ICICI Securities Ltd. | Retail Equity Research December 19, 2016 Pricing probe in the US dampens sentiment… The collusion probe regarding pricing of some generic drugs initiated by the US justice department in the US has taken a decisive turn. Based on the findings as many as 20 states have filed a lawsuit against six generic drug makers on pricing of two generic drugs Glyburide (anti-diabetic) and Doxycycline (anti-infective). In one such probe, US based Heritage Pharma has been framed as ring leader and others such as Teva, Mayne Pharma, Citron and Aurobindo as participants in the case of Glyburide. In case of Doxycycline the parties involved are Heritage, Mayne and Mylan. On the regulatory front, Sun Pharma’s Halol facility received nine Form 483 observations post the USFDA re-inspection (November 17, 2016 - December 1, 2016). This was on the heels of Sun’s Mohali plant (erstwhile Ranbaxy) which also received Form 483 observations from the USFDA. In another such case, Divi’s Vizag unit received five observations from USFDA. However, as per management, the observations are routine and would not impact the company’s operational performance. In an important development, the Delhi High Court has set aside government’s decision to ban 344 fixed dose combination (FDC) medicines. The government had imposed ban on these medicines in a 10 th March, 2016 notification covering ~6,000 medicine brands, including several popular ones like Corex, Phensedyl, Saridon and Vicks Action 500 Extra. FDC related market were down by ~10% to | 2513 core (AIOCD MAT Nov 2016). On the key launches front, Glenmark has launched gZetia in the US under exclusivity through its marketing partner Par Pharma. Zetia had US sales of US$ 2.3 billion (IMS MAT Oct 2016). Finally on the domestic front, The Indian pharmaceutical market (IPM) grew 15.3% YoY to | 9388 crore for the month of November. The growth was driven by volumes increase - 9.6%, new product launches - 3.5% and price hikes - 2.2%. On a MAT basis, IPM growth stood at 10.8% YoY. Focus shifts to US pricing probe, likely to weigh in the near term After battling with cGMP related issues and pricing pressure due to client consolidation in the US, Indian generic players are now bracing for new challenge- the pricing probe in the US. Even though the incidences are sporadic and do not warrants altering with numbers at this juncture, investors remain wary about the outcome and pricing power in the future. This is likely to emerge as a new overhang for the sector. On the bright side the USFDA approvals momentum remains at elevated level and even though there are fresh instances of Form 483 issuances, most of them seem manageable. On the demonetization front, we do not expect any material long term impact, though short term channel disruption is likely to impact the domestic growth especially in acute segment. Overall in the long run we expect earnings momentum to continue on the back of incremental product launches largely on speciality, biosimilar and innovation front in the US and likely positive outcome from the 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 over FY16-19E). Health Check Sector View Positive Index Performance as on December 16, 2016 Return (%) 1M 3M YTD 1Y CNX 500 0.8 -7.3 3.6 6.0 Nifty 0.6 -7.8 2.2 4.7 NSE Pharma -1.2 -9.7 -11.2 -8.9 Return (%) Stocks Performance Mcap Company 1M 3M YTD 1Y 16-Dec Sun Pharma.Inds. -7.1 -18.2 -22.0 -19.0 153549 Lupin 4.0 -4.7 -19.7 -17.3 66579 Dr Reddy's Labs -3.9 -2.2 -0.7 3.8 51151 Cipla 2.6 -5.4 -13.0 -12.0 45465 Aurobindo Pharma -2.2 -12.2 -19.4 -15.0 41331 Cadila Health. 1.6 -2.4 15.6 -3.2 38759 Divi's Lab. -2.5 -14.1 0.0 0.6 30662 Glenmark Pharma. 3.6 1.4 1.3 2.3 26343 Glaxosmit Pharma -0.3 -4.9 -18.5 -17.5 22890 Torrent Pharma. -1.1 -19.3 -9.7 -9.4 21919 Biocon 11.9 4.6 88.4 103.1 19520 Apollo Hospitals 0.2 -7.8 -18.3 -17.1 16673 Ajanta Pharma -0.6 -9.4 34.4 40.4 15757 Alembic Pharma 3.8 -3.5 -10.2 -7.4 11782 Syngene Int. 8.8 22.1 39.7 50.8 11640 Natco Pharma -6.7 -7.3 3.1 9.3 10398 Jubilant Life -1.5 3.4 50.5 48.4 9863 Strides Arcolab 4.0 4.4 -16.2 -17.3 9657 Pfizer 2.3 -8.2 -21.8 -22.4 8436 Wockhardt -6.1 -22.9 -55.1 -57.8 7588 Ipca Labs. 0.2 -8.0 -26.6 -26.7 6867 Unichem Labs. 2.6 0.2 0.4 -0.2 2440 Indoco Remedies -6.4 -18.1 -19.3 -17.7 2433 Return (%) Market cap in | crore Price movement 4000 6000 8000 10000 12000 5000 6000 7000 8000 9000 10000 11000 12000 13000 14000 15000 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 CNX Pharma Nifty (RHS) Research Analyst Siddhant Khandekar [email protected]Mitesh Shah [email protected]
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ICICI Securities Ltd. | Retail Equity Research
December 19, 2016
