IDirect HealthCheck Nov16content.icicidirect.com/mailimages/IDirect_HealthCheck_Nov16.pdfM&As, demergers, tie-ups and JVs Cipla signs deals to set up first biosimilars units in South

ICICI Securities Ltd. | Retail Equity Research

November 22, 2016

Monthly Update

India, US drive Q2FY17; Lupin gets EIR... The Q2 earnings season concluded on expected lines with strong growth in domestic formulation owing to seasonality benefit. On the US generics front, most players witnessed double digit growth (despite pricing pressure) mainly due to exclusivities and new product launches. The I-direct pharma universe registered YoY revenue growth of 10.2% to | 38438 crore, driven by 14.5% in domestic formulations to | 8514 crore and 10.2% YoY growth to | 11143 crore in the US (select pack). EBITDA for the universe grew 8.3% YoY to | 9604 crore. Lower growth vis-à-vis revenues can mainly be attributed to higher R&D spend. Adjusted net profit grew 8.0% YoY to | 5990 crore. Adoption of new accounting standard (Ind-AS) also had an impact on the quarterly performance.

On the revenue front, Natco (92% YoY Growth) outpaced industry growth mainly due to gTamiflu exclusivity and robust growth in Hepatitis C segment. Lupin and Sun Pharma also grew more than 20% mainly due to exclusivity sales in the US. On the other hand, Dr Reddy’s, Torrent and Alembic reported negative growth due to high base and price erosion.

US growth was driven by limited competition opportunities/exclusivities at Lupin from gGlumetza and gFortamet (anti-diabetic) and Sun from gGleevec (anti-cancer). Aurobindo and Glenmark also registered strong YoY growth on the back of strong volume growth whereas Torrent, Cadila and Dr Reddy’s were laggards on account of base effect, slowdown in product approvals and regulatory issues.

Domestic growth was highest in the past eight quarters mainly due to better-than-expected seasonality benefit. Ajanta, Indoco, Cipla, Ipca and Unichem grew more than 20% YoY.

On the cGMP compliance front, Lupin has received an Establishment Inspection Report (EIR) from USFDA for the Goa facility pertaining to the inspection in March 2016. Goa facility accounts for 30% of the company’s pending ANDA approvals (ex-Gavis). Finally, on the domestic front, the Indian pharmaceutical market (IPM) grew 8.3% YoY to | 9513 crore for October. The growth was driven by volumes increase – 2.6%, new product launches – 2.2% and price hikes- 3.5%. On a MAT basis, IPM growth was at 10.2% YoY to | 105667 crore.

Earnings likely to stabilise; regulatory worries waning… Despite pricing pressure and client consolidation in the US, most players (barring few) managed to maintain growth mainly due to accelerated new product approvals and neutralising better-than-expected base business resilience. Regarding USFDA issues, Indian players moved on and seem better prepared than a few months ago as reflected in growing number of EIRs. Indian formulations growth in Q2 was remarkable despite NLEM/FDC issues mainly due to seasonality impact. On the demonetisation front, we do not expect any material long term impact, though short-term channel disruption may impact domestic growth. Overall, in the long run, we expect earnings momentum to continue on the back of incremental product launches largely on the speciality, biosimilar and innovation front in the US and likely positive outcome from USFDA re-inspections besides normalising of Indian formulations growth. We expect healthcare universe revenues, EBITDA and PAT to grow at a CAGR of 16%, 13% and 16%, respectively, in FY16-19E. The growth will be steered by US and Indian formulations (~14% CAGR in FY16-19E).

Health CheckSector View

Positive

Index Performance as on November 20, 2016

Return (%) 1M 3M YTD 1Y

CNX 500 -10.5 -8.7 0.4 2.1

Nifty -8.9 -8.6 -0.4 0.8

NSE Pharma -7.5 -8.3 -11.2 -9.0

Return (%)

Stocks Performance Mcap

Company 1M 3M YTD 1Y 20-Nov

Sun Pharma.Inds. -7.7 -12.0 -15.9 -5.0 166014

Lupin -6.9 -11.4 -24.0 -23.0 62955

Dr Reddy's Labs 0.5 3.9 0.6 -6.7 51828

Cipla -6.6 -2.1 -16.1 -15.7 43794

Aurobindo Pharma -13.6 -7.1 -18.9 -14.6 41582

Cadila Health. -6.6 -2.0 11.7 -12.4 37443

Divi's Lab. -8.1 -9.9 1.4 1.9 31089

Glenmark Pharma. -5.3 2.1 -4.2 -8.7 24919

Glaxosmit Pharma -9.9 -14.4 -19.4 -16.5 22633

Torrent Pharma. -17.5 -15.8 -9.0 -13.9 22100

Biocon -15.8 0.2 63.9 87.1 16980

Apollo Hospitals -16.3 -17.7 -21.8 -13.9 15947

Ajanta Pharma -11.6 -11.0 31.7 30.8 15432

Alembic Pharma -9.8 -5.6 -12.4 -7.6 11490

Syngene Int. -4.4 23.8 25.9 40.4 10489

Natco Pharma -2.0 -8.6 1.3 13.7 10224

Jubilant Life -11.8 19.2 46.8 49.2 9618

Strides Arcolab 2.1 3.6 -20.9 -25.1 9118

Pfizer -4.2 -6.3 -24.2 -25.6 8176

Wockhardt -21.0 -13.2 -54.7 -57.1 7651

Ipca Labs. -14.0 5.0 -27.4 -29.7 6800

Indoco Remedies -9.4 -8.1 -14.0 -6.5 2594

Unichem Labs. -12.0 -7.2 -6.2 -12.5 2277

Return (%)

MMarket cap in | crore

Price movement

50006000700080009000

100001100012000130001400015000

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

4000

6000

8000

10000

12000

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 Oct, 2016 [5

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeAlembic Pharma Irbesartan; Hydrochlorothiazide CVS Sanofi Aventis Avalide NAJubilant Life Darifenacin ER Anti-Infective Allergan Enablex NAAjanta Pharma Lansoprazole Anti-ulcer Takeda Pharms Prevacid NAAurobindo Pharma Risedronate Sodium Osteoporosis Warner Chilcott Actonel US$113 millionAurobindo Pharma Eszopiclone tablets Insomnia Sepracor Lunesta NATorrent Pharma Fluoxetine Hydrochloride CNS APIL Sarafem NAAurobindo Pharma Nylia 7/7/7 (Ethinyl estradiol and norethindrone) OC Janssen Pharma Ortho-Novum 7/7/7-28 NAAurobindo Pharma Cyonanz (Ethinyl estradiol and norethindrone) OC Janssen Pharma Modicon 28 NAAurobindo Pharma Nylia 1/35 (Ethinyl estradiol and norethindrone) OC NA Ortho-Novum 1/35-28 NAGlenmark Pharma Nystatin and Triamcinolone acetonide Dermatology Delcor Assest Mycolog-II US$121 millionTorrent Pharma Olmesartan Medoxomil; Amlodipine; Hydrochlorothiazide CVS Daiichi Sankyo Tribenzor NADr Reddy's Lab Nystatin; Triamcinolone Acetonide Derma G And W Labs Mykacet US$ 37.5 millionLupin Estradiol and Norethindrone Acetate OC JANSSEN PHARMS ORTHO CYCLEN-28 NAAurobindo Pharma Ipratropium Bromide Respiratory Boehringer Ingelheim Atrovent NAAjanta Pharma Amlodipine; Olmesartan Medoxomil Bloodpressure Daiichi Sankyo Azor US$ 174 millionCipla Montelukast Sodium Anti-asthama Merck Singulair NATorrent Pharma Rosuvastatin Calcium Avascular necrosis IPR Crestor NAJubilant Life Rosuvastatin Calcium Avascular necrosis IPR Crestor NAJubilant Life Rosuvastatin Calcium Avascular necrosis IPR Crestor NA

Company Drug Name Therapeutic Area Innovator company Generic Version of Market SizeTorrent Pharma Olmesartan Medoxomil CVS Daiichi Sankyo Benicar NAAurobindo Pharma Hydrochlorothiazide; Olmesartan Medoxomil CVS Daiichi Sankyo Benicar HCT NAJubilant Life Olmesartan Medoxomil CVS Daiichi Sankyo Benicar NAAurobindo Pharma Guaifenesin;Dextromethorphan Hydrobromide Anti-Infective Reckitt Benckiser Mucinex DM NA

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

Cipla signs deals to set up first biosimilars units in South Africa Cipla has signed a memorandum of agreement for South Africa’s first biosimilars manufacturing facility to be set up at a cost of ~US$91 million. The facility will be South Africa’s first biotech manufacturing unit for the production of biosimilars. It is set to produce a range of affordable treatments for cancer and other autoimmune diseases for the African and global market. Sun Pharma, ICGEB tie up to develop dengue vaccine Sun Pharma and International Centre for Genetic Engineering and Biotechnology (ICGEB) have signed an agreement to develop a vaccine for dengue. According to the agreement, Sun Pharma will fund and support further development of the vaccine candidate and existing ICGEB know-how and patents. On the other hand, ICGEB will grant Sun Pharma exclusive rights and licenses for development and commercialisation of this vaccine globally. Sun Pharma completes divestment of seven brands to RPG Sun has completed the divestment of its seven prescription brands in India to RPG Life Sciences. Sun Pharma had signed a pact with RPG Life to divest seven brands of Ranbaxy in India for a consideration of | 41 crore. Dr Reddy's joins hands with Gland Pharma to market 8 ANDAs in US Dr Reddy’s Labs has entered into collaboration with Gland Pharma to market and distribute a diverse portfolio of eight injectable ANDAs in the US market. The portfolio is a mix of filed and pending approval by the USFDA.


