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ICICI Securities Ltd. | Retail Equity Research

June 22, 2015

Monthly Update

Q4 numbers mixed; Margins under pressure… For Q4FY15 I-Direct universe registered YoY revenue growth (Ex Sun Pharma) of 11% to | 23662 crore, driven by 8.2% growth in the US and 18.5% growth in Indian formulations. Slow growth in the US was largely due to lack of new product approvals and high base. Growth in Indian formulations was driven by price hikes as well as incremental product launches. The quarter also witnessed heated currency volatility in some of the markets especially Russia and Europe. The EBITDA for the universe (ex – Sun pharma) de-grew 5.3% YoY to | 4601 crore and the lower growth was attributable to forex losses, higher R&D spends and higher fixed cost. The PAT de-grew ~10% YoY to | 2784 crore. The de-growth was attributable to lower operational performance and higher depreciation and taxation. On the revenue front, companies such as Aurobindo, Ajanta, Cadila, Apollo Hospitals, Indoco and Cipla reported strong revenue growth on account of incremental product launches and sustained base business growth. On the other hand Glenmark, Lupin, IPCA, Torrent and Jubilant reported weak set of numbers due to lack of product approvals, impact of currency volatility in emerging markets and regulatory impact. In other news, the Central Drugs Standards Control Organisation (CDSCO) has started the biggest sampling drive ever in the country to conclusively analyse the extent of counterfeit drugs that are available in the market. An unprecedented 50,000 samples have been collected from across the country over the last one and half months. The last such sample survey was conducted in 2008 with about 2500-3000 samples being analysed then. Jubilant got some respite from the USFDA when its pharmaceutical sterile manufacturing facility in Spokane, Washington (USA), has been upgraded to the status of Voluntary Action Indicated (VAI). This action tantamounts to the acceptance of current good manufacturing practice (cGMP) status for the facility since receiving the warning letter in 2013. Apollo Hospitals continued it quest for inorganic growth by acquiring majority stake in Guwahati-based Assam Hospitals for a consideration of ~| 57 crore. The acquisition is expected to strengthen Apollo Hospitals' presence in the Northeast region. This is second such acquisition in the last six months. Finally on the domestic front, the Indian pharmaceutical market (IPM) registered growth of 11.2% YoY to | 7717 crore for the month of May. The growth was mainly driven by price hikes – 4.9% volume growth - 3.0% and new product launches – 2.8%. Pharma continues to consolidate Pharma stocks are witnessing a brief phase of consolidation after riding on re-rating wave in FY15. The consolidation was warranted as even after re-rating, most of the Pharma stocks were running slightly ahead of valuation. We however maintain our long term bullish view on the sector on the back of structural strength. Strong visibility on the back of a good product basket and a reasonable base business growth continue to attract buying interest in the Pharma sector despite premium valuations. The US and Indian formulations remain the main growth drivers for the sector on the back of strong pipeline and incremental product launches. Healthy operating margins, relatively low leverage and strong return ratios are some of the

Health CheckSector View

Outperformer

Index Performance as on June 19, 2015

Return (%) 1M 3M YTD 1Y

CNX 500 -2 -4 0 12

Nifty -2 -5 -1 9

CNX Pharma -5 -7 8 46

Return (%)

Stocks Performance Mcap

Company 1M 3M YTD 1Y 18-Jun

Sun Pharma.Inds. -10 -18 4 33 206298

Lupin 4 -7 25 77 80478

Dr Reddy's Labs -7 -1 5 39 57909

Cipla -12 -15 -4 41 48382

Aurobindo Pharma -2 11 20 95 39736

Cadila Health. 4 13 13 78 37002

Glaxosmit Pharma 2 1 3 34 28063

Glenmark Pharma. 9 15 28 70 27677

Divi's Lab. 3 1 7 37 24512

Torrent Pharma. 4 16 17 95 22506

Apollo Hospitals -6 -17 7 21 16737

Wockhardt 2 -26 39 146 15486

Ajanta Pharma 13 24 63 181 13398

Pfizer -8 -7 -7 47 9175

Biocon 4 5 9 -6 9293

Ipca Labs. 3 -11 -6 -17 8620

Natco Pharma -11 -1 41 109 7169

Strides Arcolab 8 2 24 129 7115

Indoco Remedies -5 0 15 132 3299

Jubilant Life 1 5 41 -20 2716

Unichem Labs. -6 -12 -22 -8 1719

Return (%)

Mcap: Market cap in | crore

Price movement

50006000700080009000

100001100012000130001400015000

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

4000

6000

8000

10000

12000

CNX Pharma Nifty (RHS)

Research Analyst

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

Nandan Kamat [email protected]


other attributes for most of the Pharma players. Sun Pharma, Lupin, DRL are our top picks from the large cap Pharma space whereas Cadila, Aurobindo, Torrent Pharma and Ajanta Pharma are our picks from the Mid-cap Pharma space.

Regulatory approvals

Exhibit 1: Summary of USFDA approvals for May 2015

[5

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeStrides Acrolab Lamivudine and Zidovudine Anti-retroviral ViV Healthcare Combivir US$ 295 millionLupin Azithromycin Anti-infective Pfizer Zithromax NAGlenmark Pharma Desmopressin Acetate Respiratory Ferring Pharma Minirin NALupin Moxifloxacin Hydrochloride Anti-Bacterial Bayer Healthcare Avelox US$ 400 million

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeGlenmark Pharma Rufinamide Anti-Epilepsy Eisai Banzel US$ 121.8 millionCipla Lopinavir and Ritonavir Anti-Retroviral Abbott Labs Kaletra NA

Final Approvals

Tentative Approvals

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

Regulatory approvals / IP Issues / Clinical Trials

Biocon’s biosimilar molecules enters Phase 3 clinical trials Biocon's two biosimilar drug molecules to treat cancer and rheumatoid arthritis had entered global phase 3 clinical trials, which entail testing on patients to assess effectiveness and safety. The two molecules, pegfilgrastim and adalimumab, were developed in partnership with Mylan. Law suits / Court rulings / Settlements

Sun Pharma reviewing Meijer Complaint Sun Pharma is reviewing a complaint filed against it and its subsidiaries by Meijer Inc alleging anti-trust and other violations in connection with Ranbaxy securing market exclusivity for certain products. Ranbaxy recklessly stuffed the generic drug approval queues with grossly inadequate applications, deceived the FDA into granting tentative approvals to lock in statutory exclusivities to which Ranbaxy was not entitled, and brandished these undeserved exclusivities to exclude others while its own applications floundered, all at the direct expense of U.S. drug purchasers. RBI withdraws restrictions on purchase of IPCA shares The Reserve Bank of India has withdrawn restrictions placed on the purchase of shares of IPCA Laboratories as the FIIs investment limit in the company has gone below the revised threshold caution limit. The RBI further notified that FIIs/ RFPIs can now invest up to 35% of the paid up capital of Ipca Labs under the Portfolio Investment Scheme (PIS). CCI imposes fines on GSK and Sanofi The Competition Commission of India (CCI) has imposed a | 60 crore penalty on GlaxosmithKline and | 3 crore on Sanofi India for indulging in unfair trade practices. The CCI in its investigation found that both companies formed a cartel to get government tenders to supply meningitis vaccine which is required to be administered upon the pilgrims who wish to go on annual pilgrimage of Hajj. Price changes / New Launches / Recalls

Mylan’s gSeretide launch in UK Mylan launched first generic version of Glaxo SmithKline's anti-asthma drug Seretide in the UK market. The generic Seretide market in Europe is worth about US $800 million, of which the UK is the largest market at US $400 million. This is seen as a negative for Cipla which is also in line to launch its own generic version of Advair.


Jubilant hikes Vitamin B3 product’s price by 10% Jubilant Life Sciences has taken a 10% price hike for its Vitamin B3 product Niacinamide. In FY15 (June 2014), the company had taken a 9% price hike for this product. Warning Letters / Import alerts / Letter 483s / clearance letters Jubilant’s Facility gets its status upgraded by USFDA Jubilant’s pharmaceutical sterile manufacturing facility in Spokane, Washington (USA), has been upgraded to the status of Voluntary Action Indicated (VAI). This upgradation by the USFDA from Official Action Indicated (OAI) to VAI is indicative of the current good manufacturing practice (cGMP) status at the facility since receiving the warning letter in 2013. M&As, Demergers and JVs

Apollo Hospitals Acquire Assam Hospitals Apollo Hospitals announced acquisition of majority stake in Guwahati-based Assam Hospitals for a consideration of ~| 57 crore. The acquisition is expected to strengthen Apollo Hospitals' presence in the Northeastern region. The company entered into definitive agreements for the acquisition of 51% stake in Assam Hospitals, which runs a 220 bed hospital in Guwahati. Capex / Investments / Fund raising

