IDirect HealthCheck Aug16 - NSE / BSE Share & Stock Market ...content.icicidirect.com/mailimages/IDirect_HealthCheck_Aug16.pdf · Finally the Indian pharmaceutical market (IPM) grew

ICICI Securities Ltd. | Retail Equity Research

August 29, 2016

Monthly Update

Q1 earnings in line; midcap pharma gallops… The Q1 earnings season ended on expected line with US focused generic players more or less managing to overcome pricing pressure with exclusivities and higher volumes. I-direct pharma universe registered YoY revenue growth of 9.4% to | 35662 crore, driven by 15.2% YoY growth to | 11496 in the US and 7.6% YoY growth to | 7863 crore in domestic formulations (select pack). Domestic growth was largely hit by the ongoing NLEM/FDC related issues. EBITDA for the universe grew 7.2% YoY to | 8579 crore. Lower growth vis-à-vis revenues can be attributed to higher R&D spend and remedial costs. Adjusted net profit grew 8.5% YoY to | 5919 crore. Adoption of a new accounting standard (Ind-AS) also had an impact on the quarterly performance. On the revenue front, Natco (46% growth) and Lupin (41% growth) were standout performers. Natco’s revenues were largely driven by robust growth in the Hepatitis C segment while Lupin benefited from exclusivity sales in the US. Alembic, Divi’s, Sun, Biocon and Ajanta also reported more than 20% growth. On the other hand Dr Reddy’s, Torrent and Cipla reported negative growth mainly due to high base and price erosion in the US. US growth was driven by limited competition opportunities/exclusivities at Lupin from gGlumetza and gFortamet (anti-diabetic) and Sun from gGleevec (anti-cancer). Note that US growth has not captured gNexium (GI) impact for Cipla and gAbilify for Alembic for non-disclosure of specific traction. Aurobindo and Glenmark also registered strong YoY growth whereas Torrent, Cadila and Dr Reddy’s (DRL) were laggards on account of base effect, slowdown in product approvals and regulatory issues. In another significant development, Biocon and Mylan received European Medicines Agency’s (EMA) acceptance to review Mylan’s marketing authorisation application (MAA) for a proposed biosimilar Trastuzumab used to treat certain HER2-positive breast and gastric cancers. This is the second biosimilar submission developed by the partnership that has been accepted for review in Europe. Finally the Indian pharmaceutical market (IPM) grew 9.5% YoY to | 9125 crore for July. Growth was driven by price hikes- 3.3%, new product launches- 3.1% and volume growth- 3.2%. In all, 431 new brands were launched in July 2016, by far highest monthly launches in many quarters. No red flag on earnings front; regulatory worries waning… Although Q1 panned out on expected lines, a detailed dissection, especially of the US performance, gives an encouraging signal. Despite pricing pressure and client consolidation, which were thought to be significant headwinds post Q4FY16 numbers, most players (barring a few) managed to expand volumes thereby neutralising these headwinds. Regarding USFDA issues, Indian players have moved on and seem better prepared than 12-18 months ago as reflected in growing number of EIRs by the USFDA for Indian facilities. Indian formulations also did reasonably well despite NLEM, FDC issues. We expect the earnings momentum to continue on the back of incremental product launches in the US and likely positive outcome from USFDA re-inspections besides normalising of Indian formulations growth. We expect healthcare universe revenue, EBITDA and PAT to grow at a CAGR of 12%, 13% and 17%, respectively, in FY16-18E. Growth will be steered by US (~13% CAGR over FY16-18E) and Indian formulations (~14% CAGR over FY16-18E).

Health CheckSector View

Positive

Index Performance as on August 26, 2016

Return (%) 1M 3M YTD 1Y

CNX 500 0 8 9 9

Nifty -1 5 8 7

NSE Pharma -3 1 -5 -12

Return (%)

Stocks Performance Mcap

Company 1M 3M YTD 1Y 26-Aug

Sun Pharma.Inds. -9 -8 -8 -15 182223

Lupin -15 0 -19 -20 67008

Dr Reddy's Labs 4 -2 -2 -27 51981

Aurobindo Pharma -1 3 -10 4 46053

Cipla 7 19 -13 -14 45365

Cadila Health. 3 16 16 -2 38841

Divi's Lab. 9 21 13 16 34723

Torrent Pharma. 12 17 12 1 27239

Glaxosmit Pharma -10 -16 -10 -12 25216

Glenmark Pharma. -2 -4 -8 -28 23821

Apollo Hospitals -2 -1 -9 -1 18541

Biocon 7 27 72 101 17780

Ajanta Pharma 9 26 45 35 17033

Alembic Pharma 1 17 -9 -10 11933

Natco Pharma 8 46 17 50 11841

Syngene Int. 10 19 10 40 9192

Wockhardt -19 -12 -46 -39 9043

Pfizer -2 6 -17 -15 8943

Strides Arcolab -20 -17 -28 -22 8291

Jubilant Life 51 46 23 44 8080

Ipca Labs. 6 25 -26 -30 6914

Indoco Remedies 3 9 -3 -4 2925

Unichem Labs. -4 3 2 2 2478

Return (%)

Mcap: Market cap in | crore

Price movement

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Aug-15 Nov-15 Feb-16 May-16 Aug-16

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CNX Pharma Nifty (RHS)

Research Analyst

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


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Regulatory approvals

Exhibit 1: Summary of USFDA approvals for July, 2016

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Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeAurobindo Pharma METHENAMINE HIPPURATE Anti-infective US PHARM HOLDINGS HIPREX NAAurobindo Pharma GRANISETRON HCL Oncology Roche Kytril NACadila Healthcare Nateglinide diabetes NOVARTIS STARLIX NAAurobindo Pharma Estradiol and Norethindrone Acetate OC JANSSEN PHARMS ORTHO TRI-CYCLEN NAAurobindo Pharma Estradiol and Norethindrone Acetate OC JANSSEN PHARMS ORTHO CYCLEN-28 NAAurobindo Pharma ROPIVACAINE HCL Anaesthetic FRESENIUS KABI NAROPIN NADr Reddy's Lab Omeprazole and Sodium bicarbonate GI SANTARUS INC Zegerid US$ 306.7 millionAjanta Pharma Omeprazole and Sodium bicarbonate GI SANTARUS INC Zegerid US$ 306.7 millionSun Pharma Rosuvastatin Calcium CVS AstraZeneca Crestor US$ 6.7 billionAurobindo Pharma Rosuvastatin Calcium CVS AstraZeneca Crestor US$ 6.7 billionGlenmark Pharma Rosuvastatin Calcium CVS AstraZeneca Crestor US$ 6.7 billionGlenmark Pharma Triamcinolone Acetonide Dermatology NA NA US$ 4.4 millionGlenmark Pharma Potassium Chloride ER CVS UPSHER SMITH LABS KLOR-CON M10 US$ 283.2 millionAjanta Pharma Omeprazole and Sodium bicarbonate Powder CVS SANTARUS INC Zegerid Powder NAIndoco ALLOPURINOL Hyperuricemia SEBELA IRELAND Zyloprim NA

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeAlembic Pharma Febuxostat Hyperuricemia Takeda Uloric US$ 430 millionLupin Fosamprenavir Calcium HIV ViiV Healthcare Lexiva US$ 71.6 million

Final Approvals

Tentative Approvals

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

M&As, demergers, tie-ups and JVs

Sun Pharma divested seven brands to RPG Life Sun Pharma has signed an agreement with RPG Life Sciences to divest seven prescription brands in India for a consideration of | 41 crore. The seven divested brands include brands used for treatment of respiratory-track infections, urological disorders, cardiovascular diseases and brands in health supplements segment. Lupin acquires 21 branded products from Japan's Shionogi Lupin forayed into Japanese branded pharma market by acquiring 21 branded products from Japan’s Shionogi & Co Ltd, through its subsidiary Kyowa Pharma for a consideration of ¥15.4 billion (~$150 million). As per the agreement, Kyowa will book the sales of these products from December 2016. These 21 products had sales of ¥9,400 million (~US$90 million) collectively on NHI price basis. Cadila acquires skin treatment lotion Melgain from Issar Pharma Cadila has acquired skin care brand Melgain (topical) from Hyderabad-based Issar Pharma. Melgain is used for depigmentary disorder called Vitiligo. The financial details of the deal were undisclosed. Price cuts, new launches, recalls, approvals

Sun Pharma recalling 16,085 bottles anti-depressant tablets from US Sun Pharma is recalling 16,085 bottles anti-depressant tablets from the US market due to failed dissolution specifications. The BuPROPion hydrochloride extended release tablets were manufactured at the company's Halol facility. As per the report, all recalls fall under a class III recall category. Cadila recalling over two lakh bottles of Venlafaxine HCL ER capsules Cadila is recalling 2,23,776 bottles of 150 mg Venlafaxine HCL ER capsules for failed dissolution specifications. This capsule is used for treatment of


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major depressive and anxiety disorders. These recalls are considered under class II recall category. NPPA fixes/revises ceiling prices of 24 essential drugs National Pharmaceutical Pricing Authority (NPPA) has fixed/revised ceiling prices of 24 essential drugs used for treatment of cancer, human immunodeficiency virus (HIV), bacterial infections, anxiety and cardiac conditions. Prices of these drugs have been reduced on an average of 25%. Lupin receives CDSCO approval in India for gastrointestinal tablet Lupin has received Central Drugs Standard Control Organisation (CDSCO) approval for gastrointestinal (GI) tablet Acotiamide (100 mg) in India. Acotiamide is a first-in-class novel drug to be introduced in India for patients suffering from dyspepsia or indigestion. The current market for plain GI prokinetics and combinations is estimated at ~| 2640 crore growing at 14%. Mylan-Biocon announce regulatory submission for Trastuzumab Biocon and Mylan have received European Medicines Agency (EMA) acceptance to review Mylan’s Marketing Authorization Application (MAA) for a proposed biosimilar Trastuzumab used to treat certain HER2-positive breast and gastric cancers. This is the second biosimilar submission developed by the partnership that has been accepted for review in Europe. In July, Mylan’s MAA for the proposed biosimilar Pegfilgrastim was accepted for review by EMA. Biocon-Mylan biosimilar Pegfilgrastim accepted for review by EMA Biocon has announced European Medicines Agency (EMA) has accepted for review Mylan's marketing authorisation application for their biosimilar product Pegfilgrastim, which is used to reduce the duration of neutropenia for cancer patients. Lawsuits, court rulings, settlements, regulatory issues

Sun enters into agreement with Almirall for Tildrakizumab in Europe Sun Pharma and Almirall (Spanish company) have announced a licensing agreement on the development and commercialisation of Tildrakizumab for psoriasis in Europe. Under terms of the license agreement, Almirall will pay Sun Pharma an upfront payment of US$50 million. Phase-3 studies of Tildrakizumab have recently been completed. Sun Pharma will be eligible to receive development and regulatory milestone payments and, additionally, sales milestone payments and royalties on net sales. Maharashtra Court directs Sun Pharma release pending wages The Maharashtra Industrial Court in Mumbai has directed Sun Pharma to immediately release the pending wages of 86 employees, who joined Sun Pharma after its merger with Ranbaxy Lab. Cadila’s Gujarat facility receives EIR from USFDA Cadila’s topical manufacturing facility at Changodar, Ahmedabad, has received Establishment Inspection Report (EIR) from the USFDA following the inspection carried out in March 2016. Natco’s Kothur facility received EIR from the USFDA Natco Pharma manufacturing facility at Kothur Village, Mahbubnagar District, has received Establishment Inspection Report (EIR) from the USFDA following the inspection carried out between February 29 & March 7, 2016. Natco’s Chennai facility receives EIR from USFDA Natco Pharma has received establishment inspection report (EIR) from the USFDA for the inspection conducted in February 8-12, 2016, at the Chemical Division, Chennai.