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Sun Pharma to acquire Ocular Technologies Sun Pharma will acquire Ocular Technologies, Sarl (OTS) from a portfolio company of Auven Therapeutics, an international private equity company. OTS owns exclusive, worldwide rights to Seciera (cyclosporine A, 0.09% ophthalmic solution). Sun Pharma will pay Auven US$40 million upfront, plus contingent development milestones and sales milestones as well as tiered royalty on sales of Seciera. Seciera is currently in a Phase III confirmatory clinical trial for the treatment of dry eye disease. Price cuts, new launches, recalls/approvals

Dr Reddy’s Labs recalls isotretinoin capsules from US Dr Reddy’s Labs has recalled 3,858 prescription packs (115,680 capsules) of Zenatane (isotretinoin capsules USP) 20 mg, 30 capsules due to an out of specification results has been determined for an individual related substance during stability testing. As per the report, all the recalls are fall under a class III recall category. Lupin launches novel injectable iron formulation in India Lupin has launched a novel Iron Isomaltoside 1000 injectable iron formulation under two brand names Isofer and Jilazo in India. Lupin acquired the exclusive rights to market, distribute and sell the novel injectable formulation from Denmark based Pharmacosmos A/S. The product is currently marketed in 33 countries, including 21 EU countries under the brand name Monofer. The Hematinics market in India is currently worth around | 1930 crore and is growing at 11%. Out of this, the iron injectable market size is valued at |310 crore with growth of 17% (IMS MAT AUG 2016). Lawsuits, court rulings, settlements, regulatory issues

Lupin receives EIR report from USFDA for Goa plant Lupin has received establishment inspection reports (EIR) from USFDA for Goa facility, which was inspected in March 2016. Ex Gavis, 30% of the company’s pending ANDA approvals are from Goa plant. Cipla loses court battle in drug-overcharging case Cipla lost a case in Allahabad High Court with respect to alleged overcharging in certain drugs as per the provisions of Drug (Price Control) Order, 1995. It had received notices of demand aggregating to | 1768.5 crore. Strides, Mylan settle Agila regulatory claims Strides and Mylan agree to settle regulatory and general claims on Agila transaction. Pursuant to this settlement, Mylan’s regulatory concerns claims will be satisfied from the regulatory escrow, and Strides will receive remaining ~US$30 million. In December 2013, at the time of the closing of the deal two escrows 1) regulatory escrow of US$100 million and 2) general claim escrow of US$100 million were created. The general claims escrow continues to be valid till December 2017 Wockhardt, Taro named in US lawsuits over drug prices As per media reports, New York police union has filed a lawsuit against two groups of drugmakers, which include Novartis AG’s generic drug unit, along with Ireland-based Perrigo Co, Wockhardt and Taro Pharma, alleging the companies colluded to raise prices on two dermatological creams as much as 1,000% starting in 2013.


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Others

Jubilant Life raises | 50 crore by issue of commercial papers Jubilant Life has issued commercial papers for an aggregate amount of | 50 crore, having maturity date of December 20, 2016.

Jubilant Life mulls raising up to | 1,000 crore through NCDs Jubilant Life’s board would consider raising up to | 1000 crore through issuance of non-convertible debentures. Cadila presented data of Investigational Saroglitazar in the US Cadila announced that new data of Saroglitazar will be presented at The Liver Meeting being held at the John B. Hynes Veterans Memorial Convention Center, Boston. A scientific abstract describes the attenuating effect of Saroglitazar on hepatic inflammation, oxidative stress and fibrosis in models of NAFLD/Nash. Nash is a hepatic manifestation of increased triglyceride accumulation in the liver leading to inflammation, fibrosis, cirrhosis and liver failure. Nash ranks as one of the major causes of liver transplant in the US and Europe, after hepatitis C. Biotech analysts estimate the worldwide market for Nash medicines to reach US$35-40 billion by 2025. Q2FY17 Results

Ajanta Pharma - Strong US traction main highlight of quarter Revenues grew 18% YoY to | 516 crore on the back of 21% growth in domestic sales to | 158 crore. Export formulation grew 14% to | 345 crore due to sharp jump in the US sales. US sales increased to | 71 crore against | 2 crore, | 10 crore in Q2FY16, Q1FY17, respectively. Asia and Africa sales, on the other hand, were subdued. EBITDA margins declined 157 bps to 33.6% mainly due to forex loss of | 9.84 crore. Net profit increased 31% to | 131.

Alembic Pharma- Base effect dent Q2 Revenues declined 13% YoY to | 879 crore mainly on account of higher base of gAbilify in Q2FY16. Export sales declined 38% to | 352 crore. Domestic branded formulation sales grew 19% to | 338 crore on account of 22% growth in the acute portfolio and 16% growth in speciality portfolio. EBITDA margins were at 20.2% against 37.3% in Q1FY17 owing to high base of gAbilify. EBITDA declined 53% YoY to | 178 crore. Net profit declined 59% YoY to | 120 crore.

Apollo Hospitals- New hospitals, Pharmacies drive growth Revenues increased 16% YoY to | 1634 crore on the back of 22% YoY increase in pharmacy business to | 710 crore and 12% YoY increase in healthcare business to | 924 crore). EBITDA margins stood at 13.6% (-34 bps YoY). Adjusted net profit grew mere 2.7% to | 92 crore as higher operational performance and other income were largely offset by higher interest expenses and depreciation. Aurobindo- US portfolio continues to drive growth Revenues grew 12% YoY to | 3776 crore on account of 18% growth in the US to | 1735 crore. Europe business grew 6% to | 813 crore. EBITDA margins increased 146 bps YoY to 24.6% mainly on account of an improvement in gross margins. EBITDA grew 19% to | 929 crore. Net profit (ex forex gain/loss) grew 18% YoY to | 586 crore due to a better operational performance.


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Biocon- Growth tempo maintained albeit at lower gear Revenues grew 19.8% YoY to | 954 crore mainly due to higher licensing income and growth in biological business. Biological segment revenues grew 26.3% YoY to | 96 crore. EBITDA margins improved 392 bps YoY to 25.2% due to higher licensing income and lower R&D expenses. Adjusted net profit increased 63.0% to | 142.1 crore. Cadila Health- US de-growth drags numbers YoY revenues were flat at | 2404 crore. Growth in the domestic formulations and animal health segment were largely offset by decline in the US. Domestic formulations grew 9% to | 820 crore. US sales declined 2% to | 989 crore. EBITDA margins declined 403 bps to 21.5% on account of lower gross margins and higher employee cost. EBITDA declined 16% to | 516 crore. PAT declined 29% to | 337.7 crore mainly due to a weak operational performance and higher taxation. Cipla- US base business and India drive growth Revenues grew 9% YoY to | 3751 crore, due to strong growth in US and India. US sales grew 38% YoY to | 660 crore. Domestic formulation grew 21% YoY to | 1467 crore. EBITDA margins declined 460 bps to 18.1% mainly on account of higher other expenditure. EBITDA de-grew 13% YoY to | 681 crore. Net profit de-grew 35% YoY to | 354 crore, mainly on account of lower operational performance and higher taxation. Divi’s Lab- Slower growth, one-offs mar numbers Revenues grew 4% YoY to | 1005 crore mainly due to 35% YoY growth in Carotenoids business to | 62 crore and 4.6% growth in custom synthesis (CS) business to | 453 crore. EBITDA margins decreased 1003 bps YoY to 29.0% mainly on account of payment of one-time ex-gratia of ~| 79 crore to the employees and forex loss. EBITDA de-grew 23% to | 291 crore. Adjusted net profit de-grew 24% YoY to | 224 crore. Dr Reddy’s Lab- Numbers in line Revenues declined 10% YoY to | 3586 crore mainly due to 13% decline in US sales to | 1613 crore. The US sales decline was primarily on account of increased competition in gValcyte and injectable franchise, coupled with pricing pressure and moderation in volumes off-take. RoW sales declined 55% YoY to | 123 crore primarily on account of absence of reported sales in Venezuela. EBITDA margins decreased to 17.6% against 28.6% in Q2FY16 due to adverse product mix. EBITDA declined 45% to | 630 crore. Net profit fell 60% to | 287 crore mainly due to lower operational performance. Glenmark Pharma- US driven growth continues Revenues grew 19% YoY to | 2224 crore mainly due to 29% YoY growth in the US to | 771 crore. India business grew 11% YoY to | 675 crore EBITDA margins declined 126 bps YoY to 20.2% due to higher other expenditure. EBITDA increased 12% YoY to | 449 crore. Net profit increased 12% YoY to | 224 crore, mainly due to a better operational performance. Ipca - Brexit impacts margins Revenues grew 17% YoY to | 885 crore mainly due to 23% growth in domestic formulations to | 404 crore. Export formulations grew 16% to | 264 crore. EBITDA margins improved 331 bps YoY to 14.5%, on account of lower other expenditure. EBITDA grew 52% to | 128 crore. Net profit (ex forex) grew 98% YoY to | 50 crore mainly due to robust operational performance.


