IDirect HealthCheck Feb15content.icicidirect.com/.../IDirect_HealthCheck_Feb15.pdfThe pill, which combines sofosbuvir, the chemical name for Sovaldi, with GS-5816, a compound in advanced

ICICI Securities Ltd. | Retail Equity Research

February 23, 2015

Monthly Update

Slow approvals + currency headwinds=weak Q3 For Q3FY15, the I-direct universe registered YoY revenue growth of 9.9% to | 28276 crore, driven by 6.8% growth in the US and 15.6% growth in Indian formulations. The growth in the US was more or less on expected lines, subdued by lack of new product approvals and a 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 1.5% YoY to | 7069 crore while the lower growth can be attributed to forex losses, higher R&D spends and remedial expenses to comply with cGMP issues. The PAT de-grew 6.8% YoY to | 4436.6 crore. The de-growth was attributable to lower EBITDA growth and higher depreciation and taxation. On the revenue front, companies such as Aurobindo, Ajanta, Cadila, Apollo Hospitals, Indoco and Torrent Pharma reported strong revenue growth on account of incremental product launches and sustained base business growth. On the other hand, Biocon, Dr Reddy’s, Ipca Laboratories and Jubilant reported a weak set of numbers due to lack of product approvals, impact of currency volatility in emerging markets and regulatory impact. Cipla continued to invest in front ends, this time in Morocco and Algeria. It entered into a JV agreement with existing business partners in Morocco to serve as a launch vehicle for Cipla’s portfolio. Cipla is likely to infuse US$15 million in cash into the JV. Leveraging the commercial strengths of partners, the JV’s initial focus will be respiratory and neurology products. It will also establish a manufacturing facility in Morocco. Similarly, in Algeria, it has entered into a similar kind of joint venture (JV) agreement with the same entity. The JV company will manufacture and market respiratory products facilitating Cipla’s front-end presence in Algeria. Cipla also invested in India based Jay Precision Pharmaceuticals, which is Cipla’s supplier for respiratory devices and has a manufacturing facility in Maharashtra. Finally, on the domestic formulations front, the Indian Pharmaceutical Market (IPM) witnessed strong growth of 12.7% YoY to | 7294 crore for January 2015. The YoY growth was mainly driven by- 1) price hikes - 5.2% and 2) volume growth – 4.4%. Despite Q3 slowdown outlook remains robust on strong visibility The BSEHC stretched its outperformance over broader indices by almost 8% on a YTD basis. After a prolonged strong growth trajectory in the last many quarters, the growth pace for the sector has slowed down in Q3FY15 on account of a slowdown in exports due to: 1) high base, 2) delay in product approvals, 3) volatility in emerging market currencies and 4) regulatory concerns. However, this was on expected lines. Domestic growth, on the other hand, continued to register sound growth albeit on lower base, even though this was still below our expectation. Despite muted Q3, only a handful of stocks witness a correction as most of the managements sounded optimistic about the product approval revival in the US. The BSEHC is currently trading at ~21x on FY17 EPS, almost 50% premium to the Sensex FY17 PE. We expect pharma companies under our coverage to register a CAGR of 16%, 17% and 26% in revenues, EBITDA and PAT in FY14-17E, respectively, on an aggregate basis. Strong visibility on the back of a strong product basket and a reasonable base business growth continue to attract buying interest in the healthcare sector despite premium valuations.

Health CheckSector View

Outperformer

Index Performance as on February 20, 2015

Return (%) 1M 3M YTD 1Y

BSE 500 2 6 6 52

Sensex 2 4 6 42

BSE Healthcare 4 6 8 53

Return (%)

Stocks Performance Mcap

Company 1M 3M YTD 1Y 20-Feb

Sun Pharma.Inds. 5 7 10 47 189133

Dr Reddy's Labs 3 -4 5 25 57971

Cipla 2 9 8 82 54276

Cadila Health. -3 4 0 70 32840

Aurobindo Pharma -9 -6 -7 114 30828

Glaxosmit Pharma 1 9 0 6 26976

Glenmark Pharma. 8 -5 2 47 21389

Torrent Pharma. -2 10 -1 103 18931

Apollo Hospitals 10 8 18 47 18586

Wockhardt 33 77 45 254 16112

Ajanta Pharma 9 9 16 176 9525

Pfizer -5 19 -8 90 9106

Biocon 4 -2 4 1 8891

Ipca Labs. -3 1 -7 -20 8554

Strides Arcolab -2 24 -4 197 5467

Natco Pharma -9 1 -9 79 4612

Indoco Remedies -1 4 1 151 2894

Jubilant Life 4 18 34 45 2580

Unichem Labs. -3 -6 -11 5 1965

Elder Pharma -7 -28 21 -35 258

Return (%)

Mcap: Market cap in | crore

Price movement

750085009500

10500115001250013500145001550016500

Feb-14 May-14 Aug-14 Nov-14 Feb-15

150001700019000210002300025000270002900031000

BSE Healthcare Sensex (RHS)

Research Analyst

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

Nandan Kamat [email protected]


Page 2

Regulatory approvals

Exhibit 1: Summary of USFDA approvals for the month January 2015

[5

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeLupin Valsartan CVS Novartis Diovan US$ 1.8 billionAurobindo Pharma Valsartan CVS Novartis Diovan US$ 1.8 billionTorrent Pharma Valsartan CVS Novartis Diovan US$ 1.8 billionJubilent Life Valsartan CVS Novartis Diovan US$ 1.8 billionCadila Healthcare Calcium Acetate Blood phosphate Cypress Pharm Eliphos NALupin Vancomycin Hydrochloride Diarrhoea ANI Pharmaceuticals Vancocin US$ 164 millionSun Pharma fexofenadine HCL and pseudoephedrine HCL Anti-allergic Sanofi Allegra-D (OTC) US$ 49.8 million

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeTaro Pharma Desloratadine Anti-allergic Merck Clarinex NAStride Arcolab Rilpivirine HIV Janssen Prods Edurant NA

Tentative Approvals

Final Approvals

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

New launches

Lupin launches InspiraChamber VHC in US Lupin has launched InspiraChamber, an Anti-Static Valved Holding Chamber (VHC) in the US under a licensing agreement with InspiRX Inc. The agreement grants Lupin exclusive rights to promote distribute and market InspiraChamber VHC in the US. Capex, investments, fund raising

Torrent Pharma plans to raise | 10,000 crore Torrent Pharma has taken approval from Board of Directors for obtaining shareholder approval for issuance of equity shares for an amount not exceeding | 3,000 crore, increase in the borrowing limit to | 10,000 crore and for issuance of non-convertible debentures for an amount not exceeding | 7,500 crore (within the above limit of | 10,000 crore). The company has taken these enabling approvals for meeting the funding requirements of its capital expenditure, long term working capital, refinancing of the existing borrowings and organic & inorganic growth. Torrent would approach the market as and when there is a specific requirement of funds for any of these purposes at an appropriate time and opportunity. Sanofi, Apollo take Sugar clinic deal further French Pharma major Sanofi has picked up a 20% stake in Apollo Sugar Clinics for | 90 crore, a diabetes care chain of Apollo Hospitals. Apollo Sugar Clinics (ASCL) is a subsidiary of Apollo Health & Lifestyle (AHLL), an arm of Apollo Hospitals that focuses on growth in primary and secondary care. In September 2014, Apollo Hospitals and Sanofi had announced they were joining hands to provide diabetes care programmes through Apollo Sugar Clinics. M&As, de-mergers, JVs

Cipla acquires 60% stake in Jay Precision Pharmaceuticals Cipla has acquired a 60% stake in Jay Precision Pharmaceuticals Pvt Ltd for a cash consideration of | 96 crore. Jay Precision is Cipla’s supplier for respiratory devices and has a manufacturing facility in Vasai, Maharashtra. Turnover of Jay Precision was | 30 crore in FY14. Cipla UK subsidiary enters into JV with Cooper Pharma Cipla’s UK subsidiary has entered into a joint venture (JV) agreement with Cipla’s existing business partners Société Marocaine de Coopération Pharmaceutique (Cooper Pharma) and the Pharmaceutical Institute (PHI).


