma and Biotech (US) 1 1 8 9 8 16

DJ STOXX Healthcare (EU) 6 10 15 16 11 16

TOPIX Pharma Index (Japan) 5 3 5 2 17 20

MSCI World Pharm & Biotech 4 5 12 9 5 15

BI Global Spectalty-Generic Pharm 11 -6 -2 -18 -12 6

NSE Pharma -2 -4 0 -9 10 16

Return (%)

Research Analyst

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


IPM grows 8% YoY in April • The Indian pharmaceutical market (IPM) grew 8.3% YoY to | 9474 crore

in April. IPM growth was mainly driven by volumes – 3.4%, new product launches – 3.2% and price hikes- 1.4%

• The fixed dosage combination (FDCs) related market de-grew 18.4% resulting in a 0.6% squeeze to overall growth

• Drugs under NLEM list declined 5.3% to | 980 crore while non-NLEM drugs posted growth of 8.3% to | 8062 crore. Volume growth in NLEM and non-NLEM was 3.4% and 1.4%, respectively

• Among companies under I-direct coverage, Indoco, Glenmark, Torrent Ajanta, Sun Pharma, Natco, Ipca, Cadila and Dr Reddy’s have registered higher than industry growth rate

• Therapy wise, 10 therapies have outpaced IPM growth. Notable among them with growth rates- anti-diabetic – 17.8% and derma – 13.9%. On the other hand, anti-infectives remained flat YoY

• In all, 249 new brands were launched in April 2017 • On a MAT basis, IPM growth was at 10.5% YoY to | 111859 crore • Domestic and MNC companies have grown at 10.3% and 7.1%,

respectively, in March 2017 Exhibit 1: Domestic formulations - growth trend [

5.9

10.2

8.2

17.7

7.111

.4 13.7

9.2

15.5

20

10.1

9.6

8.3

-5

0

5

10

15

20

25

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indian Pharma Market

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 2: Companies growth in domestic market in April, 2017

20.9

8.5

18.0

-5.8

2.3

11.9

5.1 0.6

8.4

17.8

10.19.7

10.86.1

11.315.6

-10

-5

0

5

10

15

20

25

Ajan

ta

Alem

bic

Bioc

on

Cadi

la

Cipl

a

DRL

Glen

mar

k

GSK

Phar

ma

Indo

co

Ipca

Lab

s

Lupi

n

Nov

artis

Pfize

r

Sun

Phar

ma

Torre

nt

Unic

hem

(%)


Therapy wise performance (| crore) Therapy Apr' 17 Apr' 16 YoY (%) Mar' 17 MoM (%)Anti-Infectives 1212 1205 0.6 1181 2.6Cardiac 1220 1123 8.7 1174 3.9GI 1158 1077 7.6 1038 11.6Anti Diabetic 897 761 17.8 860 4.2Vitamins 847 806 5.1 777 9.0Respiratory 613 582 5.3 664 -7.7Pain 640 596 7.5 590 8.5Neuro 585 555 5.4 553 5.8Derma 590 518 13.9 561 5.2Gynaecological 514 471 9.3 485 6.1Anti-Neoplastics 187 168 11.3 171 9.1Ophthal 194 179 8.6 172 12.7Vaccines 191 141 35.1 177 7.8Hormones 157 142 10.6 150 5.3Blood Related 127 105 20.8 109 16.5Urology 112 106 6.0 106 6.1Others 99 93 6.6 95 4.1Sex Stimulants 59 49 20.7 56 4.2Anti Malarials 27 33 -16.6 26 7.0Stomatologicals 43 41 5.7 39 11.3

Source: AIOCD data base

Top brands in Indian pharma market (MAT; | crore) Brand Company Therapy Apr' 17 YoY (%)Mixtard Abbott Anti Diabetic 514.0 3.2Glycomet Gp USV Anti Diabetic 423.0 26.6Spasmo ProxyvoWockhardt GI 390.0 21.6Lantus Sanofi India Anti Diabetic 344.0 22.8Galvus Met Novartis Anti Diabetic 336.0 20.3Liv 52 Himalaya GI 296.0 11.3Janumet MSD* Anti Diabetic 292.0 20.8Augmentin Gsk Anti-Infectives 284.0 -9.5Clavam Alkem Anti-Infectives 281.0 15.2Monocef Aristo Anti-Infectives 277.0 -0.6

Source: AIOCD data base Industry acute to chronic therapy ratio percentage…

Acute, 53522, 47.8%

Chronic, 35458, 31.7%

Sub-Chronic, 22879, 20.5%

Source: AIOCD data base; As per AIOCD MAT Apr 2017


Sun Pharmaceuticals

507090

110130150

May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17

CNX Pharma Sun Pharma

Source: NSE, ICICIdirect.com Research Exhibit 3: Company growth vis-à-vis Indian pharma market growth

5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6

10.1

7.1 9.

6

8.3

5.4

3.4

7.6

20.4

17.2

13.7

20.4

9.4

9.4

8.0 11

.0

5.5

11.3

0

5

10

15

20

25

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indian Pharma Market Sun Pharma


Exhibit 4: Market share in Indian formulations market

8.5 8.6 8.6 8.5 8.4 8.4 8.58.8 8.6 8.88.6 8.7

8.8

6.06.57.07.58.08.59.09.5

10.0

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Sun Pharma


Exhibit 5: Top 10 brands performance (| crore) Brand Therapy Apr' 17 Apr' 16 Var. (%) Mar' 17 Var. (%)

Istamet Anti Diabetic 19.9 15.6 28.2 18.9 5.7

Rosuvas Cardiac 19.5 16.5 18.2 18.0 8.0

Volini Pain 18.7 20.5 -8.8 18.4 1.6

Gemer Anti Diabetic 17.3 14.2 21.8 16.0 7.7

Levipil Neuro 16.3 12.9 25.6 14.9 8.8

Susten Gynaecological 14.8 13.9 6.2 14.3 3.4

Pantocid Gastro Intestinal 12.1 12.0 0.5 11.7 2.8

Pantocid Dsr Gastro Intestinal 11.0 10.3 7.2 10.3 7.1

Revital H Vitamins 9.5 12.5 -24.1 9.5 -0.3

Storvas Cardiac 9.2 10.5 -12.7 9.1 0.3


Exhibit 6: Contribution of therapies to domestic sales (MAT Apr’ 17)

z

Cardiac31%

Neuro

Gastro Intestinal

18%

Anti-Infectives16%

Derma8%


Exhibit 7: Therapy wise performance (| crore)

Therapy Mar' 17 Mar' 16 YoY (%) Feb' 17 MoM (%)

Cardiac 152.4 136.1 11.9 149.4 2.0

Neuro 141.5 123.1 15.0 135.9 4.1

Gastro Intestinal 92.1 83.3 10.5 90.2 2.1

Anti-Infectives 78.1 84.1 -7.2 84.2 -7.2

Derma 45.4 33.6 35.0 73.9 -38.5

Anti Diabetic 76.6 64.2 19.4 51.5 48.9

Vitamins 30.0 28.5 5.4 42.9 -30.1

Pain 52.5 50.1 4.7 31.4 67.2

Respiratory 29.5 24.5 20.8 29.6 -0.4

Gynaecological 32.2 30.7 4.8 31.0 3.9


Acute : Chronic contribution (| crore; MAT Apr’ 17)

Acute, 3777, 39.3%

Chronic, 4484, 46.6%

Sub-Chronic,

1355, 14.1%


Brands contribution to domestic sales (MAT Apr’ 17)

18%

9%

7%

10%

56%

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 8: Company growth vis-à-vis Indian pharma market growth

5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6

10.1

7.1

9.6

8.3

1.8 5.