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Jubilant Life- Margin expansion achieved despite one-offs Revenues de-grew 3% YoY to | 1419 crore. Revenues in the pharmaceutical business grew 8% YoY to | 807 crore while life science ingredients (LSI) revenues de-grew 14% YoY to | 613 crore due to a decline in life science chemicals segment led by lower crude prices and product calibration. EBITDA margins increased 207 bps YoY to 24.0% due to 170 bps increase in pharmaceutical and 220 bps increase in LSI EBITDA margins to 33.3% and 16.7%, respectively. Net profit grew 27% to | 145 crore on the back lower interest cost and depreciation besides better operational performance. Natco- Oseltamavir windfall drive numbers Revenues grew 92.5% YoY to | 467.9 crore mainly on account of Oseltamavir (gTamiflu; anti-infective) revenues received from US based partner Alvogen. EBITDA margins declined 155 bps YoY to 22.4% mainly on account of lower gross margins. Lower gross margins were mainly due to lower margins registered in Oseltamavir. Adjusted net profit increased 127% YoY to | 67 crore mainly on account of strong operational performance and lower interest expenses. Sun Pharma- One-offs and gGleevec boost Q2 margins Revenues grew 29% YoY to | 4291 crore mainly on account of 73% growth in US sales to | 1998 crore Strong US sales were due to Gavis consolidation and gGlumetza / gFortamet (anti-diabetic) traction. EBITDA margins improved 406 bps YoY to 24.0% mainly on account of a strong gross margin performance. EBITDA grew 55% YoY to | 1028 crore. Net profit grew 57% YoY to | 658 crore owing to a strong operational performance. Syngene- Development & manufacturing plugs growth Revenues grew 15.9% YoY to | 303 mainly due to strong growth in dedicated centres and discovery services, which was partly offset by a slowdown in development and manufacturing services. EBITDA margins increased 376 bps to 34.9% YoY mainly due to an improvement in gross margins and | 6 crore of hedging gain. Net profit increased 54.2% to | 74.7 crore mainly due to a strong operational performance and higher other income. Other income increased to | 16.3 crore from | 1.0 crore in Q2FY16. Torrent Pharma- Numbers tumble beyond base effect Revenues declined 16% YoY to | 1429 crore mainly due to 55% YoY de-growth in the US to | 322 crore. The decline in US sales was due to the high base of gAbilify exclusivity in Q2FY16. Domestic revenue grew 13% YoY at | 496 crore. EBITDA margins declined to 23.1% against 42.2% in Q2FY16. EBITDA fell 54% YoY to | 330 crore. Net profit fell 64% YoY to | 207 crore. Unichem- Revenues in line but margins disappoint again Revenues grew 20% YoY to | 368 crore on account of 20% YoY growth in domestic formulations to | 227 crore and 26% growth in export formulations to | 113 crore. EBITDA margins declined 51 bps YoY to 10.8% due to higher other expenditure and employee cost despite improvement in gross margins. EBITDA increased 15% YoY to | 40 crore. Net profit declined 11% to | 20.5 crore owing to lower other income and higher taxation.


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Exhibit 2: Patent litigations (12 months) [5

Month Innovator ANDA Filer Brand Name API Used for Nov-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 HIVAug-16 Lupin InvaGen Pharma Antara fenofibrate hypercholesterolemia; dyslipidemAug-16 Gilead Sciences Inc Hetero Complera Emtricitabine; Rilpivirine Hydrochloride; TenofoHIVAug-16 Shire LLC Alkem Lab Fosrenol lanthanum carbonate end stage renal diseaseAug-16 AbbVie Inc. Amgen Inc. Humira adalimumab immunosuppressantAug-16 Galderma Laboratories, LP SEEGPharm Metrogel metronidazole rosacea Aug-16 Reckitt Benckiser Inc. Sun Pharma Mucinex guaifenesin / pseudoephedrine hydrochloride bronchial congestionAug-16 Takeda Pharma Dexcel Pharma Prevacid lansoprazole stomach ulcersAug-16 Dexcel Aurobindo Prilosec Omeprazole HeartburnAug-16 Shionogi Inc Hi-Tech Pharmacal Ulesfia benzyl alcohol anti-parasiteAug-16 Nestle Skin Health Perrigo Co. MIRVASO brimonidine DermatologySep-16 Pfizer Aurobindo Toviaz fesoterodine fumarate overactive bladderSep-16 Arena Pharma Lupin Belviq lorcaserin weight lossSep-16 Brigham and Women's Hospital InSun Pharma Sensipar cinacalcet hydrochloride hyper parathyroidism; hyper calcSep-16 Brigham and Women's Hospital InStrides Inc. Sensipar cinacalcet hydrochloride hyper parathyroidism; hyper calcSep-16 Brigham and Women's Hospital InCipla Sensipar cinacalcet hydrochloride hyper parathyroidism; hyper calcSep-16 Eli Lilly and Co., ICOS Corp. Cipla CIALIS tadalafil erectile dysfunctionSep-16 Brigham and Women's Hospital InAurobindo Sensipar cinacalcet hydrochloride hyper parathyroidism; hyper calcSep-16 Eli Lilly and Co., ICOS Corp. Alembic Pharma CIALIS tadalafil erectile dysfunctionOct-16 Amgen Inc. Ajanta Pharma SENSIPAR cinacalcet calcium reducerOct-16 Amgen Inc. Dr Reddy's Lab SENSIPAR cinacalcet calcium reducerOct-16 UCB, Inc. Cadila Healthcare VIMPAT lacosamide partial-onset seizuresOct-16 Astellas Pharma Lupin MYRBETRIQ mirabegron overactive bladderOct-16 Astellas Pharma Cadila Healthcare MYRBETRIQ mirabegron overactive bladderOct-16 Astellas Pharma Aurobindo Pharma MYRBETRIQ mirabegron overactive bladderOct-16 AstraZeneca AB Glenmark Pharma Nexium 24HR esomeprazole magnesium treatment of acid refluxOct-16 Celgene Corp. Dr Reddy's Lab REVLIMID lenalidomide multiple myelomaOct-16 Otsuka Pharma Zydus Pharma Abilify Aripiprazole SchizophreniaOct-16 Onyx Therapeutics Cipla KYPROLIS carfilzomib multiple myelomaOct-16 Eli Lilly Cipla Axiron Hypogonadism TestosteroneOct-16 Galderma Lab Sun Pharma ORACEA doxycycline infectionsOct-16 Eli Lilly Cipla Axiron Hypogonadism TestosteroneOct-16 Indoco Remedies Zydus Pharma Abilify Aripiprazole Schizophrenia

Source: Bloomberg, ICICIdirect.com Research


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IPM grows 8.3% in October – high base hits growth • The Indian pharmaceutical market (IPM) grew 8.3% YoY to | 9513 crore

in October. Lower growth was attributable to high base (21.8% in Oct 2015) and festival impact slowing the distribution channels

• The growth was driven by volumes increase – 2.6%, new product launches – 2.2% and price hikes- 3.5%

• The fixed dosage combination (FDCs) related market de-grew 34.1%, impacted more than 1% to the overall growth

• Drugs under NLEM list reduced 4.7% to | 1067 crore while non-NLEM drugs posted growth of 10.5% to | 8047 crore. Volume growth in NLEM and Non-NLEM was 6.1% and 0.5% respectively.

• Among companies under I-direct coverage, Lupin, Sun, Cipla, Ajanta and Torrent have registered a strong growth of 21.1%, 13.5%, 13.6%, 11.6% and 10.8% respectively. Dr Reddy’s, Glenmark, Alembic and IPCA have registered slower than industry growth.

• Therapy wise, 12 therapies have outpaced IPM growth. Notable among them with growth rates- Anti-diabetic —15.2%, Cardiac – 10.2%, Derma – 10.1% and Pain/Analgesics – 9.7%.

• In all, 231 new brands were launched in Oct-16. • On a MAT basis, IPM growth stood at 10.2% YoY to | 105667 crore. • Domestic companies have grown 8.9%, while MNC companies have

grown 6.3% in Oct-2016. Exhibit 3: Domestic formulations - growth trend [

23.9

10.8

14.1

14.1 17

.1

11.7

8.5

6.2

10.5

20

11.4

18.3

9.4

-5

0

5

10

15

20

25

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market

Source: AIOCD data base, ICICIdirect.com Research

Exhibit 4: Companies growth in domestic market in Oct, 2016

9.516.0

11.4

1.8

19.0

43.1

6.8

-4.3

10.311.6

-6.9

1.7

20.1

1.3

13.6

7.9

-10

0

10

20

30

40

50

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 Oct' 16 Oct' 15 YoY (%) Sep' 16 MoM (%)Anti-Infectives 1614 1470 9.8 1452 11.2Cardiac 1128 1023 10.3 1093 3.2GI 1143 976 17.1 1136 0.6Vitamins 859 757 13.4 833 3.1Anti Diabetic 819 694 18.0 772 6.1Respiratory 771 709 8.7 684 12.7Pain 702 629 11.5 659 6.4Neuro 556 514 8.2 530 4.9Derma 559 516 8.3 530 5.5Gynaecological 477 424 12.6 477 0.0Anti-Neoplastics 184 161 14.5 172 7.2Ophthal 165 153 8.3 157 5.2Vaccines 166 165 0.9 172 -3.7Hormones 159 149 6.8 149 6.9Others 110 92 20.3 105 4.9Blood Related 108 98 10.5 107 1.1Urology 105 92 15.0 102 3.4Sex Stimulants 48 45 6.2 48 -0.4Anti Malarials 77 80 -2.8 61 28.1Stomatologicals 43 39 10.6 43 -0.3 Source: AIOCD data base