Strides to raise | 2000 crore Strides Arcolab is seeking shareholders' approval to earmark up to | 2,000 crore for investment and loan purposes. Natco to increase FII limit Natco Pharma seeks to increase FII limit in the company to 49% through issue of fresh shares or convertible securities. Currently FII is currently holding ~10% in the company. The board would also consider issue of shares or convertible securities in the form of Private Placement, Qualified Institutional Placement (QIP) to FIIs, Qualified Institutional Buyers or any other investors. Torrent Pharma receives approval to raise FII limit to 35% Company got approval from the government to raise the limit of investment by foreign institutional investors (FII) from 13.09% to 35%. This would mean a total investment of about | 3,000 crore. Strides Acrolab’s application to raise FII limit rejected Strides Arcolab had made an application to Foreign Investment Promotion Board (FIPB) seeking approval for issuing equity shares to non-resident shareholders of Shasun Pharmaceuticals under the proposed Scheme of Amalgamation. The Government rejected the proposal. Syngene’s proposal to raise FDI approved Syngene's proposal to raise FDI of around | 930 crore by raising the foreign investment to 44% from 10% was approved by the Government of India. The company plans to raise the sum by way of initial public offering of equity shares to FIIs, FPIs and NRIs. Deals & Alliances / Tenders

Dr. Reddy’s and Astrazeneca enter into a Distribution agreement AstraZeneca Pharma and Dr Reddy's Labs have entered into a distribution agreement for two drugs - Riax and Riax-M - used for the treatment of


diabetes in India. Both Riax and Riax M are trademarks of the AstraZeneca group. Dr Reddy's Laboratories will be distributing the two drugs in India. Cipla signs agreement with Serum Institute Cipla signed an agreement with Serum Institute to exclusively sell influenza vaccine Nasovac-S in India. Under this agreement, Serum Institute will develop and manufacture the vaccine, while Cipla will market it in India. Q4FY15 Results

Apollo Hospitals maintains growth tempo Standalone revenues increased 20.6% YoY to | 1203.7 crore mainly on 31% YoY growth to | 478 crore growth in the pharmacy business. Healthcare services (60% of sales) grew 14.6% to | 725.8 crore. EBITDA margins declined 54 bps YoY to 14.5% owing to an unfavourable segment mix. EBITDA increased 16.3% YoY to | 174.5 crore. Net profit declined 4.9% to | 77.3 crore mainly due to higher-than-expected taxation and lower other income. Actavis portfolio weighs on Aurobindo margins Revenues grew 35.7% YoY to | 3162.1 crore on account of 335% growth in Europe (Actavis consolidation) to | 769.1 crore. EBITDA margins declined 1114 bps to 20.7% mainly due to consolidation of the low margin Actavis European business and high base effect. EBITDA de-grew 11.7% to | 656.1 crore. Net profit declined 19.5% to | 403.8 crore due to higher tax outgo and lower other income.

Cipla - Next 18-24 months crucial for scalability Revenues grew 22% YoY to | 3092.7 crore on account of 32% growth in export formulation to | 1690 crore. Domestic formulations also grew 19.6% YoY to | 1086 crore. EBITDA margins improved 27 bps to 16.4%. EBITDA in absolute terms grew 24% YoY to | 507.7 crore. Net profit de-grew 0.4%% YoY to | 259.7 crore. Muted growth was on account of higher depreciation and tax outgo and lower other income. One-offs affect Glenmark margins Revenues grew 4.2% YoY to | 1775.8 crore. India, LatAm, US and Europe sales grew 15%, 70.5%, 7.1% and 26% YoY to | 440.6 crore, | 181 crore, | 536.3 crore and | 243.3 crore, respectively. RoW declined 35.8% to | 219.8 crore. EBITDA margins declined 655 bps to 15.8% due to forex losses and expenses related to Glenmark Generics consolidation which were accounted in other expenses. EBITDA declined 26.3% YoY to | 281.4 crore. Net profit declined 24.1% YoY to | 197.7 crore on the back of negative tax expenses. Exports drag Indoco numbers Revenues grew 14.3% YoY to | 210 crore. Domestic formulations grew 16.7% to | 123 crore while export formulations grew 9.9% to | 75 crore. EBITDA margins declined 13 bps YoY to 17.8% mainly due to higher-than-expected other expenditure. EBITDA grew 13.5% to | 37.3 crore. Net profit grew marginally by 1.1% YoY to | 18.75 crore on account of the subdued operational performance and higher depreciation. Remedial measures continue to weigh on Ipca numbers Revenues declined 16.2% YoY to | 628 crore due to USFDA import alert, lower institutional business and currency fluctuations in emerging markets. EBITDA margins declined 1896 bps to 5.4% on account of higher fixed cost. EBITDA declined 81.5% to | 33.7 crore. Net profit declined 94.3% to | 7.8 crore on account of a below expectation operational performance and higher depreciation.


Improved margins cover subdued revenue growth for Natco Revenues grew 9.2% YoY to | 200.8 crore. Growth in domestic formulation (49% YoY) was partially offset by 41.8% de-growth in export formulation. EBITDA margins increased ~436 bps YoY to 24.6%. EBITDA grew 32.7% YoY to | 49.5 crore. Adjusted net profit declined 3.1% YoY to | 23.3 crore. The higher operational performance was nullified by higher depreciation and lower other income. Ranbaxy acquisition, remedial measures affect Sun Pharma numbers Sun Pharma’s Q4FY15 revenue stood at | 6157 crore (down 11% QoQ), due to supply constraints in the US owing to ongoing compliance issues at the Halol Facility and inventory adjustment in the domestic market. EBITDA margins declined 1674 bps QoQ to 14.5% due to assumption of additional charges for the Ranbaxy consolidation. EBITDA declined 58.8% to | 892.5 crore. Net profit grew 125% QoQ to | 888.1 crore mainly due to Tax write back on account of Ranbaxy losses.


Q4FY15 Results Review

For Q4FY15 I-Direct universe registered YoY revenue growth of 11% to | 23662 crore (Excluding Sun Pharma), driven by 8.2% growth in the US and 18.5% growth in Indian formulations. The growth in the US was more or less on expected lines, subdued by lack of new product approvals and high base. Growth in Indian formulations was driven by new product launches as well as price hikes. This quarter witnessed heated currency volatility in some of the emerging markets especially Russia. The EBITDA for the universe de-grew 5.5% YoY to | 4601 crore and the lower growth was attributable to forex losses, higher R&D spends and remedial expenses to comply with cGMP issues. The PAT de-grew 9.9% YoY to | 2783.8 crore. The de-growth was attributable to lower EBITDA growth and higher depreciation and taxation.

Exhibit 2: Actual s Vs Estimates

Q4FY15E Q4FY15 Q4FY15E Q4FY15 Q4FY15E Q4FY15Apollo Hospitals 1201.5 1203.7 178.4 174.5 94.8 77.3Aurobindo Pharma 3308.8 3162.1 671.7 656.1 466.0 403.8Ajanta Pharma 358.9 368.8 126.4 140.8 86.4 90.8Biocon 778.1 837.3 164.6 184.9 86.1 106.0Cadila Healthcare 2184.6 2288.2 441.3 495.9 291.0 350.4Cipla 2948.0 3092.7 604.3 507.7 332.4 259.7Dr Reddy's Labs 3993.0 3870.4 1038.2 825.6 755.9 518.8Glenmark Pharma 1713.5 1775.8 281.5 281.4 129.4 197.7Indoco Remedies 218.1 209.9 45.7 37.3 23.8 18.8Ipca Labs 637.6 627.9 224.4 33.7 144.5 7.8Jubilant Life Sciences 1556.3 1536.5 220.8 247.4 25.7 42.7Lupin 3328.8 3078.2 915.4 789.4 614.5 547.0Natco Pharma 200.4 200.8 49.1 49.5 25.1 23.3Torrent Pharma 1171.6 1154.0 246.0 162.0 151.0 130.0Unichem Labs 281.9 256.0 26.9 14.8 17.1 9.8Total 23881.2 23662.4 5234.8 4600.8 3243.7 2783.8

CompanyRevenues EBITDA Net profit

Source: Company, ICICIdirect.com Research

Exhibit 3: Quarterly Performance of I-Direct Healthcare coverage

Company Q4FY15 Q4FY14 Var.(%) Q4FY15 Q4FY14 Var.(%) Q4FY15 Q4FY14 Var.(%)Apollo Hospitals 1203.7 998.2 20.6 174.5 150.1 16.3 77.3 81.3 -4.9Aurobindo Pharma 3162.1 2329.8 35.7 656.1 743.0 -11.7 403.8 501.8 -19.5Ajanta Pharma 368.8 311.1 18.6 140.8 112.3 25.3 90.8 71.4 27.2Biocon 837.3 728.5 14.9 184.9 175.6 5.3 106.0 113.1 -6.3Cadila Healthcare 2288.2 1968.5 16.2 495.9 358.6 38.3 350.4 239.2 46.5Cipla 3092.7 2535.6 22.0 507.7 409.3 24.0 259.7 260.7 -0.4Dr Reddy's 3870.4 3480.9 11.2 825.6 781.3 5.7 518.8 481.7 7.7Glenmark Pharma 1775.8 1703.6 4.2 281.4 381.6 -26.3 197.7 260.6 -24.1Indoco Remedies 209.9 183.6 14.3 37.3 32.9 13.5 18.8 18.6 1.1Ipca Labs 627.9 749.6 -16.2 33.7 182.3 -81.5 7.8 137.0 -94.3Jubilant Life Scie. 1536.5 1562.3 -1.7 247.4 245.8 0.7 42.7 98.8 PLLupin 3078.2 3120.5 -1.4 789.4 876.9 -10.0 547.0 553.0 -1.1Natco Pharma 200.8 183.8 9.2 49.5 37.3 32.7 23.3 24.0 -3.1Torrent Pharma 1154.0 1225.0 -5.8 162.0 350.0 -53.7 130.0 244.0 -46.7Unichem Labs 256.0 244.1 4.9 14.8 31.7 -53.3 9.8 3.4 191.9Total 23662.4 21325.1 11.0 4600.8 4868.5 -5.5 2783.8 3088.5 -9.9