7

8.2

19.3

18.7

9.5

5.8

10.1

2.1 3.9

1.4

6.3

0.6

0

5

10

15

20

25

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr

-17

(%)

Indian Pharma Market Cipla



5.0

4.6 4.6

4.94.8

4.7 4.74.8

4.94.7

4.8

4.6 4.6

4.0

4.2

4.4

4.6

4.8

5.0

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Cipla



Foracort Respiratory 20.4 18.3 11.4 19.0 7.5

Budecort Respiratory 10.8 14.1 -23.5 11.9 -9.8

Seroflo Respiratory 12.3 11.3 9.4 11.9 4.0

Asthalin Respiratory 10.6 11.3 -5.4 11.1 -4.0

Duolin Respiratory 15.3 10.7 42.5 15.3 -0.1

Aerocort Respiratory 9.3 9.0 3.6 8.5 9.6

Azee Anti-Infectives 6.2 7.8 -20.6 5.6 11.1

Montair Lc Respiratory 6.5 7.1 -9.3 7.8 -16.7

Dytor Cardiac 7.2 6.5 10.3 7.2 -0.2

Emeset Gastro Intestinal 6.4 6.3 1.4 4.5 42.3



Respiratory32%

Anti-Infectives24%

Cardiac12%

Gastro Intestinal

8%

Urology5%

Other19%



Therapy Apr ' 17 Apr' 16 YoY (%) Mar' 17 MoM (% )

Respiratory 131.7 127.9 3.0 133.3 -1.2

Ant i- Infectives 108.9 113.1 -3.7 99.1 9.9

Cardiac 54.5 55.7 -2.0 53.1 2.7

Gastro Intest inal 37.4 35.5 5.4 30.3 23.6

Urology 22.3 20.0 1 1.3 22.4 -0.5

Neuro 16.2 16.6 -2.5 15.6 4.0

Ophthal 16.1 16.0 0.6 14.8 9.2

Pain 12.8 13.7 -6.4 12.3 4.6

Derma 10.7 11.8 -9.0 9.8 9.6

Gynaecological 7.7 8.8 -1 2.0 6.7 14.6



Acute, 2391, 45.3%

Chronic, 2207, 41.8%

Sub-Chronic,

680, 12.9%



24%

12%

8%12%

44%




Dr. Reddy’s Labs

Stock Performance) Stock Performance

6080

100120140


CNX Pharma Dr. Reddys


5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6 10

.1

7.1 9.

6

8.3

-1.6

4.1

1.6 5.

1

17.2

22.5

7.3 8.

4

5.0

-2.6

0.4

-3.4

12.6

-5

0

5

10

15

20

25

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indian Pharma Market Dr. Reddys Lab



2.1 2.1 2.3 2.1 2.22.4

2.2 2.3 2.4 2.3 2.3 2.32.1

0.6

1.1

1.6

2.1

2.6

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Dr. Reddys Lab



Omez Gastro Intestinal 8.7 10.3 -15.7 8.9 -1.7

Omez D Gastro Intestinal 8.1 7.4 9.2 8.2 -1.9

Econorm Gastro Intestinal 6.1 6.4 -3.5 6.2 -0.4

Stamlo Cardiac 4.5 5.1 -12.6 4.3 4.0

Nise Pain 4.2 4.9 -14.4 4.0 4.9

Stamlo Beta Cardiac 4.5 4.3 4.2 3.9 13.9

Razo D Gastro Intestinal 4.8 4.1 18.3 4.9 -2.3

Grafeel Anti-Neoplastics 2.5 3.9 -35.4 2.8 -8.5

Mintop Derma 2.8 3.7 -24.0 2.9 -3.6

Atarax Respiratory 5.3 3.7 42.8 5.3 -1.1


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

Intestinal21%

Anti-Neoplastics

14%

Cardiac13%

Respiratory9%

Anti-Infectives8%

Other35%



Therapy Apr' 17 Apr' 16 YoY (%) Mar' 17 MoM (%)

Gastro Intestinal 42.8 40.4 5.9 43.2 -1.0

Anti-Neoplastics 21.0 19.7 6.4 25.9 -19.1

Cardiac 28.9 27.9 3.8 27.7 4.2

Respiratory 17.8 14.1 26.4 20.4 -13.0

Anti-Infectives 14.4 13.3 8.0 15.5 -7.4

Anti Diabetic 14.0 13.1 6.4 13.9 0.5

Pain 13.0 12.4 5.6 12.8 2.2

Derma 11.7 12.1 -3.8 12.6 -7.3

Urology 8.6 8.1 5.9 8.3 3.6

Neuro 7.8 7.7 1.9 7.2 9.1



Acute, 1320, 52.3%

Chronic, 694, 27.5%

Sub-Chronic,

509, 20.2%



27%

16%

10%13%

34%




Lupin

Stock Performance

6080

100120140


CNX Pharma Lupin



5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6 10

.1

7.1 9.

6

8.3

10.1 11

.8

4.6

11.4 12

.6

19.9 21

.2

17.7

5.6

8.7

5.6

10.2

10.8

0

5

10

15

20

25

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr

-17

(%)

Indian Pharma Market Lupin



3.2 3.3

3.1 3.2 3.2

3.5

3.6

3.3 3.3 3.33.3

3.33.3

3.0

3.2

3.4

3.6

3.8

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Lupin



Gluconorm-G Anti Diabetic 16.8 13.3 26.8 14.9 12.6

Tonact Cardiac 7.4 8.7 -14.6 7.4 0.7

Budamate Respiratory 8.6 7.4 15.7 9.0 -4.9

Rablet-D Gastro Intestinal 4.8 5.0 -5.6 4.7 1.2

Ramistar Cardiac 3.3 4.6 -29.2 3.3 -0.4

Rablet Gastro Intestinal 5.1 4.5 14.1 4.1 24.2

Esiflo Respiratory 4.2 4.0 4.9 4.7 -11.4

R-Cinex Anti-Infectives 3.8 3.9 -2.0 3.4 14.6

Telekast-L Respiratory 4.0 3.5 16.1 4.0 0.4

Clopitab-A Cardiac 3.6 3.5 3.9 3.6 -0.5


Exhibit 21: Contribution of therapies to domestic sales (MAT Apr’ 17) 24%

Anti-Infectives19%

Anti Diabetic14%Respiratory

13%

Gastro Intestinal

8%

Other22%




Cardiac 78.8 55.6 41.8 75.8 4.0

Anti-Infectives 52.7 34.2 53.9 51.3 2.6

Anti Diabetic 49.5 33.9 46.0 44.2 11.9

Respiratory 39.6 23.4 69.6 41.0 -3.5


Vitamins 15.1 14.9 1.2 13.6 11.2

Neuro 15.0 12.2 23.5 14.5 3.6

Pain 12.3 9.8 25.4 12.1 2.0

Gynaecological 13.2 1.6 722.1 12.0 9.9

Urology 2.5 2.1 14.8 2.2 12.1



Acute, 1187, 32.1%

Chronic, 1853, 50.1%

Sub-Chronic,

662, 17.9%



20%

11%

8%12%

49%




Cadila Healthcare

Stock Performance

6080

100120140


CNX Pharma Cadila Healthcare


5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6

10.1

7.1

9.6

8.3

6.2

9.4

4.0

6.7

10.9

14.8

14.3 16

.1

11.3

17.7

10.6

12.6

8.5

02468

101214161820

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indian Pharma Market Cadila Healthcare



4.3 4.24.0 4.0 4.0

4.14.3

4.24.3

4.64.4

4.34.4

3.0

3.4

3.8

4.2

4.6

5.0

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Cadila Healthcare



Skinlite Derma 14.6 16.7 -12.4 19.0 -23.2

Mifegest Kit Gynaecological 12.3 12.9 -4.6 13.3 -7.0

Atorva Cardiac 9.5 11.6 -17.8 9.4 0.9

Pantodac Gastro Intestinal 10.1 8.9 13.1 9.3 8.1

Deriphyllin Respiratory 9.7 8.6 12.9 8.8 10.7

Zyrop Blood Related 4.9 6.9 -29.6 3.5 38.5

Thrombophob Pain 7.8 5.8 33.5 5.8 32.7

Dexona Hormones 4.8 5.8 -16.4 5.2 -6.7

Amlodac Cardiac 5.6 5.8 -3.4 5.2 6.0

Formonide Respiratory 5.5 5.3 2.8 5.6 -1.9


Exhibit 26: Contribution of therapies to domestic sales (MAT Apr’ 17) Anti-Infectives

15%

Cardiac14%

Gastro Intestinal

12%

Respiratory10%

Gynaecological10%

Other39%




Anti-Infectives 58.6 52.7 11.3 54.3 8.0

Cardiac 60.9 57.0 6.8 58.7 3.7


Respiratory 39.7 35.2 12.6 40.3 -1.6

Gynaecological 45.2 42.5 6.2 44.4 1.8

Pain 41.3 34.3 20.5 35.7 15.7

Derma 27.2 27.6 -1.5 33.1 -17.9

Anti-Neoplastics 18.1 20.3 -11.1 20.6 -12.1

Vitamins 17.0 14.3 18.8 17.2 -1.2

Hormones 14.4 7.7 87.0 14.3 0.6



Acute, 2361, 49.7%

Chronic, 1510, 31.8%

Sub-Chronic,

876, 18.5%



21%

12%

9%

12%

46%




GlaxoSmithKline

Stock Performance

6080

100120140


CNX Pharma GSK Pharma



5.9

10.2

8.2 11

.4

17.7

13.7

9.2

15.5

7.6 10

.1

7.1 9.