Top brands in Indian pharma market Brand Company Therapy Oct' 16 Oct' 15 Gr. (%)Spasmo Prox Wockhardt GI 320.7 275.2 16.5Lantus Sanofi Anti Diabetic 317.8 247.5 28.4Galvus Met Novartis Anti Diabetic 303.9 230.5 31.8Corex Pfizer Respiratory 303.0 283.1 7.0Augmentin GSK Anti-Infectives 290.6 326.0 -10.9Clavam Alkem Anti-Infectives 273.2 227.8 20.0Volini Ranbaxy Pain 245.2 204.9 19.7Pan Sun Pharma GI 226.1 184.4 22.6Becosules Pfizer Vitamins 221.4 253.7 -12.7Voveran Novartis Pain 212.8 166.7 27.6

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

Acute, 51306, 48.6%

Chronic, 33045, 31.3%

Sub-Chronic, 21315, 20.2%

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


Page 9

Sun Pharmaceuticals

507090

110130150

Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

CNX Pharma Sun Pharma

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

23.9

10.8 14

.1

11.7 14

.1

8.5

6.2

10.5

8.4

11.4

17.1 18

.3

9.4

18.1

4.5

9.9

8.2

20.3

12.3

5.2

5.2

3.3

7.6

20.3 21.2

13.6

0

5

10

15

20

25

30

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Sun Pharmaceutical Industries


Exhibit 6: Market share in Indian formulations market

8.28.5 8.6 8.8 8.7 8.9 8.7 8.7 8.7 8.6 8.6 8.5 8.6

6.0

6.6

7.2

7.8

8.4

9.0

9.6

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Sun Pharmaceutical Industries

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

Exhibit 7: Top 10 brands performance (| crore) Brand Therapy Oct' 16 Oct' 15 Var. (%) Sep' 16 Var. (%)

Istamet Anti Diabetic 17.1 12.6 35.8 17.4 -1.6

Gemer Anti Diabetic 17.0 13.0 31.0 17.5 -2.4

Levipil Neuro 14.5 12.5 15.9 15.3 -4.9

Susten Gynaecological 12.1 11.8 1.9 12.3 -1.7

Pantocid Dsr Gastro Intestinal 11.0 10.2 8.4 11.4 -3.4

Montek-Lc Respiratory 9.9 7.4 33.3 9.4 4.8

Pantocid Gastro Intestinal 9.7 11.6 -16.3 13.1 -26.0

Aztor Cardiac 8.4 9.7 -13.6 8.5 -0.8

Rozavel Cardiac 7.8 6.0 29.5 8.0 -2.0

Cardivas Cardiac 7.7 5.6 36.4 7.7 -0.5


Exhibit 8: Contribution of therapies to domestic sales (MAT Oct’16)

z

Cardiac29%

Neuro 27%

Gastro Intestinal

19%

Anti-Infectives18%

Derma7%


Exhibit 9: Therapy wise performance (| crore)

Therapy Oct' 16 Oct' 15 YoY (%) Sep' 16 MoM (%)

Cardiac 154.0 126.7 21.6 146.3 5.3

Neuro 141.4 122.8 15.1 136.0 3.9

Gastro Intestinal 102.9 85.0 21.1 100.6 2.4

Anti-Infectives 96.6 93.1 3.8 90.8 6.4

Derma 41.0 33.6 22.0 73.1 -43.9

Anti Diabetic 76.3 63.9 19.4 57.3 33.0

Vitamins 35.4 29.3 20.6 38.3 -7.6

Pain 59.6 53.3 11.7 34.3 73.8

Respiratory 29.9 29.0 3.0 30.3 -1.5

Gynaecological 33.8 27.6 22.4 30.0 12.7


Acute : Chronic contribution (| cr; MAT Oct’16)

Acute, 3714, 40.6%

Chronic, 4185, 45.7%

Sub-Chronic,

1251, 13.7%

Source: AIOCD data base

Brands contribution to domestic sales (MAT Oct’16)

18%

9%

7%

10%

56%

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


Page 10

Cipla

Stock Performance

6080

100120140


CNX Pharma Cipla

Source: NSE, ICICIdirect.com Research

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

23.9

10.8 14

.1

11.7 14

.1

8.5

6.2

10.5

8.4 11

.4

17.1 18.3

9.421

.0

15.9

16.6

10.0 11.5

3.5

2.0

6.1 8.

8

8.9

8.6

7.8

-4.3

-10

-5

0

5

10

15

20

25

30

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Cipla



4.85.1

5.15.0 5.1

4.8

5.1

4.7 4.74.5

4.4 4.4 4.3

3.84.04.24.44.64.85.05.25.4

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Cipla



Foracort Respiratory 17.0 17.2 -1.2 16.5 2.8

Duolin Respiratory 13.0 10.4 25.4 13.1 -0.9

Asthalin Respiratory 11.8 11.7 0.4 12.1 -2.9

Seroflo Respiratory 11.6 11.2 4.1 11.6 0.3

Budecort Respiratory 11.6 13.5 -14.2 12.6 -8.4

Montair Lc Respiratory 7.9 7.1 11.5 8.1 -2.0

Aerocort Respiratory 7.9 8.3 -5.1 7.9 0.1

Dytor Cardiac 6.4 5.7 12.7 6.2 3.4

Azee Anti-Infectives 6.2 9.1 -31.5 7.7 -18.8

Advent Anti-Infectives 6.0 7.1 -14.9 7.5 -19.0



Respiratory31%

Anti-Infectives26%Cardiac

12%

Gastro Intestinal

8%

Urology5%

Other18%



Therapy Oct ' 16 Oct' 15 YoY (%) Sep' 16 MoM (% )

Respiratory 132.3 128.5 2.9 122.1 8.4

Ant i- Infectives 113.4 122.8 -7.6 110.9 2.3

Cardiac 51.1 46.3 1 0.3 52.0 -1.7

Gastro Intest inal 37.5 32.2 1 6.5 38.2 -1.8

Urology 20.3 18.8 7.8 20.2 0.2

Neuro 13.6 14.0 -2.8 13.2 3.1

Ophthal 13.4 13.4 0.5 13.8 -2.8

Pain 15.8 14.4 1 0.0 14.8 6.9

Derma 12.0 10.8 1 1.4 11.1 8.0

V itamins 7.9 7.1 1 1.4 8.4 -5.3


Acute : Chronic contribution (| cr; MAT Sep’16)

Acute, 2363, 47.1%

Chronic, 2017, 40.2%

Sub-Chronic,

639, 12.7%


Brands contribution to domestic sales (MAT Sep’16)