Revenues EBITDA Profit

Source: Company, ICICIdirect.com Research, LP: Loss to Profit

On the revenue front, companies such as Aurobindo, Ajanta, Cadila, Apollo Hospitals, Indoco and Cipla reported strong revenue growth on account of incremental product launches and sustained base business growth. On the other hand Ipca Labs, Torrent Pharma, Lupin and Jubilant reported weak set of numbers due to lack of product approvals, impact of currency volatility in emerging markets and regulatory impact.

Performance in Indian market in Q4FY15

(| crore) Q4FY15 Q4FY14 Var. (%) Q3FY15 Var. (%)

Biocon 98.0 92.6 5.8 105.0 -6.7

Cadila 679.7 624.7 8.8 641.8 5.9

Glenmark 440.6 383.0 15.0 433.1 1.7

Indoco 123.0 105.3 16.7 122.9 0.1

Ipca 229.0 196.6 16.5 278.7 -17.8

Lupin 663.7 576.3 15.2 743.8 -10.8

Cipla 1086.0 908.0 19.6 1199.0 -9.4

Dr Reddy's 234.1 177.4 32.0 194.7 20.2

Ajanta 114.0 95.0 20.0 132.0 -13.6

Torrent 399.0 258.0 54.7 421.0 -5.2

Unichem 146.2 139.1 5.2 158.1 -7.5

Total 4213.2 3555.9 18.5 4430.0 -4.9

India

Performance in US market in Q4FY15


Aurobindo 1340.5 1160.0 15.6 1201.2 11.6

Cadila 978.9 678.3 44.3 895.9 9.3

Glenmark 536.3 500.9 7.1 507.2 5.7

Lupin 1377.9 1469.9 -6.3 1404.3 -1.9

Dr Reddy's 1715.4 1496.4 14.6 1681.9 2.0

Torrent 224.0 400.0 -44.0 171.7 30.5

Total 6173.0 5705.5 8.2 5862.2 5.3

US

Performance in Europe market in Q4FY15


Aurobindo 769.1 176.8 335.0 860.9 -10.7

Cadila 74.0 84.5 -12.4 84.7 -12.6

Glenmark 243.3 193.2 25.9 173.0 40.7

Dr Reddy's 275.3 249.2 10.5 266.8 3.2

Lupin 89.1 79.5 12.1 80.5 10.7

Torrent 209.0 251.0 -16.7 225.7 -7.4

Total 1659.8 1034.2 60.5 1691.5 -1.9

Europe

Performance in Latin American market in Q4FY15


Cadila 54.7 57.3 -4.5 61.0 -10.3

Glenmark 181.0 106.2 70.5 234.4 -22.8

Torrent 140.8 128.0 10.0 155.8 -9.6

Total 376.5 291.5 29.2 451.3 -16.6

Latin America

Performance in API Segment in Q4FY15


Aurobindo 676.5 754.8 -10.4 674.4 0.3

Cadila 87.0 94.0 -7.4 95.9 -9.3

Cipla 205.0 239.0 -14.2 151.0 35.8

Glenmark 154.7 153.1 1.1 146.5 5.6

Indoco 13.0 11.7 10.8 12.9 0.8

Ipca Labs 153.6 170.1 -9.7 150.4 2.1

Lupin 307.5 291.4 5.5 275.8 11.5

Dr Reddy's 212.4 175.4 21.1 174.9 21.4

Unichem 21.5 24.0 -10.5 28.3 -23.9

Total 1831.2 1913.5 -4.3 1710.0 7.1

API


Revenues from the US market grew ~8.2% YoY to | 6173 crore during the quarter. Slow growth was attributable to low product launches besides traction from the base business and regulatory impact especially on IPCA, Sun Pharma and Dr Reddy’s. Companies such as Aurobindo, Cadila, and DRL registered strong YoY growth whereas Torrent, Lupin and Glenmark were laggards on account of slowdown in product approvals. Indian formulations business witnessed a growth of ~18.5% to | 4213.2 crore on the back of low base and strong growth in chronic segments. However, overall growth was still lower than I-Direct expectation mainly due to seasonality impact in acute portfolios of some of the companies.

Exhibit 4: I-Direct Healthcare Universe Revenues trend

2131922309 22533

2318123662

15000

17000

19000

21000

23000

25000

Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15

| cr

ore

Revenues

Source: Company, ICICIdirect.com Research; *Ex-Sun Pharma

Exhibit 5: I-Direct Healthcare Universe EBITDA trend

4869 51464744 4853 4601

0

1000

2000

3000

4000

5000

6000

7000

8000


| cr

ore

EBITDA


Exhibit 6: I-Direct Healthcare Universe profits trend

2898

3045

283327842791

2650270027502800285029002950300030503100


| cr

ore

Profits


Exhibit 7: Trends in EBITDA & PAT margin of I-Direct Healthcare Universe

22.8 23.120.9

19.4

13.6 13.612.0 11.8

21.1

12.6

579

1113151719212325


%

EBITDA Margins (%) PAT Margins (%)



Exhibit 8: Change in outlook post Q4 numbers [5

Company Initial Rating Current RatingDeviation from

estimates Remarks

Ajanta Pharma BUY BUY Above Exports growth and strong operational performance

Apollo Hospitals BUY BUY Inline Aurobindo Pharma BUY BUY Below Low margin Actavis business, higher than expected taxation and lower other income

Biocon HOLD HOLD Above Growth in Biopharma business

Cadila Healthcare HOLD BUY Above High US Formulations Business & Strong Operational Performance

Cipla HOLD HOLD Below Higher Other Expenses

Dr Reddy's Labs HOLD BUY Below Higher R&D cost and raw material expenses

Glenmark Pharma HOLD HOLD Above Negative Tax expenses

Indoco Remedies BUY BUY Inline

Ipca labs HOLD HOLD Below Due to USFDA import alerts & lower institutional business

Jubilant Life Sciences SELL HOLD Above Lower Other Expenditure

Lupin BUY BUY Below Slowdown in product approvals and increased competition

Natco Pharma HOLD HOLD Inline

Torrent Pharma HOLD BUY Below Higher Employee costs and Other Expenditure

Unichem Labs HOLD HOLD Below Increase in operating expenditure

Source: Bloomberg, ICICIdirect.com Research


Exhibit 9: Patent litigations in last 12 months [5

Month Innovator ANDA Filer Brand Name API Used for Jun-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

Mar-15 Otsuka Pharma Indoco Remedies Abilify Aripiprazole Schizophrenia

Apr-15 Sanofi Aventis Dr. Reddy's Labs Jevtana KIT Cabazitaxel Prostate Cancer

Apr-15 Sanofi Aventis Glenmark Jevtana KIT Cabazitaxel Prostate Cancer

Apr-15 Medicis Pharma Taro Pharma Zyclara Imiquimod Actinic Keratoses

Apr-15 Alcon Research Wockhardt Patanol Olopatadine hydrochloride Allergic Conjunctivitis

Apr-15 Janssen Products LP Cipla Prezista Darunavir Anti-Retroviral

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

Apr-15 Eli Lilly Lupin Effient Prasugrel CVS

Apr-15 Horizon Pharma Lupin Pennsaid Diclofenac Osteoporosis

May-15 Apotex Inc. Lupin Paxil CR Paroxitine Hydrochloride Anti-Anxiety

May-15 Galderma Labs Glenmark Epiduo Adapalene; Benzoyl Peroxide Acne

May-15 Horizon Pharma Dr. Reddy's Labs Vimovo Esmoprazole Magnesium; Naproxen Osteoporosis

May-15 Merz Pharma Taro Pharma Naftin Naftifine Hydrochloride Fungal Infection

May-15 Takeda Zydus Pharma Daliresp Roflumilast CVS

May-15 Takeda Strides Daliresp Roflumilast CVS

May-15 Acorda Therapeutics Inc. Sun Pharma Ampyra Dalframpridine Multiple Sclerosis

May-15 Merck Lupin Safyral Drospiranone; Ethinyl Estradiol; LevoBirth Control

May-15 Kowa Lupin Livalo Pitavastatin Calcium High Cholestrol

Source: Bloomberg, ICICIdirect.com Research


IPM grows 11% in May… • The Indian pharmaceutical market (IPM) registered growth of 11.2% YoY

to | 7717 crore for the month of May. The growth was mainly driven by price hikes – 4.9% volume growth - 3.0% and new product launches – 2.8%.