6

8.3

-8.5 -0

.6

-6.7

3.6

4.2

-10.

8

4.3 5.7

9.3

-3.4 -0

.4

-5.9

10.1

-15

-10

-5

0

5

10

15

20

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indian Pharma Market GSK Pharma



3.1 3.0 2.9 3.0 2.9 2.9 2.9 3.0 3.0 3.2 3.2 3.1 3.1

0.6

1.1

1.6

2.1

2.6

3.1

3.6

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

GSK Pharma



Augmentin Anti-Infectives 24.3 23.2 4.6 24.0 1.2

Synflorix Vaccines 22.9 17.9 28.1 23.5 -2.4

Calpol Pain 13.6 14.9 -8.2 12.8 6.5

Zinetac Gastro Intestinal 13.3 14.0 -5.0 11.7 14.0

Betnovate N Derma 15.6 12.2 27.1 15.8 -1.3

Rabipur Vaccines 2.4 11.0 -78.0 2.3 3.8

Eltroxin Hormones 12.9 11.0 17.3 12.2 5.7

Betnovate C Derma 16.3 10.7 52.1 14.3 13.9

Ceftum Anti-Infectives 10.2 10.1 0.8 10.0 1.4

Rotarix Vaccines 10.3 9.6 7.3 8.1 27.9



21%

Vaccines18%

Derma18%

Pain 9%

Vitamins 8%

Other26%




Anti-Infectives 57.9 59.0 -1.8 56.6 2.2

Vaccines 58.6 53.0 10.6 55.7 5.2

Derma 67.1 43.5 54.2 62.4 7.6

Pain 21.7 24.4 -11.4 21.1 2.7

Vitamins 25.7 20.3 26.3 22.3 15.1

Hormones 21.0 19.4 8.5 20.2 4.0

Respiratory 15.4 19.1 -19.1 17.7 -12.7

Gastro Intestinal 15.7 16.6 -5.4 14.1 11.4

Cardiac 4.5 4.1 10.1 4.0 14.2

Gynaecological 2.1 3.3 -35.8 1.8 20.0



Acute, 2217, 65.7%

Chronic, 428, 12.7%

Sub-Chronic,

730, 21.6%



50%

17%

9%

11%

13%




Wockhardt

Stock Performance

050

100150200250300350400


CNX Pharma Wockhardt


5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6 10

.1

7.1 9.

6

8.3

4.5

9.5

1.4

2.1

17.4

10.8

4.0 3.0

18.8

13.2

11.9

11.1

24.3

0

5

10

15

20

25

30A

pr-1

6

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr

-17

(%)

Indian Pharma Market Wockhardt



1.2 1.2 1.2 1.2 1.2 1.3 1.3 1.4 1.4 1.4 1.4 1.31.4

0.00.20.40.60.81.01.21.41.6

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Wockhardt



Spasmo Proxyvon PluGastro Intestinal 37.3 24.3 53.2 33.8 10.2

Practin Vitamins 8.0 8.0 1.2 7.2 12.2

Wepox Blood Related 7.9 0.9 786.2 1.9 317.4

Methycobal Vitamins 4.7 4.6 2.8 3.7 27.4

Tryptomer Neuro 4.6 6.1 -24.3 4.1 12.8

Biovac V Vaccines 4.0 2.9 36.9 3.9 4.2

Biovac A Vaccines 4.0 2.5 62.5 3.9 1.9

Butaproxyvon Pain 3.8 2.5 54.1 2.5 51.2

Bro Zedex Respiratory 3.2 3.4 -3.7 3.9 -16.1

Wosulin Anti Diabetic 2.7 2.9 -6.6 2.7 0.2


Exhibit 36: Contribution of therapies to domestic sales (MAT Apr’ 17) Gastro

Intestinal28%

Vitamins 15%Respiratory

12%

Neuro 7%

Anti Diabetic6%

Other32%





Vitamins 19.4 18.7 3.7 16.8 15.5

Respiratory 12.6 10.0 26.7 13.2 -4.1

Neuro 9.2 10.6 -13.3 8.0 14.7

Anti Diabetic 8.7 8.5 2.7 7.6 15.0

Derma 7.3 7.4 -1.7 6.7 8.4

Vaccines 8.4 5.5 53.2 8.9 -6.0

Pain 9.7 6.8 42.9 7.8 24.6

Anti-Infectives 6.6 7.0 -4.9 6.9 -3.7

Blood Related 8.2 1.1 640.4 2.1 284.1



Acute, 1022, 69.4%

Chronic, 291,

19.8%

Sub-Chronic,

159, 10.8%



57%

13%

8%

8%

14%



Glenmark Pharmaceuticals

Stock Performance

6080

100120140160180200

May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17CNX Pharma Glenmark



5.9

10.2

8.2 11

.4

17.7

13.7

9.2

15.5

7.6 10

.1

9.6

8.2 8.5

7.2 8.3

20.7

11.6

7.6

18.8

5.7

15.6

13.5 15

.7 17.8

7.1

8.3

-4

4

12

20

28

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indian Pharma Market Glenmark Pharma



2.3

2.1

2.3 2.3

2.42.3

2.42.5 2.5

2.62.5

2.5 2.5

2.1

2.2

2.3

2.4

2.5

2.6

2.7

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Glenmark Pharma



Telma H Cardiac 16.1 13.6 18.7 14.7 9.6

Telma Cardiac 17.4 13.2 31.0 14.3 21.1

Candid Derma 13.7 11.7 16.6 7.7 76.7

Ascoril Plus Respiratory 10.9 8.9 22.3 9.6 14.2

Candid-B Derma 7.8 8.7 -9.4 7.2 9.6

Telma Am Cardiac 7.9 7.4 6.8 8.3 -4.2

Ascoril Ls Respiratory 5.0 3.8 31.2 4.8 4.4

Onabet Derma 3.7 3.3 10.6 3.6 2.3

Zitamet Plus Anti Diabetic 4.4 3.0 46.8 3.9 14.2

Dubagest Gynaecological 2.7 2.9 -8.0 2.7 -0.7



Derma28%

Cardiac22%

Respiratory16%

Anti-Infectives14%

Anti Diabetic6%

Other14%




Derma 67.3 62.9 6.9 61.2 10.0

Cardiac 57.0 48.1 18.5 52.8 7.9

Respiratory 35.2 26.9 30.9 35.2 -0.2

Anti-Infectives 29.6 23.8 24.4 30.5 -3.0

Anti Diabetic 15.3 15.0 1.4 14.0 8.9


Gynaecological 7.1 5.1 38.5 6.2 14.8

Vitamins 4.6 5.7 -18.1 4.6 0.6

Pain 3.8 4.1 -7.8 3.8 -0.8

Ophthal 3.0 2.4 22.8 2.5 18.6



Acute, 1125, 41.9%

Chronic, 934, 34.7%

Sub-Chronic,

628, 23.4%



34%

12%10%

14%

30%




Torrent Pharmaceuticals

Stock Performance

4080

120160200


CNX Pharma Torrent Pharma


5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6

10.1

7.1

9.6

8.3

5.4

10.6

22.1

7.9 8.0

17.5 21

.3

14.5

14.7 17

.2

9.9 10

.5

15.6

0

5

10

15

20

25

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr

-17

(%)