24%

12%

8%12%

44%




Page 11

Dr. Reddy’s Labs

Stock Performance) Stock Performance

6080

100120140


CNX Pharma Dr. Reddys


23.9

10.8 14

.1

11.7 14

.1

8.5

6.2 10

.5

8.4 11

.4

17.1

18.3

9.4

30.2

23.1 27

.0

26.0 31

.2

6.3

-1.8

3.7

1.1

4.5

17.2

25.0

10.3

-10

0

10

20

30

40

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Dr. Reddys Laboratories



2.3

2.5

2.6

2.52.6

2.1

2.3

2.2

2.3

2.4

2.3 2.2

2.3

2.1

2.2

2.3

2.4

2.5

2.6

2.7

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Dr. Reddys Laboratories



Omez D Gastro Intestinal 9.5 9.2 2.8 10.2 -7.5

Omez Gastro Intestinal 9.0 11.4 -20.8 9.4 -4.6

Reditux Anti-Neoplastics 6.7 2.7 146.8 3.9 72.3

Atarax Respiratory 6.2 4.1 50.7 6.3 -2.1

Nise Pain 5.2 5.6 -7.2 6.1 -15.0

Mitotax Anti-Neoplastics 4.7 1.7 183.2 0.9 400.4

Razo Gastro Intestinal 4.7 4.3 9.3 5.2 -10.1

Razo D Gastro Intestinal 4.7 4.5 3.5 5.4 -13.4

Stamlo Cardiac 4.6 6.0 -22.8 4.9 -5.2

Grafeel Anti-Neoplastics 4.1 3.4 18.2 5.0 -18.2



Gastro Intestinal

21%

Cardiac14%

Anti-Neoplastics

13%Respiratory9%

Anti-Infectives8%

Other35%





Cardiac 27.7 29.5 -6.3 25.6 8.1

Anti-Neoplastics 35.6 15.6 127.7 28.8 23.7

Respiratory 21.5 19.2 11.6 18.7 14.6

Anti-Infectives 21.1 17.5 20.7 16.3 29.4

Pain 15.0 13.9 7.6 13.8 8.7

Anti Diabetic 13.5 13.4 0.9 12.7 5.9

Derma 11.0 14.0 -21.6 10.2 7.8

Urology 8.7 8.3 5.1 8.3 4.1

Neuro 7.3 7.4 -1.1 6.6 10.7



Acute, 1254, 50.4%

Chronic, 711, 28.6%

Sub-Chronic,

523, 21.0%



28%

16%

10%

12%

34%




Page 12

Lupin

Stock Performance

6080

100120140


CNX Pharma Lupin



23.9

10.8 14

.1

11.7 14

.1

8.5

6.2

10.5

8.4 11

.4

18.3

21.9

7.2

14.5

13.0

18.4 20

.5

9.9 11.7

4.7

11.1 12

.6

24.2

20.117

.1

9.4

-4

4

12

20

28

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Lupin



3.3 3.33.4 3.4 3.3 3.4 3.3 3.3

3.2 3.2 3.2

3.53.7

2.32.52.72.93.13.33.53.73.9

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Lupin



Gluconorm-G Anti Diabetic 16.9 11.9 42.3 17.1 -1.5

Budamate Respiratory 9.9 7.3 35.3 8.9 11.6

Tonact Cardiac 8.7 8.0 8.0 8.4 3.3

Rablet-D Gastro Intestinal 6.0 4.4 35.6 6.1 -1.1

Telekast-L Respiratory 5.4 3.6 48.1 4.9 10.0

Rablet Gastro Intestinal 5.2 4.3 19.4 5.1 2.5

Esiflo Respiratory 4.8 4.7 3.8 4.2 14.2

Tazar Anti-Infectives 4.8 4.2 14.4 4.9 -2.4

Merotrol Anti-Infectives 4.1 3.2 28.3 4.0 1.8

R-Cinex Anti-Infectives 3.9 4.1 -5.3 4.0 -2.3



Cardiac25%

Anti-Infectives20%

Respiratory13%

Anti Diabetic12%

Gastro Intestinal

8%

Other22%




Cardiac 74.0 70.1 5.6 70.6 5.0

Anti-Infectives 65.8 65.6 0.3 62.6 5.0

Respiratory 39.1 36.1 8.4 35.4 10.6

Anti Diabetic 39.4 30.3 30.0 38.0 3.5


Vitamins 15.9 15.7 1.4 15.7 1.4

Neuro 14.8 13.8 7.9 14.2 4.4

Pain 13.6 12.4 9.0 13.1 3.4

Gynaecological 12.2 9.7 26.1 11.0 10.5

Ophthal 2.1 1.8 17.1 2.0 0.9



Acute, 1139, 32.2%

Chronic, 1737, 49.1%

Sub-Chronic,

661, 18.7%



20%

11%

8%13%

48%




Page 13

Cadila Healthcare

Stock Performance

6080

100120140


CNX Pharma Cadila Healthcare


23.9

10.8

14.1

11.7 14

.1

8.5

6.2

10.5

8.4

11.4

17.1 18

.3

9.4

22.9

4.7

10.9

8.1

13.3

8.8

5.2

8.0

3.2 5.

2 7.5

13.6 16

.0

0

5

10

15

20

25

30

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Cadila Healthcare



3.83.8 3.8

3.93.9

4.0 4.0

3.9

3.8

3.73.6

3.8

4.0

3.4

3.5

3.6

3.7

3.8

3.9

4.0

4.1

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Cadila Healthcare



Skinlite Derma 15.1 12.8 18.0 14.7 2.7

Zyrop Blood Related 10.9 5.4 102.3 7.0 55.8

Deriphyllin Respiratory 10.0 8.8 12.7 9.8 1.7

Pantodac Gastro Intestinal 9.8 9.0 8.7 9.2 6.5

Atorva Cardiac 8.5 11.5 -25.8 9.1 -6.2

Falcigo Anti Malarials 7.8 11.4 -31.3 8.9 -12.5

Sovihep Anti-Infectives 6.9 3.8 80.4 4.5 50.8

Thrombophob Pain 6.1 5.3 15.5 6.5 -5.4

Dexona Hormones 5.5 5.4 2.1 5.6 -2.2

Nucoxia Pain 5.4 4.2 26.9 5.2 3.1



Other40%

Pain 10%

Gynaecological10%

Respiratory11%

Gastro Intestinal

13%

Cardiac16%




Cardiac 54.6 53.5 2.1 53.1 2.9

Gastro Intestinal 47.7 44.1 8.1 48.5 -1.7

Respiratory 38.5 35.2 9.2 33.9 13.4

Gynaecological 33.8 33.9 -0.4 34.6 -2.3

Pain 36.1 32.2 12.1 32.7 10.5

Derma 27.4 25.6 7.0 25.8 5.9

Anti-Infectives 30.9 26.9 15.0 28.0 10.5

Anti-Neoplastics 23.0 15.1 52.1 23.0 -0.3

Vitamins 17.5 14.2 23.2 16.7 4.4

Hormones 7.2 7.9 -8.6 6.6 10.0



Acute, 1139, 32.2%

Chronic, 1737, 49.1%

Sub-Chronic,

661, 18.7%



20%

11%

8%13%

48%




Page 14

GlaxoSmithKline

Stock Performance

6080

100120140


CNX Pharma GSK Pharma



23.9

10.8 14

.1

11.7 14

.1

8.5

6.2 10

.5

8.4 11

.4

17.1 18.3

9.421

.2

4.5 7.0

4.7

2.2

-7.2

-9.5

0.3

-6.7

4.5 4.0

4.0

-6.9

-15-10-505

1015202530

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Glaxosmithkline Pharmaceuticals



3.53.4 3.3

3.33.1 3.0

3.0 3.0

2.8

3.02.9 2.9 2.9

2.4

2.6

2.8

3.0

3.2

3.4

3.6

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Glaxosmithkline Pharmaceuticals



Augmentin Anti-Infectives 25.5 27.7 -7.9 25.2 1.2

Calpol Pain 21.4 19.9 7.5 23.7 -9.6

Synflorix Vaccines 18.2 17.3 5.7 16.8 8.7

Zinetac Gastro Intestinal 14.1 15.4 -8.5 13.5 3.9

Betnovate C Derma 12.5 14.0 -10.4 11.5 8.8

Ceftum Anti-Infectives 12.0 11.3 6.1 12.8 -6.9

Eltroxin Hormones 11.9 11.3 5.6 12.2 -2.7

Betnovate N Derma 10.2 13.6 -24.9 9.7 4.5

Betnesol Hormones 9.8 12.4 -21.1 9.7 1.2

Phexin Anti-Infectives 7.5 6.5 14.0 7.3 1.8


Exhibit 33: Contribution of therapies to domestic sales (MAT Oct’16) Anti-Infectives

