Sector Update | 8 May 2018
Healthcare
Healthcare
Healthcare: P/E Relative to Sensex
PE (%)
Decoding profitability in complex generics
It’s the lead time post final approval that matters
Pharma companies focusing on US generics have been moving towards complex
generics (CG) on expectation of better and more durable profitability compared to
simple generics.
However, instances of considerable price erosion in CG despite low competition raise
concerns on this strategy.
We find that since the approval process for CG is relatively longer, the lead time
compared to competition is critical for success.
In addition to timing of filing, the quality of data and manufacturing robustness are
key to shortening the time for approval.
We remain selectively positive on stocks progressing well on CG like Aurobindo, Cadila
Healthcare, Biocon and Cipla.
Complex generics business presumed to be better than simple generics…
To limit competition and prolong high profitability business, pharma companies
focusing on US generics are building complex/specialty generics pipelines. The
complexity would be in API/formulation/routes of delivery/drug-device
combinations or where approval pathway has changed.
…but instances of considerable price erosion raise a question mark
Recent instances like g-Renvela, g-Concerta and g-Urocit-K, where there has been
significant price erosion within 3-6 months of approval despite relatively low
competition, have raised a question mark on this strategy.
An interesting space, subject to lead time before competition kicks in
The challenges in meeting regulatory requirements and higher sensitivity to
manufacturing conditions can provide considerable business opportunity depending
on the pace of advances made by a company compared to peers on the basis of
channel checks with industry experts. We continue to believe that CG remains one
of the key growth drivers in regulated markets.
Drug-specific attributes, regulatory pathway, and quality of ANDA – key
aspects in faster approval process
We have looked at key regulatory factors in different complex generics that may
considerably impact the competitive landscape. Besides regulatory hurdle, the
quality of ANDA submitted is critical for a lead over peers. The constantly-evolving
regulatory pathway can delay the approval for generics.
Research Analyst
Tushar Manudhane
Tushar.Manudhane@motilaloswal.com
+91 22 6129 1536
Kumar Saurabh
(Kumar.Saurabh@motilaloswal.com)
+91 22 6129 1519
Rajat Srivastava
Rajat.Srivastava@motilaloswal.com
+91 22 6129 1557
Ankeet Pandya
Ankeet.Pandya@motilaloswal.com
+91 22 6129 1552
Work in progress on CG pipeline by companies under our coverage
Within complex generics, (1) Aurobindo has one ANDA pending for approval and has
filed four DMFs in the peptide space, (2) Cadila Healthcare has five ANDAs pending
for approval in the transdermal space, (3) Biocon has two biosimilar filings pending
for approval each for US and EU market / filed one glatriamoid, (4) Cipla has good
mix of products pending and under development in complex generics, and (5) Lupin
has filed ~2 ANDAs in inhalation segment, ~8 ANDAs in ophthalmics, ~31 ANDAs in
topical, and has a good number of products under development in injectables.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
8 May 2018
1
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

Healthcare
Valuation and view
There has been considerable deterioration in base US business of pharma
companies under coverage since FY17 due to faster ANDA approvals, supply-side
consolidation, and increased competition in key products. However, we remain
positive on the pharma sector, as companies under coverage are progressing well in
complex generics, which should offset the decline in base business and/or drive
growth in US generics. We have a
Buy
rating on Aurobindo Pharma, Cadila
Healthcare and Lupin among large caps, and on Shilpa Medicare among midcaps.
8 May 2018
2