Page 3

The JV Company will manufacture and market respiratory products facilitating Cipla’s front-end presence in Algeria. As per the agreement, Cipla will hold a 40% stake in the JV Company while the remainder will be held by a Biopharm-led Algerian consortium. The JV company is expected to make an investment of up to US$ 15 million in the construction of a manufacturing facility. Cipla to invest into Moroccan JV Cipla’s wholly owned subsidiary, Cipla (EU) Limited, UK has entered into a JV agreement with Cipla’s existing business partners in Morocco – Société Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and The Pharmaceutical Institute (PHI) to serve as a launch vehicle for Cipla’s portfolio. As per the agreement, Cipla (EU) Ltd will hold a 60% stake in the JV while Cooper Pharma and PHI shall together hold the rest. Cipla (EU) is likely to infuse US$15 million in cash into the JV. Leveraging the commercial strengths of partners, the JV’s initial focus will be on respiratory and neurology products. It will also establish a manufacturing facility in Morocco. Strides Arcolab enters into licensing agreement with Gilead Sciences Strides Arcolab has entered into a licensing agreement with Gilead Sciences, Inc. under which Gilead has extended non-exclusive rights to Strides to manufacture and distribute Tenofovir Alafenamide (TAF), both as a single agent product and in combination with other drugs. The license being granted to Strides extends to 112 countries, which together account for more than 30 million people living with HIV. Deals & alliances/tenders

Apollo, Government of Ghana sign MoU Apollo Hospitals has signed a memorandum of understanding (MoU) with the Republic of Ghana to develop tertiary healthcare services in the African country and provide specialised medical treatment for the country's patients at some of the former's facilities in India. As per the agreement, Apollo will provide high-end tertiary healthcare services at its centres in India to patients referred by Ghana's Ministry of Health. For a two-year period, all Apollo Hospitals would be linked through tele-medicine with hospitals in Ghana for free super-specialty consultations. Lupin enters into agreement for commercialisation of gAdvair Diskus Lupin and Poland based Celon Pharma SA (Celon) have entered into a definitive agreement under which the companies will jointly develop a fluticasone/salmeterol dry powder inhaler (DPI) product, which is a generic version of GSK's Advair Diskus. Lupin will be responsible for commercialisation of the product. Celon will supply the product to Lupin for its commercialisation in the US, Canada, Mexico, and other key markets. Gilead expands gSovaldi pact to add investigational pill Gilead Sciences is planning to launch Sovaldi, its blockbuster hepatitis C drug, in India by June while expanding the reach of a generic licensing agreement with Indian drug makers to include an investigational combination pill. The pill, which combines sofosbuvir, the chemical name for Sovaldi, with GS-5816, a compound in advanced clinical trials in the US, could treat six genotypes of hepatitis C if approved by regulators. Gilead will ask the Health Ministry in India to waive clinical trials and expedite approval for the compound, which eliminates the need for costly genotype tests. Gilead Sciences has licensed eight India-based generic drugmakers to bring cheaper versions of Sovaldi to 91 mainly low-income countries, including India, Indonesia, Cambodia and many nations in Africa. The eight manufacturers that hold the license include Biocon Ltd, Cadila Healthcare,


Page 4

Cipla, Hetero Labs, Mylan Laboratories, Ranbaxy Laboratories, Sequent Scientific and Strides Arcolab. Q3FY15 Results

Ajanta maintains high growth tempo Revenues grew 21.8% YoY to | 362.6 crore on the back of 15% growth in exports and 35% growth in domestic sales. EBITDA margins improved 393 bps YoY to 36.2%. EBITDA increased 35.2% YoY to | 131.4 crore. Net profit increased 35.7% YoY to | 84.7 crore, driven by a strong operational performance. Apollo numbers in line Revenue increased 19% YoY to | 1183 crore due to 12% and 31.9% increase in healthcare and pharmacy business to | 711.5 crore and | 471.21 crore, respectively. The EBITDA margin remained flat at 14.8%. EBITDA increased 10.7% YoY to | 174.7 crore. Adjusting one-offs, the net profit increased 10.0% to | 91.8 crore. Aurobindo margins dented by higher European sales Revenues grew 48% YoY to | 3166.2 crore on the back of higher-than-expected Europe and ARV sales. EBITDA margins declined 1077 bps to 19.3%. This was on account of higher-than-expected sales in the loss making European business. EBITDA de-grew 5% to | 612.17 crore. Net profit de-grew 8% to | 384.35 crore. Biocon numbers affected due to poor biopharma performance Revenues grew 8.8% YoY to | 769.2 crore. Capacity constraint and slow growth in API continue to impact its bio-pharma business (56% of sales), which grew 4% to | 436 crore. EBITDA margins contracted 406 bps YoY to 20.8% due to higher-than-expected R&D expenses. EBITDA declined 9% to | 160 crore. Net profit declined 13.5% to | 90.9 crore. Cadila beats estimates on the back of superior US growth Revenues grew 17% to | 2189.5 crore mainly on the back of 42% YoY growth in the US formulations business. EBITDA margins improved 465 bps to 20.4%. The EBITDA grew 51.5% YoY to | 447.2 crore. PAT grew 51.6% YoY to | 282 crore boosted mainly by a strong operational performance. US growth positive surprise for DRL’s numbers Revenues grew 8.8% YoY to | 3843.1 crore on account of higher-than-expected growth in developed markets. EBITDA margins declined 683 bps to 24.1%. The EBITDA declined 15.2% to | 926.8 crore. Net profit declined 7.1% to | 574.1 crore. Ex-US and RoW growth saves the day for Glenmark Revenues grew 6.2% YoY to | 1701 crore. India, LatAm and RoW sales grew 13.6%, 105.8% and 27.3% YoY to | 433 crore, | 234 crore and | 173 crore, respectively. On the other hand, US and RoW declined 2.7% and 31.3% YoY to | 507 crore and | 207 crore, respectively. EBITDA margins declined 718 bps to 15.6% mainly due to forex losses. EBITDA declined 27.2% YoY to | 265.7 crore. Net profit declined 47% YoY to | 115 crore on the back of a lower margins. Low growth in exports affects Indoco revenues Revenues grew 13% YoY to | 213 crore, mainly due to lower-than-expected export sales. Domestic and export sales grew 7.4% and 22.9% YoY to | 129.7 crore and | 83.3 crore, respectively. EBITDA margins increased 381 bps YoY to 19.7%. EBITDA grew 43% to | 42.7 crore. The improvement in EBITDA margin and lower tax outgo led to net profit growth of 53.1% YoY to | 21.6 crore.


Page 5

Ratlam takes toll on Ipca performance Revenues declined ~11% YoY to | 740.6 crore due to ~22% decline in export formulations to | 305.1 crore and ~20% decline in overall APIs to | 150.4 crore. Domestic formulation sales increased 13% YoY to | 278.7 crore. EBITDA margins declined 970 bps YoY to 16.4% due to higher unabsorbed overheads on the back of reduced sales. EBITDA declined 44.3% to | 121.1 crore. Net profit declined 70.1% to | 41.5 crore due to a below-par operational performance & higher taxation. Dismal show continues for Jubilant Revenues were flat YoY at | 1445.2 crore, due to the extended plant shutdown in the CMO business to address USFDA issues, regulatory changes in advanced intermediates for the China market and delay in getting product approvals from the USFDA. EBITDA margins declined ~448 bps to 12.8% mainly due to the impact of the CMO business. EBITDA declined 25.8% to | 185.3 crore. The company posted a net loss of | 11.2 crore on the back of low EBITDA margins and an increase in interest and taxation. Healthy margins save Lupin Revenues grew 5.2% to | 3177.6 crore. The US sales (45% of net sales) grew just 4% to | 1404 crore on the back of a slowdown in product approvals and increased competition. Domestic revenues (24% of net sales) grew 14% to | 744 crore. EBITDA margins increased 220 bps to 27.8% mainly on the back of an improvement in gross margins. EBITDA grew 14.2% to | 883 crore. Net profit posted growth of 26.3% to | 601.5 crore owing to increase in EBITDA margins. Natco numbers robust on back of superior exports growth Revenues de-grew 4% YoY to | 195.5 crore mainly due to a decline in formulation sales by 16.6% to | 97.33 crore. EBITDA margins declined ~218 bps to 24.3%. EBITDA de-grew 11.8% YoY to | 47.6 crore. Adjusted net profit declined 1.4% YoY to | 29.5 crore on lower operational performance. Sun reports weak numbers due to weak US performance Sun Pharma’s Q3FY15 revenue stood at | 4279.5 crore (down 8% YoY), due to a decline in the US and RoW sales by 4.3% and 14.6% YoY to | 2560 crore and | 444 crore, respectively. EBITDA margins declined just 171 bps YoY to 44.7%, thanks to better-than-expected Taro’s margin performance. EBITDA declined 4.4% YoY to 1912.6 crore. Net profit declined 8% YoY to | 1409 crore mainly due to a lower operational performance. Torrent registers muted numbers Revenues grew 15% to YoY to | 1168 crore on account of lower-than-expected export sales. EBITDA margins declined 63 bps to 20.6%. EBITDA in absolute terms grew 11.6% to | 240 crore. Net profit witnessed a YoY increase of 5.7% to | 167 crore mainly on account of a lower-than-expected operational performance. Portfolio reshuffling, NLEM affects Unichem’s numbers Revenues were flat YoY at | 265.85 crore. EBITDA margins declined 1499 bps to 3.17%. EBITDA in absolute terms declined 82.5% YoY to | 8.44 crore due to the increase in operating expenditure. Net profit witnessed a YoY decline of 97.22% to | 2.06 crore owing to the decline in EBITDA margins and flattish revenue growth.


Page 6

Q3FY15 results review

For Q3FY15, the I-direct universe registered YoY revenue growth of 9.9% to | 28726 crore, driven by 6.8% growth in the US and 15.6% 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 1.5% YoY to | 7069 crore and the lower growth is attributable to forex losses, higher R&D spends and remedial expenses to comply with cGMP issues. The PAT de-grew 6.8% YoY to | 4436.6 crore. The de-growth can be attributed to lower EBITDA growth and higher depreciation and taxation.