23%

Derma18%

Vaccines15%

Pain 10%

Respiratory8%

Other26%




Anti-Infectives 66.7 70.8 -5.9 61.2 9.0

Derma 45.4 57.1 -20.6 46.0 -1.4

Vaccines 43.2 45.9 -6.0 39.9 8.2

Pain 34.5 30.9 12.0 34.9 -1.0

Respiratory 23.0 24.5 -6.3 20.8 10.4

Hormones 20.9 24.8 -15.5 21.0 -0.3

Vitamins 23.4 22.1 5.9 24.0 -2.6

Gastro Intestinal 14.9 17.4 -14.4 16.7 -10.7

Cardiac 4.5 5.7 -21.7 4.6 -3.3

Gynaecological 2.2 3.1 -27.4 3.4 -34.1



Acute, 2106, 65.5%

Chronic, 414, 12.9%

Sub-Chronic,

695, 21.6%



51%

16%

9%

11%

13%




Page 15

Wockhardt

Stock Performance

050

100150200250300350400


CNX Pharma Wockhardt


23.9

10.8 14

.1

11.7 14

.1

8.5

6.2 10

.5

8.4 11

.4 17.1

18.3

9.4

50.3

9.8

9.0

38.2

29.6

5.4

2.4

4.5

1.3

1.8

10.2

11.7

4.6

0

10

20

30

40

50

60Oc

t-15

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Wockhardt



1.40 1.371.32 1.34 1.35 1.32

1.26 1.23 1.201.25 1.27

1.331.27

1.01.11.21.31.41.51.61.71.8

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Wockhardt



Spasmo Proxyvon PluGastro Intestinal 31.8 29.5 7.6 31.1 2.1

Practin Vitamins 6.8 6.0 12.6 7.4 -8.9

Bro Zedex Respiratory 4.6 5.1 -11.5 4.4 2.3

Biovac A Vaccines 4.4 3.9 11.1 3.9 12.5

Wepox Blood Related 4.3 0.7 525.4 3.6 20.5

Tryptomer Neuro 4.2 5.4 -21.1 5.6 -23.7

Methycobal Vitamins 4.2 4.0 2.8 4.2 -1.6

Zedex Respiratory 3.9 4.0 -2.2 3.3 15.8

Biovac V Vaccines 3.5 5.9 -40.6 2.6 36.3

Wosulin Anti Diabetic 2.7 2.2 20.7 2.5 8.4



Other32%

Anti Diabetic7% Neuro

8%

Respiratory13%

Vitamins 15%

Gastro Intestinal

25%




Gastro Intestinal 29.4 31.0 -5.0 28.1 4.4

Vitamins 18.9 16.6 14.3 18.0 5.3

Respiratory 15.8 15.8 -0.4 15.4 2.2

Neuro 9.7 8.9 9.1 8.9 7.9

Anti Diabetic 8.0 7.2 11.1 7.2 11.3

Anti-Infectives 8.7 9.7 -11.2 7.5 16.1

Derma 8.3 8.3 -1.0 7.3 12.5

Pain 6.3 7.7 -19.1 5.9 6.0

Vaccines 7.7 9.8 -21.6 6.2 24.2

Hormones 2.5 2.9 -13.4 2.6 -3.1



Sub-Chronic

151, 11.1%

Chronic, 280,

20.5%Acute, 934,

68.4%



55%

15%

8%

8%

14%



Page 16

Glenmark Pharmaceuticals

Stock Performance

6080

100120140160180200


CNX Pharma Glenmark



23.9

10.8 14

.1

11.7 14

.1

8.5

6.2 10

.5

8.4 11

.4

17.1

18.3

9.4

43.5

11.4

18.5

16.2 19

.5

14.7

8.6

8.8

7.1 8.5

20.9

20.4

11.6

05

101520253035404550

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Glenmark Pharmaceuticals



2.5 2.4

2.52.5

2.4 2.42.3

2.22.3 2.3

2.4 2.42.5

1.9

2.1

2.3

2.5

2.7

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Glenmark Pharmaceuticals



Telma Cardiac 13.1 14.6 -10.4 12.7 3.3

Telma H Cardiac 12.8 11.4 11.9 12.5 2.4

Ascoril Plus Respiratory 11.1 10.8 2.7 11.6 -4.7

Candid-B Derma 9.7 8.8 10.8 9.3 4.6

Candid Derma 9.2 8.7 5.2 8.8 4.1

Telma Am Cardiac 6.8 6.0 13.4 6.6 3.7

Ascoril Ls Respiratory 5.5 5.5 0.6 6.0 -8.0

Onabet Derma 4.7 3.4 39.1 4.8 -1.7

Zitamet Plus Anti Diabetic 3.7 0.5 695.7 3.6 4.1

Coly-Monas Gastro Intestinal 3.4 0.9 260.9 3.5 -3.2


Exhibit 43: Contribution of therapies to domestic sales (MAT Oct’16) Derma29%

Cardiac22%

Respiratory16%

Anti-Infectives13%

Anti Diabetic7% Other

13%




Derma 63.7 60.8 4.8 61.5 3.5

Cardiac 47.4 43.8 8.3 43.8 8.2

Respiratory 40.4 36.8 9.8 33.6 20.2

Anti-Infectives 36.8 31.9 15.3 31.9 15.4

Anti Diabetic 14.7 20.0 -26.8 13.7 6.7


Vitamins 5.2 5.5 -4.9 5.2 1.7

Gynaecological 5.9 4.3 36.3 5.9 -0.6

Pain 4.2 4.2 -0.9 4.0 5.6

Ophthal 4.4 3.5 27.5 3.9 14.4



Acute, 1028, 40.9%

Chronic, 901, 35.8%

Sub-Chronic,

587, 23.3%



36%

12%9%

13%

30%




Page 17

Torrent Pharmaceuticals

Stock Performance

4080

120160200


CNX Pharma Torrent Pharma


23.9

10.8 14

.1

11.7 14

.1

8.5

6.2

10.5

8.4 11

.4

17.1 18

.3

9.4

19.9

5.4

3.8 7.

4 10.2

2.4

-3.0

1.4

-2.4

4.1

12.7

13.0

7.9

-5

0

5

10

15

20

25

30

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Torrent Pharmaceuticals



2.142.17

2.20

2.25

2.31

2.182.22

2.292.26

2.20

2.152.14

2.19

2.0

2.1

2.1

2.2

2.2

2.3

2.3

2.4

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Torrent Pharmaceuticals



Shelcal Vitamins 17.8 14.7 21.2 17.9 -0.2

Chymoral Forte Pain 11.1 8.5 31.0 10.8 2.7

Nikoran Cardiac 8.0 7.0 13.2 8.1 -1.1

Nebicard Cardiac 5.9 5.2 13.4 5.8 2.1

Nexpro Rd Gastro Intestinal 5.6 4.5 23.5 5.9 -6.1

Azulix-Mf Anti Diabetic 5.5 4.7 17.1 5.9 -5.6

Dilzem Cardiac 5.5 5.5 0.1 5.7 -3.1

Nexpro Gastro Intestinal 4.8 4.2 14.1 5.0 -4.6

Shelcal Ct Vitamins 4.5 3.4 34.9 4.7 -3.4

Alprax Neuro 3.6 3.1 13.6 3.5 2.3


Exhibit 48: Contribution of therapies to domestic sales (MAT Oct’16) Cardiac

29%

Neuro 16%Vitamins

16%

Gastro Intestinal

15%

Pain 8%

Other16%




Cardiac 58.6 54.9 6.9 56.7 3.4

Neuro 33.9 30.3 11.7 32.4 4.5

Vitamins 33.8 28.6 18.4 33.9 -0.2


Pain 17.8 14.0 26.8 16.9 5.4

Anti Diabetic 13.8 11.2 23.5 13.0 6.0

Anti-Infectives 8.7 9.3 -6.6 7.9 9.1

Derma 5.9 5.2 12.6 5.6 4.9

Gynaecological 3.0 3.2 -5.9 2.9 6.5

Urology 1.0 0.8 25.3 1.0 -1.9



Acute, 555, 23.8%

Chronic, 1192, 51.0% Sub-

Chronic, 591, 25.3%



33%

14%9%

12%

32%




Page 18

Ipca Laboratories

Stock Performance

5075

100125150


CNX Pharma Ipca


23.9

10.8 14

.1

11.7 14

.1

8.5

6.2

10.5

8.4

11.4

17.1 18

.3

9.4

23.8

6.6

12.0

9.3 11

.6

3.4

18.2

28.1

22.6

1.6 3.

8 4.1

1.7

0

5

10

15

20

25

30

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Ipca Laboratories



1.41.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2

1.41.5 1.4 1.3

0.60.81.01.21.41.61.82.0

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Ipca Laboratories



Zerodol Sp Pain 8.7 7.5 16.2 8.2 6.5

Larinate Anti Malarials 7.7 8.7 -11.8 8.9 -14.4

Zerodol P Pain 6.6 6.8 -2.5 7.4 -11.1

Rapither-Ab Anti Malarials 6.0 6.1 -1.0 7.3 -17.9

Hcqs Anti Malarials 5.6 5.2 8.6 5.4 4.1

Lumerax Anti Malarials 4.3 3.9 10.4 4.9 -11.7

Lariago Anti Malarials 4.1 4.7 -13.1 6.1 -33.6

Glycinorm M Anti Diabetic 3.3 3.1 6.6 3.4 -2.6

Folitrax Anti-Neoplastics 2.7 2.6 3.1 2.7 -2.2

Zerodol Pain 2.5 2.6 -5.1 2.2 11.2


Exhibit 53: Contribution of therapies to domestic sales (MAT Oct’16) Other24%

Anti-Infectives6%

Gastro Intestinal

8% Cardiac17%

Anti Malarials20%

Pain 25%




Pain 34.7 29.1 19.0 29.8 16.4

Anti Malarials 39.4 33.5 17.5 30.7 28.4

Cardiac 19.3 18.2 6.1 19.0 1.5


Anti-Infectives 8.6 7.0 23.1 7.3 17.3

Anti Diabetic 6.1 5.7 6.7 6.3 -3.1

Respiratory 5.7 4.9 17.3 4.8 20.1


Neuro 5.0 3.4 48.1 4.4 13.7

Derma 4.1 3.6 14.4 3.9 6.6



Acute, 890, 66.5%

Chronic, 362, 27.0%

Sub-Chronic, 87,

6.5%



37%

16%11%

13%

23%




Page 19

Biocon

Stock Performance

60

80

100

120

140

Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16CNX Pharma Biocon



23.9

10.8 14

.1

11.7 14

.1

8.5

6.2

10.5

8.4

17.1 18.3

9.4

10.0

-0.8

11.4

5.2 5.3

11.3 14

.5

7.7 9.

4

3.5

1.2

11.4

8.1 9.

5

-5

0

5

10

15

20

25

30

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Biocon



0.330.32

0.33

0.36

0.34

0.38

0.34 0.34 0.34

0.31 0.31 0.310.30

0.27

0.29

0.31

0.33

0.35

0.37

0.39

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Biocon



Insugen Anti Diabetic 7.2 7.8 -8.1 6.9 4.6

Basalog Anti Diabetic 5.1 4.2 22.6 5.0 1.6

Erypro Blood Related 3.9 1.5 157.8 4.0 -0.9

Insugen R Anti Diabetic 1.7 1.4 24.0 1.5 17.0

Canmab Anti-Neoplastics 1.3 1.4 -6.5 2.2 -38.1

Blisto Mf Anti Diabetic 1.1 1.6 -31.2 1.3 -12.6

Abraxane Anti-Neoplastics 1.0 1.2 -20.7 0.6 66.3

Psorid Anti-Neoplastics 0.9 0.7 36.5 0.8 16.9

Insugen N Anti Diabetic 0.6 0.8 -24.0 0.6 4.6

Statix Cardiac 0.4 0.4 18.3 0.4 3.8



Other 4%

Derma3%Cardiac

5%Blood Related

8%

Anti-Neoplastics

22%

Anti Diabetic58%




Anti Diabetic 17.9 17.1 5.1 16.8 6.5


Blood Related 2.4 1.6 54.7 2.4 1.9

Cardiac 1.3 1.5 -17.5 1.2 2.2

Derma 0.7 0.7 -1.6 0.8 -7.8

Anti-Infectives 0.5 0.8 -37.2 0.6 -16.1

Others 0.2 0.2 15.8 0.2 -4.5


Vitamins 0.1 0.2 -37.4 0.1 -16.3

Pain 0.0 0.1 -55.1 0.1 -61.7



Acute, 71, 20.4%

Chronic, 247, 70.9%

Sub-Chronic, 30,

8.7%



78%10%

5%

5%

2%




Page 20

Pfizer

Stock Performance

4080

120160200


CNX Pharma Pfizer


23.9

10.8 14

.1

11.7 14

.1

8.5

6.2

10.5

8.4 11

.4

17.1 18.3

9.4

25.0

3.3

1.6

-3.5

5.1

3.4

2.7 7.

2

-1.0

3.0 6.8

5.6 1.