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Competition Commission slaps penalty of ~| 73 crore on Lupin As per media, the Competition Commission of India has slapped a penalty of ~| 73 crore on Lupin and its two officials for indulging in unfair business practices with regard to supply of medicines in Karnataka. Others

Glenmark sells US$ bonds, raises US$200 million through US$ bonds Glenmark Pharma has raised US$200 million through five years non call three year senior unsecured notes offering at 4.5% per annum, due 2021 (2016 notes). The bonds were oversubscribed eight times while notes have been rated BB and BB by S&P and Fitch, respectively. The proceeds from the issuance and sale of notes will be used for investment in Glenmark's subsidiaries. Q1FY17 Results

Ajanta Pharma registers strongest ever gross margins Revenues grew 20.4% YoY to | 471 crore on the back of 18.6% growth in exports to | 287 crore. Domestic sales grew 9.5% to | 162 crore. EBITDA margins increased 406 bps YoY to 35.4% on account of gross margin expansion. Gross margins increased 532 bps YoY to 78.9%. EBITDA increased 36.0% YoY to | 166.6 crore. Net profit increased 33.5% YoY to | 120 crore, on the back of a robust operational performance. Alembic Pharma - gAbilify drives Q1; investment mode to continue Revenues grew 24.8% YoY to | 728 crore on account of continuous windfall gains from gAbilify sales in the US. Export sales grew 75.2% to | 308.5 crore. Domestic branded formulation sales grew 5.7% to | 277.7 crore on the back of 16% growth in the speciality portfolio. EBITDA margins improved 407 bps YoY to 21.6% owing to robust margin from gAbilify sales. EBITDA grew 53.8% YoY to | 157.0 crore. Net profit grew 48.4% YoY to | 103.6 crore owing to a robust operational performance. Aurobindo - In line results; US driven growth continues Revenues grew 12.9% YoY to | 3725.9 crore on account of 20.5% growth in the US to | 1703.9 crore. The Europe business grew 12.1% to | 831.2 crore. EBITDA margins increased 188 bps YoY to 23.9% mainly on account of an improvement in gross margins. Net profit grew 23.8% YoY to | 585.0 crore mainly due to a better operational performance. Biocon witnesses robust growth in branded business, biosimilars Revenues grew 20.7% YoY to | 982 crore mainly due to 41.1% YoY growth in branded formulations to | 158 crore, 70.8% growth in biologics to | 123 crore and 17.4% growth in Syngene to | 263 crore. Growth in branded formulations was due to conversion from IGAAP to Ind AS. EBITDA margins improved 119 bps YoY to 26.8% mainly due to lower other expenditure. Net profit increased 34.2% to | 161 crore on account of a better operational performance. Cadila Healthcare - US de-growth drags numbers Revenues declined 4.0% YoY to | 2287.1 crore due to 14% YoY de-growth in the US to | 848.3 crore. Domestic formulations grew 6.2% YoY to | 786.2 crore. EBITDA margins declined 134 bps to 22.9% on account of higher employee cost. EBITDA declined 9.3% YoY to | 523.9 crore PAT declined 22.6% YoY to | 356.2 crore mainly due to a lower-than-expected operational performance and higher taxation. Cipla - High gNexium base mars Q1 Revenues de-grew 6.4% YoY to | 3593.7 crore, on account of the high base of gNexium sales. US sales de-grew 21.2% YoY to | 657 crore. Domestic formulation grew ~5% YoY to | 1449 crore. EBITDA margins declined 1047 bps to 17% mainly on account of high gNexium base. EBITDA de-grew


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42.1% YoY to | 611.0 crore. Net profit de-grew 43.7% YoY to | 365.2 crore, mainly on account of the base effect. Divi’s Lab - witnesses strong growth with sharp improvement in margins Revenues grew 24.6% YoY to | 1008.1 crore due to ~26% growth in generic business to | 501 crore and ~22% growth in custom synthesis (CS) business to | 443 crore. EBITDA margins increased 273 bps YoY to 40% mainly due to a better product mix. EBITDA increased ~34% YoY to | 403.8 crore. Net profit witnessed YoY increase of ~23% to | 301.8 crore owing to a strong operational performance. Dr Reddy’s Lab- Performance stumbles on US slumps Revenues declined 13.9% YoY to | 3235 crore mainly due to 16.2% decline in US sales. The US sales decline was primarily on account of increased competition in gValcyte and gVidaza. RoW sales declined 52.7% YoY to | 128 crore primarily on account of zero sales in Venezuela. EBITDA margins declined to 12.0% against 26.6% in Q1FY16 on account of higher operational expenditure across the board and lower realisation. EBITDA declined 61.2% to | 387 crore. Net profit fell 80.8% to | 119 crore mainly due to lower operational performance and higher taxation. Glenmark Pharma - US driven growth continues Revenues grew 17.9% YoY to | 1943.1 crore mainly due to 24.4% YoY growth in the US to | 698.2 crore. India business grew 10.4% YoY to | 513.8 crore. EBITDA margins declined 230 bps YoY to 19.5% due to lower gross margins, higher employee cost. EBITDA rose mere 5.5% YoY to | 379.1 crore. Adjusted net profit increased 24.0% YoY to | 226.8 crore mainly due to | 50 crore of forex gain in the quarter. Indoco Remedies – US drives revenue; though margin pressure persists Revenues grew 15.2% YoY to | 257.4 crore mainly due to 18.4% YoY growth in export formulations to | 92.3 crore. Domestic formulations grew 12.7% to | 142.1 crore. EBITDA margins declined 238 bps YoY to 16.2% mainly on account of an increase in employee expenditure and R&D spend. EBITDA grew a mere 0.5% to | 41.8 crore. Net profit grew 2.7% YoY to | 19.8 crore. Growth in net profit was mainly on account of lower taxation. Ipca Lab - Export formulations register solid growth Revenues grew 11.1% YoY to | 842 crore mainly due to ~22% YoY growth in export formulations to | 274.8 crore. Domestic formulations grew 8.5% to | 345 crore. EBITDA margins increased 442 bps YoY to 15.3%, on account of an improvement in gross margins and lower other expenditure. EBITDA grew 56.4% to | 129 crore. Adjusted net profit grew 95% YoY to | 53 crore due to incremental EBITDA and lower depreciation. Jubilant Life - Demonstrates strongest ever margin performance Revenues de-grew 1.8% YoY to | 1420 crore. Revenues in the pharmaceutical business (including drug discovery segment) grew 10.1% YoY to | 802 crore while life science ingredients (LSI) revenues de-grew 13.9% YoY to | 618. De-growth in the LSI segment was mainly due to lower crude prices and optical focus on profitable products. EBITDA margins increased ~345 bps YoY to 25.9% on the back of 180 bps increase in both pharmaceutical and LSI margins to 34% and 19%, respectively. Adjusted net profit grew 22.8% to | 162 crore due to better operational performance and lower interest cost. Lupin - Demonstrates strong gross margins and robust US growth Revenues grew 40.7% YoY to | 4439.4 crore mainly due to 83.8% growth in US sales to | 2188.6 crore. Strong US sales were due to Gavis consolidation, robust sales in Metformin (anti-diabetic). Domestic sales grew 5.2% YoY to | 931.3 crore. EBITDA margins improved 333 bps YoY to 29.5% mainly on account of a strong gross margin performance. EBITDA grew 58.6% YoY to | 1308.0 crore. Net profit grew 55.1% YoY to | 882.0 crore owing to a strong operational performance.


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Natco Pharma - Hepatitis C group continues to drive numbers Revenues grew 45.4% YoY to | 325.2 crore due to strong traction from Hepatitis-C segment (300% growth to ~| 135 crore). EBITDA margins declined 186 bps YoY to 23.8% mainly on account of higher other expenditure. EBITDA grew 34.8% to | 77.3 crore. Adjusted net profit increased 69.8% YoY to | 47.7 crore on account of lower finance costs, depreciation and high other income. Sun Pharma - Base business expansion amid gGleevec exclusivity Revenues grew ~22% YoY to | 8243 crore on account of 32% increase in US sales to | 3910 crore. US sales growth can be attributed to gGleevec (oncology) exclusivity. Domestic sales grew ~8% YoY to | 1854 crore. EBITDA margins increased 929 bps YoY to 35.4% mainly due to lower base and exclusivity of gGleevec. Taro Pharma’s EBITDA margins declined 165 bps YoY to 62.6%. EBITDA grew 65.2% YoY to | 2921 crore. Net profit grew 64% YoY | 2034 crore mainly due to a strong operational performance. Syngene International - Growth tempo maintained albeit at lower gear Revenues grew 17.5% YoY to | 274.5 crore mainly due to growth in the discovery services vertical and development and manufacturing group. Adjusting for the impact of sales return, growth would have been 22.5%. EBITDA margins declined 120 bps to 32.3% YoY owing to higher employee cost and other expenditure, which was partially offset by improvement in gross margins. EBITDA grew 13.3% to | 88.8 crore. Net profit increased 28.1% to | 59.7 crore mainly due to higher other income. Other income increased to | 15.9 crore from | 2.1 crore/| 2.7 crore in Q1FY16, Q4FY16. Torrent Pharma - Base effect impacts Q1 Revenues declined 20.6% YoY to | 1545 crore mainly due to 51.1% YoY de-growth in the US to | 434 crore. The decline in US sales was due to the high base of gAbilify exclusivity in Q1FY16. EBITDA margins declined 1840 bps to 28.3%. EBITDA fell 51.9% YoY to | 437 crore Net profit fell 35% YoY to | 292.0 crore. Unichem Lab - Impressive formulation growth Revenues grew 9.5% YoY to | 342.0 crore on account of 12.5% YoY growth in domestic sales to | 221.5 crore and 16.7% growth in export sales to | 97.1 crore. De-growth in APIs growth (down 25% YoY), however, pulled down the numbers a bit. EBITDA margins declined 80 bps YoY to 12.9% mainly due to higher employee cost and provision for diminution in the Brazilian subsidiary. Net profit witnessed a YoY decline of 11.1% to | 25.8 crore mainly due to higher taxation.


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Q1FY17 Results Review

The Q1 earnings season concluded on expected line with US focused generic players more or less managing to overcome pricing pressure with exclusivities and higher volumes. I-direct pharma universe registered YoY revenue growth of 9.4% to | 35662 crore, driven by 15.2% YoY growth to | 11496 in the US and 7.6% YoY growth to | 7863 crore in domestic formulations (select pack). EBITDA for the universe grew 7.2% YoY to | 8579 crore. Lower growth vis-à-vis revenues can be attributed to higher R&D spend and remedial costs. Adjusted net profit grew 8.5% YoY to | 5919 crore. Adoption of new accounting standard (Ind-AS) also had an impact on the quarterly performance.