Healthcare
What makes a drug a complex generic?
Regulatory approval for a complex generic is more challenging
We analyzed key attributes that makes drug a complex one, difficulties to get
approval and subsequent impact on the commercial aspect of the generic version of
the same.
Studies for regulatory approval easier in case of simple generics
In case of simple generics, establishing equivalence is done through bioavailability
and bioequivalence (BA/BE) studies. Sometimes, additional data on analytical
method validation and in-vitro and in-vivo correlation studies (IVIVC) are required.
Many pharmaceutical companies having exposure to US generics have passed the
learning curve to get approval for ANDA with respect to simple generics.
Higher efficiency of USFDA also aided faster approval of simple generics
USFDA has improved the approval process by increasing staff, streamlining approval
procedure and communicating about the expected requirement of data and
analysis. As a result, approvals have been quicker, leading to increased competition
in less complex generics. The increased competition has resulted in steep price
erosion and reduced economic viability of some products.
Proving equivalence in case of complex generics is more challenging
Lower scope for business in simple generics and higher entry barriers in complex
generics has led pharmaceutical companies to focus on niche products. The entry
barriers could be in terms of product development (both API and/or formulations),
regulatory procedures for comprehensive characterizations and commercial level of
manufacturing so that there is sustained higher sales and profitability. Sometimes,
there is inadequacy of current methodologies to establish equivalence of a
proposed generic drug to its RLD, which also delays approval for generic drug.
Exhibit 1: Key differences in regulatory pathway
COPY CHARACTERISTICS
Fully identified and
characterized
Small molecule (s)
Not fully characterized complex
product (Large Molecules)
Generic Approach
Similar Approach
(Non-Biological
Complex)
Bio similar Approach
(Protein Product)
Pharmaceutical
Equivalence
Bio-Equivalence
Therapeutic Equivalence
(Interchangeabl
How Similar?
Totality of the
evidence Therapeutic
alternative?
Substitutable?
Interchangeable?
How similar?
Totality of the
evidence Therapeutic
alternative?
Substitutable?
Interchangeable?
Source: Company, MOSL
8 May 2018
3

Healthcare
Broadly, the difficulty could be either in establishing pharmaceutical equivalence or
establishing therapeutic equivalence or both. This could be due to complex API or
formulation or route of delivery or drug device combination or presence of inactive
ingredients.
Exhibit 2: Establishing equivalence is the easiest for small molecules and most challenging for glatiramoids
Source: Company, MOSL
Exhibit 3: Group wise key attributes for regulatory complexity
Group of Drugs
Peptides
Inhaler
Transdermals
Iron colloids
Liposome
Biosimilars
Glatiramoids
Key attributes for complexity
Yield level and Impurity levels
In addition to In vitro and PK study, PD or clinical end point study is also required
Adhesion study, irritation study to be performed on different skins. Study to be done in
US. Plus changing guideline till 2017. Since 2014, there has been hardly any approval in
transdermal. Till now the studies have been done for most of the transdermals
Determining physico-chemical properties, sensitivity of product with respect to change
in manufacturing condition and size of batch
Determining physico-chemical properties, sensitivity of product with respect to change
in manufacturing condition and size of batch
Variability due to Biological process, scaling up to commercial level, phase I PK/PD (9-12
months), Phase III trials (1-3 years) (time consuming, costly,)
Extended physicochemical characterization, In vitro/In-vivo studies and clinical studies,
Highly sensitive to manufacturing conditions
Companies having
exposure
ARBP
Cipla, LPC, GNP
CDH, DRRD
SUNP
SUNP, DRRD
Biocon
NTCPH, DRRD
Source: MOSL, Company
8 May 2018
4

Healthcare
Should pharma companies invest in complex generics?
Recent instances of steep price erosion raise doubts on risk-reward ratio
There have been instances in the recent past, where despite putting considerable
time and effort for USFDA approval for a complex generic, the risk-reward has not
been favorable for generic companies.
Case 1: g-Renvela (Sevelamer Carbonate)
Complexity in g-Renvela (Sevelamer Carbonate): The characterization of
molecule while manufacturing API is a major hurdle for regulatory approval.
Aurobindo Pharma was the first to get generic approval. It was followed by Dr
Reddy’s Lab, Impax, Cipla, Amneal and Sandoz.
Despite considerable complexity, resulting in significant work to get approval for
the generic version of Renvela and only six companies launching, the price
erosion has been steep, making it a less meaningful opportunity.
Despite being first to get approval, Aurobindo could enjoy higher benefit from
this product for only 3-4 months.
Case 2: g-Concerta (Methylphenidate ER)
Complexity in g-Concerta (Methylphenidate ER): The drug release profile due to
excipient effect and subject by formulation effect is a major hurdle for
regulatory approval.
Companies that got ANDA approvals: Amneal Pharma, Mylan, Osmotica,
Kremers Urban Pharma (BX-rated), Abhai, Specgx (BX-rated).
In case of g-Concerta as well, price erosion in the past one year has been
considerable despite staggered approval and limited number of companies
having final approval.
Case 3: g-Urocit-K (Potasium Citrate)
Complexity in g-Urocit-K (Potasium Citrate): The bio-study with data related to
potassium and citrate concentration in urine is one of the major hurdles for
regulatory approval.
Despite only three companies launching and complexity associated to get
approval for the generic version of Urocit-K, the price erosion has been
considerable, making it a less meaningful opportunity.
8 May 2018
5