• Drugs under NLEM list witnessed growth of 5.3% YoY to | 953 crore while non-NLEM drugs posted a growth of 12.1% to | 6399 crore. Volume growth in NLEM and Non-NLEM was 0.3% and 3.4% respectively.

• Among our covered companies, Glenmark has registered highest growth of 28.9% YoY followed by Torrent pharma, Sun Pharma, Dr Reddy and Cipla clocking growth of 27.0%, 19.9%, 15.4% and 15.4% respectively.

• Therapy wise, 8 therapies have outpaced the IPM growth. Notable among them with growth rates- anti-diabetic – 20.7%, dermatology- 20.0% gastro intestinal – 14.2% and respiratory 11.9%.

• In all, 224 new brands were launched in May. • On a MAT basis, IPM growth stood at 14.0% YoY to | 88948 crore. • Domestic companies have grown 11.2%, while MNC companies have

grown ~10.2% in May 2015. Exhibit 10: Domestic formulations - growth trend

12.1 13

.9

10.7 11

.4

20.8

7.6

21.5

12.2 14

.8

20

19.6

17.5

11.1

-5

0

5

10

15

20

25

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market[

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 11: Companies growth in domestic market in May 2015

27.023.1

-1.4

15.4

3.08.1

21.2

11.910.2

2.50.6

-6.0

0.6

28.9

15.4

4.8

-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 May'15 May'14 YoY (%) April'15 QoQ (%)Anti-Infectives 1110 1053 5.5 1190 -6.7Cardiac 983 888 10.7 1019 -3.5Gastro Intestinal 978 857 14.2 984 -0.6Vitamins 719 660 8.9 731 -1.6Respiratory 510 456 11.9 607 -15.9Anti Diabetic 639 529 20.7 644 -0.9Pain 535 493 8.5 558 -4.1CNS 479 434 10.5 492 -2.6Derma 466 388 20.0 475 -2.0Gynaecological 396 362 9.2 413 -4.1Vaccines 123 123 0.1 134 -8.0Hormones 122 119 2.8 132 -7.4Anti-Neoplastics 124 117 6.1 139 -11.0Ophthal 120 107 12.4 127 -5.3Others 99 81 22.2 99 0.4Blood Related 89 81 9.8 92 -3.0Urology 91 74 23.0 91 -0.5Anti Malarials 35 39 -10.2 37 -5.9Sex Stimulants 41 37 8.6 44 -8.0Stomatologicals 33 32 2.7 34 -4.8

Source: AIOCD data base

Top brands in Indian pharma market Brand Company Therapy May'15 May'14 Gr. (%)Augmentin GSK Anti-Infectives 329.9 253.9 29.9Becosules Pfizer Vitamins 253.3 227.9 11.1Corex Pfizer Respiratory 234.7 230.4 1.9Lantus Sanofi Anti Diabetic 230.2 175.4 31.3Clavam Alkem Anti-Infectives 225.2 210.2 7.1Volini Ranbaxy Pain 209.3 223.6 -6.4Spasmo Prox Wockhard GI 200.7 107.9 86.1Galvus Met Novartis Anti Diabetic 194.2 146.1 32.9Taxim Alkem Anti-Infectives 186.5 151.8 22.9Taxim O Alkem Anti-Infectives 186.4 149.8 24.5

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

Acute, 61951.5,

69.8%

Chronic, 26823.8,

30.2%

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


Sun Pharmaceuticals

Stock Performance

80

125

170

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

CNX Pharma Sun Pharma

Source: NSE, ICICIdirect.com Research Exhibit 12: Company growth vis-à-vis Indian pharma market growth

12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

16.5 17

.6

15.3

14.4

9.9

9.7

14.9

21.7

13.5 16

.0

20.0

26.8

23.1

0

5

10

15

20

25

30

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Sun Pharmaceutical Industries


Exhibit 13: Market share in Indian formulations market

5.5

5.1

5.35.2

4.9

5.4

5.6 5.7

5.9

5.4

5.65.7

6.1

4.8

5.0

5.2

5.4

5.6

5.8

6.0

6.2

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Sun Pharmaceutical Industries


Exhibit 14: Top 10 brands performance (| crore) Brand Therapy May'15 May'14 Var. (%) Apr'15 Var. (%)

Gemer Anti Diabetic 13.5 11.0 23 12.8 6

Pantocid Gastro Intestinal 11.9 10.2 16 11.9 0

Susten Gynaecological 13.2 10.2 30 12.6 5

Istamet Anti Diabetic 13.1 8.7 50 12.6 4

Levipil Neuro 12.2 8.9 37 11.6 5

Pantocid Dsr Gastro Intestinal 10.2 7.5 35 9.8 4

Aztor Cardiac 9.9 7.7 28 9.9 -1

Montek-Lc Respiratory 6.1 4.5 36 6.3 -3

Glucored Anti Diabetic 6.2 5.9 6 6.3 -1

Oxetol Neuro 6.2 5.3 16 6.0 3


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

Neuro 35%

Cardiac23%

Gastro Intestinal19%

Anti Diabetic15%

Gynaecological8%


Exhibit 16: Therapy wise performance (| crore)

Therapy May'15 May'14 YoY (%) Apr'15 QoQ (%)

Neuro 126.2 100.3 25.7 123.6 2.1

Cardiac 86.7 69.6 24.6 85.0 2.0

Gastro Intestinal 70.8 54.7 29.6 70.2 0.9

Anti Diabetic 57.9 45.6 26.9 56.0 3.4

Gynaecological 29.2 30.6 -4.6 28.5 2.5

Pain 20.4 16.1 26.2 20.4 -0.2

Ophthal 19.9 16.2 23.0 20.0 -0.4

Respiratory 16.2 13.4 21.1 16.9 -4.1

Vitamins 16.3 11.0 48.4 15.2 6.7

Hormones 9.1 9.7 -6.0 9.8 -7.7


Acute : Chronic contribution (MAT May’15)

Acute, 90.7, 28%

Chronic, 231.9, 72%

Brands contribution to domestic sales (MAT May’15)

22%

11%

8%11%

48%

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



June 22, 2015

Monthly Update

Ranbaxy Laboratories

Stock Performance

80120160200240


CNX Pharma Ranbaxy


12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

4.1

15.0

8.5

10.1

15.9

0.9 10

.7

8.2

8.5

3.8 6.7

5.9

12.8

-15

-10

-5

0

5

10

15

20

25M

ay-1

4

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Ranbaxy Laboratories



3.53 3.563.49

3.583.48 3.44

3.67

3.43 3.40

3.13 3.113.21

3.58

2.82.93.03.13.23.33.43.53.63.73.8

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Ranbaxy Laboratories



Volini Pain 16.0 17.7 -10 16.9 -6

Rosuvas Cardiac 13.8 10.1 37 12.7 8

Revital Vitamins 1.0 20.1 -95 0.6 62

Mox Anti-Infectives 9.2 6.9 32 9.3 -1

Storvas Cardiac 10.3 8.4 23 10.4 0

Sporidex Anti-Infectives 6.0 3.8 58 6.1 0

Cifran Anti-Infectives 4.6 5.8 -20 3.8 23

Cepodem Anti-Infectives 5.3 4.1 28 5.2 2

Moxclav Anti-Infectives 5.8 3.9 49 5.5 6

Zanocin Anti-Infectives 5.0 3.7 35 4.7 5


Exhibit 20: Contribution of therapies to domestic sales (MAT May’15) z

Anti-Infectives32%

Cardiac15%Pain

12%Derma11%

Vitamins 6%

Other24%




Anti-Infectives 81.9 66.1 23.9 78.8 3.9

Cardiac 45.8 35.6 28.6 43.8 4.7

Pain 31.6 29.6 6.8 31.9 -1.0

Derma 33.4 26.6 25.3 30.2 10.6

Vitamins 14.4 26.0 -44.5 6.8 112.6


Urology 12.8 8.4 52.3 12.9 -0.4

Respiratory 8.1 7.7 4.6 8.6 -6.1

Neuro 9.1 9.0 1.5 8.1 12.0

Anti Diabetic 9.3 6.2 50.4 9.0 4.0



Acute, 2291.5, 76%

Chronic, 713.3, 24%


49%

19%

10%

10%

12%




Cipla

Stock Performance

80

110

140

170

200


CNX Pharma Cipla

Source: NSE, ICICIdirect.com Research

Exhibit 22: Company growth vis-à-vis Indian pharma market growth

12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

7.2 12

.4

10.4

15.4

38.8

10.3

8.3 13

.5

13.2

24.0

24.8

25.4

15.4

0

5

10

15

20

25

30

35

40

45

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Cipla



4.74.6

4.7

4.9

5.4

5.04.9

5.1 5.15.3

5.1

5.3

4.9

4.04.24.44.64.85.05.25.45.6

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Cipla



Foracort Respiratory 14.9 12.0 24 17.5 -15

Asthalin Respiratory 10.2 10.3 -1 12.2 -17

Budecort Respiratory 10.5 9.0 17 13.0 -20

Seroflo Respiratory 10.8 9.6 13 12.5 -13

Duolin Respiratory 8.4 7.4 13 10.6 -20

Aerocort Respiratory 8.1 7.8 3 9.8 -18

Azee Anti-Infectives 6.1 5.1 20 7.2 -16

Novamox Anti-Infectives 6.6 5.9 12 5.8 13

Montair Lc Respiratory 5.7 4.4 30 6.7 -14

Dytor Cardiac 6.2 4.9 26 6.6 -7


Exhibit 25: Contribution of therapies to domestic sales (MAT May’15)