Exhibit 2: Actual s vs. estimates

Q1FY17E Q1FY17 Q1FY17E Q1FY17 Q1FY17E Q1FY17Ajanta Pharma 454.7 471.0 145.5 166.6 100.9 119.6Alembic Pharma 647.5 728.0 158.6 157.0 108.7 103.6Aurobindo Pharma 3804.0 3725.9 894.9 889.0 565.9 585.0Biocon 951.4 982.4 233.1 263.1 139.5 166.6Cadila Healthcare 2607.7 2287.1 622.3 523.9 429.8 356.4Divi's Laboratories 932.6 1008.1 345.1 403.8 261.6 301.8Cipla 3661.7 3593.7 539.3 611.0 302.3 365.2Dr Reddy's Labs 3911.6 3234.5 998.3 386.9 572.8 118.9Glenmark Pharma 2021.9 1943.1 427.0 379.1 239.8 226.8Indoco Remedies 269.4 257.4 48.3 41.8 24.5 19.8Ipca laboratories 813.2 842.2 106.1 128.5 52.1 52.6Jubilant Life Sciences 1547.0 1419.5 337.6 368.2 132.1 161.5Lupin 4652.8 4439.4 1535.4 1308.0 930.4 882.0Natco Pharma 321.1 325.2 72.2 77.3 46.1 47.7Sun Pharma 7880.5 8243.0 2744.1 2921.0 1854.2 2033.7Syngene 302.6 274.5 97.9 88.8 56.9 59.7Torrent Pharma 1587.0 1545.0 476.1 437.0 331.6 292.0Unichem Labs 341.8 342.0 37.3 44.2 26.1 25.8Total 36708.5 35662.0 9819.1 9195.0 6175.3 5918.5

CompanyRevenues EBITDA Net profit

Source: Company, ICICIdirect.com Research

Exhibit 3: Quarterly performance of I-Direct healthcare coverage

Company Q1FY17 Q1FY16 Var.(%) Q1FY17 Q1FY16 Var.(%) Q1FY17 Q1FY16 Var.(%)Ajanta Pharma 471.0 391.4 20.4 166.6 122.5 36.0 119.6 89.6 33.5Alembic Pharma 728.0 583.3 24.8 157.0 102.0 53.8 103.6 69.8 48.4Aurobindo Pharma 3725.9 3298.9 12.9 889.0 725.1 22.6 585.0 472.5 23.8Biocon 982.4 813.9 20.7 263.1 208.3 26.3 166.6 123.9 34.5Cadila Healthcare 2287.1 2382.6 -4.0 523.9 577.8 -9.3 356.4 462.0 -22.9Divi's Laboratories 1008.1 808.8 24.6 403.8 301.8 33.8 301.8 245.2 23.1Cipla 3593.7 3838.5 -6.4 611.0 1054.5 -42.1 365.2 649.2 -43.7Dr Reddy's Labs 3234.5 3757.8 -13.9 386.9 998.0 -61.2 118.9 620.8 -80.8Glenmark Pharma 1943.1 1647.7 17.9 379.1 359.3 5.5 226.8 182.9 24.0Indoco Remedies 257.4 223.4 15.2 41.8 41.6 0.5 19.8 19.3 2.7Ipca laboratories 842.2 758.0 11.1 128.5 82.2 56.4 52.6 27.0 LPJubilant Life Sciences 1419.5 1445.7 -1.8 368.2 325.1 13.3 161.5 131.6 22.8Lupin 4439.4 3156.1 40.7 1308.0 824.8 58.6 882.0 568.6 55.1Natco Pharma 325.2 223.7 45.4 77.3 57.3 34.8 47.7 28.1 69.8Sun Pharma 8243.0 6761.5 21.9 2921.0 1767.8 65.2 2033.7 1241.1 63.9Syngene 274.5 233.7 17.5 88.8 78.4 13.3 59.7 46.6 28.1Torrent Pharma 1545.0 1947.0 -20.6 437.0 909.0 -51.9 292.0 449.0 -35.0Unichem Labs 342.0 312.4 9.5 44.2 42.9 3.1 25.8 29.0 -11.1Total 35662.0 32584.3 9.4 9195.0 8578.6 7.2 5918.5 5455.9 8.5

ProfitRevenues EBITDA

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

On the revenue front, Natco (46% growth) and Lupin (41% growth) were the standout performers. Natco’s revenues were largely driven by robust growth in Hepatitis C segment while Lupin benefited from exclusivity sales in the US. Alembic, Divi’s, Sun, Biocon and Ajanta also reported more than

Geographical/segmental performance in Q1FY17

(| crore) Q1FY17 Q1FY16 Var. (%) Q4FY16 Var. (%)Ajanta 157.0 132.0 18.9 116.7 34.6Alembic 277.7 262.7 5.7 259.6 7.0Biocon 158.0 112.0 41.1 105.0 50.5Cadila 786.2 740.4 6.2 767.4 2.4Glenmark 513.8 465.4 10.4 539.8 -4.8Indoco 142.1 126.2 12.7 130.8 8.6Ipca 345.2 318.1 8.5 249.5 38.3Lupin 931.3 885.1 5.2 761.5 22.3Cipla 1449.0 1381.0 4.9 1258.0 15.2Dr Reddy's 522.3 475.6 9.8 526.7 -0.8Sun Pharma 1854.3 1723.7 7.6 1806.5 2.6Torrent 504.0 491.0 2.6 447.0 12.8Unichem 221.5 197.0 12.5 171.3 29.4Total 7862.5 7310.2 7.6 7139.7 10.1

India

(| crore) Q1FY17 Q1FY16 Var. (%) Q4FY16 Var. (%)Aurobindo 1703.9 1413.7 20.5 1666.3 2.3Cadila 848.3 985.0 -13.9 961.0 -11.7Glenmark 698.2 561.1 24.4 652.0 7.1Lupin 2188.6 1190.6 83.8 2187.1 0.1Dr Reddy's 1552.3 1851.5 -16.2 1895.0 -18.1Sun Pharma 4070.6 3090.6 31.7 3910.3 4.1Torrent 434.0 888.0 -51.1 514.0 -15.6

Total 11495.9 9980.5 15.2 11785.7 -2.5

US

(| crore) Q1FY17 Q1FY16 Var. (%) Q4FY16 Var. (%)Aurobindo 831.2 741.8 12.1 840.7 -1.1Cadila 79.2 83.6 -5.3 70.6 12.2Glenmark 150.0 109.9 36.5 270.5 -44.6Dr Reddy's 161.5 191.2 -15.5 175.9 -8.2Lupin 128.0 100.3 27.6 125.4 2.1Torrent 187.0 157.0 19.1 163.0 14.7Total 1536.8 1383.8 11.1 1646.1 -6.6

Europe

(| crore) Q1FY17 Q1FY16 Var. (%) Q4FY16 Var. (%)Cadila 52.7 55.3 -4.7 55.3 -4.7Glenmark 155.6 218.5 -28.8 241.6 -35.6Torrent 167.0 138.0 21.0 119.0 40.3Total 375.3 411.8 -8.8 415.9 -9.8

Latin America

(| crore) Q1FY17 Q1FY16 Var. (%) Q4FY16 Var. (%)Aurobindo 734.5 722.9 1.6 774.6 -5.2Alembic 128.2 116.8 9.8 166.9 -23.2Cadila 97.6 98.0 -0.4 92.2 5.9Glenmark 191.2 134.9 41.7 222.9 -14.2Indoco 17.6 12.5 40.8 12.0 46.7Ipca Labs 201.5 208.1 -3.2 114.2 76.4Lupin 286.9 325.7 -11.9 283.8 1.1Cipla 131.0 209.0 -37.3 204.0 -35.8Dr Reddy's 469.2 561.4 -16.4 576.6 -18.6Sun Pharma 488.2 292.9 66.7 392.5 24.4Unichem 20.8 27.9 -25.4 20.1 3.4Total 2766.7 2710.0 2.1 2859.8 -3.3

API


Page 8

20% growth. On the other hand, Dr Reddy’s, Torrent and Cipla reported negative growth mainly due to high base and price erosion in the US. US growth was driven by limited competition opportunities/exclusivities at Lupin from gGlumetza and gFortamet (anti-diabetic) and Sun from gGleevec (anti-cancer). Note that US growth has not captured gNexium (GI) impact for Cipla and gAbilify for Alembic for non-disclosure of specific traction. Aurobindo and Glenmark also registered strong YoY growth whereas Torrent, Cadila and DRL were laggards on account of base effect, slowdown in product approvals and regulatory issues. Domestic growth was largely impacted by ongoing NLEM/FDC related issues. Biocon, Ajanta, Unichem and Indoco witnessed decent growth.

Exhibit 4: I-Direct Healthcare Universe Revenues trend

32584

34843 34584

3669535662

300003100032000330003400035000360003700038000

Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17

Revenue

Source: Company, ICICIdirect.com, Research

Exhibit 5: I-Direct Healthcare Universe EBITDA trend

8579

8978

8794 8757

9195

8200

8400

8600

8800

9000

9200

9400


EBITDA


Exhibit 6: I-Direct Healthcare Universe profits trend

5456 5439

5588

5316

5919

5000

5200

5400

5600

5800

6000


PAT


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

26.3 25.8 25.4 23.925.8

16.7 15.6 16.2 14.516.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0


EBITDA Margins (%) PAT Margins (%)



Page 9

Exhibit 8: Deviation from estimates / Change in outlook post Q1FY17 numbers [5

Company Initial Rating Current RatingDeviation from

estimates RemarksAjanta Pharma BUY HOLD Above Better-than-expected on the profitability front

Alembic Pharma BUY HOLD Above Higher-Than-expected gAbilify sales in the US

Aurobindo Pharma BUY BUY Inline

Biocon HOLD BUY Above Higher-than-expected branded Formulation and biosimilar sales. EBITDA margins were also better-than-expected mainly due to improvement in gross margins and lower other expenditure

Cadila Healthcare BUY BUY Below mainly due to lower than expected US sales. EBITDA margins were lower-than-expected mainly due to higher employee cost

Cipla BUY HOLD Above Revenues were in-line, while Margins were better-than-expected mainly due to lower-than-expected other expenditure

Divi's labs BUY BUY Above Higher than expected sales in generic business

Dr Reddy's Labs BUY HOLD Below Q1 was largely impacted by decline in US sales primarily on account of increased competition in gValcyte and gVidaza

Glenmark Pharma BUY BUY Below Numbers were below I-direct estimates on account of lower-than-estimated offtake in Europe and LatAm as well as EBITDA margins.