Exhibit 2: Actual s Vs Estimates

Q3FY15E Q3FY15 Q3FY15E Q3FY15 Q3FY15E Q3FY15Apollo Hospitals 1163.4 1182.5 180.7 174.7 88.3 95.0Aurobindo Pharma 2834.9 3166.2 612.3 612.2 393.7 384.4Ajanta Pharma 356.5 362.6 112.6 131.4 79.0 84.7Biocon 754.5 769.1 172.3 160.0 107.2 90.9Cadila Healthcare 2113.3 2189.5 431.1 447.2 283.8 281.9Cipla 2953.7 2765.5 614.4 553.8 341.7 327.9Dr Reddy's Labs 3444.4 3843.1 816.3 980.2 519.1 574.5Glenmark Pharma 1680.3 1701.3 344.2 265.7 179.2 114.8Indoco Remedies 228.8 216.7 48.3 42.7 29.2 21.6Ipca Labs 818.8 740.7 139.2 121.1 75.3 41.5Jubilant Life Sciences 1461.6 1445.5 138.9 185.3 -8.2 -11.2Lupin 3129.9 3177.6 829.4 882.9 495.8 601.5Natco Pharma 226.2 195.5 59.9 47.6 35.8 25.2Sun Pharma 4919.4 4295.3 2157.8 1928.3 1652.4 1425.1Torrent Pharma 1217.0 1168.0 292.1 240.0 188.4 167.0Unichem Labs 287.0 265.9 38.2 8.5 21.9 2.1Total 28421.0 28275.9 7299.5 7068.6 4713.5 4447.4

CompanyRevenues EBITDA Net profit

Source: Company, ICICIdirect.com Research

Exhibit 3: Quarterly Performance of I-direct Healthcare coverage

Company Q3FY15 Q3FY14 Var.(%) Q3FY15 Q3FY14 Var.(%) Q3FY15 Q3FY14 Var.(%)Apollo Hospitals 1182.5 993.3 19.0 174.7 157.8 10.7 95.0 83.4 13.9Aurobindo Pharma 3166.2 2140.6 47.9 612.2 643.8 -4.9 384.4 417.5 -7.9Ajanta Pharma 362.6 300.9 20.5 131.4 99.2 32.4 84.7 62.4 35.7Biocon 769.1 707.3 8.7 160.0 175.8 -9.0 90.9 105.0 -13.4Cadila Healthcare 2189.5 1894.0 15.6 447.2 351.2 27.4 281.9 186.0 51.6Cipla 2765.5 2596.1 6.5 553.8 467.3 18.5 327.9 284.3 15.3Dr Reddy's 3843.1 3533.8 8.8 980.2 1043.7 -6.1 574.5 618.5 -7.1Glenmark Pharma 1701.3 1601.8 6.2 265.7 365.0 -27.2 114.8 216.2 -46.9Indoco Remedies 216.7 187.8 15.4 48.3 29.9 62.0 21.6 14.1 53.1Ipca Labs 740.7 833.0 -11.1 121.1 217.3 -44.3 41.5 139.1 -70.2Jubilant Life Scie. 1445.5 1442.8 0.2 185.3 249.6 -25.8 -11.2 143.4 PLLupin 3177.6 3022.0 5.2 882.9 773.3 14.2 601.5 476.1 26.3Natco Pharma 195.5 203.4 -3.9 47.6 53.9 -11.8 25.2 29.9 -15.8Sun Pharma 4295.3 4206.6 2.1 1928.3 1842.9 4.6 1425.1 1362.3 4.6Torrent Pharma 1168.0 1015.0 15.1 240.0 215.0 11.6 167.0 158.0 5.7Unichem Labs 265.9 264.9 0.4 8.5 48.1 -82.4 2.1 8.2 -74.4Total 28275.9 25632.3 10.3 7074.3 7021.5 0.8 4447.4 4523.5 -1.7

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 Torrent pharma reported strong revenue growth on account of incremental product launches and sustained base business growth. On the other hand Biocon, Dr Reddy’s, Ipca labs 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 Q3FY15

(| crore) Q3FY15 Q3FY14 Var. (%) Q2FY15 Var. (%)

Biocon 105.0 99.2 5.8 115.7 -9.2

Cadila 641.8 588.3 9.1 680.8 -5.7

Glenmark 433.1 381.2 13.6 478.2 -9.4

Indoco 122.9 114.9 6.9 137.4 -10.6

Ipca 278.7 246.3 13.1 327.9 -15.0

Lupin 743.8 650.4 14.4 799.0 -6.9

Cipla 1199.0 1050.0 14.2 1251.0 -4.2

Dr Reddy's 432.8 391.3 10.6 479.9 -9.8

Sun Pharma 1150.0 947.2 21.4 1151.8 -0.2

Ajanta 132.0 97.0 36.1 114.0 15.8

Torrent 421.0 300.0 40.3 444.0 -5.2

Unichem 158.1 166.4 -5.0 166.6 -5.1

Total 5818.1 5032.3 15.6 6146.2 -5.3

Performance in US market in Q3FY15


Aurobindo 1201.2 931.2 29.0 1174.3 2.3

Cadila 895.9 631.6 41.8 802.0 11.7

Glenmark 507.2 521.4 -2.7 507.6 -0.1

Lupin 1404.3 1356.7 3.5 1271.6 10.4

Dr Reddy's 1681.9 1622.3 3.7 1429.3 17.7

Sun Pharma 2560.8 2678.9 -4.4 2911.8 -12.1

Torrent 171.7 148.0 16.0 167.0 2.8

Total 8423.0 7890.1 6.8 8263.5 1.9

Performance in Europe market in Q3FY15


Aurobindo 860.9 150.8 470.9 766.5 12.3

Cadila 84.7 118.6 -28.6 77.7 9.0

Glenmark 173.0 135.8 27.3 130.6 32.5

Dr Reddy's 194.7 186.2 4.6 143.4 35.8

Lupin 80.5 66.1 21.8 87.6 -8.1

Torrent 225.7 248.0 -9.0 247.0 -8.6

Total 1619.4 905.5 78.8 1452.8 11.5

Performance in Latin American market in Q3FY15


Cadila 61.0 63.9 -4.5 64.7 -5.7

Glenmark 234.4 113.9 105.8 230.9 1.5

Torrent 155.8 147.0 6.0 160.0 -2.6

Total 451.3 324.8 38.9 455.6 -0.9

Performance in API Segment in Q3FY15


Aurobindo 674.4 744.5 -9.4 685.0 -1.5

Cadila 95.9 84.3 13.8 88.7 8.1

Cipla 151.0 158.0 -4.4 135.9 11.1

Glenmark 146.5 147.9 -1.0 159.5 -8.2

Indoco 12.9 11.2 15.3 13.5 -4.7

Ipca Labs 150.4 187.0 -19.6 140.7 6.8

Lupin 275.8 297.3 -7.2 318.3 -13.4

Dr Reddy's 611.2 506.2 20.7 639.2 -4.4

Sun Pharma 181.1 174.2 4.0 210.1 -13.8

Unichem 28.3 35.5 -20.2 29.5 -4.0

Total 2327.5 2346.1 -0.8 2420.5 -3.8


Page 7

Revenues from the US market grew ~6.8% YoY to | 8423 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. Players like Aurobindo, Cadila and Torrent registered strong YoY growth whereas DRL, Lupin and Glenmark were laggards on account of a slowdown in product approvals. Indian formulations business witnessed growth of ~15.6% to | 5818 crore on the back of a low base and strong growth in chronic segments. However, the 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

25701 2610826893

28156 28276

15000

17000

19000

21000

23000

25000

27000

29000

Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15

| cr

ore

Revenues


Exhibit 5: I-direct Healthcare Universe EBITDA trend

71246931

71147001

7074

6000

7000

8000


| cr

ore

EBITDA


Exhibit 6: I-direct Healthcare Universe profits trend

47584678

43684447

4246

3900400041004200430044004500460047004800


| cr

ore

Profits

Source: Company, ICICIdirect.com Research; *Post adjusting Protonix liability of Sun

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

27.726.5

24.9 25.0

18.5 17.9

15.1 15.7

26.5

16.2

1012141618202224262830


%

EBITDA Margins (%) PAT Margins (%)



Page 8

Exhibit 8: Change in outlook post Q3 numbers [5

Company Initial Rating Current RatingDeviation from

estimates Remarks

Ajanta Pharma HOLD BUY Above Better than expected margins

Apollo Hospitals HOLD BUY Inline Change in methodology from EV/EBITDA to SOTP

Aurobindo Pharma HOLD BUY Above Higher than expected EU and ARV sales

Biocon HOLD HOLD Below Lower than expected margins due to increased R&D expenses

Cadila Healthcare HOLD HOLD Inline

Cipla HOLD HOLD Below Lower than expected margins due to structural changes initiation