Respiratory30%

Anti-Infectives27%

Cardiac13%

Gastro Intestinal7%

Urology5%

Other18%



Therapy May'15 May'14 YoY (%) Apr '15 QoQ (%)Respiratory 107.6 95.3 13.0 129.2 -16.7Anti-Infect ives 95.9 84.5 13.4 109.5 -12.4

Cardiac 49.4 43.0 14.9 55.9 -11.6Gastro Intestinal 31.0 25.7 20.9 33.1 -6.2

Urology 18.8 14.3 31.7 20.6 -8.9Neuro 14.2 11.4 24.6 15.6 -8.8

Pain 11.4 7.8 46.2 12.7 -10.0

Ophthal 10.0 8.7 14.8 10.7 -7.0

Derma 8.5 7.7 10.9 9.5 -10.5

Vitamins 8.8 8.4 4.8 9.0 -2.7



Acute, 2639.2, 59%

Chronic, 1833.3, 41%


25%

12%

9%12%

42%




Dr Reddy’s Laboratories

Stock Performance

70

100

130

160

Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15CNX Pharma Dr. Reddys



12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

8.9

16.0

9.3

15.3 16.6

1.6

9.3 12

.8

12.3 16

.1

24.1 25

.9

15.4

-10

0

10

20

30

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Dr. Reddys Laboratories



2.12.1

2.1

2.1 2.1

2.0

2.1

2.2

2.12.1

2.2 2.22.2

1.9

2.0

2.0

2.1

2.1

2.2

2.2

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Dr. Reddys Laboratories



Omez Gastro Intestinal 11.2 8.9 26 10.3 8

Omez D Gastro Intestinal 7.8 6.6 19 7.1 10

Nise Pain 5.9 5.4 9 5.5 7

Stamlo Cardiac 5.3 4.8 9 5.4 -2

Econorm Gastro Intestinal 6.9 5.0 37 6.1 12

Mintop Derma 3.8 3.1 23 4.6 -17

Stamlo Beta Cardiac 4.5 4.0 10 4.3 4

Razo D Gastro Intestinal 3.4 3.9 -11 4.2 -18

Reditux Anti-Neoplastics 3.3 4.0 -18 4.8 -31

Razo Gastro Intestinal 3.4 3.7 -7 3.7 -7




Cardiac16%

Anti-Neoplastics

11%Anti-Infectives9%

Pain 8%

Other33%





Cardiac 28.3 24.4 16.2 28.9 -1.9

Anti-Neoplastics 19.2 15.6 23.4 21.7 -11.2

Anti-Infectives 12.4 9.8 26.7 13.6 -8.8

Pain 12.9 12.1 6.1 12.9 -0.4

Anti Diabetic 12.3 10.8 14.4 12.6 -2.2

Derma 10.6 10.1 4.7 12.1 -12.2

Respiratory 6.9 6.0 13.8 7.7 -11.1

Urology 6.7 6.1 10.9 6.5 4.1

Stomatologicals 6.3 5.9 6.4 6.2 1.3



Acute, 1310.7, 70%

Chronic, 570.9, 30%


31%

16%9%

12%

32%




Lupin

Stock Performance

75115155195


CNX Pharma Lupin



12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6

17.5

23.0

13.3

8.5

19.8

10.5 13

.7

18.3

15.0

23.3

3.6

0.6

21.5

11.1

0

4

8

12

16

20

24

28

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Lupin



3.7 3.7

3.4

3.23.3 3.4 3.4 3.4 3.4

3.23.1

3.23.3

2.32.52.72.93.13.33.53.73.9

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Lupin



Gluconorm-G Anti Diabetic 10.7 11.0 -2 11.2 -4

Tonact Cardiac 7.3 8.1 -9 7.9 -7

Budamate Respiratory 7.1 5.2 35 6.1 16

Ramistar Cardiac 4.2 4.6 -9 4.3 -3

R-Cinex Anti-Infectives 4.1 4.5 -9 4.1 0

Rablet-D Gastro Intestinal 4.4 3.8 17 4.2 6

Rablet Gastro Intestinal 3.9 3.8 2 4.1 -4

Esiflo Respiratory 4.1 3.1 32 3.5 19

Merotrol Anti-Infectives 2.5 4.3 -43 3.1 -19

Telekast-L Respiratory 3.0 2.7 13 3.0 1



Cardiac24%

Anti-Infectives23%

Respiratory12%

Anti Diabetic11%

Gastro Intestinal8%

Other22%




Cardiac 63.9 63.1 1.3 65.9 -3.1

Anti-Infectives 54.0 62.7 -13.9 55.9 -3.5

Respiratory 29.8 25.0 19.2 28.9 3.4

Anti Diabetic 28.7 26.2 9.5 28.3 1.4


Vitamins 15.4 16.3 -5.9 15.6 -1.5

Neuro 12.7 13.5 -6.2 12.7 -0.6

Pain 12.5 11.8 5.7 13.1 -5.0

Gynaecological 8.5 7.1 18.9 8.0 5.9

Derma 1.6 1.6 -0.8 1.6 -2.8



Acute, 1549.2, 52%

Chronic, 1405.5, 48%


20%

12%

9%13%

46%




Cadila Healthcare

Stock Performance

5080

110140170200230


CNX Pharma Cadila Healthcare



12.1 13

.9

10.7 11

.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

8.8 11

.2

9.1

8.9

12.0

0.9

7.4

11.6

5.1

5.2

8.9

8.8

4.8

0

5

10

15

20

25

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Cadila Healthcare



3.9 3.9

3.8

3.8

3.6

3.7

4.0

3.9 3.9

3.73.7 3.8

3.7

3.6

3.8

4.0

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)



Skinlite Derma 14.1 13.3 6 16.3 -14

Atorva Cardiac 10.0 9.0 11 10.4 -4

Mifegest Kit Gynaecological 13.2 9.6 38 14.6 -10

Deriphyllin Respiratory 7.7 7.8 0 8.8 -12

Pantodac Gastro Intestinal 7.5 6.7 12 7.8 -4

Amlodac Cardiac 6.2 6.0 4 6.1 3

Aten Cardiac 5.0 6.0 -16 5.3 -6

Falcigo Anti Malarials 2.6 3.7 -29 3.3 -21

Primolut N Gynaecological 4.9 4.2 16 5.5 -11

Zyrop Blood Related 1.9 4.7 -60 2.4 -23



Cardiac18%


Gynaecological12%

Respiratory11%

Derma9%

Other36%




Cardiac 53.8 50.7 6.3 54.4 -1.1

Gastro Intestinal 39.6 39.5 0.3 43.2 -8.3

Gynaecological 38.7 31.3 23.4 42.9 -9.7

Respiratory 28.6 26.4 8.5 31.8 -10.2

Derma 24.6 20.7 18.7 26.1 -5.9

Pain 20.4 23.3 -12.2 20.5 -0.2

Anti-Infectives 17.7 18.8 -6.1 17.3 2.2

Vitamins 12.4 10.3 20.1 12.1 2.3


Anti Malarials 4.9 5.0 -2.9 5.4 -9.8



Acute, 2270.1, 68%

Chronic, 1091.5, 32%


27%

13%

8%11%

41%




GlaxoSmithKline Pharmaceuticals

Stock Performance

80110140170200


CNX Pharma GSK Pharma



12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

-7.0 -4

.5

-6.0

1.4

13.0

12.1

5.5

0.8 2.