Indoco Remedies BUY BUY Below Miss in margins was mainly due to lower gross margins and higher employee expenses

Ipca labs BUY BUY Inline

Jubilant Life Sciences BUY BUY Mixed bag Revenues were lower than I-direct estimates while profitability was higher than I-direct estimates

Lupin BUY BUY Below Miss vis-à-vis I-Direct expectation was mainly due to lower US sales and one-off inventory adjustment in the US

Natco Pharma BUY BUY Inline

Sun Pharma HOLD BUY Above Beat vis-à-vis our expectation was due to higher than expected US base business sales and lower-than-expected employee cost and other expenditure

Torrent Pharma BUY BUY Below Numbers were lower-than-expected on the profitability front while revenues were in line

Unichem Labs BUY BUY Inline

Source: Bloomberg, ICICIdirect.com Research


Page 10

Exhibit 9: Patent litigations (12 months)

[5

Month Innovator ANDA Filer Brand Name API Used for Aug-15 Allergan Lupin Namenda Memantine Hydrochoride Alzheimer's DiseaseAug-15 Galderma Labs Taro Pharma Epiduo Adapalene & Benzoyl peroxide AcneSep-15 Jazz Pharma Lupin Xyrem Sodium Oxybate NarcolepsySep-15 Gilead Sciences Inc. Lupin Tamiflu Oseltamivir InfluenzaSep-15 Horizon Pharma Lupin Pennsaid Diclofenac OsteoarthritisSep-15 Bayer Pharma Alembic Pharma Staxyn Vardenafil Hydrochloride Sex StimulantOct-15 Merck Lupin Beyaz Drospirenone Birth controlOct-15 Salix Pharmaceuticals, Inc. Taro Pharma Moviprep Polyethylene glycol electrolyte soln Gastro IntestinalOct-15 Takeda Pharma Aurobindo Prevacid lansoprazole Stomach ulcersOct-15 Janssen Pharma Aurobindo Xarelto Rivaroxaban Blood ThinnerOct-15 Novartis Pharma Natco Pharma Gleevec Matinib Mesylate Anti-cancerOct-15 Otsuka Pharma Zydus Pharma Abilify Aripiprazole SchizophreniaOct-15 AstraZeneca Alembic Pharma Brilinta Ticagrelor CVSNov-15 AstraZeneca InvaGen Pharma Brilinta Ticagrelor CVSNov-15 Novartis Pharma Dr. Reddy's Labs Exelon Patch Rivastigmine DementiaNov-15 Allergan Aurobindo Pharma Acular LS Ketorolactromethamine Ocular PainNov-15 Shire Pharma Lupin Lialda Mesalamine Ulcerative ColitisNov-15 Dexcel Pharma Sun Pharma Omeprazole Omeprazole GINov-15 Dexcel Pharma Dr. Reddy's Labs Omeprazole Omeprazole GINov-15 Cephalon Inc. Aurobindo Pharma Nuvigili Modafinil CNSNov-15 Cosmo Techs Lupin Uceris Budesonide GINov-15 Pfizer Dr. Reddy's Labs Toviaz Fesoterodine UrotherapyNov-15 Vanda Pharma Lupin Fanapt Iloperidone SchizophreniaNov-15 Forest Labs InvaGen Pharma Viibryd Vilazodone Anti-depressantNov-15 Jazz Pharma Sun Pharma Xyrem Gamma-hydroxybutyric acid CNSNov-15 Otsuka Pharma Alkem Labs Abilify Aripiprazole SchizophreniaNov-15 Symed Labs Glenmark Pharma Zyvox Linezolid Anti-InfectiveDec-15 UCB Inc. InvaGen Pharma Zyrtec-D Cetirizine RespiratoryDec-15 Unimed Pharma Dr. Reddy's Labs Androgel Testosterone Low TestosteroneDec-15 Helsinn Healthcare Dr. Reddy's Labs Aloxi Palanosetron NauseaDec-15 Sanofi-Aventis Glenmark Pharma Multaq Dronedarone Atrial FibrillationDec-15 Otsuka Pharma Ajanta Pharma Abilify Aripiprazole SchizophreniaDec-15 Merz Pharma Taro Pharma Naftin Naftifine Hydrochloride Fungal InfectionJan-16 Dow Pharma Taro Pharma Onexton Cindamycin Phosphate and Benzoyl Peroxide AcneJan-16 Cubist Pharma Dr. Reddy's Labs Cubicin Daptomycin AntibioticFeb-16 Bayer Pharma InvaGen Pharma Xarelto Rivaroxaban Blood ThinnerFeb-16 Bristol Myers Squibb Cipla Reyataz Atazanavir HIVFeb-16 Janssen Products LP Lupin Prezista Darunavir HIVMar-16 Shire Canada Lupin Daliresp Roflumilast RespiratoryMar-16 Daiichi Sankyo Torrent Pharma Benicar Olmesartan Anti-depressantApr-16 Daiichi Sankyo Alembic Pharma Benicar Olmesartan Anti-depressantMay-16 Daiichi Sankyo Aurobindo Pharma Benicar Olmesartan Anti-depressantJun-16 Apicore Aurobindo Pharma LYMPHAZURIN isosulfan blue lymphatic imaging agentJun-16 UCB, Inc. Aurobindo Pharma VIMPAT lacosamide partial-onset seizuresJun-16 Gilead Aurobindo Pharma EMTRIVA emtricitabine HIVJun-16 Janssen Biotech Glenmark Pharma ZYTIGA abiraterone OncologyJun-16 Sanofi-Aventis Cadila Healthcare MOZOBIL plerixafor non-Hodgkin's lymphomaJul-16 Sanofi-Aventis Cadila Healthcare MOZOBIL plerixafor non-Hodgkin's lymphomaJul-16 Roche Cadila Aloxi palonosetron hydrochloride prevention of acute nausea Jul-16 AstraZeneca AB Aurobindo Nexium 24HR esomeprazole magnesium treatment of acid refluxJul-16 Hyperion Therapeutics Lupin RAVICTI Glycerol Phenylbutyrate urea cycle disordersJul-16 Gilead Sciences, Inc. Aurobindo Truvada emtricitabine / tenofovir disoproxil fumarate HIV

Source: Bloomberg, ICICIdirect.com Research


Page 11

IPM grows 9.5% in July • The Indian pharmaceutical market (IPM) grew 9.5% YoY to | 9125 crore

for July. Growth was driven by price hikes- 3.3%, new product launches- 3.1% and volumes increase by 3.2%

• Fixed dosage combination (FDCs) related market de-grew 3.9% to | 234 crore

• Drugs under NLEM list increased 1.6% to | 1061 crore while non-NLEM drugs posted growth of 11.2% to | 7677 crore. Volume growth in NLEM and non-NLEM was 11.0% and 4.2%, respectively

• Among companies under I-direct coverage, Natco, Indoco, Ipca, Alembic and Unichem have registered robust growth of 33.2%, 27.8%, 18.1%, 18.0% and 17.3% respectively. Cipla, Glenmark, Lupin and Sun registered growth of 8.9%, 8.5%, 7.8%, and 7.8% respectively.

• Therapy wise, eight therapies have outpaced IPM growth. Notable among them with growth rates- Respiratory—27.2%, anti-infective – 14.9%, Vaccine – 12.6%, anti malarial – 11.1% and anti-diabetic —10.1%

• In all, 431 new brands were launched in July 2016 • On a MAT basis, IPM growth was at 10.3% YoY to | 100896 crore.

Domestic companies have grown 10.9% while MNC companies have grown 5.0% in July 2016

Exhibit 10: Domestic formulations - growth trend

14.3

14.3

13.5 14

.8

14.5

11.214.4 14

.2

13.7

20 11.5

10.5

10.3

-5

0

5

10

15

20

25

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market

[

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 11: Companies growth in domestic market in July, 2016

5.0

8.9

6.95.8

10.510.4

15.8

9.7

14.1

15.9

1.6

8.4

13.3

15.4

9.6

6.6

0

2

4

6

8

10

12

14

16

18

Aja

nta

Ale

mbi

c

Bioc

on

Cadi

la

Cipl

a

DRL

Glen

mar

k

GSK

Phar

ma

Indo

co

Ipca

Lab

s

Lupi

n

Nov

artis

Pfize

r

Sun

Phar

ma

Torre

nt

Unic

hem

(%)


Therapy wise performance (| crore) Therapy July' 16 July' 15 YoY (%) June' 16 MoM (%)Anti-Infectives 1405 1223 14.9 1163 20.8Gastro Intestinal 1133 1045 8.4 1085 4.5Cardiac 1084 1030 5.2 1057 2.5Vitamins / Minerals / 820 782 4.8 807 1.6Anti Diabetic 755 686 10.1 743 1.5Respiratory 683 537 27.2 531 28.6Pain / Analgesics 648 590 9.8 585 10.9Neuro / Cns 526 516 1.9 522 0.7Derma 522 493 5.8 514 1.6Gynaecological 461 434 6.3 450 2.4Vaccines 164 145 12.6 133 23.1Ophthal / Otologicals 155 155 0.0 164 -5.9Hormones 148 136 8.8 135 9.9Anti-Neoplastics 145 148 -1.6 145 0.3Blood Related 119 87 37.3 111 7.8Others 106 101 5.2 100 6.4Urology 101 94 8.0 101 0.6Sex Stimulants / Reju 60 47 27.7 35 71.6Anti Malarials 48 43 11.1 45 6.2Stomatologicals 43 39 8.6 42 2.9 Source: AIOCD data base

Top brands in Indian pharma market Brand Company Therapy July' 16 July' 15 Gr. (%)Corex Pfizer Corex 318.6 253.0 25.9Spasmo Prox Wockhardt Spasmo Proxy 304.7 227.6 33.9Augmentin Sanofi Lantus 297.0 239.9 23.8Lantus GSK Augmentin 297.0 329.8 -10.0Galvus Met Novartis Galvus Met 293.5 207.2 41.7Clavam Alkem Clavam 250.7 222.7 12.6Volini Sun Volini 233.9 205.6 13.8Becosules Sun Pharma Becosules 220.5 258.7 -14.8Foracort Alkem Pan 203.4 178.6 13.9Pan Cipla Foracort 202.4 181.4 11.6

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

Acute, 48725.34,

48.3%

Chronic, 31822.25,

31.5%Sub-

Chronic, 20348.75,

20.2%

Source: AIOCD data base ; As per AIOCD MAT July 2016

Source: AIOCD data base


Page 12

Sun Pharmaceuticals

Stock Performance

507090

110130150

Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16

CNX Pharma Sun Pharma

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

12.2 13

.3

10.3

22.6

9.5

12.7

9.6

12.1

6.6

4.3

8.4

6.3

9.5

17.5

11.6 12.5

18.1

4.5

9.9

8.2

20.3

12.3

5.2

5.2

3.3

7.8

0

5

10

15

20

25

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Sun Pharmaceutical Industries


Exhibit 13: Market share in Indian formulations market

8.9

8.4 8.3 8.38.7 8.7

8.9 8.9 9.0 8.8 8.9 8.9 8.8

6.0

6.6

7.2

7.8

8.4

9.0

9.6

Jul-1

5

Aug

-15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Sun Pharmaceutical Industries

Source: AIOCD data base, ICICIdirect.com Research * Included Ranbaxy’s sales

Exhibit 14: Top 10 brands performance (| crore) Brand Therapy July' 16 July' 15 Var. (%) June' 16 Var. (%)

Volini Pain 21.3 17.6 21.5 20.1 6.4

Rosuvas Cardiac 16.1 13.7 18.2 15.8 2.4

Istamet Anti Diabetic 16.2 13.8 17.2 15.2 6.7

Gemer Anti Diabetic 16.3 13.8 18.3 14.7 11.0

Levipil Neuro 14.3 12.2 17.2 13.6 4.7

Susten Gynaecological 12.8 13.2 -3.2 13.3 -3.8

Pantocid Gastro Intestinal 13.1 12.6 3.4 11.6 12.7

Revital H Vitamins 13.7 10.3 32.7 12.9 5.7

Pantocid Dsr Gastro Intestinal 10.8 10.6 2.1 9.9 9.4

Storvas Cardiac 8.6 9.7 -12.1 8.6 -0.1


Exhibit 15: Contribution of therapies to domestic sales (MAT July’16)

z

Cardiac29%

Neuro 27%

Gastro Intestinal

19%

Anti-Infectives18%

Derma7%


Exhibit 16: Therapy wise performance (| crore)