Dr Reddy's Labs HOLD HOLD Above Higher than expected growth in developed markets

Glenmark Pharma HOLD HOLD Below Lower than expected margins due to currency volatility impact

Indoco Remedies HOLD BUY Below Lower than expected export sales but robust product pipeline

Ipca labs HOLD HOLD Below Import alert on Ratlam facility and tender business miss

Jubilant Life Sciences SELL SELL Above Higher than expected margins

Lupin BUY BUY Above Improvement in margins, other income and higher tax outgo

Natco Pharma HOLD HOLD Below Higher than expected growth in bulk chemical segment and formulations segment

Sun Pharma BUY BUY Below Decline in US and RoW sales, One-off dent due to compliance adherence

Torrent Pharma HOLD HOLD Below Lower than expected export sales and operational performance

Unichem Labs HOLD HOLD Below Increase in operating expenditure

Source: Bloomberg, ICICIdirect.com Research


Page 9

Exhibit 9: Patent Litigations in FY15 [5

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

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

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

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

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

Source: Bloomberg, ICICIdirect.com Research


Page 10

IPM growth supported by sharp price hike… • The Indian Pharmaceutical Market (IPM) witnessed strong growth of

12.7% YoY to | 7294 crore for January 2015. The YoY growth was mainly driven by - 1) price hikes - 5.2% and 2) volume growth – 4.4%

• In the running quarter (November-January 2015), the company took 5.1% price hike against 3.2% in Nov-Jan’14 and 4% in Aug-Oct’14

• The drugs under NLEM list witnessed growth of 6.9% YoY to | 1245 crore due price hike and increase in volume while non-NLEM drugs posted robust growth of 14.0% to | 6049 crore mainly due to price hikes to the tune of 5.8%

• Among our covered companies, Torrent registered highest growth of 25% YoY followed by Glenmark, Biocon and Ajanta Pharma clocking growth of 21.3%, 20.9% and 14.6%, respectively

• Therapy wise, eight therapies outpaced IPM growth while 13 therapies witnessed double digit growth. Notable among them with growth rates- anti-diabetic – 25.4%, dermatology- 18.0% and cardiac – 13.2%.

• In all, 174 new brands were launched in January • On a MAT basis, IPM growth stood at 10.8% YoY to | 84018 crore • MNC companies grew 17.7% while domestic companies grew 11.0% in

January 2015 Exhibit 10: Domestic formulations - growth trend

12.8

7.8

7.3 8.

5

11.9 13

.5

9.3 10

.4 11.2

14.2

20

12.7

6.5

-5

0

5

10

15

20

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market [

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 11: Companies growth in domestic market in January 2015

25.0

13.5

8.913.0

20.9

14.6

7.4

12.4

21.3

2.81.3

5.01.1

25.8

6.6

19.0

-10

0

10

20

30

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 Jan'15 Jan'14 YoY (%) Dec'14 QoQ (%)Anti-Infectives 1069 994 7.6 1101 -2.9Cardiac 965 852 13.2 967 -0.2Gastro Intestinal 794 705 12.6 797 -0.4Vitamins 625 564 10.8 649 -3.7Respiratory 622 560 11.2 657 -5.3Anti Diabetic 614 489 25.4 616 -0.3Pain 493 442 11.4 510 -3.3CNS 457 419 9.0 462 -1.0Derma 434 368 18.0 452 -3.9Gynaecological 361 335 7.7 354 2.1Ophthal 125 115 8.6 131 -4.7Hormones 124 114 8.7 124 0.3Anti-Neoplastics 125 102 22.4 120 4.1Vaccines 109 105 3.2 104 4.1Blood Related 76 75 1.4 80 -5.4Others 103 68 51.5 93 10.9Urology 82 62 31.2 80 1.7Anti Malarials 39 31 28.9 41 -3.0Sex Stimulants 47 41 13.5 47 -0.6Stomatologicals 31 27 12.6 31 -1.1

Source: AIOCD data base

Top brands in Indian pharma market Brand Company Therapy Jan'15 Jan'14 Gr. (%)Augmentin GSK Anti-Infectives 286.1 280.3 2.1Becosules Pfizer Vitamins 238.1 230.0 3.5Corex Pfizer Respiratory 224.7 229.2 -2.0Clavam Alkem Anti-Infectives 219.2 201.3 8.9Lantus Sanofi Anti Diabetic 212.5 163.5 29.9Galvus Met Novartis Anti Diabetic 180.3 133.5 35.1Manforce Mankind Sex Stimulants 179.9 185.9 -3.2Skinlite Zydus Derma 177.2 140.3 26.3Taxim Alkem Anti-Infectives 170.8 150.1 13.8Aciloc Cadila * GI 168.3 157.8 6.7

Source: AIOCD data base; Date as per MAT January15 & January 14; *cadila Pharmaceuticals Industry acute to chronic therapy ratio percentage…

Acute, 58627.3,

69.9%Chronic, 25281.0,

30.1%

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

Domestic Health Check


Page 11

Sun Pharmaceuticals

Stock Performance

80

125

170

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

BSE Healthcare Sun Pharma

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

12.8

7.8

7.3 8.

5

11.9 13

.5

9.3 10

.4

20.0

6.5

11.2

14.2

12.7

20.5

18.6

15.8

10.0

16.5 17

.6

15.3

14.4

9.9

9.7

14.9

21.6

13.5

0

5

10

15

20

25

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Sun Pharmaceutical Industries


Exhibit 13: Market share in Indian formulations market

5.9

5.5

5.7

5.4

5.6

5.25.3

5.2

4.9

5.4

5.7 5.7

5.9

4.8

5.0

5.2

5.4

5.6

5.8

6.0

6.2

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Sun Pharmaceutical Industries


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

Gemer Anti Diabetic 12.1 10.9 11 11.9 2

Istamet Anti Diabetic 11.8 7.6 55 11.1 7

Levipil Neuro 11.3 8.6 32 10.9 4

Pantocid Gastro Intestinal 11.2 9.6 17 10.9 2

Susten Gynaecological 10.8 9.0 20 10.9 -1

Aztor Cardiac 9.0 7.6 20 8.7 3

Pantocid Dsr Gastro Intestinal 8.7 6.9 27 8.7 0

Montek-Lc Respiratory 7.1 5.7 26 7.2 -1

Glucored Anti Diabetic 6.1 6.1 0 6.0 2

Oxetol Neuro 5.7 5.1 13 5.7 0


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

Cns34%

Cardiac23%

Gastro Intestinal19%

Anti Diabetic15%

Gynaecological9%


Exhibit 16: Therapy wise performance (| crore)

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

Cns 117.1 98.8 18 114.9 2

Cardiac 79.4 71.8 11 77.0 3

Gastro Intestinal 62.7 50.6 24 61.8 1

Anti Diabetic 52.3 43.8 19 50.4 4

Gynaecological 26.5 31.0 -15 26.3 1

Ophthal 18.0 16.4 10 18.2 -1

Pain 17.6 15.3 15 18.1 -2

Respiratory 19.0 16.8 13 18.7 2

Vitamins 11.6 9.9 17 12.1 -4

Hormones 9.2 10.4 -11 9.3 -1


Acute : Chronic contribution (MAT Jan’15)

Acute, 2008.5,

44%

Chronic, 2565.1,

56%

Brands contribution to domestic sales (MAT Jan’15)

21%

11%8%

11%

49%

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



Page 12

Cipla

Stock Performance

80

110

140

170


BSE Healthcare Cipla

Source: NSE, ICICIdirect.com Research

Exhibit 17: Company growth vis-à-vis Indian pharma market growth

12.8

7.8

7.3 8.5 11

.9 13.5

9.3 10

.4

20.0

6.5

11.2 14

.2

12.7

4.5

0.8 7.5 8.2

7.2 12

.4

10.4

15.4

38.8

10.3

8.3 13

.5

13.0

0

5

10

15

20

25

30

35

40

45

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Cipla



5.15.0

4.95.0

4.84.6

4.8

5.0

5.5

5.04.9

5.15.1

4.2

4.4

4.6

4.8

5.0

5.2

5.4

5.6

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Cipla



Foracort Respiratory 16.8 13.1 28 16.3 3

Budecort Respiratory 13.8 11.3 23 13.4 3

Asthalin Respiratory 13.5 12.4 9 13.4 1

Seroflo Respiratory 12.4 11.0 12 12.8 -3

Duolin Respiratory 10.7 9.2 17 10.4 3

Aerocort Respiratory 8.7 8.5 2 9.1 -4

Azee Anti-Infectives 6.7 5.9 14 7.2 -6

Novamox Anti-Infectives 6.6 7.1 -7 6.0 10

Montair Lc Respiratory 6.3 5.2 22 6.6 -4

Amlopres At Cardiac 6.0 5.1 19 5.4 11


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

Respiratory30%

Anti-Infectives27%

Cardiac13%

Gastro Intestinal7%

Urology4%

Other19%




Respiratory 125.4 110.5 13 126.7 -1

Anti-Infectives 93.3 81.6 14 92.4 1

Cardiac 48.2 42.0 15 47.8 1

Gastro Intestinal 24.8 22.8 9 25.0 -1

Urology 18.0 13.3 35 16.9 7

Ophthal 11.5 10.5 10 11.8 -2

Cns 13.4 11.4 18 13.3 1

Pain 8.9 7.7 15 9.6 -8

Derma 8.0 8.5 -6 8.6 -7

Vitamins 7.1 7.7 -8 7.2 -2



Acute, 2471.1,

59%Chronic, 1715.4,

41%

Brands contribution to domestic sales (MATJan’15)