Pricing probe in the US dampens sentiment… The collusion probe regarding pricing of some generic drugs initiated by the US justice department in the US has taken a decisive turn. Based on the findings as many as 20 states have filed a lawsuit against six generic drug makers on pricing of two generic drugs Glyburide (anti-diabetic) and Doxycycline (anti-infective). In one such probe, US based Heritage Pharma has been framed as ring leader and others such as Teva, Mayne Pharma, Citron and Aurobindo as participants in the case of Glyburide. In case of Doxycycline the parties involved are Heritage, Mayne and Mylan. On the regulatory front, Sun Pharma’s Halol facility received nine Form 483 observations post the USFDA re-inspection (November 17, 2016 - December 1, 2016). This was on the heels of Sun’s Mohali plant (erstwhile Ranbaxy) which also received Form 483 observations from the USFDA. In another such case, Divi’s Vizag unit received five observations from USFDA. However, as per management, the observations are routine and would not impact the company’s operational performance. In an important development, the Delhi High Court has set aside government’s decision to ban 344 fixed dose combination (FDC) medicines. The government had imposed ban on these medicines in a 10th March, 2016 notification covering ~6,000 medicine brands, including several popular ones like Corex, Phensedyl, Saridon and Vicks Action 500 Extra. FDC related market were down by ~10% to | 2513 core (AIOCD MAT Nov 2016). On the key launches front, Glenmark has launched gZetia in the US under exclusivity through its marketing partner Par Pharma. Zetia had US sales of US$ 2.3 billion (IMS MAT Oct 2016). Finally on the domestic front, The Indian pharmaceutical market (IPM) grew 15.3% YoY to | 9388 crore for the month of November. The growth was driven by volumes increase - 9.6%, new product launches - 3.5% and price hikes - 2.2%. On a MAT basis, IPM growth stood at 10.8% YoY. Focus shifts to US pricing probe, likely to weigh in the near term After battling with cGMP related issues and pricing pressure due to client consolidation in the US, Indian generic players are now bracing for new challenge- the pricing probe in the US. Even though the incidences are sporadic and do not warrants altering with numbers at this juncture, investors remain wary about the outcome and pricing power in the future. This is likely to emerge as a new overhang for the sector. On the bright side the USFDA approvals momentum remains at elevated level and even though there are fresh instances of Form 483 issuances, most of them seem manageable. On the demonetization front, we do not expect any material long term impact, though short term channel disruption is likely to impact the domestic growth especially in acute segment. Overall in the long run we expect earnings momentum to continue on the back of incremental product launches largely on speciality, biosimilar and innovation front in the US and likely positive outcome from the 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 over FY16-19E).
Exhibit 1: Summary of USFDA approvals for Nov, 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 Sun Pharma to acquire Biosintez in Russia Sun Pharma entered into an agreement to acquire 85.1% of JSC Biosintez, a Russian pharmaceutical company engaged in manufacture and marketing of pharmaceutical products in Russia and CIS region. Equity consideration for shares acquired is RUB 1,526 million (~| 163 crore). Sun Pharma would also assume a debt of ~US$ 36 million (~| 245 crore) as part of this transaction. JSC Biosintez’s 2015 annual revenue was RUB 3208 million (~| 343 crore). This deal expected to complete by end of 2016. Cipla EU divests stake in Chase Pharmaceuticals to Allergan Cipla announced that Chase Pharma (in which Cipla EU has 16.7% stake) has been acquired by Allergan, plc. Allergan has agreed to pay US$125 million upfront plus potential regulatory and commercial milestones of up to US$875 million to the shareholders of Chase. Cipla acquired a minority stake in Chase in May 2014 via a syndicated venture investment. Aurobindo’s French unit to buy products from Teva Aurobindo Pharma’s French subsidiary Arrow Generiques announced the signing of an agreement to acquire select commercial products in France from Teva. Arrow Generiques will acquire the right, title and interest in products Calcium and Calcium Vitamin D3, including the use of the OROCAL trademark. The transaction is subject to the approval of the European Commission IFC invests | 450 crore for 29% stake in Apollo Health International Finance Corp. (IFC) has invested | 450 crore for a 29% stake in Apollo Health and Lifestyle Ltd (AHLL), a unit of Apollo Hospitals Enterprise Ltd. IFC values AHLL at | 1550 crore. AHLL intends to use this money for expansion of various sub-units.