Therapy July' 16 July' 15 YoY (%) June' 16 QoQ (%)

Cardiac 147.3 132.1 11.5 138.9 6.0

Neuro 136.0 128.1 6.2 130.0 4.6

Gastro Intestinal 100.0 96.1 4.1 93.0 7.6

Anti-Infectives 90.8 84.4 7.6 80.1 13.5

Derma 38.2 34.3 11.5 69.5 -45.0

Anti Diabetic 73.1 69.3 5.6 54.2 34.9

Vitamins 34.2 30.1 13.9 37.4 -8.4

Pain 57.3 54.2 5.9 32.8 75.1

Respiratory 30.3 23.5 29.0 30.5 -0.4

Gynaecological 30.0 31.7 -5.1 23.6 27.4


Acute : Chronic contribution (MAT July’16)

Acute, 3606.23,

41.0%

Chronic, 3980.52,

45.3%

Sub-Chronic, 1202.74,

13.7%


Brands contribution to domestic sales (MAT July’16)

18%

9%

7%

10%

56%

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


August 29, 2016 Cipla

Stock Performance

6080

100120140


CNX Pharma Cipla

Source: NSE, ICICIdirect.com Research

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

12.2 13

.3

10.3

22.6

9.5

12.7

9.6 12

.1

6.6

4.3

8.4

6.3

9.5

11.4

11.0

4.5

21.0

15.8 16.6

9.9 11

.5

3.5

1.9 6.

0

8.7

8.9

0

5

10

15

20

25

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Cipla



4.64.8

4.9 4.9

5.15.2

5.15.2

4.9

5.2

4.7 4.74.6

4.2

4.4

4.6

4.8

5.0

5.2

5.4

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Cipla



Foracort Respiratory 16.3 14.6 11.5 16.4 -0.5

Budecort Respiratory 12.3 9.9 24.3 10.7 14.8

Asthalin Respiratory 10.3 9.9 3.6 9.6 7.0

Seroflo Respiratory 10.9 10.5 4.0 10.4 4.6

Duolin Respiratory 10.8 8.7 23.4 10.2 5.7

Aerocort Respiratory 7.7 7.3 5.4 7.3 5.0

Azee Anti-Infectives 7.9 6.9 14.6 6.2 28.4

Montair Lc Respiratory 7.3 5.1 42.5 5.8 25.8

Novamox Anti-Infectives 6.0 5.9 0.2 5.2 14.3

Emeset Gastro Intestinal 7.0 6.3 11.8 6.8 3.9



Respiratory30%

Anti-Infectives27%

Cardiac12%

Gastro Intestinal

8%

Neuro 3%

Other20%




Respiratory 122.1 105.3 1 5.9 111.2 9.8

Ant i- Infectives 110.9 101.7 9.0 103.0 7.7

Cardiac 51.8 50.3 3.0 51.4 0.9

Gastro Intest inal 38.2 33.7 1 3.4 38.4 -0.6

Neuro 13.2 15.0 -1 2.5 14.2 -7.4

Ophthal 13.8 14.0 -1.2 14.4 -3.9

Pain 14.8 13.1 1 3.0 13.0 14.1

Derma 11.0 10.8 1.7 10.4 5.5

V itamins 8.4 7.1 1 7.7 9.2 -9.0

Gynaecological 6.3 6.5 -2.8 6.2 2.4



Acute, 2388.79,

47.8%

Chronic, 1985.51,

39.7%

Sub-Chronic, 622.17, 12.5%



24%

12%

8%12%

44%




Page 14

Dr. Reddy’s Labs

Stock Performance) Stock Performance

6080

100120140


CNX Pharma Dr. Reddys


12.2

13.3

10.3

22.6

9.5 12

.7

9.6 12

.1

6.6

4.3 8.

4

6.3 9.

519.0

14.6

7.5

30.7

23.6 27

.4

26.5 31

.7

6.7

-1.4

4.1

1.5

4.8

-10

0

10

20

30

40

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Dr. Reddys Laboratories



2.3 2.32.3

2.3

2.6 2.6

2.3

2.2 2.2

2.3

2.72.6

2.2

2.0

2.1

2.2

2.3

2.4

2.5

2.6

2.7

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Dr. Reddys Laboratories



Omez Gastro Intestinal 9.4 10.8 -12.8 10.6 -11.6

Omez D Gastro Intestinal 8.6 7.5 14.9 8.8 -2.0

Econorm Gastro Intestinal 6.5 6.2 6.0 7.4 -11.2

Stamlo Cardiac 4.4 5.2 -15.6 4.2 4.3

Grafeel Anti-Neoplastics 7.9 5.2 51.8 2.4 223.7

Nise Pain 5.2 4.3 20.7 4.9 7.3

Razo D Gastro Intestinal 4.7 4.5 3.5 5.3 -12.5

Mintop Derma 3.1 3.4 -9.8 3.7 -17.4

Razo Gastro Intestinal 4.8 4.1 16.8 4.3 10.4

Atarax Respiratory 5.1 3.1 63.6 4.3 17.0



Gastro Intestinal

22%

Cardiac14%

Anti-Neoplastics

11%Respiratory

9%

Anti-Infectives8%

Other36%




Gastro Intestinal 44.3 43.4 1.9 46.6 -5.1

Cardiac 25.6 28.6 -10.5 26.1 -1.8

Anti-Neoplastics 28.8 26.1 10.1 22.7 26.6

Respiratory 18.7 14.0 33.7 15.5 20.5

Anti-Infectives 15.9 14.1 12.9 14.5 9.7

Pain 13.4 13.0 2.8 13.0 3.1

Derma 10.7 10.7 -0.7 12.4 -14.2

Anti Diabetic 12.7 12.7 0.0 13.1 -2.9

Neuro 6.6 6.5 0.4 6.5 1.0

Vitamins 6.3 5.9 5.5 6.3 -1.1



Acute, 1177.45,

49.0%

Chronic, 725.31, 30.2%

Sub-Chronic, 502.43, 20.9%



29%

16%9%

12%

34%




Page 15

Lupin

Stock Performance

6080

100120140


CNX Pharma Lupin



12.2 13.3

10.3

22.6

9.5 12

.7

9.6 12

.1

6.6

4.3 6.

3

8.5

20.9

12.1

21.8

7.2

14.5

12.9

18.4 20

.5

9.9 11.7

4.7 7.

8

8.4

9.5

-4

4

12

20

28

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Lupin



3.23.4 3.3 3.3 3.3

3.4 3.4 3.4 3.43.3 3.4

3.2 3.2

2.3

2.5

2.7

2.9

3.1

3.3

3.5

3.7

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Lupin



Gluconorm-G Anti Diabetic 14.6 10.8 35.9 13.4 9.0

Tonact Cardiac 7.5 8.4 -11.1 7.1 4.7

Budamate Respiratory 7.6 5.9 28.4 7.2 5.2

Rablet-D Gastro Intestinal 5.4 4.6 19.3 4.6 17.3

Esiflo Respiratory 3.6 4.3 -15.7 4.0 -10.6

Rablet Gastro Intestinal 4.5 4.6 -3.4 4.1 8.1

Ramistar Cardiac 3.5 4.3 -17.6 3.4 3.5

R-Cinex Anti-Infectives 3.5 3.4 5.0 3.7 -3.3

Cetil Anti-Infectives 4.2 3.0 37.8 3.9 7.7

Telekast-L Respiratory 4.2 2.9 43.5 3.0 40.1



Cardiac26%

Anti-Infectives21%

Respiratory12%

Anti Diabetic11%

Gastro Intestinal

8%

Other22%




Cardiac 68.5 70.0 -2.2 66.3 3.3

Anti-Infectives 60.8 56.5 7.5 54.9 10.8

Respiratory 34.4 28.6 20.3 31.6 8.8

Anti Diabetic 36.9 29.2 26.5 34.8 6.0


Vitamins 15.6 17.4 -9.9 14.9 4.8

Neuro 13.8 13.4 3.2 13.9 -0.5

Pain 12.7 13.0 -1.9 12.2 4.1

Gynaecological 10.7 9.5 13.0 10.7 0.0

Ophthal 2.0 1.9 7.0 2.1 -5.5



Acute, 1066.22,

31.6%

Chronic, 1652.39,

49.0% Sub-Chronic, 657.00, 19.5%



20%

11%

9%13%

47%




Page 16

Cadila Healthcare

Stock Performance

6080

100120140


CNX Pharma Cadila Healthcare


12.2 13

.3

10.3

22.6

9.5

12.7

9.6 12

.1

6.6

4.3

8.4

6.3

9.5

12.8 13

.8 15.4

24.2

5.6

12.1

6.8

12.0

7.2

3.1 5.

8

1.1

3.4

0

5

10

15

20

25

30

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Cadila Healthcare



3.93.9

3.9 3.93.9 3.9 3.9

3.9

4.04.0

3.9

3.83.7

3.4

3.5

3.6

3.7

3.8

3.9

4.0

4.1

Jul-1

5

Aug

-15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

(%)

Cadila Healthcare



Skinlite Derma 13.3 13.7 -2.9 15.3 -12.7

Atorva Cardiac 8.4 10.9 -23.2 7.8 7.0

Mifegest Kit Gynaecological 10.7 9.1 18.4 11.0 -2.2

Pantodac Gastro Intestinal 10.5 8.3 25.6 9.6 8.9

Deriphyllin Respiratory 8.4 7.7 9.5 7.5 12.0

Falcigo Anti Malarials 5.7 6.3 -9.8 3.8 52.0

Aten Cardiac 5.7 6.9 -17.2 5.0 13.5

Amlodac Cardiac 4.3 6.8 -35.7 5.3 -17.6

Zyrop Blood Related 6.9 5.8 18.6 6.3 9.4

Clopitorva Cardiac 4.4 4.8 -8.7 4.5 -2.4



Cardiac16%

Gastro Intestinal

14%

Gynaecological11%

Respiratory11%Pain

10%

Other38%




Cardiac 50.7 56.7 -10.5 49.7 2.2


Gynaecological 32.8 34.6 -5.1 33.5 -1.9

Respiratory 33.0 29.7 11.1 29.8 10.6

Pain 32.7 30.1 8.6 31.3 4.4

Derma 25.3 25.6 -0.9 26.9 -5.9

Anti-Infectives 28.0 23.7 18.2 22.6 23.6

Anti-Neoplastics 23.0 17.5 31.5 22.1 4.3

Vitamins 16.7 14.3 16.9 14.7 14.1

Hormones 6.6 6.7 -1.5 5.9 11.8



Acute, 1066.22,

31.6%

Chronic, 1652.39,

49.0% Sub-Chronic, 657.00, 19.5%



20%

11%

9%13%

47%




Page 17

GlaxoSmithKline

Stock Performance

6080

100120140


CNX Pharma GSK Pharma



12.2 13.3

10.3

22.6

9.5 12

.7

9.6 12

.1

6.6

4.3

8.4

6.3 9.