25%

12%9%

12%

42%




Page 13

Dr Reddy’s Laboratories

Stock Performance

80

110

140

170

Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15BSE Healthcare Dr. Reddys



12.8

7.8

7.3 8.5 11

.9 13.5

9.3 10

.4

20.0

6.5

11.2 14

.2

12.7

6.6

6.9

-0.2

6.3 10

.3

17.6

10.6

16.8 18.0

3.0

9.4 12

.8

12.4

-10

0

10

20

30

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Dr. Reddys Laboratories



2.1

2.1

2.1

2.0

2.1

2.2

2.1

2.1 2.1

2.0

2.1

2.2

2.1

1.9

2.0

2.0

2.1

2.1

2.2

2.2

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Dr. Reddys Laboratories



Omez Gastro Intestinal 8.7 7.7 14 9.0 -3

Omez D Gastro Intestinal 5.4 5.4 0 6.8 -20

Stamlo Cardiac 5.1 4.6 9 5.3 -5

Mintop Derma 4.9 3.9 24 4.8 1

Econorm Gastro Intestinal 4.6 3.7 25 4.7 -2

Nise Pain 4.5 3.9 16 4.9 -7

Stamlo Beta Cardiac 3.9 3.4 16 4.2 -7

Razo D Gastro Intestinal 3.8 3.4 12 3.9 -3

Clamp Anti-Infectives 3.5 2.9 23 3.6 -3

Razo Gastro Intestinal 3.1 3.1 -2 3.5 -13




Cardiac16%

Anti-Neoplastics

11%Anti-Infectives8%

Pain 8%

Other34%





Cardiac 26.2 22.0 19 27.4 -4

Anti-Neoplastics 13.5 14.9 -9 15.6 -13

Anti-Infectives 12.3 10.4 18 13.5 -9

Pain 10.9 10.1 8 11.9 -8

Derma 12.1 11.8 3 12.4 -3

Anti Diabetic 12.0 9.3 30 12.2 -1

Respiratory 8.4 7.4 13 9.4 -11

Urology 6.9 5.6 24 7.0 -1

Stomatologicals 5.3 5.3 0 5.9 -10



Acute, 1230.1,

69%

Chronic, 541.4, 31%


31%

16%9%

12%

32%




Page 14

Lupin

Stock Performance

75

115

155


BSE Healthcare Lupin



12.8

7.8

7.3 8.

5

11.9 13

.5

9.3 10

.4

6.5

14.2

12.7

15.7

9.5 11

.0

9.8 11

.9 13.3

8.5

19.8

5.3

8.2

12.7

5.0

11.2

0

4

8

12

16

20

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Lupin



3.5

3.43.3 3.3

3.43.4 3.4

3.2

3.3

3.2

3.33.2 3.2

3.13.23.23.33.33.43.43.53.53.6

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Lupin



Gluconorm-G Anti Diabetic 10.1 10.2 -1 9.7 5

Tonact Cardiac 8.0 6.8 18 7.6 6

Budamate Respiratory 6.4 5.8 12 7.7 -17

Ramistar Cardiac 4.3 4.2 1 4.2 3

Esiflo Respiratory 4.2 3.7 14 4.4 -5

Rablet-D Gastro Intestinal 4.0 3.4 16 3.9 1

R-Cinex Anti-Infectives 3.6 4.0 -11 3.9 -10

Rablet Gastro Intestinal 3.5 3.5 0 3.6 -2

Telekast-L Respiratory 3.5 3.5 0 3.7 -5

Clopitab Cardiac 3.1 3.0 5 3.2 -2



Cardiac24%

Anti-Infectives24%Respiratory

12%

Anti Diabetic10%

Gastro Intestinal8%

Other22%




Cardiac 61.6 54.8 12 60.7 2

Anti-Infectives 49.1 53.9 -9 50.0 -2

Respiratory 31.1 29.1 7 34.4 -10

Anti Diabetic 26.2 23.6 11 25.8 2


Vitamins 12.8 12.8 1 13.0 -2

Cns 13.0 12.2 6 13.1 -1

Pain 10.5 9.7 8 10.5 0

Gynaecological 6.6 5.3 23 6.5 2

Derma 1.6 1.2 36 1.6 -1



Acute, 1472.4,

53%

Chronic, 1305.7,

47%


20%

12%

9%

13%

46%




Page 15

Cadila Healthcare

Stock Performance

5080

110140170200230


BSE Healthcare Cadila Healthcare



12.8

7.8

7.3 8.

5

11.9 13

.5

9.3 10

.4

20.0

6.5

11.2

14.2

12.718

.7

4.0

7.2

9.7

8.9 11

.4

9.3 9.8

14.0

2.9

8.5

13.2

7.4

0

5

10

15

20

25

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Cadila Healthcare



4.2 4.2 4.14.1

3.9 3.9

3.83.9

3.7

3.8

4.03.9 4.0

3.6

3.8

4.0

4.2

4.4

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)



Aciloc Gastro Intestinal 13.8 12.1 14 13.3 4

Aciloc Rd Gastro Intestinal 4.3 11.2 -62 4.4 -3

Envas Cardiac 3.7 4.1 -8 3.0 24

Calcirol Vitamins 3.3 2.5 34 2.8 17

Vasograin Neuro 2.3 1.4 66 1.7 32

Haem Up Gynaecological 1.4 1.3 8 1.4 -2

Tricort Derma 1.3 1.0 25 1.4 -10

P Zide Anti-Infectives 1.2 0.7 67 1.2 5

Contrapill Gynaecological 1.0 0.8 20 0.7 40

Fludac Neuro 0.9 0.8 14 0.7 16



Cardiac18%


Gynaecological12%

Respiratory10%

Derma8%

Other38%




Cardiac 53.8 50.5 7 53.3 1

Gastro Intestinal 36.0 36.3 -1 36.9 -2


Respiratory 30.4 28.2 8 33.4 -9

Derma 28.3 21.5 32 30.6 -8

Pain 20.0 22.2 -10 20.3 -1

Anti-Infectives 21.7 18.0 21 22.3 -3

Vitamins 11.6 10.2 13 11.1 5

Anti-Neoplastics 10.6 9.6 10 9.4 12

Hormones 5.4 7.6 -29 4.9 12



Acute, 2252.4, 68%

Chronic, 1047.6, 32%


27%

12%9%

11%

41%




Page 16

GlaxoSmithKline Pharmaceuticals

Stock Performance

80

110

140

170


BSE Healthcare GSK Pharma



12.8

7.8

7.3 8.5 11

.9 13.5

9.3 10

.4

20.0

6.5

11.2 14

.2

12.7

-10.

6

-16.

3

-9.3

-10.

3 -6.2

-4.4

-10.

2

0.2

13.4

12.2

5.7

2.2 2.8

-20

-15

-10

-5

05

10

15

20

25

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Glaxosmithkline Pharmaceuticals



3.43.5

3.5

3.33.4

3.4

3.3

3.43.3

3.23.2 3.2

3.1

3.0

3.2

3.4

3.6

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Glaxosmithkline Pharmaceuticals



Augmentin Anti-Infectives 23.2 22.2 4 25.8 -10

Betnovate C Derma 12.3 8.3 48 11.2 10

Zinetac Gastro Intestinal 12.2 11.3 8 12.5 -3

Betnovate N Derma 10.7 9.2 16 11.9 -10

Calpol Pain 10.7 9.9 8 11.6 -8

Eltroxin Hormones 10.0 10.6 -5 9.9 1

Ceftum Anti-Infectives 8.9 8.9 0 10.8 -17

Betnesol Hormones 8.7 4.9 80 8.9 -2

T Bact Derma 7.3 6.4 14 8.2 -11

Synflorix Vaccines 5.7 4.1 40 6.4 -11



Anti-Infectives28%

Derma21%Pain

9%

Vitamins 8%

Hormones7%

Other27%




Anti-Infectives 55.0 60.6 -9 60.6 -9

Derma 52.9 43.9 21 55.1 -4

Pain 20.2 18.2 11 21.0 -4

Vitamins 16.3 16.0 2 18.2 -10

Hormones 19.6 16.4 20 19.5 0


Respiratory 14.7 15.6 -6 16.6 -11

Vaccines 13.4 15.6 -14 14.3 -6

Cardiac 6.8 7.1 -4 7.3 -8

Ophthal 5.5 5.2 6 5.9 -6



Acute, 2396.5,

86%

Chronic, 389.1, 14%


46%

16%

9%

12%

17%




Page 17

Wockhardt

Stock Performance

050

100150200250300


BSE Healthcare Wockhardt


12.8

7.8

7.3 8.5 11

.9 13.5

9.3 10

.4

20.0

6.5

11.2 14

.2

12.7

-15.