Indian Pharma Market Torrent Pharma



2.3 2.32.4

2.32.2 2.2 2.2

2.3 2.3 2.3 2.42.4

2.3

1.5

1.7

1.9

2.1

2.3

2.5

2.7

2.9

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Torrent Pharma



Shelcal Vitamins 15.6 14.3 9.2 13.2 18.9

Chymoral Forte Pain 9.0 7.9 13.9 8.2 9.9

Azulix-Mf Anti Diabetic 8.3 5.1 62.9 7.3 13.5

Nikoran Cardiac 8.1 8.1 0.1 7.5 7.5

Nebicard Cardiac 7.3 5.3 37.3 6.8 7.2

Dilzem Cardiac 6.9 5.8 18.2 6.4 7.3

Nexpro Rd Gastro Intestinal 6.6 5.1 29.8 5.9 12.3

Nexpro Gastro Intestinal 5.3 4.3 23.0 4.8 11.5

Shelcal Ct Vitamins 4.4 3.9 11.1 3.4 27.3

Rozucor Cardiac 4.0 3.7 7.8 3.6 11.4



Cardiac31%

Neuro 17%

Gastro Intestinal

15%

Vitamins 14%

Anti Diabetic7%

Other16%




Cardiac 68.9 61.2 12.6 62.8 9.7

Neuro 40.6 33.6 20.9 36.8 10.1


Vitamins 31.7 29.2 8.4 26.9 17.8

Anti Diabetic 18.6 12.5 49.1 16.5 13.3

Pain 15.6 13.8 13.1 14.0 11.2

Anti-Infectives 6.1 7.1 -14.2 6.1 1.0

Derma 7.1 6.2 14.1 6.4 10.4

Gynaecological 2.5 2.5 0.3 2.3 7.8

Respiratory 0.8 0.4 83.3 0.9 -7.6



Acute, 587, 22.7%

Chronic, 1385, 53.6%

Sub-Chronic,

612, 23.7%



32%

14%

9%12%

33%




Ipca Laboratories

Stock Performance

5075

100125150


CNX Pharma Ipca


5.9

10.2

8.2 11

.4

17.7

13.7

9.2

15.5

7.6 10

.1

7.1 9.

6

8.3

3.5

3.5

4.6

18.5

28.7

8.6

5.2

9.5

2.9

3.5

13.1

9.7

1.9

0

5

10

15

20

25

30

35

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indian Pharma Market Ipca Lab



1.2 1.2 1.21.3 1.4 1.4 1.3

1.2 1.2 1.1 1.2 1.2 1.2

0.0

0.5

1.0

1.5

2.0

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Ipca Lab



Zerodol P Pain 8.6 7.9 9.0 5.0 72.2

Zerodol Sp Pain 9.4 7.8 20.6 8.3 12.9

Hcqs Anti Malarials 6.4 5.9 8.2 6.1 4.9

Glycinorm M Anti Diabetic 3.6 3.1 14.2 3.6 0.1

Rapither-Ab Anti Malarials 2.1 2.9 -28.6 1.6 29.4

Folitrax Anti-Neoplastics 3.4 2.7 24.4 3.2 6.9

Zerodol Pain 2.4 2.5 -3.4 2.1 15.3

Larinate Anti Malarials 2.6 2.5 4.7 2.1 21.5

Lariago Anti Malarials 1.7 2.1 -19.1 1.7 -2.5

Ctd Cardiac 2.2 2.0 5.7 2.1 5.1



Pain 26%

Anti Malarials19%

Cardiac16%

Gastro Intestinal

8%

Anti-Infectives6%

Other25%




Pain 34.1 30.0 13.6 27.6 23.5

Anti Malarials 15.4 16.4 -6.3 14.1 8.8

Cardiac 19.8 18.7 5.6 19.3 2.3


Anti-Infectives 6.7 5.7 17.5 5.8 15.2

Anti Diabetic 6.4 5.7 11.6 6.4 -0.7

Anti-Neoplastics 5.0 4.6 8.6 5.0 0.7

Neuro 4.8 3.6 33.2 5.1 -5.9

Respiratory 3.7 3.5 4.7 4.4 -16.1

Derma 4.0 2.8 44.3 4.4 -9.3



Acute, 902, 65.3%

Chronic, 381, 27.6%

Sub-Chronic, 98,

7.1%



37%

16%11%

13%

23%




Biocon

Stock Performance

60100140180220

May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17CNX Pharma Biocon



5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6 10

.1

7.1 9.

6

8.3

8.4

8.3

2.0

2.2

9.8

10.5

2.5

26.0

10.5

11.2

5.1 1.8

20.9

0

5

10

15

20

25

30

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indian Pharma Market Biocon



0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.3 0.40.3

0.0

0.2

0.4

0.6

0.8

1.0

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Biocon



Insugen Anti Diabetic 9.6 7.5 27.7 9.0 7.3

Basalog Anti Diabetic 6.7 5.1 30.6 6.0 11.1

Canmab Anti-Neoplastics 4.7 2.2 116.0 2.5 89.6

Erypro Blood Related 1.3 1.9 -32.7 1.5 -16.7

Abraxane Anti-Neoplastics 0.1 1.7 -96.5 0.0 NA

Insugen R Anti Diabetic 1.9 1.4 33.4 1.9 0.3

Blisto Mf Anti Diabetic 1.5 1.2 17.5 1.4 4.8

Biomab Egfr Anti-Neoplastics 0.9 1.0 -14.7 0.1 500.0

Psorid Anti-Neoplastics 1.3 0.6 123.6 1.0 33.7

Insugen N Anti Diabetic 0.6 0.6 11.1 0.7 -7.5



Anti Diabetic58%

Anti-Neoplastics

21%

Blood Related9%

Cardiac5%

Derma3%

Other 4%




Anti Diabetic 21.8 17.0 28.4 20.5 6.3


Blood Related 1.3 1.9 -30.7 1.6 -15.5

Cardiac 1.5 1.5 1.3 1.8 -14.0

Derma 0.9 0.7 24.4 0.8 9.1

Anti-Infectives 1.1 0.6 86.2 1.1 -3.4

Others 0.3 0.2 64.9 0.4 -16.1


Vitamins 0.1 0.1 -24.8 0.1 -14.4

Pain 0.1 0.0 167.5 0.1 -47.7



Acute, 73, 19.7%

Chronic, 267, 72.3%

Sub-Chronic, 30,

8.0%



79%9%

5%

5%

2%




Pfizer

Stock Performance

4080

120160200


CNX Pharma Pfizer


5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6 10

.1

7.1 9.

6

8.3

2.5

7.4

-0.9

2.8

6.9

2.3

0.5 6.

6

-3.2

-1.5

0.7

-1.5

-5.8

-10

-5

0

5

10

15

20

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indian Pharma Market Pfizer



2.92.8

2.6 2.7 2.6 2.6 2.7 2.6 2.6 2.6 2.6 2.5 2.5

2.0

2.4

2.8

3.2

3.6

4.0

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Pfizer



Becosules Vitamins 20.4 18.8 8.8 16.5 24.0

Dolonex Pain 13.3 11.6 14.8 11.3 17.5

Prevenar 13 Vaccines 12.5 4.2 200.1 14.2 -12.5

Magnex Anti-Infectives 11.8 9.4 25.5 11.1 5.9

Minipress Xl Cardiac 11.7 15.4 -23.7 12.5 -6.0

Gelusil Mps Gastro Intestinal 10.6 10.8 -2.3 10.2 3.3

Mucaine Gastro Intestinal 9.5 9.7 -3.0 9.4 0.9

Wysolone Hormones 8.0 7.8 2.1 7.4 7.9

Folvite Blood Related 6.9 7.3 -5.3 6.4 7.2

Ovral L Gynaecological 6.3 6.0 5.3 5.8 8.5


Exhibit 61: Contribution of therapies to domestic sales (MAT Apr’ 17) Anti-Infectives14%

Gastro Intestinal

10%

Respiratory10%

Vitamins 10%Hormones

10%

Other46%




Anti-Infectives 33.5 34.6 -3.2 32.9 1.7


Respiratory 9.7 34.3 -71.8 12.6 -23.4

Vitamins 25.1 24.2 3.8 20.9 20.0

Hormones 22.2 20.9 6.2 20.1 10.3

Gynaecological 23.3 21.0 11.0 21.7 7.6

Cardiac 17.1 21.2 -19.6 18.0 -5.3

Neuro 18.3 19.7 -6.9 18.2 0.5

Pain 16.9 15.0 12.6 15.2 11.8

Vaccines 17.8 7.4 140.3 19.7 -9.7



Acute, 1864, 63.8%

Chronic, 476, 16.3%

Sub-Chronic,

583, 19.9%



47%

20%

11%

11%

11%




Novartis

Stock Performance

40

90

140

190


CNX Pharma Novartis India



5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6

10.1

7.1

9.6

8.3

17.7

14.6

5.4

5.0 5.6

14.4

5.1

8.5 6.