Healthcare
An interesting opportunity, subject to some conditions
Lead time to approval a key success factor
We interacted with various industry experts to understand the business prospects in
complex generics. Industry experts highlighted lead time for approval and
subsequent launching as the key parameter for success in complex generics.
Lead time would be function of timing of filing, quality of work done to prove bio-
equivalence and establishing robust manufacturing process that would enable
scaling process from lab level to commercial level.
Submission of complete and satisfactory data can substantially reduce time
of correspondence between company and USFDA
We highlight the case of Sevelamer, where Aurobindo was behind peers in terms of
filing ANDA with USFDA (on the basis of application number). However, due to
exhaustive and satisfactory data submitted by Aurobindo, it was the first to get its
ANDA approved by USFDA. Thus, better the ANDA application, higher is the scope
for enjoying benefits post approval.
Exhibit 4: Although Aurobindo was late to file, it was first to receive approval for Sevelamer
SEQUENCING
AS PER ANDA
NO.
1.
2.
3.
4.
5.
6.
Impax Labs
Sandoz
Invagen Pharma
Dr.Reddy
Aurobindo
Amneal
1.
2.
3.
4.
5.
6.
Aurobindo
Dr. Reddy
Impax Labs
Invagen Pharma
Amneal
Sandoz
SEQUENCING
AS PER
APPROVAL
DATE
Source: MOSL, Company
Establishing stable manufacturing process can also reduce time for approval
The production of complex generics is highly sensitive to ma nufacturing conditions,
batch size, product properties and process controls. There have been instances like
g-Toprol, where USFDA required commercial size manufacturing and subsequent
testing on finished product before issuing approval for generic version.
Additional regulatory requirements and/or class of drug-specific guidance
may delay ANDA approvals, but may also reduce lead time for peers
USFDA sometimes asks for incremental data or issues guidance so that interested
generic companies may start preparing and accordingly submit. Incremental time to
do studies and subsequent data analysis may delay the ANDA approval for
everybody; however, it may not increase the lead time for competitors.
8 May 2018
6

Healthcare
CG pipeline at various stages of approval process
Depending on available skill-set, companies are working on different CGs
In the following tables, we have highlighted company-wise CG pipelines, which have
been filed and are under various stages of approval.
Exhibit 5: Cadila Complex Products
Generic name
Brand name
Indication
Hypertension
Postmenopausal
Osteoporosis
Ventricular Arhythmias
Alzheimers
idiopathic parkinsons
Pain management
Gastroesophageal
Disease
Market size Generic
Current status
(USD m) Approvals
200
100
52
400
50
560
4
1
2
1
0
7
Rivastigmine
Rotigotine
Fentanyl Patches
EXELON
Neupro
Duragesic
Filed by Cadila in FY11.
Filed by Cadila in FY11.
Cadila has filed. The other two filers are Actavis
and Mylan who have final approval in place
Cadila has Filed and there are no queries
pending at the end of Q1FY18. Actavis is Para
IV filer and is under litigation with innovator.
Sandoz is AG for this product
Actavis filed in 2014 and currently under
litigation. Cadila filed in 2QFY17
Cadila has filed ANDA in 2QFY17 and has
received CRL during 2QFY18.
Multiple ANDA filers.
Source: MOSL, Company
Cadila: Transdermal
Clonidine
Catapres-TTS
Estradiol
Lidocaine
Climara
Lidoderm
Cadila: Other complex generics
Lansoprazole
Prevacid ODT
250
1
Exhibit 6: Cipla Complex Products
Generic name
Brand name
Indication
Market size Generic
Current status
(USD m) Approvals
750
180
2
0
Salmeterol +
fluticasone
Advair Diskus
Obstructive Pulmonary
1700
0
Cipla already has approval in Europe. US ANDA
review in progress.
Already filed. Cipla's file is under review
Commenced clinical trials in 3QFY18 and plan to
initiate two more clinical trials in the US.
Around 15-18 months from filings. Expect
approval in FY21. Mylan has CRL and may
launch early FY19. Hikma also to launch in FY19
Cipla is para IV filer and was sued in May-15.
Teva is Authorised generic for this product
Filed DMF
Cipla is para-IV filer and litigation is ongoing
with innovator. Innovator has Settled with Teva
to launch generic version on 31 Mar-22
Source: MOSL, Company
Cipla – Respiratory
Mometasone
Nasonex
furoate
Albuterol
Proventil
Skin diseases
Bronchospasm
Levalbuterol
Xopenex HFA
tartrate
Beclomethasone
Qvar
dipropionate
Cipla - other Complex products
Nano Paclitaxel
Abraxane
Bronchospasm
Bronchial Asthma
80
392
0
0
Oncology
633
0
8 May 2018
7