3

-19.

6 -15.

3

1.8

-14.

4

-14.

9

-17.

1

-7.6

8.5

5.0

-5.1 -2

.6

19.0

-25-20-15

-10-505

10

152025

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Wockhardt



1.301.33

1.17 1.181.16

1.10

1.201.25

1.09

1.17

1.11

1.16

1.37

1.01.11.11.2

1.21.31.31.41.4

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Wockhardt



Spasmo Proxyvon Plu Gastro Intestinal 14.7 11.4 30 12.9 14

Biovac V Others 10.2 0.0 NA 2.6 295

Practin Vitamins 7.0 4.9 42 4.9 42

Bro Zedex Respiratory 4.8 5.3 -10 4.7 1

Zedex Respiratory 4.0 3.3 21 4.0 -1

Tryptomer Neuro 3.7 4.3 -13 3.5 4

Methycobal Vitamins 3.1 3.1 1 3.1 2

Biovac A Vaccines 3.1 1.4 112 3.2 -4

Ace Proxyvon Pain 2.6 2.1 29 2.5 8

Depiwhite Derma 2.4 3.3 -28 1.5 55



Vitamins 19%


Respiratory15%Derma

9%

Anti-Infectives8%

Other31%




Vitamins 16.5 15.0 11 14.3 16


Respiratory 14.5 13.6 6 15.1 -4

Derma 8.0 7.9 1 8.5 -6


Cns 6.4 6.8 -7 6.0 6

Pain 5.8 5.2 12 5.7 2

Anti Diabetic 6.2 6.4 -4 4.8 29

Hormones 1.3 3.8 -65 1.7 -22

Others 12.5 1.9 571 3.9 216



Acute, 777.7, 79%

Chronic, 206.1, 21%


51%

16%

9%

9%

15%




Page 18

Glenmark Pharmaceuticals

Stock Performance

60

100

140

180

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



12.8

7.8

7.3 8.

5

11.9 13

.5

9.3 10

.4

20.0

6.5

11.2 14

.2

12.7

17.6

17.5

12.4

11.3

14.9 17

.9

9.8

9.1

27.1

2.6

20.3 21

.5

21.3

0

5

10

15

20

25

30

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Glenmark Pharmaceuticals



2.2 2.22.1

2.1

1.92.0

2.12.1

2.4

2.2

2.4 2.52.4

1.9

2.1

2.3

2.5

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Glenmark Pharmaceuticals



Telma Cardiac 13.3 11.7 13 12.8 4

Telma H Cardiac 10.8 9.4 14 10.3 5

Ascoril Plus Respiratory 9.1 8.8 4 9.8 -7

Candid-B Derma 6.6 5.2 26 7.1 -7

Zitamet Anti Diabetic 6.2 2.3 167 6.0 3

Telma Am Cardiac 5.2 4.4 17 5.0 3

Candid Derma 4.6 3.5 30 5.0 -8

Zita(Glenmark) Anti Diabetic 4.2 1.7 141 4.7 -12

Ascoril Ls Respiratory 3.5 2.3 49 3.7 -5

Elovera Derma 2.7 2.6 2 2.9 -8



Derma28%

Cardiac23%

Respiratory15%

Anti-Infectives14%

Anti Diabetic8%

Other12%




Derma 47.4 39.8 19 50.7 -7

Cardiac 40.8 35.3 16 39.7 3

Respiratory 28.9 24.3 19 31.8 -9

Anti-Infectives 23.1 19.3 19 25.4 -9

Anti Diabetic 15.0 9.0 66 15.0 -1


Pain 3.8 3.4 11 3.7 1

Vitamins 3.8 3.5 11 3.7 3

Gynaecological 3.1 3.6 -14 3.2 -5

Ophthal 2.4 2.0 16 2.4 -3


Acute : Chronic contribution (MAT Jan’15) 681.8, 37%

Acute, 1166.1,

63%


37%

13%10%

12%

28%




Page 19

Torrent Pharmaceuticals

Stock Performance

80

170

260


BSE Healthcare Torrent Pharma



12.8

7.8

7.3 8.