8

-10

-5

0

5

10

15

20

25

30

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Pfizer



2.912.87 2.88 2.88

2.802.84

2.91

2.80

2.682.75

2.672.62

2.70

2.4

2.6

2.8

3.0

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Pfizer



Corex Respiratory 21.8 31.6 -31.1 24.9 -12.6

Becosules Vitamins 19.5 18.5 5.6 21.3 -8.4

Magnex Anti-Infectives 13.0 13.7 -4.8 10.8 20.8

Dolonex Pain 12.7 11.7 8.8 12.7 0.3

Minipress Xl Cardiac 11.9 10.6 12.9 9.9 20.6

Wysolone Hormones 11.7 9.9 18.3 11.0 5.6

Gelusil Mps Gastro Intestinal 11.5 11.6 -1.5 11.5 -0.5

Prevenar 13 Vaccines 9.6 2.9 227.0 9.2 4.9

Mucaine Gastro Intestinal 9.4 9.6 -1.9 10.3 -8.8

Corex Dx Respiratory 8.0 5.4 49.7 6.8 17.4



Other41%

Hormones9%

Vitamins 10%

Gastro Intestinal

11%

Respiratory14%

Anti-Infectives15%




Anti-Infectives 37.7 44.4 -15.1 34.9 8.0

Respiratory 33.5 38.9 -13.9 31.6 6.0


Vitamins 27.3 23.9 13.9 27.9 -2.1

Hormones 23.7 24.2 -2.2 22.2 6.4

Gynaecological 21.1 19.9 6.3 20.8 1.6

Neuro 16.4 17.0 -3.9 14.8 10.4

Cardiac 19.1 15.8 20.8 21.9 -12.8

Pain 17.3 16.8 2.8 16.9 2.2

Vaccines 12.3 6.6 84.9 11.2 9.6



Acute, 1908, 65.0%

Chronic, 461, 15.7%

Sub-Chronic,

566, 19.3%



49%

20%

10%

10%

11%




Page 21

Novartis

Stock Performance

40

90

140

190


CNX Pharma Novartis India



23.9

10.8 14

.1

11.7 14

.1

8.5

6.2

10.5

8.4 11

.4

17.1 18.3

9.4

27.4

20.4

17.3

14.9

25.1

21.6

18.7

10.2

3.9

6.0

5.8

1.3

-5.2

-10

-5

0

5

10

15

20

25

30

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Novartis India



1.201.15 1.16 1.14 1.14

1.17 1.18

1.08 1.08

1.011.04 1.031.04

0.9

1.0

1.0

1.1

1.1

1.2

1.2

1.3

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Novartis India



Galvus Met Anti Diabetic 26.8 24.3 10.3 28.8 -7.1

Voveran Pain 20.1 17.1 17.3 21.2 -5.2

Galvus Anti Diabetic 9.3 10.6 -12.5 10.0 -7.3

Rabipur (Novartis) Vaccines 7.5 7.7 -2.5 5.4 39.2

Tegrital Neuro 4.6 4.7 -0.8 4.5 1.9

Voveran Pain 3.5 3.3 6.0 3.6 -1.3

Regestrone Gynaecological 2.8 3.8 -28.2 3.1 -11.5

Methergin Gynaecological 2.6 2.4 5.9 2.5 2.4

Syntocinon Gynaecological 2.5 2.1 18.4 2.7 -6.5

Calcium Sandoz Vitamins 2.3 2.0 18.6 2.3 -0.3



Anti Diabetic37%

Pain 23%

Vitamins 9%

Vaccines9%

Gynaecological8%

Other14%




Anti Diabetic 37.6 35.5 5.7 36.8 2.2

Pain 24.6 22.3 10.7 23.4 5.3

Vitamins 8.8 10.7 -17.8 8.8 0.2

Vaccines 8.3 7.8 6.1 5.7 45.8

Gynaecological 7.4 8.7 -15.1 7.6 -2.8

Neuro 4.4 5.6 -21.6 4.2 6.2

Anti-Infectives 5.4 5.8 -7.7 3.2 70.8

Respiratory 1.9 2.3 -14.4 1.8 10.5

Cardiac 0.7 1.4 -48.6 0.7 2.3

Ophthal 0.7 0.7 -6.0 0.3 107.8



Acute, 502, 43.3%

Chronic, 504, 43.5%

Sub-Chronic,

154, 13.2%



81%

11% 3%3%2%




Page 22

Unichem Laboratories

Stock Performance

70100130160


CNX Pharma Unichem Labs



23.9

10.8 14

.1

11.7 14

.1

8.5

6.2

10.5

8.4

11.4

17.1 18

.3

9.4

3.8

11.3

9.9

10.0

3.1

0.6

2.3

4.0

14.1

26.4

24.7

28.3

19.0

0

5

10

15

20

25

30

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Unichem Laboratories



0.84 0.850.88

0.93

0.88 0.89 0.890.92 0.93

0.900.90 0.900.88

0.80

0.90

1.00

1.10

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Unichem Laboratories


Exhibit 72: Top 10 brands performance (| crore)

Brand Therapy Oct' 16 Oct' 15 Var. (%) Sep' 16 Var. (%)