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Lupin partners Eli Lilly to market diabetes drug Eglucent Lupin and Eli Lilly (Indian subsidiary) have expanded their partnership in the diabetology therapy in India with the launch of Eglucent, a new brand of Lilly’s rapid-acting insulin analog Lispro. Lupin will market and sell Eglucent through its own specialty field force while Lilly will be responsible for manufacturing and import. Lilly will continue to sell Lispro under the brand name Humalog through its existing channels. Stride Shasun acquires Perrigo API India Stride Shasun acquires Perrigo API India private Limited (Perrigo API) for | 100 crore. The transaction is expected to close by end of 2016. Perrigo API has UAFDA approved API facility at Ambernath, Maharastra. Perrigo API’s FY16 revenues was | 73.8 crore and gross block was | 287.4 crore. Sun Pharma, Moebius Medical tie-up to develop pain product Sun Pharma and Israel-based Moebius Medical have entered into an exclusive worldwide licensing deal to develop novel liposomal non-opiod pain product MM-II for the treatment of pain in osteoarthritis. Sun Pharma to fund further development of MM-II including completion of Phase II and Phase III clinical programs and any required preclinical work necessary for regulatory approval. Moebius Medical will receive upfront, milestone and royalty payment from Sun Pharma. Cipla to set up manufacturing facility for pharmaceuticals in Iran Cipla, through its Netherlands-based subsidiary entered into an agreement with Ahran Tejarat Company to form a joint venture in Iran. As per the agreement, Cipla will hold 75% stake in the JV, while the Iranian partner will own the remaining. Cipla will invest ~Euro 16.9 million (~| 120 crore) in the JV. JV will set up a manufacturing facility for pharmaceutical products in Iran. 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. Cadila recalls 20500 bottles of anti- depressant drug in the US Cadila is recalling 20500 bottles of anti- depressant Bupropion Hydrochloride extended release tablets for failed dissolution specifications. This recalls is considered under class III recall category. Glenmark launched gZedia under exclusivity in the US Glanmark Pharma has launched generic version of cholesterol lowering drug Zetia (ezetimibe) under 180 days exclusivity through its partner par Pharma. As per IMS, Zetia has annual sales of US$ 2.3 million in the US. Law suits / Court rulings / Settlements / Regulatory Issues
Sun pharma’s Halol unit receives nine USFDA observations Sun Pharma’s Halol facility receives nine form 483 observations post USFDA re-inspected the plant from November 17, 2016 through December 1, 2016. As per management, none of these observations were repeat observations. The company is preparing its responses to the observations, which will be submitted to USFDA within 15 business days of receipt of the Form-483.