5

11.9 13

.5

9.3 10

.4

20.0

6.5

11.2 14

.2

12.7

2.9

3.8

3.3

1.2

4.7

12.2

10.9

8.4

18.4

6.0

23.2

31.2

25.0

0

5

10

15

20

25

30

35

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Torrent Pharmaceuticals



2.20 2.18 2.16

2.262.23

2.28 2.28

2.13 2.13

2.252.31

2.45

2.44

1.9

2.0

2.1

2.2

2.3

2.4

2.5

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Torrent Pharmaceuticals



Shelcal Vitamins 22.4 8.5 165 14.6 53

Chymoral Forte Pain 12.8 4.3 195 8.0 60

Nikoran Cardiac 5.8 5.7 2 7.2 -20

Dilzem Cardiac 4.9 5.2 -6 5.5 -11

Nebicard Cardiac 4.1 3.9 5 4.4 -6

Nexpro Rd Gastro Intestinal 3.7 3.3 12 4.3 -13

Azulix-Mf Anti Diabetic 3.6 3.1 17 4.6 -21

Nexpro Gastro Intestinal 3.4 3.3 3 4.2 -19

Shelcal Ct Vitamins 3.2 2.5 27 2.3 38

Alprax Neuro 2.8 3.2 -12 3.3 -13



Cardiac30%

Cns16%Gastro Intestinal

15%

Vitamins 14%

Anti-Infectives7%

Other18%




Cardiac 47.8 45.3 6 54.4 -12

Cns 25.4 24.6 3 29.8 -15


Vitamins 34.5 16.6 107 24.5 41

Anti-Infectives 9.7 12.2 -20 12.1 -20

Pain 16.8 6.9 144 12.1 39

Anti Diabetic 9.1 7.6 19 11.3 -20


Derma 3.1 2.9 8 3.8 -20

Urology 0.9 0.6 52 0.6 49



Acute, 932.0, 49%

Chronic, 965.2, 51%


32%

14%9%

12%

33%




Page 20

Ipca Laboratories

Stock Performance

60

120

180


BSE Healthcare Ipca



12.8

7.8

7.3 8.5

11.9 13

.5

9.3 10

.4

20.0

6.5

11.2 14

.2

12.7

30.2

24.4

23.7

19.3

28.1

21.3

27.5

22.1

0.7

4.2

4.1

28.9

1.3

0

5

10

15

20

25

30

35

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Ipca Laboratories



1.7 1.7 1.7 1.7

1.8 1.8 1.81.9

1.9

1.8

1.7

1.61.5

1.4

1.5

1.6

1.7

1.8

1.9

2.0

2.1

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Ipca Laboratories



Hcqs Anti Malarials 6.4 5.1 25 5.6 14

Zerodol Sp Pain 6.3 5.6 13 6.4 -1

Zerodol P Pain 5.7 5.3 8 7.0 -18

Larinate Anti Malarials 4.4 2.6 70 5.0 -11

Rapither-Ab Anti Malarials 3.6 2.5 47 2.5 44

Glycinorm M Anti Diabetic 3.0 3.3 -7 3.3 -9

Folitrax Anti-Neoplastics 2.9 2.9 1 2.9 0

Lariago Anti Malarials 2.4 2.1 17 2.3 8

Zerodol Pain 2.3 2.4 -5 2.5 -5

Azibact Anti-Infectives 2.3 2.3 -3 2.7 -16



Pain 23%

Anti Malarials21%

Cardiac17%

Gastro Intestinal8%

Anti-Infectives7%

Other24%




Pain 25.1 25.0 1 27.6 -9

Anti Malarials 21.6 16.5 31 20.4 6

Cardiac 20.8 22.2 -6 21.8 -4


Anti-Infectives 7.6 8.0 -6 8.7 -13

Anti Diabetic 6.3 7.1 -11 6.7 -6

Respiratory 5.2 5.7 -10 6.3 -18

Cns 4.5 4.4 1 5.3 -16

Derma 4.1 4.4 -8 4.3 -5

Anti-Neoplastics 4.0 3.8 7 4.4 -8



Chronic, 407.3, 28%

Acute, 1070.1,

72%


34%

16%

11%

14%

25%




Page 21

Biocon

Stock Performance

6080

100120140160180

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



12.8

7.8

7.3 8.5 11

.9

13.5

9.3 10.4

20.0

11.2 14

.2

12.7

43.9 48

.1

6.5

48.1

36.1

45.3

46.3

28.1

17.6 22

.2

0.6

-3.5

6.1

20.9

-10

0

10

20

30

40

50

60

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Biocon



0.37 0.37

0.39

0.37

0.38

0.40

0.36

0.37 0.38

0.36 0.36

0.39

0.37

0.34

0.35

0.36

0.37

0.38

0.39

0.40

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Biocon



Insugen Anti Diabetic 7.1 5.2 37 7.0 2

Abraxane Anti-Neoplastics 4.3 1.7 161 5.2 -17

Basalog Anti Diabetic 4.1 2.6 60 3.8 7

Blisto Mf Anti Diabetic 1.8 1.8 0 1.7 3

Insugen R Anti Diabetic 1.3 1.0 36 1.2 14

Insugen N Anti Diabetic 0.8 0.6 38 0.8 -2

Tacrograf Anti-Neoplastics 0.7 0.3 142 0.2 237

Metadoze-Ipr Anti Diabetic 0.5 0.7 -24 0.4 31

Erypro Blood Related 0.5 0.7 -26 0.8 -36

Canmab Anti-Neoplastics 0.5 0.0 NA 0.3 82


Exhibit 65: Contribution of therapies to domestic sales (MAT Jan’15) Other

5%Blood Related

3%Anti-Infectives

4%

Cardiac10%

Anti-Neoplastics

20%

Anti Diabetic58%




Anti Diabetic 16.6 12.8 30 15.8 5

Anti-Neoplastics 7.4 3.1 137 7.0 6

Cardiac 2.1 3.3 -36 2.0 4

Anti-Infectives 0.8 2.4 -66 0.4 114

Blood Related 0.5 0.7 -26 0.8 -36

Derma 0.7 0.8 -10 0.6 26

Others 0.3 0.2 48 0.5 -30

Vitamins 0.2 0.2 -26 0.2 -14


Pain 0.0 0.1 -87 0.0 66



Acute, 92.1, 29%

Chronic, 222.1, 71%


73%

11%

7%

6%

3%



Page 22

Pfizer

Stock Performance

80110140170200


BSE Healthcare Pfizer


12.8

7.8

7.3 8.5 11

.9 13.5

9.3 10

.4

20.0

6.5 11

.2 14.2

12.7

9.1

4.7 9.

1

8.8

11.0

9.9

6.7

3.3

24.1

10.0

34.1

24.8

25.8

-10-505

10152025303540

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Pfizer



2.99 2.953.06 3.02

2.932.85 2.89

2.832.94

2.88

3.08

3.263.34

2.4

2.6

2.8

3.0

3.2

3.4

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Pfizer



Corex Respiratory 23.3 21.1 10 22.9 1

Becosules Vitamins 20.0 19.5 3 23.7 -16

Magnex Anti-Infectives 16.0 7.9 103 12.6 27

Gelusil Mps Gastro Intestinal 14.0 9.9 43 13.6 3

Minipress Xl Cardiac 10.8 8.6 26 10.2 6

Dolonex Pain 10.8 9.9 8 10.9 -1

Wysolone Hormones 8.3 6.0 38 8.2 1

Mucaine Gastro Intestinal 7.5 6.3 19 7.1 6

Fragmin Cardiac 6.0 2.8 109 4.9 20

Dalacin C Anti-Infectives 5.8 5.1 14 6.2 -6



Anti-Infectives17%

Vitamins 11%

Respiratory11%


Hormones9%

Other42%





Vitamins 24.3 23.4 4 28.5 -15

Respiratory 30.4 26.2 16 30.4 0


Hormones 21.4 15.8 35 21.5 0

Cardiac 19.7 14.6 35 18.1 9


Pain 16.0 14.1 14 16.2 -1

Cns 15.9 13.1 22 15.5 3

Vaccines 6.8 4.5 52 6.8 0



Acute, 2140.0,

85%

Chronic, 382.7, 15%


49%

19%

10%

10%

12%


Source: AIOCD data base l


Page 23

Novartis India

Stock Performance

80

130

180


BSE Healthcare Novartis India



12.8

7.8

7.3 8.5 11

.9 13.5

9.3 10

.4

20.0

6.5

11.2 14

.2

12.7

0.6

-1.9

-4.7

0.1

-0.9

-1.9

-2.4

-0.5

13.5

5.2 6.

7

1.1

5.9

-10

-5

0

5

10

15

20

25

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Novartis India



1.501.46

1.43

1.48

1.37 1.37 1.351.31

1.35

1.43

1.33

1.391.34

1.2

1.3

1.3

1.4

1.4

1.5

1.5

1.6

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Novartis India



Galvus Met Anti Diabetic 17.0 13.3 28 16.6 2

Voveran Pain 10.8 11.5 -6 10.7 1

Galvus Anti Diabetic 8.3 7.3 13 8.3 0

Rabipur (Novartis) Vaccines 7.7 7.8 -2 7.3 5

Otrivin Respiratory 6.8 7.8 -12 7.8 -12

Tegrital Neuro 4.6 5.5 -16 5.0 -8

Regestrone Gynaecological 3.3 3.2 3 4.0 -17

Methergin Gynaecological 2.4 2.0 20 2.6 -8

Genteal Ophthal 2.1 2.1 1 2.6 -17

Syntocinon Gynaecological 2.0 1.9 7 2.1 -2



Anti Diabetic26%

Pain 19%

Respiratory12%

Vitamins 10%

Gynaecological8%

Other25%




Anti Diabetic 26.3 21.5 22 25.8 2

Pain 17.6 19.0 -7 18.4 -4

Respiratory 12.8 15.3 -16 14.4 -11

Vitamins 8.1 8.1 0 10.4 -22

Gynaecological 7.9 7.4 6 8.8 -10

Cns 7.6 8.4 -10 8.1 -6

Vaccines 7.8 7.8 0 7.5 4

Anti-Infectives 4.3 3.9 11 4.3 -1

Ophthal 2.5 2.5 3 3.1 -17

Cardiac 1.1 1.5 -27 1.1 -4



Acute, 754.4, 65%

Chronic, 405.9, 35%


63%16%

7%

7%7%




Page 24

Unichem Laboratories

Stock Performance

70

100

130

160


BSE Healthcare Unichem Labs



12.8

7.8

7.3 8.5 11

.9 13.5

9.3 10

.4

20.0

6.5

11.2 14

.2

12.7

5.9

0.9

5.5

5.6

15.9

9.2 12

.9

12.0

12.8

-15.

9

2.9

3.8

6.6

-20

-15

-10

-5

0

5

10

15

20

25

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Unichem Laboratories



1.04

0.99 1.00 0.991.01

0.940.98

0.91

0.98

0.86

0.950.98

0.94

0.80

0.90

1.00

1.10

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Unichem Laboratories



Losar H Cardiac 6.7 5.7 18 7.5 -10

Ampoxin Anti-Infectives 6.0 5.1 18 5.1 18

Losar Cardiac 5.8 5.2 11 6.0 -3

Unienzyme Gastro Intestinal 4.7 4.4 6 4.2 11

Trika Neuro 3.3 2.5 30 2.7 20

Vizylac Gastro Intestinal 2.0 1.9 5 2.1 -8

Serta Neuro 1.8 1.5 17 1.9 -6

Unistar (Unichem) Cardiac 1.7 1.5 10 1.3 23

Telsar Cardiac 1.5 1.5 1 1.5 0

Losar A Cardiac 1.4 1.1 34 1.0 38



Cardiac43%

Anti-Infectives18%

Cns12%


Pain 4% Other

11%




Cardiac 31.5 29.8 6 31.6 0


Cns 10.2 8.5 20 9.7 6


Pain 2.5 2.3 11 2.5 3

Anti Diabetic 2.4 2.6 -9 2.4 1

Respiratory 1.9 1.9 2 1.9 1

Vitamins 1.6 1.3 23 1.6 -1

Derma 1.2 1.2 1 1.2 -1

Gynaecological 0.5 0.5 -4 0.4 12



Acute, 340.4, 42%

Chronic, 467.0, 58%


48%

13%

10%

11%

18%




Page 25

Indoco Remedies

Stock Performance

80

180

280


BSE Healthcare Indoco



12.8

7.8

7.3 8.5 11

.9 13.5

9.3 10

.4

20.0

6.5

11.2 14

.2

12.7

11.9

7.1

2.7

9.8

17.0

16.6

8.5 8.917

.5

34.4

6.1

4.8

8.6

0

5

10

15

20

25

30

35

40

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Indoco Remedies



0.8 0.8

0.7

0.8

0.80.8 0.8

0.8

0.9

0.8

0.70.7

0.7

0.70.70.70.80.80.80.80.80.90.9

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indoco Remedies



Febrex Plus Respiratory 5.9 5.6 6 5.9 0

Sensodent-K Stomatologicals 3.7 2.8 34 3.6 4

Cyclopam Gastro Intestinal 3.0 3.1 -3 3.0 0

Sensoform Stomatologicals 2.2 1.4 54 2.0 10

Karvol Plus Respiratory 2.1 1.8 22 2.2 -1

Oxipod Anti-Infectives 2.0 2.0 1 2.1 -2

Atm Anti-Infectives 2.0 1.9 4 2.2 -9

Cital Urology 1.9 1.8 6 1.8 8

Sensodent-Kf Stomatologicals 1.8 1.4 30 1.8 0

Cyclopam Gastro Intestinal 1.5 1.3 13 1.3 18



Respiratory19%

Anti-Infectives17%

Stomatologicals16%Gastro Intestinal

14%

Vitamins 5%

Other29%




Respiratory 11.2 10.5 7 11.5 -2

Anti-Infectives 7.7 7.9 -3 8.2 -7

Stomatologicals 10.3 7.8 32 9.8 5

Gastro Intestinal 7.0 7.1 -1 6.7 4

Vitamins 3.2 2.3 37 3.1 2

Ophthal 2.5 2.4 6 2.6 -5

Urology 2.1 2.0 9 2.0 8

Pain 2.1 2.3 -11 2.2 -4

Derma 2.0 1.9 2 1.9 3

Anti Diabetic 2.1 2.1 3 2.1 4


Acute : Chronic contribution (MAT Jan’15) Aug

Acute, 600.3, 93%

Chronic, 45.2, 7%


49%

17%

7%

10%

17%




Page 26

Natco Pharma

Stock Performance

80130180230280


BSE Healthcare Natco Pharma



12.8

7.8

7.3

8.5

11.9

13.5

9.3

10.4

20.0

6.5

11.2

14.2

12.7

798.