1

02468

101214161820

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indian Pharma Market Novartis India

8



1.0 1.0 1.0 0.9 0.9 1.0 0.91.0

1.00.9

1.0 1.01.0

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Novartis India



Galvus Met Anti Diabetic 33.3 25.2 32.0 33.2 0.5

Voveran Pain 19.6 19.5 0.3 17.4 12.2

Galvus Anti Diabetic 10.1 10.1 0.7 9.8 3.0

Tegrital Neuro 4.7 5.0 -6.4 4.5 5.7

Voveran Pain 3.1 3.4 -10.6 2.9 6.7

Regestrone Gynaecological 2.7 3.0 -8.8 2.4 15.1

Methergin Gynaecological 2.7 2.5 8.2 2.4 13.6

Syntocinon Gynaecological 2.1 2.0 3.4 2.1 0.0

Macalvit Vitamins 1.9 2.0 -6.9 1.6 16.3

Calcium Sandoz Vitamins 2.2 1.9 12.3 1.8 19.5



Anti Diabetic43%

Pain 26%

Vitamins 10%

Gynaecological8%

Neuro 5%

Other8%




Anti Diabetic 43.8 35.9 22.2 43.3 1.1

Pain 23.6 24.4 -3.1 21.0 12.3

Vitamins 8.8 9.6 -9.0 9.0 -3.1

Gynaecological 7.7 7.8 -1.8 7.0 9.0

Neuro 4.7 5.1 -7.0 4.5 5.7

Anti-Infectives 2.7 3.6 -24.5 2.2 23.2

Respiratory 1.5 1.8 -18.5 1.6 -5.4

Cardiac 1.3 0.8 62.2 1.2 14.0


Hormones 0.4 0.1 236.0 0.1 303.1



Acute, 409, 37.8%

Chronic, 527, 48.6%

Sub-Chronic,

147, 13.6%



84%

9%3%3%1%




Unichem Laboratories

Stock Performance

70100130160


CNX Pharma Unichem Labs



5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6 10

.1

7.1 9.

6

8.3

8.4 11

.3 12.3

18.8

22.2

26.7

22.1

15.9

10.8

8.1 8.8 9.2

2.3

0

5

10

15

20

25

30

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr

-17

(%)

Indian Pharma Market Unichem Lab



0.9

0.9 0.9

0.9 0.90.9

0.9 0.90.9 0.9

0.90.9

0.8

0.8

0.8

0.8

0.8

0.9

0.9

0.9

0.9

0.9

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Unichem Lab


Exhibit 70: Top 10 brands performance (| crore)

Brand Therapy Apr' 17 Apr' 16 Var. (%) Mar' 17 Var. (%)

Losar H Cardiac 8.0 7.9 1.4 7.6 4.3

Losar Cardiac 6.4 5.8 10.4 6.2 2.4

Unienzyme Gastro Intestinal 5.0 5.1 -3.2 5.5 -8.8

Ampoxin Anti-Infectives 4.8 5.1 -6.5 5.2 -7.9

Vizylac Gastro Intestinal 3.0 2.8 4.9 2.6 12.9

Trika Neuro 2.0 2.0 2.7 2.1 -3.8

Serta Neuro 1.8 2.0 -8.0 2.0 -7.1

Unistar (Unichem) Cardiac 1.8 1.6 15.2 1.7 7.3

Arkamin Cardiac 1.6 1.4 15.8 1.6 2.0

Telsar Cardiac 1.4 1.3 8.0 1.3 4.8



Cardiac42%

Anti-Infectives16%

Neuro 14%

Gastro Intestinal

12%

Anti Diabetic5%

Other11%




Cardiac 34.7 33.6 3.5 33.6 3.2

Anti-Infectives 10.5 11.0 -4.2 11.2 -6.2

Neuro 11.7 11.2 5.1 11.6 1.2

Gastro Intestinal 9.3 9.3 0.4 9.4 -1.0

Anti Diabetic 5.0 3.5 41.2 4.7 4.8

Pain 2.9 2.9 -0.8 3.0 -4.2

Vitamins 1.6 1.8 -10.6 1.7 -5.9

Respiratory 1.3 1.6 -15.4 1.5 -9.9

Derma 1.5 1.9 -20.3 1.5 -1.9

Gynaecological 0.2 0.4 -37.8 0.2 -9.9



Acute, 341,

34.3%

Chronic, 593,

59.7%

Sub-Chronic, 60, 6.0%



32%

14%

9%12%

33%




Indoco Remedies

Stock Performance

6080

100120140


CNX Pharma Indoco



5.9

10.2

8.2 11

.4

17.7

13.7

9.2

15.5

7.6 10

.1

7.1 9.

6

8.3

28.6

34.8

-0.2

5.4

11.4

18.4

6.4 9.6

5.8

17.7

16.2

18.7

18.0

-5

0

5

10

15

20

25

30

35

40

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr

-17

(%)

Indian Pharma Market Indoco Remedies



0.6 0.60.7

0.8 0.80.7 0.7 0.7 0.7

0.7 0.8 0.70.7

0.50.60.60.70.70.80.80.90.91.01.01.11.1

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indoco Remedies



Febrex Plus Respiratory 5.0 4.3 16.6 6.1 -19.0

Cital Urology 3.4 3.9 -11.9 3.1 11.2

Cyclopam Gastro Intestinal 4.3 3.6 18.8 4.1 4.6

Sensodent-K Stomatologicals 3.3 3.2 3.9 2.8 18.2

Oxipod Anti-Infectives 3.5 2.6 33.4 3.7 -5.0

Atm Anti-Infectives 2.0 1.9 4.6 2.5 -20.3

Cloben G Derma 2.0 1.8 9.3 1.9 4.2

Sensodent-Kf Stomatologicals 1.7 1.7 -0.2 1.5 15.7

Cyclopam Gastro Intestinal 2.3 1.7 32.5 2.1 6.0

Sensoform Stomatologicals 1.8 1.7 6.9 1.5 19.7


Exhibit 76: Contribution of therapies to domestic sales (MAT Apr’ 17) Respiratory

19%

Anti-Infectives18%

Stomatologicals

15%

Gastro Intestinal

14%

Vitamins 8%

Other26%




Respiratory 8.7 7.5 15.5 10.9 -20.4

Anti-Infectives 9.9 8.5 16.2 10.9 -9.5

Stomatologicals 10.7 9.8 9.7 9.6 12.2


Vitamins 6.1 4.1 47.1 6.1 -0.9

Urology 3.8 4.2 -9.9 3.5 10.6

Ophthal 3.9 2.8 36.9 3.7 4.6

Pain 2.5 2.3 9.5 2.8 -7.5

Derma 2.6 2.3 12.4 2.6 1.0

Anti Diabetic 2.6 1.7 55.1 2.4 8.4



Acute, 654,

81.9%

Chronic, 45, 5.7%

Sub-Chronic,

99, 12.5%



47%

15%

9%

11%

18%




Ajanta Pharmaceuticals

Stock Performance

4090

140190240290


CNX Pharma Ajanta



5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6

10.1

7.1

9.6

8.3

19.4

19.3

19.2

14.5 16

.1

8.3

12.5 13

.4

10.6

18.4

8.7

13.8

11.9

0

5

10

15

20

25

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr

-17

(%)

Indian Pharma Market Ajanta Pharma



0.6

0.7 0.7

0.60.6

0.60.6

0.60.6

0.7

0.6 0.60.6

0.50.50.50.60.60.60.60.60.70.70.7

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr

-17

(%)

Ajanta Pharma


Exhibit 80: Top 10 brands performance (| crore) Brand Therapy Apr' 17 Apr' 16 Var. (%) Mar' 17 Var. (%)Met Xl Cardiac 6.2 5.1 21.7 6.6 -6.3

Melacare Derma 4.6 3.6 27.4 3.4 35.1

Atorfit Cv Cardiac 4.1 4.1 -1.1 4.1 0.5

Feburic Pain 1.8 1.6 16.3 1.7 6.1

Rosufit Cv Cardiac 1.6 1.7 -4.2 1.5 8.8

Soft Drops Ophthal 1.6 1.4 13.5 1.6 1.9

Rosutor Gold Cardiac 1.6 1.1 39.2 1.4 14.7

Met Xl Am Cardiac 1.5 1.5 -0.2 1.6 -3.5

Cinod Cardiac 1.3 1.1 16.4 1.4 -6.4

Olopat Ophthal 1.0 1.0 5.0 0.9 14.1



Cardiac38%

Ophthal 24%

Derma18%

Pain 5%

Vitamins 5%

Others10%




Cardiac 21.9 19.1 14.6 21.7 1.0

Ophthal 16.2 13.7 18.6 14.9 8.5

Derma 10.7 10.6 1.3 9.5 12.4

Pain 2.8 2.6 6.5 2.6 6.9

Vitamins 2.4 2.8 -16.6 2.4 -1.8

Neuro 1.3 1.1 16.2 1.2 14.6


Anti-Infectives 1.1 0.9 17.4 1.2 -10.5

Anti Diabetic 1.2 0.8 57.5 1.2 3.2

Respiratory 0.3 0.3 -6.8 0.4 -29.3



Acute, 271, 38.6%

Chronic, 354, 50.5%

Sub-Chronic, 76,

10.8%



44%

11%9%

12%

24%




Alembic Pharmaceuticals

Stock Performance

406080

100120140160180200


CNX Pharma Alembic Pharma



5.9

10.2

8.2

11.4

17.7

13.7

9.2

15.5

7.6 10

.1

7.1 9.