Healthcare
Exhibit 7: Lupin Complex Products
Generic name
Lupin - Respiratory
Albuterol Sulphate
Tiotropium
ProAir
Spiriva
Bronchospasm
Bronchospasm
500
2,995
(global sales)
1,610
156
0
0
2
4
Lupin filed in 2QFY17. Perrigo and Catalant have
settled litigation with Innovator (Teva)
In process to completing Phase-III study.
LPC would likely be starting Phase III studies in start
of FY19
Lupin filed in FY18. Apotex, Cipla, Impax and Sandoz
have final approval in place.
LPC resolved its litigation case with Roche and Gilead
after getting approval in FY13, to launch gRanexa
from 27th Feb-19. It has also got 180 days
exclusitvity. No other known filers
LPC has responded to queries of USFDA and is
awaiting feedback.
Multiple ANDA filers.
CDH and Teva has final approval in place. Mylan
awaiting approval.
Source: MOSL, Company
Brand name
Indication
Market size Generic
Current status
(USD m) Approvals
Salmeterol +
Obstructive
Advair Diskus
fluticasone
Pulmonary
Budesonide
Pulmicort Respulescolitis
suspension
Lupin - Other complex products
Ranolazine
Levothyroxine
Lansoprazole
Mesalamine
Ranexa
Synthroid
Prevacid ODT
Lialda
Chronic Angina
Pectoris
Thyroid Hormone
defeciency
Gastroesophageal
Disease
Ulcerative colitis
900
781
250
473*
0
1
1
2
Exhibit 8: Dr. Reddy complex products
Generic name
Brand name
Market size Generic
Current status
(USD m) Approvals
Patent expired in April-18. Dr. Reddy has TAD in early
vaginal
Q2FY19. Other filer is Teva. Glenmark in partnership
580
0
contraceptive
with Evestra is expected to file in FY19
Mylan and Sandoz got FDA approval for Copaxone
40mg and 20mg. DRRD has responded to the CRL.
Multiple Sclerosis
3,048
2
Pfizer, Biocon, Amneal and Synthon are other filers
in 20mg. For 40mg Pfizer, Apotex, Biocon, Amneal
and Synthon are other filers
Litigation of innovator is in progress with multiple
Opioid dependence
1,700
0
filers. Recently, Alvogen won ruling in district court
on one of the patent
DRRD has para IV filing and litigation is ongoing.
Zydus, Cipla and Lotus Pharma are other filers which
Multiple Myeloma
5,400
0
are under litigation. Innovator has settled with Natco
to have limited volume sell from Mar-22
Indication
otitis media
Chronic Indiopathic
constipation
Erectile
Dysfunction
NA
460
1358
0
0
0
DRRD is a para IV filer and litigation is ongoing
Par and DRRD entered into patent settlement with
with Sucampo to likely launch generic Amitiza in Jan-
21 (Par) and Nov-22 (DRRD)
Multiple generic filers. Likely generic entry from
Sep-18
Source: MOSL, Company
Ethinyl estradiol and
Nuvaring
Etonogestrel
Glatiramer acetate
Copaxone
Buprenorphine and
Suboxone
Naloxone
Lenalidomide
Ciprofloxacin and
Dexamethasone
Lubiprostone
Tadalafil
Revlimid
Ciprodex
Amitiza
Cialis
8 May 2018
8