6

6.6 10

.8 12.9

0.6

-10

-5

0

5

10

15

20

25

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Glaxosmithkline Pharmaceuticals



3.6 3.63.6

3.7

3.53.4 3.5 3.4

3.3 3.3

3.43.4

3.3

3.0

3.2

3.4

3.6

3.8

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Glaxosmithkline Pharmaceuticals



Augmentin Anti-Infectives 24.7 20.6 20 26.6 -7

Synflorix Vaccines 14.0 11.3 24 15.8 -12

Calpol Pain 11.5 13.0 -11 13.9 -17

Zinetac Gastro Intestinal 14.4 12.8 12 14.4 0

Betnovate C Derma 14.9 7.9 90 14.5 3

Ceftum Anti-Infectives 10.7 10.4 3 10.2 5

Betnovate N Derma 11.7 10.1 15 12.2 -5

Eltroxin Hormones 10.9 11.0 -1 11.9 -8

T Bact Derma 8.6 7.6 13 8.0 8

Betnesol Hormones 8.9 5.5 60 10.0 -11



Anti-Infectives25%

Derma20%Vaccines

12%

Pain 9%

Vitamins 7%

Other27%




Anti-Infectives 58.6 63.4 -7.5 63.2 -7.3

Derma 60.3 45.5 32.6 61.7 -2.3

Vaccines 25.9 34.1 -24.0 30.9 -16.3

Pain 21.6 22.3 -2.8 24.9 -13.0

Vitamins 18.2 17.7 2.6 19.1 -4.7

Hormones 20.6 17.1 20.5 22.7 -9.5


Respiratory 12.1 13.0 -7.2 15.0 -19.6

Cardiac 5.9 7.1 -17.5 6.3 -6.2

Ophthal 2.9 3.5 -16.6 3.6 -19.1



Acute, 2661.8, 87%

Chronic, 407.9, 13%


49%

15%

9%

11%

16%




Wockhardt

Stock Performance

050

100150200250300350400


CNX Pharma Wockhardt


12.1 13.9

10.7

11.4

20.8

7.6 12

.2 14.8

13.5 19

.6 21.5

17.5

11.1

-5.9

14.6 18

.0

-2.6

-2.4

8.5

5.0

-5.1

19.0

31.2

44.0

29.7

21.2

-10

0

10

20

30

40

50

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Wockhardt



1.151.09

1.191.24

1.08

1.161.10

1.16

1.37

1.47

1.40

1.291.25

1.01.11.11.21.21.31.31.41.41.51.5

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Wockhardt



Spasmo Proxyvon PluGastro Intestinal 22.3 12.3 82 23.4 -5

Practin Vitamins 6.0 4.8 NA 6.9 -14

Bro Zedex Respiratory 3.4 3.8 -11 4.5 -24

Tryptomer Neuro 3.9 4.2 -7 4.1 -6

Biovac V Vaccines 6.4 0.0 #DIV/0! 6.3 2

Zedex Respiratory 2.8 2.7 1 3.4 -18

Methycobal Vitamins 3.5 3.1 13 3.3 8

Ace Proxyvon Pain 2.7 2.3 18 2.9 -8

Biovac A Vaccines 2.7 1.2 127 3.2 -16

Depiwhite Derma 1.2 0.7 64 1.9 -38


Exhibit 50: Contribution of therapies to domestic sales (MAT May’15) Gastro Intestinal