6

8.3

5.4

11.8

11.6

17.9 20

.4

11.5

6.3

4.6

-2.1

-1.4

-2.7

1.4

5.1

-5

0

5

10

15

20

25Ap

r-16

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Indian Pharma Market Alembic



1.3 1.31.3

1.41.4

1.4 1.4

1.3 1.31.3

1.31.2 1.2

1.1

1.2

1.2

1.3

1.3

1.4

1.4

1.5

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

(%)

Alembic


Exhibit 85: Top 10 brands performance (| crore)

Brand Therapy Apr' 17 Apr' 16 Var. (%) Mar' 17 Var. (%)Azithral Anti-Infectives 10.7 9.0 18.9 10.2 4.8

Althrocin Anti-Infectives 5.2 5.8 -9.9 5.3 -2.2

Gestofit Gynaecological 5.1 5.3 -3.8 4.7 8.6

Wikoryl Respiratory 3.7 3.1 18.2 4.4 -15.0

Roxid Anti-Infectives 3.6 4.3 -15.9 3.6 -0.8

Rekool D Gastro Intestinal 2.6 2.5 1.3 2.4 7.4

Ulgel Gastro Intestinal 2.3 2.8 -16.3 2.1 8.8

Glisen Mf Anti Diabetic 2.2 2.1 2.4 1.9 15.3

Richar Gynaecological 2.1 2.1 0.6 2.0 9.2

Tellzy Ch Cardiac 1.9 1.6 16.2 1.8 5.7



22%

Cardiac15%Gastro

Intestinal13%

Respiratory13%

Gynaecological12%

Other25%



Therapy Apr' 17 Apr' 16 YoY (%) Mar' 17 MoM (%)Anti-Infectives 23.4 22.5 4.1 23.1 1.3Cardiac 19.0 17.7 7.5 17.2 10.5Gastro Intestinal 15.2 15.7 -3.5 13.7 11.0Respiratory 12.2 11.2 9.1 13.6 -10.1Gynaecological 14.5 13.6 6.7 13.3 8.5Vitamins 10.1 9.9 2.0 8.5 18.9Anti Diabetic 9.7 7.9 23.0 8.7 10.9Pain 3.9 4.5 -12.5 3.4 15.6Urology 3.0 2.3 30.2 3.0 1.8Derma 1.9 2.1 -9.9 1.7 11.1



Acute, 834,

56.4%

Chronic 231.46, 18.8%

Sub-Chronic 214.35, 17.4%



44%

11%9%

12%

24%



US Regulatory approvals

Exhibit 88: Summary of USFDA approvals for Apr, 2017 [5

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeSun Pharma Tazarotene Derma Allergan Tazorac NAJubilant Lifesciences Celecoxib Anti-Inflammatory GD Searle Celebrex US$ 2.44 billionAlembic Pharma Fluoxetine Hydrochloride CNS APIL Sarafem NALupin Bupropion Hydrochloride Anti-depressant GSK Wellbutrin NAGlenmark Fenofibrate Tablets Anti-cholesterol Abbott Tricor NAAurobindo Simpesse Oral Contraceptive Teva Seasonique NAAurobindo Rocuronium Bromide Anathesia Merck Zemuron NAUnichem Piroxicam Pain Pfizer Feldene NASun Pharma Felbamate CNS Medpointe Pharm HLC Felbatol NATorrent Pharma Olmesartan Medoxomil CVS Daiichi Sankyo Benicar US$ 1.8 billionAlembic Pharma Olmesartan Medoxomil CVS Daiichi Sankyo Benicar US$ 1.8 billionAlembic Pharma Hct Olmesartan Medoxomil CVS Daiichi Sankyo Benicar HCT US$ 1.8 billionAurobindo Olmesartan Medoxomil CVS Daiichi Sankyo Benicar US$ 1.8 billionCadila Healthcare Olmesartan Medoxomil CVS Daiichi Sankyo Benicar US$ 1.8 billionAurobindo Hct Olmesartan Medoxomil CVS Daiichi Sankyo Benicar HCT US$ 1.8 billionJubilant Lifesciences Olmesartan Medoxomil CVS Daiichi Sankyo Benicar US$ 1.8 billionCadila Healthcare Cholestyramine Obesity BMS Questran NADr Reddys Labs Ezetimibe; Simvastatin Obesity Merck Vytorin NALupin Olmesartan Medoxomil CVS Daiichi Sankyo Benicar US$ 1.8 billionAurobindo Lo Simpesse Oral Contraceptive Teva Seasonique NA

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeCipla Abacavir Sulfate;Lamivudine Tablets Anti-retroviral VIIV Healthcare Epzicom US$ 449 millionAlembic Pharma Vilazodone Hydrochloride CNS Merck Vilbryd NAGlenmark Pharma Dabigatran Etexilate CVS Boehringer Ingelheim Pradaxa NASun Pharma Doxycycline Anti-Infective Aqua Pharma Monodox US$ 181 millionBiocon Fingolimod multiple sclerosis Novartis Gilenya NA

Final Approvals

Tentative Approvals

Annexure Monthly Sector News M&As, demergers, tie-ups and JVs

Torrent Pharma acquires hormone segment brands in India from Novartis Torrent Pharma has acquired two leading women's healthcare brands - Regestrone and Pregachieve from Novartis in India. Jubilant Life acquires US based radiopharmacy business Jubilant Life has signed an asset purchase agreement with Triad Isotopes to acquire substantially all of the assets, which comprise the radiopharmacy business of Triad. Triad recorded revenues in excess of US$225 million in CY16 with positive EBITDA and operates the second largest radiopharmacy network in the US with more than 50 pharmacies. Price cuts, new launches, recalls, approvals

Natco launches cancer drug pomalidomide in India Natco has launched the generic version of Pomalidomide (oncology) capsules in India. The company will market generic pomalidomide capsules under its brand name Pomalid in India. The drug is sold under brand name Pomalyst by Celegene in the US. Natco Pharma launches hepatitis C drug Velpanat in India Natco Pharma has launched a hepatitis C fixed dose combination drug Sofosbuvir (400 mg) and Velpatasvir (100 mg) under the brand name of Velpanat in India. Velpanat is the generic version of Epclusa, manufactured by Gilead Sciences globally. Natco has signed a nonexclusive licensing agreement with Gilead Sciences, to manufacture and sell generic versions of its chronic hepatitis C medicines in 101 developing countries.