7

697.

6

385.

5

339.

8

339.

9

477.

2 -24.

0

24.2

-15.

2

-17.

3 -19.

2

-13.

8

39.5

-1000

100200300400500600700800900

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Natco Pharma



0.12

0.080.10

0.09 0.090.10

0.06

0.100.08

0.110.10

0.11

0.14

0.00

0.05

0.10

0.15

0.20

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Natco Pharma



Erlonat Anti-Neoplastics 3.9 2.9 35 2.5 56

Geftinat Anti-Neoplastics 1.2 0.4 194 0.9 30

Veenat Anti-Neoplastics 1.2 0.7 65 1.4 -12

Lenalid Anti-Infectives 0.8 0.1 1257 0.6 49

Bortenat Anti-Neoplastics 0.6 0.2 172 0.2 239

Lenalid Mf Anti-Infectives 0.6 0.0 #DIV/0! 0.3 107

X Vir Anti-Infectives 0.3 0.1 142 0.3 15

Tigi Anti-Infectives 0.3 0.5 -47 0.2 12

Natclovir Anti-Infectives 0.2 0.2 12 0.2 42

Zoldonat Pain 0.2 0.1 83 0.2 7



Anti-Neoplastics72%

Anti-Infectives16%

Pain 7%

Gastro Intestinal4%

Cns1%

Respiratory0%



Anti-Neoplastics 7.4 5.0 48.5 5.7 30.9Anti-Infectives 2.5 1.7 46.2 1.8 36.6Pain 0.4 0.5 -22.1 0.5 -9.2Gastro Intestinal 0.2 0.1 7.0 0.2 -10.7Cns 0.0 0.0 -15.7 0.1 -31.1Respiratory 0.0 0.0 -65.2 0.0 NAUrology 0.0 0.0 -66.5 0.0 -1.3Others 0.0 0.0 -100.0 0.0 NAGynaecological 0.0 0.0 -100.0 0.0 -100.0Ophthal 0.0 0.0 NA 0.0 NA

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



Acute, 81.3, 99%

Chronic, 0.5, 1%


0%

0%

4%15%

81%




Page 27

Ajanta Pharma

Stock Performance

50100150200250300350400


BSE Healthcare Ajanta



12.8

7.8

7.3 8.5 11

.9

13.5

9.3 10.4 20

.0

6.5 11

.2 14.2

12.7

75.9

70.2 74

.6

59.5

90.0 82

.0

81.1

76.9

70.1

54.1

33.1

19.9

14.6

010

2030

4050

6070

8090

100

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Indian Pharma Market Ajanta Pharma



0.50

0.53

0.50 0.50 0.51 0.510.49

0.470.46

0.51

0.53

0.510.51

0.4

0.4

0.4

0.5

0.5

0.5

0.5

0.5

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

(%)

Ajanta



Melacare Derma 4.3 4.1 3.9 4.9 -12.9

Met Xl Cardiac 4.0 3.8 3.2 3.8 4.2

Atorfit Cv Cardiac 2.7 2.2 23.8 2.4 10.0

Soft Drops Ophthal 1.0 0.9 17.9 1.1 -2.0

Met Xl Am Cardiac 1.0 0.9 11.1 0.9 10.5

Feburic Pain 0.9 0.8 18.8 1.0 -8.6

Rosufit Cv Cardiac 0.9 0.6 38.0 0.8 10.3

Melacare Plus Derma 0.7 0.4 74.0 0.7 8.2

Peroclin Derma 0.7 0.2 309.2 0.7 -3.1

Cinod Cardiac 0.6 0.3 70.9 0.6 -7.1



Others9%Pain

5%

Vitamins 6%

Ophthal 23%

Derma25%

Cardiac32%




Cardiac 12.2 9.9 23 11.5 6

Derma 9.5 9.2 3 10.3 -8

Ophthal 8.5 7.3 17 8.9 -4

Vitamins 2.2 1.8 19 2.3 -7

Pain 1.7 1.4 27 1.9 -7


Cns 0.8 0.7 10 0.8 0

Respiratory 0.3 0.5 -32 0.4 -9


Others 0.3 0.1 199 0.2 26



Chronic, 206.1, 49%

Acute, 213.8, 51%


21%

12%

8%14%

45%




Page 28

Exhibit 97: One year forward P/E of BSE Healthcare Index vs. Sensex (FY16)

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

BSE Healthcare Index Sensex

[


ICICIdirect.com coverage universe (Healthcare) 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 2708 3220 BUY 9628.7 66.2 75.0 85.6 40.9 36.1 31.6 26.2 22.8 18.8 44.9 40.6 38.1 39.4 32.8 28.9

Apollo Hospitals APOHOS 1336 1455 BUY 18187.2 22.8 26.8 36.8 58.7 49.9 36.3 28.4 25.2 17.9 11.6 12.0 15.5 10.6 11.5 14.2

Aurobindo Pharma AURPHA 1057 1303 BUY 30297.3 47.3 57.4 70.5 22.4 18.4 15.0 15.9 13.1 10.6 24.1 23.4 24.4 31.3 31.6 28.6

Biocon BIOCON 444.6 410 HOLD 8832.5 20.7 20.0 22.6 21.5 22.2 19.7 13.1 13.1 11.5 13.4 11.6 12.9 13.7 12.3 12.9

Cadila Healthcare CADHEA 1604 1634 HOLD 33442.2 39.2 51.1 66.2 40.9 31.4 24.2 29.6 22.1 17.2 15.9 19.0 21.7 23.4 24.6 25.4

Cipla CIPLA 676 648 HOLD 54869.7 17.3 15.9 21.7 39.1 42.4 31.1 26.1 23.6 19.0 15.5 14.8 17.2 13.8 11.5 13.7

Dr Reddy's Labs DRREDD 3237 3332 HOLD 57713.1 126.7 128.3 151.0 26.9 26.5 22.5 17.4 16.2 14.2 19.2 18.7 20.1 23.7 19.9 19.5

Glenmark Pharma GLEPHA 788.5 824 HOLD 20975.4 20.0 22.1 34.7 39.4 35.7 22.8 17.9 19.1 12.5 16.0 17.4 23.8 18.3 17.7 23.1

Indoco Remedies INDREM 314 375 BUY 2925.9 6.3 9.5 13.3 50.0 33.1 23.6 24.8 16.9 13.0 16.6 21.8 28.1 12.6 16.4 19.4

Ipca Laboratories IPCLAB 678 622 HOLD 8695.7 37.9 25.6 31.8 17.9 26.5 21.3 11.4 15.0 14.5 27.6 16.1 17.8 24.4 14.7 16.0

Jubilant Life Sciences VAMORG 162 138 SELL 2544.7 6.8 -6.5 20.0 23.7 -25.0 8.1 6.4 11.6 5.6 10.1 4.5 7.6 4.2 -3.5 7.6

Lupin LUPIN 1691 1866 BUY 75883.6 41.0 54.4 61.0 41.3 31.1 27.7 26.1 19.9 17.9 34.5 34.7 32.0 26.5 27.4 24.6

Natco Pharma NATPHA 1388 1354 HOLD 4632.2 30.3 32.5 44.9 35.8 33.3 24.1 27.1 22.4 17.9 15.3 16.7 18.7 14.1 13.5 16.1

Sun Pharma SUNPHA 913.2 1036 BUY 190111.8 29.0 34.8 39.9 31.5 26.2 22.9 19.4 18.7 15.9 32.4 31.2 28.8 27.0 25.3 23.1

Torrent Pharma TORPHA 1119 1165 HOLD 19017.5 39.2 47.2 50.4 28.5 23.7 22.2 20.2 18.0 14.4 28.5 21.4 26.7 34.9 32.4 28.0

Unichem Laboratories UNILAB 216.6 206 HOLD 1957.0 18.7 6.4 13.2 11.6 34.1 16.4 10.9 18.0 11.1 15.7 6.5 12.8 20.7 7.1 14.0

RoNW (%)Company

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


Page 29

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, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;

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]


Page 30

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IDirect HealthCheck Feb15content.icicidirect.com/.../IDirect_HealthCheck_Feb15.pdfThe pill, which combines sofosbuvir, the chemical name for Sovaldi, with GS-5816, a compound in advanced