20%

Vitamins 17%

Respiratory14%Derma

8%

Neuro 8%

Other33%





Vitamins 16.0 15.4 4.0 17.2 -6.5

Respiratory 10.3 10.2 0.5 13.2 -22.3

Derma 6.3 6.4 -0.7 6.9 -8.1

Neuro 7.1 6.6 6.6 7.9 -10.5

Anti-Infectives 5.7 5.2 9.8 6.1 -6.0

Vaccines 9.1 1.2 654.7 9.5 -4.0

Pain 6.2 5.5 12.4 6.2 0.3

Anti Diabetic 6.0 4.9 22.2 5.7 4.1

Hormones 1.9 4.3 -54.5 2.1 -8.2



Acute, 889.3, 80%

Chronic, 215.6, 20%


52%

17%

8%

9%

14%




Glenmark Pharmaceuticals

Stock Performance

60

100

140

180

Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15CNX Pharma Glenmark



12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

15.0 18

.0

9.9

9.1

27.2

2.6

20.4 21

.5

21.4 24

.2

28.1 30

.3

28.9

0

5

10

15

20

25

30

35

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Glenmark Pharmaceuticals



1.92.0

2.02.1

2.4

2.1

2.4 2.52.4

2.32.3

2.32.2

1.9

2.1

2.3

2.5

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Glenmark Pharmaceuticals



Telma Cardiac 13.4 11.5 17 13.6 -1

Telma H Cardiac 10.3 8.2 26 10.8 -5

Ascoril Plus Respiratory 5.5 5.2 6 7.9 -31

Candid-B Derma 6.5 5.4 20 7.4 -12

Candid Derma 8.9 4.5 98 6.3 41

Zitamet Anti Diabetic 6.7 3.5 92 6.8 -1

Telma Am Cardiac 5.8 3.8 53 5.5 6

Zita(Glenmark) Anti Diabetic 4.6 2.2 108 4.9 -6

Ascoril Ls Respiratory 2.4 1.5 56 3.2 -26

Candid Mouth Derma 2.9 2.3 27 3.3 -11



Derma29%

Cardiac23%

Respiratory15%

Anti-Infectives14%

Anti Diabetic8%

Other11%




Derma 51.7 38.6 33.9 52.4 -1.3

Cardiac 41.3 32.8 25.9 43.0 -4.1

Respiratory 20.1 16.1 24.7 26.5 -24.1

Anti-Infectives 23.2 18.9 22.8 27.1 -14.4

Anti Diabetic 15.5 10.3 50.8 15.9 -2.3


Vitamins 4.5 3.3 35.4 4.4 1.7

Pain 3.7 3.4 8.6 4.0 -8.4

Gynaecological 3.1 3.2 -4.6 3.2 -3.6

Otologicals 2.8 1.9 45.8 2.9 -5.6



Acute, 1264.0, 63%

Chronic, 738.3, 37%


38%

13%10%

12%

27%




Torrent Pharmaceuticals

Stock Performance

80

170

260


CNX Pharma Torrent Pharma



12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

4.7

12.2

10.9

8.4

18.5

6.0

23.2

30.7

21.1

30.9

30.5

28.8

27.0

0

5

10

15

20

25

30

35

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Torrent Pharmaceuticals



2.202.26 2.26

2.11 2.12

2.242.31

2.432.36

2.402.32

2.45 2.52

1.8

1.9

2.0

2.1

2.2

2.3

2.4

2.5

2.6

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Torrent Pharmaceuticals



Shelcal Vitamins 18.2 8.7 110 19.8 -8

Chymoral Forte Pain 10.3 4.8 116 9.9 4

Nikoran Cardiac 6.4 6.2 3 6.8 -5

Dilzem Cardiac 5.3 5.7 -6 5.7 -7

Nebicard Cardiac 4.9 4.1 19 5.1 -3

Nexpro Rd Gastro Intestinal 4.4 3.4 28 4.2 5

Azulix-Mf Anti Diabetic 4.7 3.7 25 4.7 -1

Nexpro Gastro Intestinal 3.9 2.9 34 4.1 -4

Alprax Neuro 3.1 2.9 7 3.4 -8

Domstal Gastro Intestinal 3.2 3.2 0 2.9 8



Cardiac29%

Neuro 16%Gastro Intestinal

16%

Vitamins 14%

Pain 7%

Other18%




Cardiac 54.9 48.5 13.3 57.5 -4.6

Neuro 30.7 26.1 17.5 31.3 -2.1


Vitamins 30.2 19.1 57.6 31.2 -3.3

Pain 15.2 8.0 90.1 14.6 4.1

Anti-Infectives 10.0 10.4 -3.3 10.5 -4.6

Anti Diabetic 10.9 8.7 24.8 11.1 -1.9

Derma 4.4 2.9 50.7 4.4 -0.4

Gynaecological 3.8 3.2 19.0 3.9 -1.8

Blood Related 0.7 0.6 19.7 0.8 -14.1



Acute, 1028.2, 50%

Chronic, 1030.8, 50%


32%

14%

9%

12%

33%




Ipca Laboratories

Stock Performance

60

120

180

May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15

CNX Pharma Ipca



12.1 13

.9

10.7

11.4

20.8

7.6 12

.2 14.8

13.5

19.6 21

.5

17.5

11.122

.2

23.1

15.5

21.4

16.3

13.0

12.9

28.6

35.9

12.2 14

.5

9.2 -6

.0

-10-505

10152025303540

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Ipca Laboratories



1.5 1.51.4 1.5

1.51.4

1.31.2 1.2 1.2 1.2 1.3 1.3

1.0

1.2

1.4

1.6

1.8

2.0

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Ipca Laboratories



Zerodol Sp Pain 7.1 5.4 30 6.7 5

Zerodol P Pain 5.5 5.5 -1 5.2 5

Hcqs Anti Malarials 4.8 5.0 -4 5.9 -18

Larinate Anti Malarials 2.4 3.0 -20 2.0 20

Rapither-Ab Anti Malarials 3.6 2.9 26 3.4 6

Lariago Anti Malarials 2.1 2.6 -21 2.6 -21

Glycinorm M Anti Diabetic 2.9 3.1 -6 2.3 23

Folitrax Anti-Neoplastics 2.5 2.8 -11 2.8 -11

Azibact Anti-Infectives 1.8 2.1 -12 1.6 12

Lumerax Anti Malarials 1.2 2.0 -42 1.2 -3



Pain 23%

Anti Malarials21%

Cardiac17%

Gastro Intestinal8%

Anti-Infectives7%

Other24%




Pain 26.0 24.7 5.1 24.8 4.6

Anti Malarials 17.1 19.0 -9.9 17.6 -3.1

Cardiac 17.3 18.9 -8.6 17.8 -3.3

Gastro Intestinal 10.0 10.1 -1.1 8.9 12.8

Anti-Infectives 6.1 7.1 -14.1 6.6 -6.7

Anti Diabetic 5.4 6.3 -13.6 4.9 9.3

Respiratory 3.2 3.7 -14.3 3.7 -12.3

Neuro 3.3 3.5 -5.1 4.9 -33.0


Derma 2.4 3.5 -31.0 2.8 -14.5



Acute, 874.4, 73%

Chronic, 322.5, 27%


36%

15%11%

13%

25%




Biocon

Stock Performance

6080

100120140160180

Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15CNX Pharma Biocon



12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

21.5

17.5

11.1

33.8

43.1

19.6

20.3

11.4

31.3

9.8

1.0

7.2

18.8

17.5

11.6

11.7

3.0

05

101520253035404550

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Biocon



0.37

0.40

0.360.35

0.39

0.37

0.36 0.36

0.38

0.35

0.36

0.340.34

0.33

0.34

0.35

0.36

0.37

0.38

0.39

0.40

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Biocon



Insugen Anti Diabetic 7.0 5.8 20 6.7 5

Basalog Anti Diabetic 4.1 3.3 27 4.7 -13

Canmab Anti-Neoplastics 1.7 0.4 346 1.6 7

Erypro Blood Related 1.6 1.0 65 1.4 9

Blisto Mf Anti Diabetic 1.5 2.1 -30 1.7 -14

Abraxane Anti-Neoplastics 1.4 1.5 -10 1.0 45

Insugen R Anti Diabetic 1.3 1.2 11 1.4 -8

Insugen N Anti Diabetic 0.8 0.7 13 0.9 -9

Abstet Anti-Neoplastics 0.7 0.2 228 0.8 -7

Psorid Anti-Neoplastics 0.5 0.3 37 0.6 -17



Anti Diabetic58%

Anti-Neoplastics

21%

Cardiac9%

Blood Related4%

Derma3%

Other 5%




Anti Diabetic 15.9 14.9 6.6 16.9 -5.8

Anti-Neoplastics 5.5 3.9 38.8 5.0 9.5

Cardiac 1.6 2.8 -41.9 1.9 -16.3

Blood Related 1.6 1.0 64.7 1.4 8.9

Derma 0.8 0.8 2.6 0.8 5.8

Anti-Infectives 0.6 1.6 -65.6 0.6 -5.5

Others 0.2 0.3 -18.8 0.2 -1.3

Vitamins 0.2 0.2 -22.1 0.2 8.8


Hormones 0.1 0.0 25.1 0.1 15.9



Acute, 90.7, 28%

Chronic, 231.9, 72%


72%

12%

7%

6%

3%



Pfizer

Stock Performance

80110140170200230


CNX Pharma Pfizer


12.1 13

.9

10.7

11.4

20.8

7.6 12

.2 14.8

13.5

19.6 21

.5

17.5

11.1

11.0

9.9

6.7

3.3

24.1

10.0

34.1

24.8

26.1

22.8

17.9

18.5 10.2

-10-505

10152025303540

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Pfizer



2.902.82 2.86

2.812.92

2.87

3.07

3.253.34

3.042.98 3.02

2.88

2.4

2.6

2.8

3.0

3.2

3.4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Pfizer



Becosules Vitamins 22.4 18.2 23 23.4 -4

Corex Respiratory 19.8 16.2 22 21.5 -8

Magnex Anti-Infectives 11.0 8.2 34 14.4 -24

Gelusil Mps Gastro Intestinal 11.2 8.2 37 11.5 -2

Dolonex Pain 10.2 9.8 4 11.2 -9

Minipress Xl Cardiac 9.7 9.0 7 10.3 -6

Mucaine Gastro Intestinal 7.9 6.7 17 8.5 -8

Wysolone Hormones 6.3 7.1 -11 7.5 -16

Dalacin C Anti-Infectives 5.8 5.1 14 5.9 -1

Solu Medrol Hormones 5.4 4.7 13 5.6 -3



Anti-Infectives17%

Vitamins 12%

Respiratory12%

Gastro Intestinal11%Hormones

9%

Other39%




Anti-Infectives 34.1 32.1 6.3 41.6 -17.9

Vitamins 27.8 22.4 23.8 29.0 -4.3

Respiratory 24.7 20.2 21.8 27.6 -10.6


Hormones 18.4 18.1 1.8 19.9 -7.6

Gynaecological 17.3 14.7 17.4 18.8 -8.3

Cardiac 15.8 14.7 7.3 16.9 -6.6

Pain 15.0 15.3 -1.8 16.2 -7.3

Neuro 15.9 18.2 -12.9 17.1 -7.2

Vaccines 6.9 6.0 14.6 7.6 -8.8



Acute, 2262.0, 85%

Chronic, 394.0, 15%


49%

19%

10%

10%

12%


Source: AIOCD data base l


Novartis India

Stock Performance

80

130

180


CNX Pharma Novartis India



12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

-0.9

-1.9

-2.4

-0.5

13.4

5.9

5.1 6.

7

1.1 5.

9

-0.1

2.5

2.6

-5

0

5

10

15

20

25

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Novartis India



1.36 1.35 1.34

1.30

1.34

1.42

1.32

1.38

1.34

1.26 1.25 1.241.25

1.2

1.2

1.3

1.3

1.4

1.4

1.5

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Novartis India



Galvus Met Anti Diabetic 17.8 14.1 26 17.3 3

Voveran Pain 13.5 13.3 1 15.2 -11

Galvus Anti Diabetic 9.2 7.6 21 8.3 11

Rabipur (Novartis) Vaccines 8.5 8.4 1 8.4 2

Otrivin Respiratory 4.2 4.0 7 5.5 -23

Tegrital Neuro 4.5 5.4 -17 4.5 0

Regestrone Gynaecological 3.0 3.0 -1 3.2 -7

Methergin Gynaecological 2.5 2.3 10 3.0 -16

Voveran Pain 2.7 2.5 11 2.6 4

Genteal Ophthal 2.7 2.3 21 2.9 -6



Anti Diabetic26%

Pain 19%

Respiratory12%

Vitamins 10%

Gynaecological8%

Other25%




Anti Diabetic 27.7 22.6 22.5 26.4 5.0

Pain 19.2 19.2 0.2 21.1 -9.0

Respiratory 6.9 9.0 -24.2 9.6 -28.9

Vitamins 9.9 10.5 -6.0 9.5 4.6

Gynaecological 7.3 7.4 -1.2 8.1 -10.3

Vaccines 8.6 8.5 1.2 8.4 2.7

Neuro 7.3 8.4 -13.5 7.3 -0.2

Anti-Infectives 4.2 3.2 29.0 4.4 -5.9

Ophthal 3.2 2.7 19.3 3.3 -3.7

Cardiac 1.1 1.3 -21.7 1.1 -3.8



Acute, 751.2, 64%

Chronic, 419.3, 36%


68%

15%

6%6% 5%




Unichem Laboratories

Stock Performance

70100130160


CNX Pharma Unichem Labs



12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

16.9

10.3 13

.9

13.0

13.8

-15.

9

2.9

3.8 6.6

13.6 16

.7

12.9

11.9

-20

-15

-10

-5

0

5

10

15

20

25

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Unichem Laboratories



1.00

0.930.97

0.90

0.97

0.85

0.95 0.940.98

0.950.97

1.010.95

0.80

0.90

1.00

1.10

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Unichem Laboratories



Losar H Cardiac 7.3 6.6 9 7.5 -3

Ampoxin Anti-Infectives 7.0 5.3 32 6.9 0

Unienzyme Gastro Intestinal 7.3 5.3 38 6.4 14

Losar Cardiac 5.3 5.1 4 5.8 -8

Vizylac Gastro Intestinal 3.6 2.6 38 3.3 10

Trika Neuro 2.2 2.2 2 2.5 -12

Serta Neuro 1.7 1.7 -1 1.7 -1

Telsar Cardiac 1.6 1.8 -13 1.6 0

Unistar (Unichem) Cardiac 1.5 1.5 -3 1.5 0

Telsar-H Cardiac 1.2 1.4 -9 1.2 0



Cardiac42%

Anti-Infectives18%


Neuro 12%

Pain 4% Other

11%




Cardiac 30.9 31.4 -1.4 31.6 -2.2

Anti-Infectives 13.5 11.0 22.9 13.4 0.9


Neuro 9.5 8.6 10.1 9.4 0.4

Pain 2.9 2.3 25.4 2.8 5.7

Anti Diabetic 2.4 2.7 -10.7 2.4 0.7

Respiratory 1.9 1.5 25.1 1.9 1.1

Vitamins 2.2 1.3 64.8 2.0 12.1

Derma 1.2 1.0 24.1 1.1 13.5

Gynaecological 0.5 0.4 9.6 0.4 24.4



Acute, 365.9, 43%Chronic,

476.9, 57%


48%

13%

10%

11%

18%




Indoco Remedies

Stock Performance

80

180

280


CNX Pharma Indoco



12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

19.0

19.0

8.5

17.5

34.4

6.1

4.8

-1.48.