Taro Pharma recalls Nystatin, Triamcinolone Acetonide cream in US Sun Pharma subsidiary Taro Pharma has recalled 278304 tubes of Nystatin and Triamcinolone Acetonide Cream (dermatology), due to failed content uniformity specifications. Jubilant Life recalls BuPROPion Hydrochloride ER Tablets in US Jubilant Lifesciences has received class III product recalls from US, namely, 121641 bottles of BuPROPion Hydrochloride Extended-release Tablets due to failed impurities/degradation specifications. Glenmark initiates clinical investigation for GBR 310 Glenmark's Investigational New Drug (IND) application for its proposed biosimilar GBR310 (respiratory) has been approved. GBR 310 will assess its pharmacokinetics in comparison to Xolair (omalizumab) in healthy adult volunteers between 18 and 65 years of age. The annual sales of Xolair were ~US$1.7 billion in the US (IMS MAT February 2017). Lupin launches erectile dysfunction drug Cialis Lupin has launched Cialis (tadalafil), an oral PDE5 inhibitor, for the treatment of erectile dysfunction (ED) in adult males in India. Lupin has acquired the rights to market, promote and distribute Lilly’s Erectile Dysfunction (ED) product, Cialis through its specialty field force while Lilly will be responsible for manufacturing and importing the product. The PDE-5 market in India is valued at ~| 390 crore, out of which Tadalafil contributes around 23%. The market size has doubled since 2012 and is growing annually at 15%. Glenmark gets US FDA clearance to begin phase 1 study of GBR 1342 USFDA has cleared Glenmark’s investigational new drug (IND) application to initiate a Phase 1 study of GBR 1342 (oncology), a humanised, bispecific monoclonal antibody (bsAb) being studied for the treatment of multiple myeloma in patients who have received prior therapies Lawsuits, court rulings, settlements, regulatory issues

US court rules in favour of Cadila in patent case of gLialda Cadila Healthcare has won a judgement against Shire Pharma, holding that its proposed generic version of Lialda (oncology) does not infringe the US patent. The drug had US sales of US$714 million (CY16). Biocon’s Bangalore facility receives eight observations from USFDA Biocon's manufacturing facility in Bangalore has received eight form 483 observations from USFDA. The company has already responded to USFDA on all observations within stipulated timelines. Lupin Aurangabad plant receives eight observations from USFDA Lupin's Aurangabad facility has received eight observations from the USFDA. The plant's inspection was carried out from April 17-26, 2017. Lupin Goa plant receives three observations from USFDA Lupin’s Goa plant has received three observations from USFDA. As per media sources, Lupin has received voluntary action indicated (VAI) status for Goa plant from USFDA. Dr Reddy’s Hyderabad plant receives 11 observations from USFDA Dr Reddy's Hyderabad (Bachupally) formulations manufacturing plant 3 has received 11 observations from USFDA. As per the managements, these observations are mostly procedural in nature, reflecting need to improve people capabilities and strengthen documentation and laboratory systems USFDA issues warning letter to Divis Labs for Vishakhapatnam unit Divis lab Vishakhapatnam unit 2 has been issued a warning letter by the USFDA. This plant is already under USFDA import alert and has been exempted from several manufactured products (12 products).


Aurobindo’s Unit 3 plant receives six observations from USFDA Aurobindo Pharma has received six observations at its Unit 3 oral formulations plant. As per the management, the observations are all procedural in nature. Jubilant Life receives | 50 lakh fine from NGT Jubilant Life has received a | 50 lakh fine from NGT on five units of Amroha for discharging untreated effluents in the open and extracting ground water beyond permissible limits. This plant has been ordered to be shut by NGT and respond with corrective action plan within a week, in a case relating to pollution of river Ganga and drainage canals leading to river Ganga. CCI rules in favour of Biocon in case against Roche over breast cancer drug Competition Commission of India (CCI) is investigating to ascertain whether Roche tried to block access to Biocon and Mylan biosimilars in India for its Trastuzumab (anti-cancer) drug. However, the order should not be construed as final opinion on the ongoing case. The order comes as a response to a joint complaint filed by the Mylan and Biocon in 2016 alleging that the Roche Group indulged in "abusive conduct”. Others

Lupin completes expansion of US manufacturing facility As per media sources, Lupin has expanded its Somerset, New Jersey manufacturing facility to 100,000-sq ft. The new facility will focus on making affordable medicines for treatment in various therapeutic areas. Jubilant Life raises | 100 crore Jubilant Life has issued commercial papers of | 100 crore on April 18, 2017. Q4FY17 Result Highlights

Ajanta Pharma - Upbeat numbers driven by Asia, US Revenues grew 12% YoY to | 477 crore on the back of 14% growth in domestic sales to | 140 crore and a sharp jump in US sales. EBITDA margins improved 82 bps YoY to 33.8% driven by 308 bps increase in gross margins to 80.7%. EBITDA increased 15% YoY to | 161 crore. Adjusted net profit increased 6% YoY to | 114 crore. Alembic Pharma - Q4 driven by exports, domestic specialty Revenues increased 18% YoY to | 741 crore on account of 54% YoY growth in the US to | 200 crore. Domestic formulations grew 10% YoY to | 286 crore driven by 13% growth in speciality portfolio. EBITDA margins contracted 471 bps YoY to 18.2% due to higher raw material and employee cost. EBITDA declined 6% YoY to | 135 crore. Net profit increased 2% YoY to | 93 crore mainly due to lower taxation. Biocon- Subdued Q4 Revenues declined 1.5% YoY to | 931 crore due to elongated approval timelines in emerging markets, discontinuance of in-licensed products and fire incident at Syngene. EBITDA margins contracted 70 bps YoY to 20.1% mainly due to higher raw material & employee cost. EBITDA declined 4.8% YoY to | 188 crore. Net profit increased 106% YoY to | 127.5 crore on account of higher other income. Dr Reddy’s Labs - US performance continues to weigh on numbers Revenues declined 5% YoY to | 3554 crore mainly due to a 19% decline in US sales to | 1535 crore led by increased competition in key products, coupled with discontinuation of McNeil contract. EBITDA margins declined 643 bps to 15.1% mainly due to sharp decline in gross margins by 549 bps to 51.2% led by one-offs. Adjusted net profit fell 40% YoY to | 338 crore mainly due to lower operational performance.


Glenmark Pharma - Huge miss led by disappointing US show Revenues grew 8% YoY to | 2457 crore mainly due to 53.5% YoY growth in the US to | 1000 crore led by gZetia Exclusivity. Miss vis-à-vis ours and consensus estimate was due to lower US traction, which was way below expectation. EBITDA margins increased 481 bps YoY to 18.1%. The YoY increase is mainly attributable to the lower base margins in Q4FY16. EBITDA increased 46% YoY to | 444 crore. Adjusted net profit increased 23.5% YoY to | 184 crore but came in below I-direct estimate of | 693 crore. Syngene International - Lag effect of fire incident hurts topline Revenues declined 12% YoY to | 291 crore lower than I-direct estimates of | 385 crore. EBITDA margins contracted 95 bps to 34.5% YoY mainly due to higher raw material and employee cost. EBITDA declined 15% to | 100 crore. Net profit declined 1% to | 78 crore mainly due to a below estimated operational performance and higher other income.