Losar H Cardiac 9.2 6.4 45.4 8.7 6.3

Ampoxin Anti-Infectives 6.9 7.1 -3.4 6.6 4.7

Losar Cardiac 5.9 5.4 9.0 6.0 -2.3

Unienzyme Gastro Intestinal 5.2 4.9 7.0 4.9 5.6

Vizylac Gastro Intestinal 3.2 2.2 43.3 3.8 -15.9

Trika Neuro 1.9 2.1 -10.0 2.2 -13.6

Serta Neuro 1.7 1.7 2.0 1.9 -5.6

Arkamin Cardiac 1.6 1.1 51.5 1.6 0.1

Unistar (Unichem) Cardiac 1.6 1.5 9.3 1.7 -5.4

Linox Anti-Infectives 1.6 0.9 76.7 1.7 -5.4



Other12%

Pain 4%

Gastro Intestinal

12%

Neuro 14%

Anti-Infectives17%

Cardiac41%




Cardiac 34.8 29.6 17.4 34.2 1.8

Anti-Infectives 16.3 14.7 11.0 14.9 9.8

Neuro 11.9 9.4 26.9 11.2 6.9


Pain 4.0 3.2 26.4 4.0 1.0

Anti Diabetic 3.8 2.4 60.8 3.5 10.1

Respiratory 2.2 2.0 11.2 2.1 6.3

Vitamins 2.1 1.8 13.2 1.9 7.0

Derma 2.0 1.5 38.6 1.8 13.1

Gynaecological 0.4 0.4 -12.9 0.4 -7.9



Acute, 338,

35.6%

Chronic, 553,

58.3%

Sub-Chronic, 57, 6.0%



33%

14%9%

12%

32%




Page 23

Indoco Remedies

Stock Performance

6080

100120140


CNX Pharma Indoco



23.9

10.8 14

.1

11.7 14

.1

8.5

6.2

10.5

8.4 11

.4

17.1 18.3

9.4

16.2

10.3

11.0

5.6

5.4

0.7

-0.9

11.4

5.2

11.5

27.8

33.7

23.3

-5

0

5

10

15

20

25

30

35

40

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Indoco Remedies



0.7 0.70.7 0.7 0.7

0.7

0.60.6

0.7

0.8 0.8

0.7 0.7

0.6

0.7

0.7

0.8

0.8

0.9

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Indoco Remedies



Febrex Plus Respiratory 8.1 7.2 13.6 9.1 -11.0

Oxipod Anti-Infectives 4.5 4.5 0.5 5.5 -17.7

Sensodent-K Stomatologicals 3.4 2.8 24.3 3.4 -0.2

Cyclopam Gastro Intestinal 3.2 3.4 -6.5 3.7 -12.8

Atm Anti-Infectives 3.1 3.3 -4.4 3.5 -11.1

Cital Urology 2.8 2.9 -3.5 3.0 -7.3

Karvol Plus Respiratory 2.5 2.3 6.6 2.4 1.1

Cloben G Derma 2.2 2.0 11.6 2.1 2.7

Sensoform Stomatologicals 1.9 1.5 26.9 1.8 3.5

Sensodent-Kf Stomatologicals 1.9 2.2 -14.5 1.6 15.0


Exhibit 78: Contribution of therapies to domestic sales (MAT Oct’16) Respiratory

19%

Anti-Infectives18%

Stomatologicals

16%

Gastro Intestinal

14%

Vitamins 7%

Other26%




Respiratory 17.4 13.5 29.0 14.5 20.2

Anti-Infectives 16.7 13.7 21.7 13.8 20.3

Stomatologicals 10.5 9.4 11.5 11.7 -10.3


Vitamins 5.5 4.4 25.1 5.3 3.0

Urology 3.3 3.2 3.4 3.2 6.1

Ophthal 3.5 2.8 25.4 3.1 12.6

Pain 3.0 2.6 14.3 3.0 -0.2

Derma 3.1 2.7 15.4 2.9 4.5

Anti Diabetic 2.2 1.9 11.9 2.2 -0.8



Sub-Chronic

86, 11.5

Chronic, 41, 5.5%Acute,

622, 83.0%



48%

15%

9%

10%

18%




Page 24

Ajanta Pharmaceuticals

Stock Performance

4090

140190240290


CNX Pharma Ajanta



23.9

10.8 14

.1

11.7 14

.1

8.5

6.2 10

.5

8.4 11

.4 17.1

18.3

9.4

45.2

43.1

39.5

50.5

34.9

41.3

40.7 42

.8

49.5

44.5 47.0

41.9

43.1

0

10

20

30

40

50

60

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Ajanta Pharma



0.59

0.64 0.640.63 0.63

0.62 0.62

0.66 0.66

0.620.60

0.58

0.60

0.5

0.5

0.6

0.6

0.6

0.6

0.6

0.7

0.7

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Ajanta Pharma



Met Xl Cardiac 6.8 6.6 2.8 6.3 8.1

Melacare Derma 4.0 3.7 9.2 3.9 4.4

Atorfit Cv Cardiac 3.9 3.9 1.7 4.7 -16.5

Rosufit Cv Cardiac 1.9 1.6 14.0 1.8 3.8

Feburic Pain 1.8 1.7 5.9 1.9 -5.6

Soft Drops Ophthal 1.5 1.3 13.3 1.5 -1.0

Met Xl Am Cardiac 1.4 1.2 17.5 1.6 -8.7

Rosutor Gold Cardiac 1.3 0.9 44.0 1.3 5.0

Cinod Cardiac 1.2 1.0 25.1 1.2 -1.1

Vertizac Neuro 0.9 0.8 12.7 1.0 -7.8



Cardiac37%

Ophthal 23%

Derma20%

Vitamins 5%

Pain 5%

Others10%




Cardiac 22.3 19.2 16.3 21.5 3.9

Ophthal 12.9 11.1 16.1 12.7 1.3

Derma 11.3 9.6 17.2 11.1 1.5

Vitamins 2.9 3.0 -1.3 2.9 2.8

Pain 3.1 2.8 10.1 3.0 2.0


Neuro 1.4 1.2 14.0 1.4 0.8

Anti-Infectives 1.4 1.0 34.8 1.2 14.7

Anti Diabetic 1.2 0.4 223.0 1.0 14.3

Respiratory 0.5 0.4 17.6 0.4 18.5



Acute, 253, 38.4%

Chronic, 332, 50.3%

Sub-Chronic, 74,

11.3%



44%

12%9%

12%

23%




Page 25

Alembic Pharmaceuticals

Stock Performance

406080

100120140160180200


CNX Pharma Alembic Pharma



23.9

10.8 14

.1

11.7 14

.1

8.5

6.2

10.5

8.4 11

.4

17.1 18

.3

9.4

31.4

19.0

24.0

23.3

11.2

13.7

8.0

5.5

11.4

18.0 20

.5

17.4

6.8

0

5

10

15

20

25

30

35Oc

t-15

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct-1

6

(%)

Indian Pharma Market Alembic Pharma



1.43

1.47 1.48 1.46

1.41

1.34

1.29 1.281.30

1.411.45

1.40 1.39

1.2

1.2

1.3

1.3

1.4

1.4

1.5

1.5

Oct-1

5

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct-1

6

(%)

Alembic Pharma


Exhibit 87: Top 10 brands performance (| crore)

Brand Therapy Oct' 16 Oct' 15 Var. (%) Sep' 16 Var. (%)

Azithral Anti-Infectives 12.6 13.2 -4.4 13.8 -8.6

Althrocin Anti-Infectives 8.4 7.4 12.4 9.5 -11.7

Wikoryl Respiratory 5.3 3.8 39.2 5.1 2.7

Gestofit Gynaecological 4.9 4.2 17.5 4.8 4.2

Roxid Anti-Infectives 4.6 5.4 -14.3 4.9 -5.5

Ulgel Gastro Intestinal 2.9 3.4 -15.0 3.3 -13.6

Rekool D Gastro Intestinal 2.8 2.9 -3.8 2.7 5.1

Richar Gynaecological 2.6 1.9 38.5 2.4 9.4

Glisen Mf Anti Diabetic 2.3 2.1 9.4 2.3 0.9

Rekool L Gastro Intestinal 2.1 2.2 -4.2 2.1 -0.7


Exhibit 88: Contribution of therapies to domestic sales (MAT Oct’16) Anti-Infectives

23%

Cardiac14%

Gastro Intestinal

14%Respiratory

13%

Gynaecological11%

Other25%



Therapy Oct' 16 Oct' 15 YoY (%) Sep' 16 MoM (%)Anti-Infectives 34.5 31.7 8.8 29.7 16.1Cardiac 18.8 16.0 17.2 18.1 3.7Gastro Intestinal 18.9 17.5 7.9 18.9 0.0Respiratory 19.4 17.9 7.9 15.8 22.3Gynaecological 15.3 12.5 22.3 14.8 3.3Vitamins 11.0 8.9 24.2 11.1 -0.4Anti Diabetic 9.0 6.9 31.4 8.7 3.3Pain 5.1 4.5 13.0 4.6 11.4Urology 3.1 2.6 16.0 2.8 9.5Derma 2.3 2.5 -9.3 2.1 5.9



Acute, 861,

58.6%

Chronic 231.46, 18.8%

Sub-Chronic 214.35, 17.4%



44%

12%9%

12%

23%



Page 26

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

0

5

10

15

20

25

30

35

40

45

Oct-0

6

Apr

-07

Oct-0

7

Apr

-08

Oct-0

8

Apr

-09

Oct-0

9

Apr

-10

Oct-1

0

Apr

-11

Oct-1

1

Apr

-12

Oct-1

2

Apr

-13

Oct-1

3

Apr

-14

Oct-1

4

Apr

-15

Oct-1

5

Apr

-16

Oct-1

6

x

CNX Pharma Sensex

42% Premium

[

Source: Company, ICICIdirect.com Research

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 1800 2,220 Buy 15841.8 45.4 58.7 67.9 39.6 30.7 26.5 27.3 22.2 18.5 42.9 39.5 36.1 34.2 32.7 29.0

Apollo Hospitals APOHOS 1199 1,440 Buy 16674.9 22.2 23.1 33.0 54.0 51.8 36.4 23.8 21.5 18.0 8.2 8.4 10.7 8.9 8.7 11.2

Aurobindo Pharma AURPHA 722 1,100 Buy 42246.3 33.9 41.5 48.0 21.3 17.4 15.1 25.0 20.6 17.7 23.3 24.5 25.4 28.1 26.0 23.5

Alembic Pharma ALEMPHA 602 700 Hold 11352.4 38.2 20.3 24.3 15.8 29.7 24.8 12.4 22.5 19.4 51.5 23.7 23.1 44.9 20.4 20.8

Biocon BIOCON 872 1,030 Hold 17431.0 23.0 31.0 34.0 37.9 28.1 25.6 12.9 10.3 8.6 9.1 12.4 13.6 11.3 13.8 13.6

Cadila Healthcare CADHEA 373 450 Buy 38226.6 15.0 13.8 18.2 25.0 27.1 20.5 17.6 19.5 15.0 26.7 19.6 24.1 28.6 22.1 23.9Cipla CIPLA 550 510 Hold 44214.6 18.5 19.0 25.2 29.7 28.9 21.8 19.8 17.6 13.6 12.0 11.2 14.1 12.5 11.5 13.8

Divi's Laboratories DIVLAB 1182 1,415 Buy 31382.4 41.8 43.6 51.9 28.3 27.1 22.8 21.4 19.5 15.9 30.7 28.0 28.4 25.9 22.6 22.3

Dr Reddy's Labs DRREDD 2974 3,300 Hold 54857.2 142.1 61.1 133.0 20.9 48.7 22.4 13.2 22.0 12.7 17.3 5.6 13.3 20.7 8.3 15.7

Glenmark Pharma GLEPHA 858 1,200 Buy 25351.4 32.2 46.0 55.8 26.7 18.7 15.4 18.2 14.1 11.6 16.2 19.7 22.2 21.2 23.6 22.4

Indoco Remedies INDREM 283 365 Buy 2607.9 9.4 11.0 15.4 30.2 25.7 18.4 15.6 13.9 10.8 12.9 12.0 16.5 14.8 15.3 18.2

Ipca Laboratories IPCLAB 542 605 Buy 6842.6 10.0 15.3 25.7 54.1 35.5 21.1 21.8 15.5 12.3 5.7 10.0 12.7 5.5 7.9 12.0

Jubilant Life Sciences VAMORG 630 795 Buy 10030.3 26.0 43.2 53.8 24.2 14.6 11.7 11.5 9.1 7.7 12.0 15.7 17.4 14.2 19.4 19.7

Lupin LUPIN 1417 1,890 Buy 63954.7 50.4 62.9 67.1 28.1 22.5 21.1 20.1 16.1 14.0 18.6 19.6 20.6 20.7 21.3 19.1

Natco Pharma NATPHA 640 750 Buy 11155.0 8.9 15.6 14.0 72.1 41.1 45.8 42.2 27.9 29.6 16.0 22.2 17.6 11.9 17.7 14.0

Sun Pharma SUNPHA 688 850 Buy 165644.8 23.4 30.1 31.9 29.4 22.9 21.5 17.7 13.8 12.8 18.6 19.6 18.2 18.0 19.4 17.6

Syngene International SYNINT 535 570 Hold 10699.0 11.1 15.9 17.8 47.5 33.0 29.5 29.1 24.0 19.2 13.2 18.1 18.6 21.0 23.7 21.5

Torrent Pharma TORPHA 1314 1,700 Buy 22228.7 107.8 57.4 68.4 12.2 22.9 19.2 9.3 16.6 14.9 46.7 22.6 25.6 53.8 23.6 23.2

Unichem Laboratories UNILAB 262 305 Hold 2376.8 12.3 15.0 18.9 21.2 17.5 13.9 15.8 12.6 10.0 13.8 15.4 17.1 11.7 12.7 14.1

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


Page 27

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 28

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