5

-2.4

-1.1

1.2

21.2

4.5 6.9

4.7

2.2

-7.2

-9.5

0.3

-6.7

4.5

-15

-10

-5

0

5

10

15

20

25

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Glaxosmithkline Pharmaceuticals



3.23.3

3.43.5

3.4 3.43.3

3.1 3.13.0 3.1

2.9

3.1

2.4

2.6

2.8

3.0

3.2

3.4

3.6

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Glaxosmithkline Pharmaceuticals



Augmentin Anti-Infectives 20.9 26.5 -20.8 16.7 25.4

Synflorix Vaccines 16.2 14.3 13.5 16.4 -1.0

Calpol Pain 23.4 13.3 75.2 13.8 69.7

Zinetac Gastro Intestinal 14.8 12.5 18.8 13.5 9.6

Betnovate C Derma 9.2 11.9 -22.5 10.2 -9.4

Betnovate N Derma 9.2 12.4 -26.0 10.1 -9.0

Rotarix Vaccines 7.4 5.7 30.2 8.7 -14.6

Eltroxin Hormones 12.2 10.9 12.1 11.9 2.7

Ceftum Anti-Infectives 11.4 11.7 -2.4 10.1 12.6

Betnesol Hormones 8.1 7.9 2.8 5.9 38.4


Exhibit 40: Contribution of therapies to domestic sales (MAT July’16) Anti-Infectives

23%

Derma18%

Vaccines15%

Pain 10%

Respiratory8%

Other26%




Anti-Infectives 61.2 63.8 -4.2 51.6 18.7

Derma 46.0 57.5 -20.1 45.3 1.4

Vaccines 39.9 27.7 43.9 39.4 1.2

Pain 34.9 23.3 49.4 23.6 47.8

Respiratory 20.8 18.9 9.9 16.4 26.7

Hormones 21.0 19.5 7.8 18.3 14.8

Vitamins 24.0 23.0 4.4 22.0 9.1


Cardiac 4.6 6.2 -25.2 4.5 1.7

Gynaecological 3.4 2.9 15.1 3.2 5.3



Acute, 2122.10,

65.4%

Chronic, 421.12, 13.0%

Sub-Chronic, 702.31, 21.6%



51%

16%

9%

10%

14%




Page 18

Wockhardt

Stock Performance

050

100150200250300350400


CNX Pharma Wockhardt


12.2

13.3

10.3

22.6

9.5 12

.7

9.6 12

.1

6.6

4.3 8.

4

6.3 9.

5

30.3

50.5

5.5

24.7

42.6

38.3

29.8

9.9

2.5 4.9 9.

4

1.8 2.3

0

10

20

30

40

50

60Ju

l-15

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Wockhardt



1.37 1.351.39 1.41 1.39

1.33 1.37 1.38 1.341.29 1.26 1.28

1.23

1.01.11.21.31.41.51.61.71.8

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Wockhardt


Exhibit 44: Top 10 brands performance (| crore)

Brand Therapy July' 16 July' 15 Var. (%) June' 16 Var. (%)

Spasmo Proxyvon PluGastro Intestinal 25.6 29.9 -14.3 24.7 3.7

Practin Vitamins 7.3 6.5 11.8 7.9 -7.6

Tryptomer Neuro 5.1 5.0 0.9 5.4 -5.1

Bro Zedex Respiratory 4.7 3.1 50.4 2.9 59.4

Methycobal Vitamins 4.3 4.2 0.4 4.9 -12.7

Biovac V Vaccines 3.5 6.2 -43.9 2.3 51.1

Biovac A Vaccines 2.7 4.2 -35.6 2.0 37.2

Zedex Respiratory 3.4 2.2 50.9 2.0 65.8

Ace Proxyvon Pain 2.2 2.8 -23.3 2.2 0.0

Wosulin Anti Diabetic 2.3 2.0 16.3 2.4 -3.6


Exhibit 45: Contribution of therapies to domestic sales (MAT July’16) Gastro Intestinal

25%

Vitamins 15%

Respiratory12%Neuro

8%

Anti-Infectives7%

Other33%




Gastro Intestinal 28.1 31.7 -11.2 27.0 4.1

Vitamins 18.5 17.5 5.4 19.2 -3.6

Respiratory 15.4 9.5 62.9 9.1 69.5

Neuro 8.9 8.6 3.5 10.0 -11.0

Anti-Infectives 7.5 7.2 4.0 4.9 51.0

Anti Diabetic 7.2 6.7 7.2 7.8 -7.3

Derma 7.3 7.7 -5.5 7.4 -1.5

Pain 5.9 7.2 -17.9 7.5 -20.9

Vaccines 6.2 10.4 -40.5 4.3 43.6

Hormones 2.6 2.4 10.9 2.6 -0.8



Acute, 924.43, 68.6%

Chronic, 270.87, 20.1%

Sub-Chronic, 151.47, 11.2%



55%

14%

9%

8%

14%




Page 19

Glenmark Pharmaceuticals

Stock Performance

6080

100120140160180200


CNX Pharma Glenmark



12.2

13.3

10.3

22.6

9.5 12

.7

9.6 12

.1

6.6

4.3 8.

4

6.3 9.

5

30.9

28.0

13.0

43.6

11.5

18.6

16.3 19

.6

14.8

8.6

8.9

7.1 8.5

05

101520253035404550

Jul-1

5

Aug

-15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Glenmark Pharmaceuticals



2.4 2.32.4

2.5 2.5

2.62.5

2.4 2.42.4

2.2

2.3 2.3

1.9

2.1

2.3

2.5

2.7

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Glenmark Pharmaceuticals



Telma Cardiac 12.5 14.8 -15.9 12.5 -0.1

Telma H Cardiac 11.9 11.4 4.6 12.1 -1.4

Ascoril Plus Respiratory 10.0 7.5 32.5 7.1 40.8

Candid Derma 10.0 8.8 13.4 11.1 -9.7

Candid-B Derma 9.6 8.3 15.2 8.5 12.2

Telma Am Cardiac 6.4 6.1 5.5 6.3 2.5

Ascoril Ls Respiratory 4.0 2.9 38.2 2.5 57.1

Onabet Derma 4.2 3.0 41.3 3.8 12.5

Ascoril D Respiratory 2.7 2.2 23.0 2.2 26.7

Bon K2 Vitamins 2.6 3.4 -22.6 3.0 -11.3



Derma28%

Cardiac23%

Respiratory16%

Anti-Infectives13%

Anti Diabetic8%

Other12%



Therapy July' 16 July' 15 YoY (%) June' 16 QoQ (%

Derma 61.1 58.3 4.7 62.7 -2.

Cardiac 43.8 44.6 -1.9 44.4 -1.

Respiratory 33.6 24.8 35.4 23.3 44.

Anti-Infectives 32.0 26.6 19.9 26.1 22.

Anti Diabetic 13.7 18.0 -23.7 15.0 -8.

Vitamins 5.1 5.8 -10.9 6.7 -23.

Gastro Intestinal 6.6 5.0 31.3 5.6 17.

Gynaecological 6.1 4.4 38.8 4.8 27.

Pain 3.9 4.2 -7.0 4.3 -9.

Ophthal 3.9 3.8 2.2 3.0 29.



Acute, 961.87, 39.5%

Chronic, 904.38, 37.2%

Sub-Chronic, 567.41, 23.3%



35%

13%10%

13%

29%




Page 20

Torrent Pharmaceuticals

Stock Performance

4080

120160200


CNX Pharma Torrent Pharma


12.2 13

.3

10.3

22.6

9.5

12.7

9.6 12

.1

6.6

4.3

8.4

6.3

9.5

18.3

21.7

16.0

19.9

5.4

3.8

7.4 10

.2

2.4

-3.0

1.4

-2.7

4.1

-5

0

5

10

15

20

25

Jul-1

5

Aug

-15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Torrent Pharmaceuticals



2.36

2.242.23

2.172.20

2.23

2.29

2.35

2.222.26

2.33

2.29

2.24

2.1

2.1

2.2

2.2

2.3

2.3

2.4

2.4

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Torrent Pharmaceuticals



Shelcal Vitamins 17.6 20.2 -12.9 17.4 0.9

Chymoral Forte Pain 10.6 10.6 0.0 9.8 8.0

Nikoran Cardiac 7.2 6.5 9.8 7.1 0.3

Dilzem Cardiac 5.5 5.1 8.7 5.3 3.5

Nebicard Cardiac 5.3 5.0 6.8 5.0 5.8

Azulix-Mf Anti Diabetic 5.7 4.8 19.2 5.4 5.0

Nexpro Rd Gastro Intestinal 5.5 4.3 28.6 4.6 18.4

Nexpro Gastro Intestinal 4.6 4.1 11.8 4.2 8.1

Shelcal Ct Vitamins 4.5 2.6 70.6 4.2 7.2

Alprax Neuro 3.3 3.3 2.2 3.0 12.3



Cardiac29%

Neuro 16%

Vitamins 16%

Gastro Intestinal

15%

Pain 8%

Other16%




Cardiac 56.7 54.5 4.0 54.2 4.6

Neuro 32.4 31.2 4.0 31.0 4.7

Vitamins 33.9 32.7 3.7 33.0 2.8


Pain 16.9 15.6 7.8 15.8 6.8

Anti Diabetic 13.0 11.6 12.2 12.4 5.3

Anti-Infectives 7.9 10.1 -21.3 6.8 17.1

Derma 5.6 4.5 24.7 5.4 5.1

Gynaecological 2.9 3.6 -19.7 3.1 -7.6

Anti-Neoplastics 0.4 1.2 -69.6 0.5 -28.1



Acute, 545.96, 24.0%

Chronic, 1161.81,

51.1% Sub-Chronic, 567.28, 24.9%



33%

14%9%

12%

32%




Page 21

Ipca Laboratories

Stock Performance

5075

100125150


CNX Pharma Ipca


12.2 13.3

10.3

22.6

9.5 12

.7

9.6 12

.1

6.6

4.3

8.4

6.3 9.

5

-0.1

3.0

3.6

25.8

6.3 9.

1

3.3

3.7

4.011

.8

11.5

1.5

18.1

-5

0

5

10

15

20

25

30

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Ipca Laboratories



1.3 1.31.4 1.4

1.3 1.2 1.2 1.2 1.2 1.2 1.2 1.21.4

0.60.81.01.21.41.61.82.0

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Ipca Laboratories



Zerodol Sp Pain 8.4 7.7 9.9 7.4 13.6

Zerodol P Pain 5.7 5.2 10.3 5.4 5.1

Hcqs Anti Malarials 5.2 6.0 -13.1 5.1 3.0

Larinate Anti Malarials 6.0 3.4 76.5 2.9 102.4

Rapither-Ab Anti Malarials 7.0 4.0 76.1 2.8 148.5

Glycinorm M Anti Diabetic 3.6 3.1 17.4 3.0 21.2

Lariago Anti Malarials 5.0 2.2 126.6 1.6 203.4

Folitrax Anti-Neoplastics 3.0 2.9 3.3 3.0 -1.6

Zerodol Pain 2.2 2.4 -7.6 2.3 -3.6

Lumerax Anti Malarials 3.4 2.1 61.4 1.5 117.6



Pain 26%

Anti Malarials19%

Cardiac17%

Gastro Intestinal

8%

Anti-Infectives6%

Other24%




Pain 29.8 26.8 10.9 26.5 12.4

Anti Malarials 30.7 20.7 48.1 16.4 86.6

Cardiac 18.9 17.9 5.4 18.7 1.1


Anti-Infectives 7.3 6.6 10.0 5.9 23.0

Anti Diabetic 6.3 5.8 9.4 5.4 17.3

Respiratory 4.8 3.2 47.5 3.0 60.8

Anti-Neoplastics 4.7 4.1 15.4 4.9 -4.4

Neuro 4.4 3.4 28.4 3.9 14.5

Derma 3.9 3.1 24.5 3.1 24.1



Acute, 858.16, 66.5%

Chronic, 352.96, 27.3%

Sub-Chronic,

80.08, 6.2%



37%

16%11%

13%

23%




Page 22

Biocon

Stock Performance

60

80

100

120

140

Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16CNX Pharma Biocon



12.2 13.3

10.3

22.6

9.5 12

.7

9.6 12

.1

6.6 8.