Exhibit 89: US Patent litigations [5

Month Innovator ANDA Filer Brand Name API Used for Nov-16 Onyx Therapeutics Dr Reddy's Lab Kyprolis carfilzomib multiple myelomaNov-16 Onyx Therapeutics Cadila Kyprolis carfilzomib multiple myelomaNov-16 Indoco Remedies Zydus Pharma Abilify Aripiprazole SchizophreniaNov-16 UCB Inc Cadila Neupro rotigotine ParkinsonNov-16 Amarin Pharma Dr Reddy's Lab Vascepa icosapent ethy hypertri- glyceridemiaNov-16 Medicis Pharma Dr Reddy's Lab Solodyn minocycline infectionsDec-16 Sanofi-Aventis Torrent Pharma AUBAGIO teriflunomide multiple sclerosisDec-16 AstraZeneca AB Cipla Nexium 24HR esomeprazole treatment of acid refluxDec-16 Sanofi-Aventis Glenmark AUBAGIO teriflunomide multiple sclerosisDec-16 Sanofi-Aventis Alembic Pharma AUBAGIO teriflunomide multiple sclerosisDec-16 Wyeth Pharma Alembic Pharma BOSULIF bosutinib leukemiaDec-16 Sanofi-Aventis Aurobindo AUBAGIO teriflunomide multiple sclerosisDec-16 Eli Lilly and Co., ICOS Corp. Ajanta Pharma CIALIS tadalafil erectile dysfunctionDec-16 Astellas Pharma Cadila XTANDI enzalutamide prostate cancerDec-16 Cephalon, Inc. Cipla Abraxane paclitaxel breast cancerJan-17 Sanofi-Aventis Biocon AUBAGIO teriflunomide multiple sclerosisJan-17 Sanofi-Aventis Teva Pharma AUBAGIO teriflunomide multiple sclerosisJan-17 Sanofi-Aventis MSN Laboratories AUBAGIO teriflunomide multiple sclerosisJan-17 Sanofi-Aventis Hetero Labs AUBAGIO teriflunomide multiple sclerosisJan-17 Sanofi-Aventis Zydus Pharma (USA) AUBAGIO teriflunomide multiple sclerosisJan-17 AbbVie Inc Aurobindo Pharma KALETRA ritonavir HIVJan-17 Novartis AG Aurobindo Pharma GILENYA fingolimod multiple sclerosisJan-17 Novartis AG Aurobindo Pharma GILENYA fingolimod multiple sclerosisJan-17 Shionogi Inc Aurobindo Pharma FORTAMET metformin Type 2 diabetesJan-17 Dow Pharma Taro Pharma ONEXTON cindamycin phosphate, benzoyl peroxide AcneJan-17 Aptalis Pharma Zydus Pharma (USA) CANASA mesalamine Ulcerative proctitisFeb-17 Pfizer Inc Torrent Pharma TOVIAZ glatiramer acetate IncontinenceFeb-17 Biomarin Pharma Dr. Reddy's Lab KUVAN sapropterin PhenylketonuriaFeb-17 AstraZeneca AB Dr. Reddy's Lab FASLODEX fulvestrant Breast cancerFeb-17 iCeutica Pty Ltd Lupin Ltd VIVLODEX meloxicam Osteoarthritis painFeb-17 Pfizer Inc Sun Pharma XELJANZ XR tofacitinib citrate Rheumatoid arthritisMar-17 Pfizer Inc Cadila Healthcare XELJANZ XR tofacitinib citrate Rheumatoid arthritisMar-17 Dow Pharma Taro Pharma Onexton cindamycin phosphate, benzoyl peroxide AcneMar-17 Novartis, Mitsubishi Tanabe PharmAlembic GILENYA fingolimod multiple sclerosisMar-17 Teva Lupin PROAIR HFA albuterol sulfate RespiratoryMar-17 ViiV Healthcare;Vertex Pharma Lupin LEXIVA fosamprenavir HIVMar-17 Alcon Research Lupin PAZEO olopatadine ConjunctivitisApr-17 BMS ; Pfizer Aurobindo ELIQUIS apixaban AnticoagulantApr-17 BMS ; Pfizer Lupin ELIQUIS apixaban AnticoagulantApr-17 BMS ; Pfizer Torrent Pharma ELIQUIS apixaban AnticoagulantApr-17 BMS ; Pfizer Unichem ELIQUIS apixaban AnticoagulantApr-17 BMS ; Pfizer Dr. Reddy's Lab ELIQUIS apixaban AnticoagulantApr-17 BMS ; Pfizer Indoco Remedies ELIQUIS apixaban AnticoagulantApr-17 BMS ; Pfizer Sun Pharma ELIQUIS apixaban AnticoagulantApr-17 BMS ; Pfizer Cadila Healthcare ELIQUIS apixaban AnticoagulantApr-17 Celgene Corp Cadila Healthcare REVLIMID lenalidomide OncologyApr-17 Elli Lilly Dr. Reddy's Lab CIALIS tadalafil erectile dysfunctionApr-17 Millenium Pharma Cadila Healthcare REVLIMID lenalidomide OncologyApr-17 Bayer Pharma Taro Pharma Xarelto Rivaroxaban Blood ThinnerApr-17 Bayer Pharma Aurobindo Pharma Xarelto Rivaroxaban Blood Thinner

Source: Bloomberg, ICICIdirect.com Research


Exhibit 90: One year forward P/E of CNX Pharma vs. Nifty

05

1015202530354045

May

-12

Nov

-12

May

-13

Nov

-13

May

-14

Nov

-14

May

-15

Nov

-15

May

-16

Nov

-16

May

-17

x

CNX Pharma Nifty

11% Premium

[

Source: Company, ICICIdirect.com Research

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

Code (|) (|) (| Cr) FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E

Ajanta Pharma AJAPHA 1664 1,880 Buy 14644.0 45.4 58.5 61.7 72.4 36.6 28.5 27.0 23.0 42.9 40.6 33.8 31.7 34.2 32.6 27.0 25.2

Alembic Pharma ALEMPHA 608 615 Hold 11459.9 38.2 21.4 23.4 30.2 15.9 28.4 26.0 20.2 51.5 26.1 22.3 24.7 44.9 21.4 20.0 21.8

Apollo Hospitals APOHOS 1303 1,440 Buy 18121.1 22.2 22.5 35.2 50.0 58.7 57.8 37.0 26.0 8.2 8.1 11.1 14.7 8.9 8.4 11.8 14.7

Aurobindo Pharma AURPHA 615 965 Buy 36005.4 33.9 38.7 39.5 49.1 18.1 15.9 15.6 12.5 23.3 23.6 20.9 22.6 28.1 24.6 20.3 20.5

Biocon BIOCON 994.3 1,020 Hold 19885.0 23.1 31.0 25.5 40.8 43.0 32.0 38.9 24.4 9.1 11.4 10.4 15.3 11.4 13.5 10.2 14.5

Cadila Healthcare CADHEA 484 425 Hold 49528.7 15.0 12.2 16.9 21.5 32.4 39.6 28.6 22.6 26.7 15.2 20.1 23.0 28.6 19.9 22.9 23.8Cipla CIPLA 561.9 575 Hold 45207.6 18.5 17.2 24.3 31.4 30.4 32.7 23.1 17.9 12.0 10.5 13.9 16.4 12.5 10.6 13.2 14.9

Divi's Lab DIVLAB 622 700 Hold 16500.2 41.8 41.1 42.8 47.8 14.9 15.1 14.5 13.0 30.7 26.8 24.4 23.7 25.9 21.6 19.3 18.6

Dr Reddy's Labs DRREDD 2706 2,610 Hold 44831.9 141.4 68.6 106.1 137.3 19.1 39.4 25.5 19.7 17.3 6.3 10.8 13.7 20.6 9.4 13.0 14.7

Glenmark Pharma GLEPHA 703 910 Buy 19849.1 32.2 46.9 47.9 50.5 21.8 15.0 14.7 13.9 16.2 20.6 19.8 19.1 21.2 25.9 21.2 18.4

Indoco Remedies INDREM 218.1 235 Hold 2009.3 9.4 8.7 12.7 15.6 23.2 25.0 17.1 14.0 12.9 9.5 13.9 16.1 14.8 12.4 15.8 16.8

Ipca Laboratories IPCLAB 547 560 Hold 6901.6 10.0 15.0 24.1 31.1 54.6 36.4 22.7 17.6 5.7 9.8 12.7 14.8 5.5 7.8 11.3 13.0

Jubilant Life JUBLIF 762.8 810 Buy 12149.2 26.0 37.0 51.1 68.0 29.3 20.6 14.9 11.2 12.0 14.1 15.6 18.5 14.2 17.1 19.4 20.7

Lupin LUPIN 1299 1,760 Buy 58669.8 50.4 61.7 67.2 83.6 25.8 21.0 19.3 15.5 18.6 20.2 20.8 23.9 20.7 20.9 19.2 19.9

Natco Pharma NATPHA 948.5 870 Buy 16533.1 8.5 25.3 14.8 18.2 111.8 37.5 64.3 52.2 16.0 33.0 17.6 19.2 11.9 27.2 14.0 15.0

Sun Pharma SUNPHA 647 765 Buy 155230.3 23.4 30.3 29.9 35.3 27.6 21.4 21.7 18.3 18.6 19.3 17.3 17.9 18.0 19.4 16.5 16.8

Syngene Int. SYNINT 484 515 Hold 9680.0 11.1 14.3 14.0 18.4 45.0 34.7 35.5 27.1 13.2 16.8 16.0 19.9 21.0 21.9 17.9 19.4

Torrent Pharma TORPHA 1340 1,475 Buy 22668.2 107.8 57.0 62.1 77.4 12.4 23.5 21.6 17.3 46.7 21.5 23.7 26.4 53.8 23.5 21.4 22.2

Unichem Lab UNILAB 264.1 285 Hold 2400.3 12.3 12.9 17.4 23.5 21.4 20.5 15.2 11.2 13.8 14.3 16.1 18.8 11.7 11.1 13.3 15.6

RoE (%)EPS (|) PE(x) RoCE (%)

Source: Company, ICICIdirect.com Research


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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

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us pricing pressure steeper than expected

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