6 8.9

18.9

22.0

2.4

-5

0

5

10

15

20

25

30

35

40

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Indoco Remedies



0.7 0.8 0.8

0.8

0.9

0.8

0.7 0.7 0.70.8

0.7

0.7 0.7

0.6

0.7

0.7

0.8

0.8

0.9

0.9

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indoco Remedies



Febrex Plus Respiratory 3.2 5.1 -38 5.8 -45

Cyclopam Gastro Intestinal 4.0 3.7 8 3.5 15

Sensodent-K Stomatologicals 2.5 3.3 -25 3.1 -20

Oxipod Anti-Infectives 2.3 2.1 10 2.5 -7

Cital Urology 3.3 2.9 15 3.0 11

Atm Anti-Infectives 2.0 1.7 19 2.1 -6

Sensoform Stomatologicals 1.4 1.7 -14 1.7 -13

Sensodent-Kf Stomatologicals 1.5 1.5 -1 1.8 -14

Cloben G Derma 1.6 1.6 1 1.7 -5

Cyclopam Gastro Intestinal 1.9 1.6 19 1.7 16


Exhibit 90: Contribution of therapies to domestic sales (MAT May’15) Respiratory

19%

Stomatologicals17%

Anti-Infectives17%


Vitamins 6%

Other27%




Respiratory 6.0 8.1 -26.2 9.1 -34.3

Stomatologicals 8.3 8.9 -6.5 9.4 -11.4

Anti-Infectives 8.1 7.7 5.4 8.4 -3.8


Vitamins 3.4 2.7 24.8 3.4 1.4

Urology 3.6 3.1 16.9 3.2 12.7

Pain 2.2 2.5 -13.2 2.1 2.4

Derma 2.2 2.0 6.9 2.3 -4.8

Anti Diabetic 1.7 2.1 -18.4 1.9 -13.0

Ophthal 2.2 2.0 6.5 2.2 -3.6



Acute, 621.7, 93%

Chronic, 44.7, 7%


48%

17%

8%

10%

17%




Ajanta Pharma

Stock Performance

50100150200250300350400


CNX Pharma Ajanta



12.1 13

.9

10.7

11.4

20.8

7.6

12.2 14

.8

13.5

19.6 21

.5

17.5

11.1

45.6

41.5

27.5

19.9

44.8

36.0

23.2

33.1

14.6

16.2

15.4

10.5

8.1

05

1015

2025

3035

4045

50M

ay-1

4

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Indian Pharma Market Ajanta Pharma



0.50 0.500.49

0.470.45

0.50

0.53

0.51 0.510.52

0.480.47

0.49

0.4

0.4

0.4

0.5

0.5

0.5

0.5

0.5

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

(%)

Ajanta Pharma


Exhibit 94: Top 10 brands performance (| crore) Brand Therapy May'15 May'14 Var. (%) Apr'15 Var. (%)Met Xl Cardiac 3.8 4.3 -11.7 3.2 17.8

Melacare Derma 3.5 3.6 -3.2 3.7 -5.1

Atorfit Cv Cardiac 2.8 2.5 13.6 2.8 0.9

Soft Drops Ophthal 1.2 1.0 16.1 1.1 7.7

Met Xl Am Cardiac 1.0 1.0 -0.6 0.9 11.0

Feburic Pain 0.9 0.9 -4.2 0.9 -0.8

Rosufit Cv Cardiac 0.9 0.8 14.5 0.9 3.5

Peroclin Derma 0.6 0.6 8.5 0.6 3.8

Metaspan Vitamins 0.6 0.6 -5.9 0.5 10.8

Melacare Plus Derma 0.5 0.6 -11.9 0.6 -19.7



Cardiac33%

Derma24%

Ophthal22%

Vitamins 6%

Pain 5%

Others10%




Cardiac 12.5 11.4 9.0 11.7 6.9

Derma 8.5 8.7 -1.7 9.1 -5.9

Ophthal 8.9 7.7 14.7 8.9 -0.3

Vitamins 2.4 1.9 31.6 2.3 7.6

Pain 1.8 1.6 18.0 1.8 1.1

Gastro Intestinal 1.0 1.1 -8.8 1.4 -27.0

Neuro 0.9 0.9 -1.7 0.8 9.2

Ophthal 0.5 0.5 3.3 0.6 -5.7

Respiratory 0.2 0.4 -45.2 0.3 -15.9

Anti-Infectives 0.5 0.2 173.8 0.4 22.8



Acute, 225.4, 52%

Chronic, 211.5, 48%


43%

13%9%

13%

22%




Exhibit 97: One year forward P/E of CNX Pharma vs. Nifty

0

5

10

15

20

25

30

35

Mar

-06

Oct-0

6

May

-07

Dec-

07

Jul-0

8

Feb-

09

Sep-

09

Apr-1

0

Nov

-10

Jun-

11

Jan-

12

Aug-

12

Mar

-13

Oct-1

3

May

-14

Dec-

14

x

CNX Pharma Sensex [


Exhibit 98: Two year forward P/E of CNX Pharma Index vs. Nifty

0

5

10

15

20

25

30

Mar

-07

Aug-

07

Jan-

08

Jun-

08

Nov

-08

Apr-0

9

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-1

4

Sep-

14

Feb-

15

x

CNX Pharma Sensex


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 1504 1488 BUY 13231.0 26.5 38.3 45.6 56.8 39.3 33.0 35.9 26.0 21.9 44.9 40.6 38.1 39.4 32.8 28.9

Apollo Hospitals APOHOS 1253 1454 BUY 17432.4 22.8 24.0 35.3 55.0 52.3 35.5 27.3 25.6 17.2 11.6 10.3 14.4 10.6 10.4 13.7

Aurobindo Pharma AURPHA 1361 1680 BUY 39732.9 47.3 53.9 72.7 28.8 25.2 18.7 20.3 17.0 13.5 24.1 23.5 25.3 31.3 30.3 29.7

Biocon BIOCON 467 447 HOLD 9337.0 20.7 20.1 22.5 35.1 29.2 32.4 21.2 21.1 18.0 12.2 10.7 11.7 13.7 15.2 12.4

Cadila Healthcare CADHEA 1793 1913 BUY 36715.5 39.2 56.2 75.4 45.7 31.9 23.8 32.3 22.0 16.9 15.9 21.3 24.7 23.4 26.4 27.4

Cipla CIPLA 607 650 HOLD 48719.5 17.3 14.9 23.8 35.1 40.7 25.5 23.2 22.9 15.6 15.5 13.2 18.5 13.8 10.8 15.1

Dr Reddy's Labs DRREDD 3385 3949 BUY 57708.0 126.7 123.6 150.9 26.7 27.4 22.4 17.4 16.6 14.2 19.2 18.1 20.2 23.7 19.3 19.6

Glenmark Pharma GLEPHA 868 927 HOLD 27882.3 20.0 17.1 35.1 49.4 57.8 28.1 23.2 25.2 16.0 16.0 12.7 22.9 18.3 14.3 24.1

Indoco Remedies INDREM 362 410 BUY 3317.4 6.3 8.8 14.3 57.3 40.9 25.2 28.2 20.5 14.8 16.6 19.4 24.4 12.7 15.5 20.8

Ipca Laboratories IPCLAB 681 625 HOLD 8589.1 37.9 20.5 28.9 17.9 33.3 23.6 11.2 18.1 16.5 27.6 11.4 12.5 24.4 12.1 15.1

Jubilant Life Sciences VAMORG 168 168 HOLD 2680.7 6.8 -6.5 20.0 24.6 -26.0 8.4 6.5 11.8 5.7 10.1 5.7 8.2 4.2 -2.4 6.6

Lupin LUPIN 1817 1899 BUY 81726.0 41.0 53.6 61.1 44.4 33.9 29.7 27.9 22.0 19.5 31.8 31.1 29.9 24.3 25.3 23.4

Natco Pharma NATPHA 2190 2200 HOLD 7278.6 30.3 31.2 51.0 62.3 60.3 37.0 41.9 34.8 24.9 15.3 15.6 20.6 14.1 12.4 17.9

Sun Pharma SUNPHA 846 970 BUY 203571.4 6.6 19.8 29.1 127.8 42.8 29.0 49.9 23.2 17.6 32.4 31.2 28.8 27.0 25.3 23.1

Torrent Pharma TORPHA 1335 1450 BUY 22585.3 39.2 47.2 50.4 34.0 28.3 26.5 23.9 21.1 17.0 28.5 21.4 26.7 34.9 32.4 28.0

Unichem Laboratories UNILAB 187 214 HOLD 1700.9 18.7 7.2 14.1 10.0 25.9 13.2 9.4 16.1 9.7 15.7 7.2 13.5 20.7 7.5 13.9

RoNW (%)Company

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


RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Add, Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Sector view: Over weight compared to index Equal weight compared to index Under weight compared to index Index here refers to BSE 500

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

[email protected]


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