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Divi’s Visakhapatnam unit receives five USFDA observations Divis Lab’s Unit-II at Visakhapatnam has received form 483 with five observations post USFDA inspected this plant between November 29, 2016 to December 06, 2016. The company will respond to the USFDA within the time permitted. As per management, the observations are routine and would not impact the company’s operational performance. Sun’s Mohali plant receives seven form 483 observations from USFDA The USFDA inspected Sun Pharma’s Mohali plant between 7 November and 16 November and issued the seven Form 483 observations, citing four deviations from norms in the laboratory system, two in the quality system and one in the production system. This plant is already under USFDA import alert since Sept 2013. Vietnam bans 39 Indian Drug cos for violation of quality standard Aurobindo, cadila are among 39 Indian drug companies that have been blacklisted by Vietnam for quality standard violations. Vietnamese drug regulator has also banned companies in Bangladesh and South Korea. As per Aurobindo, Vietnam annual sales was ~US$ 1 million. However, as per Aurobindo Pharma’s management, the company is not been blacklisted and continues to export to Vietnam. Vietnam regulatory authority has introduced additional step of analysis on importing medicines in vietnam before release of batches. Aurobindo’s annual Vietnam sales is ~US$1 million. 27 medicines sold by top firms fail quality tests in seven states Indian drug regulators of seven states have alleged that 27 medicines sold by 18 major drug companies in India including Abbott India, GSK India, Sun Pharma, Cipla and Glenmark Pharma are of substandard quality, citing grounds such as false labelling, wrong quantity of ingredients, discolouration, moisture formation, failing dissolution test and failing disintegration test. Some of the key brands which were alleged to be substandard are, antipsychotic drug Stemetil and antibiotic drug Pentids from Abbott India, anti-bacterial medicine Althrocin by Alembic Pharma, migraine medication Vasograin by Cadila Pharma, popular cough syrup Ascoril by Glenmark Pharma, worm infection drug Zentel by GSK India, arthritis medication Hydroxychloroquine (HCQS) by Ipca Labs, anti-inflammatory medication Myoril by Sanofi Synthelabo, and Torrent Pharma’s hypertension drug Dilzem. Delhi High Court quashes government ban on over 300 medicines The Delhi High Court has set aside government’s decision to ban 344 fixed dose combination (FDC) medicines. The government had imposed ban on these medicines in a March 10 notification affected around 6,000 medicine brands, including several popular ones like Corex, Phensedyl, Saridon and Vicks Action 500 Extra. The court however had stayed the ban in March. Allergan settles Delzicol patent litigation with Cadila Cadila Healthcare has settled a litigation with US based Allergan regarding latter’s Ulcerative Colitis drug Delzicol. As per the settlement, Cadila will be able to market the generic version (subject to USFDA approval) on 1st March 2020 or earlier under certain circumstances. US antitrust subpoenas companies over generic drug pricing Sun and Taro Pharma including few more foreign Pharma companies received subpoenas from US Department of Justice (DOJ) in connection with a federal antitrust investigation into generic drug pricing. The US DOJ already accused two former generic pharmaceutical executives colluding with other generic manufacturers to fix prices.
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U.S. states sue Aurobindo and others for fixing drug prices 20 states filed a lawsuit against Mylan, Teva Pharma, Aurobindo Pharma and three other generic drug makers, saying they conspired over steak dinners and "girls nights out" on pricing of two common generic drugs. According to the complaint, Heritage, Teva, Aurobindo and Citron conspired to raise prices on glyburide; Heritage, Mylan and Mayne conspired to allocate and divide the market for doxycycline. Others
Taro Announces New $250 Million Share Repurchase Authorization Sun Pharma’s subsidiary Taro Pharma announced that its Board of Directors has approved a new US$250 million share repurchase authorization of its ordinary shares. This authorization follows the successful completion of the previous $250 million share repurchase program in August 2016. Fire broke out at Syngene’s campus Fire broke out at Syngene’s one of research facility at BIocon Park in Bangalore on 12th December 2016. There was no injury or loss of life due to this incident. As per the management, this research facility, including office and lab spaces, makes up ~10% of Syngene’s total infrastructure at Biocon Park. The company further added that all its other facilities within the same campus were unaffected due to this incident and continues to operate normally. Flash fire incident occurred at Aurobindo Pharma’s Vizag unit Flash fire incident occurred on 12th December 2016, in Aurobindo’s API Unit at Srikakulam near Vizag, Andhra Pradesh in which two people died and one critically injured. As per management, there is no material impact on the operational of the company due to this incident. The US Congress passes 21st Century Cures Act The US congress has passed the 21st Century Cures Act, which could ignite innovation and bring drugs and medical devices more quickly to market. The legislation, dubbed 21st Century Cures, provides nearly US$5 billion for the National Institutes of Health to accelerate research into major diseases, including US$1.8 billion project on cancer, and US$500 million for the FDA to make its approval process more efficient.
IPM grew 15% in November; Chronic drives growth • The Indian pharmaceutical market (IPM) grew 15.3% YoY to | 9388
crore for the month of November. Higher growth was attributable to low base (9.8% in Nov 2015) and high double digit growth in chronic segment.
• The growth was driven by volumes increase – 9.6%, new product launches – 3.5% and price hikes- 2.2%.
• The (Fixed dosage combination) FDCs related market de-grew 30%, impacted ~ 1% to the overall growth.