4

6.3 9.

5

6.0 7.3 4.3

-11.

2

10.0

-0.8

5.2 5.3

11.3 14

.5

7.7 9.

4

3.5

1.2

-15

-10

-5

0

5

10

15

20

25

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Biocon



0.340.33

0.31

0.330.32

0.34

0.36

0.34

0.38

0.34 0.35

0.31

0.35

0.27

0.29

0.31

0.33

0.35

0.37

0.39

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

(%)

Biocon



Insugen Anti Diabetic 7.1 7.5 -5.1 7.3 -2.2

Basalog Anti Diabetic 5.5 5.0 10.7 5.2 6.5

Erypro Blood Related 2.3 2.3 2.3 2.3 0.9

Canmab Anti-Neoplastics 1.7 1.4 22.3 1.7 3.0

Abraxane Anti-Neoplastics 2.3 0.9 150.8 2.3 -0.6

Insugen R Anti Diabetic 1.4 1.6 -13.3 1.5 -10.9

Blisto Mf Anti Diabetic 1.2 1.5 -21.7 1.4 -13.4

Biomab Egfr Anti-Neoplastics 0.1 0.1 106.3 0.0 NA

Insugen N Anti Diabetic 0.5 0.9 -46.3 0.6 -23.4

Psorid Anti-Neoplastics 0.7 0.5 42.9 0.7 -7.2



Anti Diabetic60%

Anti-Neoplastics

22%

Blood Related6%

Cardiac5%

Derma3%

Other 4%




Anti Diabetic 16.8 17.8 -5.7 17.2 -2.4

Anti-Neoplastics 6.2 4.6 34.6 6.5 -4.6

Blood Related 2.4 2.3 4.7 2.3 1.8

Cardiac 1.2 1.4 -11.9 1.5 -16.2

Derma 0.8 0.7 12.8 0.9 -16.5

Anti-Infectives 0.6 0.7 -11.3 0.5 19.6

Others 0.2 0.2 18.9 0.2 -3.9


Vitamins 0.1 0.2 -22.3 0.2 -26.3

Pain 0.1 0.0 81.0 0.0 219.5



Acute, 70.75, 20.7%

Chronic, 241.98, 70.7%

Sub-Chronic,

29.34, 8.6%



77% 10%

6%

5%

2%




Page 23

Pfizer

Stock Performance

4080

120160200


CNX Pharma Pfizer


12.2 13.3

10.3

22.6

9.5 12

.7

9.6 12

.1

6.6

4.3

8.4

6.3 9.

5

15.0 18

.5

8.9

25.0

3.3

1.6

-3.5

5.1

3.4

2.7 7.

2

-1.0

3.0

-10

-5

0

5

10

15

20

25

30

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Pfizer



2.97 2.94 2.91 2.94 2.91 2.92 2.932.84

2.892.96

2.85

2.742.79

2.4

2.6

2.8

3.0

3.2

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Pfizer



Corex Respiratory 24.1 25.4 -4.8 20.2 19.5

Becosules Vitamins 21.5 20.7 3.6 20.1 6.8

Magnex Anti-Infectives 11.9 13.4 -11.4 11.1 7.2

Gelusil Mps Gastro Intestinal 12.3 12.5 -1.8 10.7 14.7

Dolonex Pain 12.8 12.3 4.1 11.7 10.0

Minipress Xl Cardiac 16.3 10.0 63.7 9.3 76.3

Mucaine Gastro Intestinal 10.2 9.0 13.8 10.0 2.5

Wysolone Hormones 9.6 7.0 37.2 8.0 20.8

Folvite Blood Related 6.2 6.9 -10.1 7.1 -12.2

Dalacin C Anti-Infectives 5.7 6.8 -16.4 5.4 5.2



Anti-Infectives16%

Respiratory14%

Gastro Intestinal

10%

Vitamins 10%

Hormones9%

Other41%




Anti-Infectives 35.0 40.4 -13.5 32.3 8.5

Respiratory 31.6 29.8 6.0 26.1 21.1


Vitamins 27.9 26.5 5.3 25.2 10.5

Hormones 22.2 19.3 15.5 20.5 8.6

Gynaecological 20.8 18.8 10.4 20.5 1.7

Neuro 14.8 17.9 -17.1 16.7 -11.3

Cardiac 21.9 17.0 28.4 15.4 42.3

Pain 16.9 17.8 -5.0 15.5 9.6

Vaccines 11.2 7.6 47.6 7.6 47.9



Acute, 1888.94,

64.9%

Chronic, 457.82, 15.7%

Sub-Chronic, 564.52, 19.4%



50%

19%

10%

10%

11%




Page 24

Novartis

Stock Performance

40

90

140

190


CNX Pharma Novartis India



12.2

13.3

10.3

22.6

9.5 12

.7

9.6 12

.1

6.6

4.3 8.

4

6.3 9.

5

16.3

21.7

15.3

27.4

20.4

17.3

14.9

25.1

21.6

10.2

3.9

-5.2

18.7

-10

-5

0

5

10

15

20

25

30

Jul-1

5

Aug

-15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Novartis India



1.191.15 1.16

1.211.17 1.17 1.16 1.16

1.19 1.20

1.10 1.10

1.03

0.9

1.0

1.0

1.1

1.1

1.2

1.2

1.3

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Novartis India



Galvus Met Anti Diabetic 26.6 23.7 12.4 23.5 13.4

Voveran Pain 18.6 16.2 14.6 16.8 10.5

Galvus Anti Diabetic 9.6 11.2 -14.2 9.9 -3.1

Rabipur (Novartis) Vaccines 5.6 7.9 -28.5 7.9 -28.5

Tegrital Neuro 4.2 5.0 -17.4 4.3 -3.2

Voveran Pain 3.4 3.2 6.0 3.3 2.7

Regestrone Gynaecological 2.9 3.2 -8.0 2.7 8.6

Methergin Gynaecological 2.3 2.7 -13.6 2.2 2.6

Syntocinon Gynaecological 2.2 1.9 16.4 2.3 -4.0

Macalvit Vitamins 1.8 2.2 -20.8 2.1 -15.8



Anti Diabetic36%

Pain 22%

Vitamins 10%

Vaccines9%

Gynaecological8%

Other15%




Anti Diabetic 36.8 35.6 3.5 33.9 8.5

Pain 23.4 21.1 10.8 21.7 7.8

Vitamins 8.8 9.9 -11.3 11.5 -23.4

Vaccines 5.7 8.0 -29.0 7.9 -28.3


Neuro 4.2 6.1 -32.2 4.3 -3.2

Anti-Infectives 3.2 5.4 -41.1 2.7 15.8

Respiratory 1.8 1.5 16.7 1.6 13.5

Cardiac 0.7 1.1 -36.5 0.8 -14.8

Anti-Neoplastics 0.4 0.6 -37.1 0.4 5.0



Acute, 490.75, 42.3%

Chronic, 502.26, 43.3%

Sub-Chronic, 166.44, 14.4%



79%

11%4%4%2%




Page 25

Unichem Laboratories

Stock Performance

70100130160


CNX Pharma Unichem Labs



12.2 13.3

10.3

22.6

9.5 12

.7

9.6 12

.1

6.6

4.3

8.4

6.3 9.

518.4

7.1

32.0

6.8

14.5

8.8

8.9

2.1

3.5 5.3 7.

0

9.6

17.3

0

5

10

15

20

25

30

35

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Unichem Laboratories



0.88 0.87 0.86 0.87 0.880.92 0.94

0.89 0.89

0.950.93

0.97

0.98

0.80

0.90

1.00

1.10

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Unichem Laboratories




Losar H Cardiac 8.6 6.9 24.6 8.7 -1.1

Ampoxin Anti-Infectives 7.0 5.3 32.8 5.2 35.1

Losar Cardiac 5.7 5.6 1.2 5.8 -1.4

Unienzyme Gastro Intestinal 5.4 5.9 -8.0 5.2 4.8

Vizylac Gastro Intestinal 3.3 2.8 15.6 4.7 -29.7

Trika Neuro 2.0 2.2 -7.9 1.9 3.1

Serta Neuro 1.9 1.9 2.9 2.0 -4.2

Unistar (Unichem) Cardiac 1.6 1.5 9.0 1.8 -10.7

Telsar Cardiac 1.3 1.5 -9.6 1.5 -9.6

Arkamin Cardiac 2.2 1.2 91.9 1.5 49.6



Cardiac42%

Anti-Infectives17%

Neuro 14%

Gastro Intestinal

12%

Pain 4% Other

11%




Cardiac 35.1 30.7 14.5 36.0 -2.3

Anti-Infectives 15.3 11.8 30.0 11.8 29.1

Neuro 11.5 10.0 15.3 11.0 4.0


Pain 4.1 3.1 32.9 3.4 20.9

Anti Diabetic 3.6 2.4 50.4 3.6 -1.2

Respiratory 2.1 1.6 34.9 1.6 31.5

Vitamins 2.0 2.2 -9.4 1.7 15.0

Derma 1.9 1.3 45.1 2.0 -6.8




Acute, 330.29, 35.9%

Chronic, 535.00, 58.1%

Sub-Chronic,

55.60, 6.0%



46%

13%9%

11%

21%




Page 26

Indoco Remedies

Stock Performance

6080

100120140


CNX Pharma Indoco



12.2 13.3

10.3

22.6

9.5 12

.7

9.6 12

.1

6.6

4.3

8.4

6.3 9.

5

3.7

-1.3

-6.4

16.2

10.3

11.0

5.6

27.8

5.4

0.7

-0.9 5.