• Drugs under NLEM list decreased 1.8% to |1005 crore while non-NLEM drugs posted a growth of 17.7% to | 7965 crore. Volume growth in NLEM and Non-NLEM was 10.0% and 5.4% respectively.
• Among companies under I-Direct coverage, Natco, Unichem, Torrent, Sun, Glenmark, Lupin, and Cadila have registered a strong growth of 23.6%, 21.8%, 20.9%, 20.1%, 19.9%, 17.3% and 16.0% respectively.
• Therapy wise, 10 therapies have outpaced the IPM growth. Notable among them with growth rates- Respiratory —31.5%, Anti-diabetic —14.5%, Cardiac – 21.2% and Gynaecology– 21.1%.
• In all, 177 new brands were launched in Nov-16. • On a MAT basis, IPM growth stood at 10.8% YoY to | 107000 crore. • Domestic companies have grown 15.1%, while MNC companies have
Top brands in Indian pharma market Brand Company Therapy Nov' 16 Nov' 15 Gr. (%)Spasmo Prox Wockhardt GI 331.8 289.2 14.8Lantus Sanofi Anti Diabetic 329.3 249.9 31.8Galvus Met Novartis Anti Diabetic 312.3 238.6 30.9Corex Pfizer Respiratory 290.8 291.4 -0.2Augmentin GSK Anti-Infectives 290.6 324.8 -10.5Clavam Alkem Anti-Infectives 274.3 230.4 19.0Volini Sun Pain 245.5 208.3 17.9Pan Sun Pharma GI 231.5 183.6 26.1Becosules Pfizer Vitamins 222.1 248.8 -10.8Voveran Novartis Pain 216.7 170.0 27.5
Source: AIOCD data base Industry acute to chronic therapy ratio percentage…
Acute, 51543, 48.3%
Chronic, 33624, 31.5%
Sub-Chronic, 21634, 20.3%
Source: AIOCD data base; As per AIOCD MAT Nov 2016
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Impact of Demonetization AIOCD has done a Daily Data Survey for 350 plus leading stockists across the country, representing 2.1% of the IPM sales to understand the impact of Demonetization on Secondary Sales. Following are the key observations of the Survey • Total sales remain sluggish compared to same period of Oct 2016. • Acute therapy has been largely impacted • Chronic therapy has been the biggest beneficiary – which clearly shows
some chronic patients have used old notes to pre-pone their medicine supply for 2-3 months
• Week 1 and 2 of demonetization has shown significantly higher sales than corresponding period in Oct as well as much higher than the Diwali week trough of 14.1 Cr.
Exhibit 5: Demonetization impact
[
47.451.5 51.9
46
56
48.5 47.9
22.6 25.2 26.722.7
27.121.7 21.6
15.2 15.9 15.6 14.118.1 17.5 16.8
9.6 10.4 9.7 9.2 10.8 9.4 9.5
0
10
20
30
40
50
60
11th Oct 18th Oct 25th Oct 1st Nov 8th Nov 15th Nov 22nd Nov
| cr
ore
Sales Acute Chronic Sub-Chronic
Source: AIOCD data base, ICICIdirect.com Research
ICICI Securities Ltd. | Retail Equity Research
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Sun Pharmaceuticals
507090
110130150
Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16
CNX Pharma Sun Pharma
Source: NSE, ICICIdirect.com Research Exhibit 6: Company growth vis-à-vis Indian pharma market growth
31.4
14.5
14.3
14.0
13.0
11.9
11.7
11.0
10.9
11.3
11.5
12.3
11.7
14.4
14.1
14.8
14.5
13.2
12.2
10.4
9.6
10.4
10.8 12.024
.8
12.2
0
5
10
15
20
25
30
35
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
Nov
-16
(%)
Indian Pharma Market Sun Pharma
Source: AIOCD data base, ICICIdirect.com Research
Exhibit 7: Market share in Indian formulations market
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Accordingly, neither ICICI Securities nor Research Analysts have any material conflict of interest at the time of publication of this report. It is confirmed that Siddhant Khandekar CA-INTER Mitesh Shah MS (Finance), Research Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. ICICI Securities or its subsidiaries collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report. Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report. It is confirmed that Siddhant Khandekar CA-INTER Mitesh Shah MS (Finance), Research Analysts do not serve as an officer, director or employee of the companies mentioned in the report. ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report. We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities. 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