2

11.5

-10

-5

0

5

10

15

20

25

30

Jul-1

5

Aug

-15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Indoco Remedies



0.7 0.7 0.7

0.7 0.70.7 0.7 0.7

0.7

0.60.7

0.7

0.8

0.6

0.7

0.7

0.8

0.8

0.9

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Indoco Remedies



Febrex Plus Respiratory 9.0 5.4 65.8 4.8 85.2

Cyclopam Gastro Intestinal 5.6 4.5 24.9 4.3 29.3

Oxipod Anti-Infectives 5.0 2.6 92.6 2.8 78.9

Sensodent-K Stomatologicals 3.7 2.8 33.8 3.2 17.0

Cital Urology 2.7 3.0 -11.3 3.2 -16.7

Atm Anti-Infectives 3.0 2.1 42.9 2.1 42.4

Sensodent-Kf Stomatologicals 2.1 2.0 4.4 1.7 22.1

Cloben G Derma 2.2 2.0 10.4 2.0 8.4

Karvol Plus Respiratory 1.9 1.0 97.9 1.0 85.6

Cyclopam Gastro Intestinal 3.0 2.0 49.3 2.2 35.8


Exhibit 85: Contribution of therapies to domestic sales (MAT July’16) Respiratory

18%

Anti-Infectives18%

Stomatologicals

16%

Gastro Intestinal

14%

Vitamins 7%

Other27%




Respiratory 14.5 8.8 64.9 8.1 79.5

Anti-Infectives 13.8 9.4 47.5 9.3 48.8

Stomatologicals 11.7 9.4 24.4 10.2 14.7


Vitamins 5.3 4.5 17.2 4.9 8.2

Urology 3.2 3.4 -6.8 3.8 -16.0

Ophthal 3.1 3.0 4.7 3.1 0.7

Derma 2.9 2.6 11.4 2.7 9.9

Pain 3.0 2.6 15.9 2.6 13.8

Anti Diabetic 2.2 1.9 14.1 1.9 15.5



Acute, 590.83, 82.6%

Chronic, 41.15, 5.8%

Sub-Chronic, 82.91, 11.6%



48%

16%

9%

10%

17%




Page 27

Ajanta Pharmaceuticals

Stock Performance

4090

140190240290


CNX Pharma Ajanta



12.2 13

.3

10.3

22.6

9.5

12.7

9.6

12.1

6.6

4.3

8.4

6.3

9.5

10.0 12

.6

9.9

10.5

18.3

6.5

14.3

6.9 7.6

7.6

13.1

11.4

7.1

0

5

10

15

20

25

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Ajanta Pharma



0.480.48

0.460.45

0.51 0.52

0.490.50

0.48 0.48

0.51 0.50

0.46

0.4

0.4

0.4

0.5

0.5

0.5

0.5

0.5

Jul-1

5

Aug

-15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

(%)

Ajanta Pharma



Met Xl Cardiac 4.3 3.7 17.1 4.6 -5.5

Melacare Derma 3.8 3.6 5.7 3.0 29.1

Atorfit Cv Cardiac 2.9 2.9 -0.3 2.9 -2.0

Soft Drops Ophthal 1.4 1.1 23.0 1.3 6.5

Rosufit Cv Cardiac 1.4 1.1 25.2 1.3 5.2

Feburic Pain 1.3 1.1 13.0 1.1 14.9

Met Xl Am Cardiac 1.2 0.9 31.5 1.2 0.5

Rosutor Gold Cardiac 0.9 0.6 58.6 1.0 -6.7

Cinod Cardiac 0.9 0.7 21.1 0.9 -1.3

Olopat Ophthal 0.7 0.7 -2.3 0.9 -17.3



Cardiac34%

Ophthal 24%Derma

22%

Vitamins 6%

Pain 5%

Others9%




Cardiac 15.2 13.1 15.9 15.5 -2.1

Ophthal 10.2 9.7 5.1 10.4 -2.1

Derma 8.9 8.8 1.1 8.3 7.4

Vitamins 2.0 2.5 -18.8 2.3 -12.3

Pain 2.0 2.1 -3.1 1.9 7.6

Gastro Intestinal 0.9 1.1 -17.0 1.0 -6.6

Neuro 0.8 0.9 -7.5 0.9 -8.8

Anti-Infectives 0.8 0.6 29.2 0.8 -3.6

Anti Diabetic 0.7 0.0 NA 0.6 5.1

Respiratory 0.3 0.3 -8.8 0.2 12.9



Acute, 193.21, 39.3%

Chronic, 241.57, 49.2%

Sub-Chronic, 56.34, 11.5%



42%

12%10%

13%

23%




Page 28

Alembic Pharmaceuticals

Stock Performance

406080

100120140160180200


CNX Pharma Alembic Pharma



12.2 13.3

10.3

22.6

9.5

12.7

9.6 12

.1

6.6

4.3

8.4

6.3

9.516

.8

21.2

5.9

31.3

13.7

18.9 24

.0 23.3

8.0

5.6

11.2

11.4

18.0

0

5

10

15

20

25

30

35Ju

l-15

Aug

-15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

(%)

Indian Pharma Market Alembic Pharma



1.33

1.411.43 1.44

1.49 1.50 1.49

1.44

1.36

1.31 1.301.33

1.43

1.2

1.3

1.3

1.4

1.4

1.5

1.5

1.6

Jul-1

5

Aug-

15

Sep-

15

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

(%)

Alembic Pharma




Azithral Anti-Infectives 12.1 11.6 4.2 7.4 62.2

Althrocin Anti-Infectives 8.5 6.9 23.3 6.4 32.8

Roxid Anti-Infectives 4.6 4.4 3.2 4.3 7.1

Gestofit Gynaecological 5.4 4.8 13.4 5.4 0.3

Wikoryl Respiratory 4.2 2.6 63.3 2.5 68.6

Ulgel Gastro Intestinal 3.4 3.0 11.1 2.7 23.7

Rekool D Gastro Intestinal 3.1 3.0 0.9 2.6 15.9

Glisen Mf Anti Diabetic 2.3 2.1 9.0 2.0 18.2

Rekool Gastro Intestinal 2.3 2.2 5.2 2.2 6.3

Zeet Respiratory 2.0 1.6 25.6 1.3 62.5



Anti-Infectives23%

Cardiac14%Gastro

Intestinal14%

Respiratory13%

Gynaecological11%

Other25%



Anti-Infectives 29.7 26.9 10.6 21.5 37.9Cardiac 18.1 14.9 21.5 17.6 3.1Gastro Intestinal 18.8 17.2 9.7 17.0 11.1Respiratory 15.7 11.3 38.7 9.6 64.0Gynaecological 14.8 12.3 20.2 14.5 2.1Vitamins 11.1 8.6 29.3 10.5 5.6Anti Diabetic 8.7 6.4 35.8 8.2 7.1Pain 4.6 4.2 9.7 4.5 3.1Derma 2.1 2.5 -13.9 2.0 9.8Ophthal 1.8 1.7 3.3 2.1 -14.1

June' 16 QoQ (%)Therapy July' 16 July' 15 YoY (%)



Acute, 848.05, 59.6%

Chronic, 308.76, 21.7%

Sub-Chronic, 267.18, 18.8%



42%

12%10%

13%

23%



Page 29

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

0

5

10

15

20

25

30

35

40

45

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Jan-

10

Jul-1

0

Jan-

11

Jul-1

1

Jan-

12

Jul-1

2

Jan-

13

Jul-1

3

Jan-

14

Jul-1

4

Jan-

15

Jul-1

5

Jan-

16

Jul-1

6

x

CNX Pharma Sensex [


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

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

Ajanta Pharma AJAPHA 1970 1,780 Hold 17338.8 45.4 52.8 63.5 43.4 37.3 31.0 27.6 23.2 19.6 42.9 37.2 35.3 34.2 30.2 28.1

Apollo Hospitals APOHOS 1351 1,420 Hold 18801.4 22.2 33.9 49.1 60.9 39.8 27.5 27.0 20.1 15.7 8.2 10.8 13.6 8.9 12.3 15.4

Aurobindo Pharma AURPHA 790 1,055 Buy 46199.1 33.9 41.3 48.0 23.3 19.1 16.5 25.0 20.5 17.7 23.3 24.6 25.5 28.1 26.0 23.5

Alembic Pharma ALEMPHA 633 620 Hold 11934.9 38.2 20.4 28.1 16.6 31.1 22.5 12.4 23.1 17.5 51.5 23.2 26.2 44.9 20.5 23.5

Biocon BIOCON 892 1,030 Buy 17849.0 22.5 33.3 38.4 39.6 26.8 23.3 11.2 8.5 6.9 9.1 13.1 14.8 11.1 14.7 15.0

Cadila Healthcare CADHEA 381 405 Buy 38999.5 15.0 15.8 20.3 25.5 24.1 18.8 16.8 17.2 13.5 26.7 22.9 26.8 28.6 24.7 25.6Cipla CIPLA 567 510 Hold 45600.9 18.5 17.6 25.4 30.7 32.2 22.3 19.9 18.1 13.4 12.0 11.1 15.2 12.5 10.8 13.8

Divi's Laboratories DIVLAB 1331 1,415 Buy 35340.5 41.8 45.1 54.5 31.8 29.5 24.4 25.0 22.1 18.3 30.7 29.2 29.8 25.9 23.3 23.4

Dr Reddy's Labs DRREDD 2974 2,875 Hold 51914.8 142.1 86.5 143.5 20.9 34.4 20.7 12.9 17.1 11.4 17.3 10.9 17.8 20.7 11.4 16.3

Glenmark Pharma GLEPHA 858 1,000 Buy 23991.4 32.2 41.4 49.8 26.7 20.7 17.2 16.8 14.1 11.4 16.2 18.7 20.6 21.2 21.7 20.9

Indoco Remedies INDREM 310 365 Buy 2857.1 9.0 13.6 19.4 34.4 22.8 16.0 17.7 13.4 10.3 12.5 17.3 23.4 14.2 18.3 21.7

Ipca Laboratories IPCLAB 550 605 Buy 6942.9 10.0 21.9 30.2 54.9 25.2 18.2 21.9 13.8 10.9 5.7 11.5 14.4 5.5 11.0 13.5

Jubilant Life Sciences VAMORG 515 420 Buy 8204.8 26.0 41.2 52.5 19.8 12.5 9.8 9.6 7.8 6.5 12.0 15.1 17.0 14.2 18.7 19.5

Lupin LUPIN 1512 1,890 Buy 68213.1 50.4 64.6 75.5 30.0 23.4 20.0 20.0 15.3 12.6 18.6 20.6 22.1 20.7 21.7 20.2

Natco Pharma NATPHA 683 700 Buy 11890.0 8.9 11.6 13.8 76.7 58.8 49.5 42.5 36.6 30.7 16.0 17.3 18.0 11.9 13.7 14.3

Sun Pharma SUNPHA 756 890 Buy 181950.6 23.4 29.9 35.5 32.2 25.3 21.3 20.6 16.6 14.0 18.6 20.7 21.2 18.0 19.3 19.2

Syngene International SYNINT 463 550 Buy 9266.0 11.1 15.8 18.7 41.7 29.2 24.6 25.5 20.3 16.3 13.2 17.4 19.3 21.0 23.6 22.3

Torrent Pharma TORPHA 1617 1,650 Buy 27356.1 107.8 68.0 74.9 15.0 23.8 21.6 10.9 17.3 16.3 46.7 28.5 27.5 53.8 27.0 24.3

Unichem Laboratories UNILAB 272 340 Buy 2473.0 12.3 15.3 21.1 22.1 17.8 12.9 15.2 12.3 8.8 13.8 15.7 18.9 11.7 12.9 15.5

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


42%Premium


Page 30

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]


Page 31

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Documents

IDirect HealthCheck Aug16 - NSE / BSE Share & Stock Market ...content.icicidirect.com/mailimages/IDirect_HealthCheck_Aug16.pdf · Finally the Indian pharmaceutical market (IPM) grew