Healthcare
Exhibit 9: Sun Pharma complex products
Generic name
Brand name
Indication
Market size Generic
Current status
(USD m) Approvals
Hikma settled case with Jazz Pharma, authorizing Hikma
to launch on Jan 1st 2023, or earlier under certain
820
1
circumstances. Jazz also entered into settlement with Sun
Pharma and Wockhardt, allowing them to launch the
product on or after 31st Dec 2025
Multiple generic filers under litigation. Recently, PTAB has
1,200
0
ruled in favor of generics
250
60
1
0
Multiple ANDA filers.
Only 3 DMF filers
Source: MOSL, Company
Sodium Oxybate
Xyrem
Narcolepsy
Abiraterone Acetate Zytiga
Lansoprazole
Ganirelix acetate
Prevacid
ODT
Antagon
Oncology
Gastroesophageal
Disease
LH surges
Exhibit 10: Biocon Biosimilar pipeline
Generic name
Pegfilgrastim
Brand name
Neulasta
Market size Generic
Current status
(USD m) Approvals
Biocon received CRL for the product in Oct-17. Next TAD
Neutropenia
3,850
0
is 4 June 2018. Other filers include Coherus, Sandoz,
Cinfa, USV and Apotex
Biocon received approval from US FDA in Dec-17. Pfizer,
Amgen/Allergan and Teva/Celtrion have filed BLA in
Breast Cancer
2,000
1
2HCY17, while Hanwha is a potential late stage filer. Work
in progress by Biocon for approval in EU market.
Company recently got approval in the EU market. Eli Lilly
Diabetes
4,000
2
and Merck have also got FDA approval
Biocon-Mylan have ties up with Fuji-Kirin for
commercialization in Europe (Fuji-Kirin has already filed in
Psoriatic Arthritis
4,000
2
EMA and expect approval in 2HCY18). Biocon is currently
conducting phase-III clinical trials for US market. Samsung
and Sandoz have filed ANDA
Biocon is currently conducting phase-III clinical trials. BI,
Colorectal Cancer 2,894
1
Pfizer, Samsung, Fuji-Kirin and Astra Zeneca are potential
filers
Biocon is currently conducting phase-I clinical trial. There
Diabetes
1,000
0
are no other known filers
Source: MOSL, Company
Indication
Trastuzumab
Insulin Glargine
Herceptin
Lantus
Adalimumab
Humira
Bevacizumab
Insulin Aspart
Avastin
Novolog
8 May 2018
9

Healthcare
Exhibit 11: Aurobindo complex products
Generic name
Aurobindo – Peptides
Octreotide Acetate
Linaclotide
Sandostatin LARDiarrhea
Linzess
850
700
NA
669*
0
0
2
0
4 companies have approval for G-Sandostatin, while none
have approval for g-Sandostatin LAR yet.
Sun Pharma has settled litigation. Teva, Mylan, Sandoz and
ARBP are under litigation
ARBP has filed DMF. No unexpired patent on this product
ARBP has filed DMF. No unexpired patent on this product
Brand name
Indication
Market size Generic
(USD m) Approvals
Current status
Idiopathic
Constipation
Desmopressin AcetateDDAVP
Diabetes
Leuprolide Acetate Lupron Depot Prostate cancer
Aurobindo- Other
Complex Products
Ertapenem
Invanz
Infection
Gastroesophageal
Disease
Angina
~361
1
Company had received query for the product and have
responded for the same and expects approval in coming
few months. Hospira and Savior Lifetec are other filers
under litigation with Merck. Recently, ACS Dobfar received
final approval.
Multiple ANDA filers.
Aurobindo had received query from FDA and responded in
Feb-18. Since then, there are no further queries as per
management. Despite 7 approvals, it has been launched
by 3 companies only
Source: MOSL, Company
Lansoprazole
Prevacid ODT
250
690
1
7
Metoprolol Succinate Toprol
8 May 2018
10

Healthcare
Valuation and view
Selectively positive
The base business of US generics continues to erode due to pricing pressure and
supply side consolidation. In addition, due to lack of potential approvals,
specifically, in 9MFY18, companies under coverage showed ~11-40% YoY decline
in revenue, except for Aurobindo and Cadila, which delivered growth during
similar period.
Higher number of approvals followed by subsequent launches remains critical to
have filling rate higher than erosion rate. CG can be potential growth drivers
subject to timely approval.
The consistency in regulatory approval remains key constraint as it can not only
hold existing business but also affect future approvals.
We remain selectively positive on companies with niche product pipeline and
minimal regulatory risk.
Accordingly, we have a
Buy
rating on Aurobindo Pharma, Cadila Healthcare and
Lupin among large caps, and Shilpa Medicare among midcaps.
Exhibit 12: Valuation table
Company
Alembic Pharma
Alkem Lab
Ajanta Pharma
Aurobindo Pharma
Biocon
Cadila Health.
Cipla
Divi's Lab.
Dr Reddy's Labs
Fortis Health.
Glenmark Pharma.
Granules India
Glaxosmit Pharma
Ipca Labs.
Jubilant Life
Laurus Labs
Lupin
Sanofi India
Shilpa Medicare
Strides Shasun
Sun Pharma.Inds.
Torrent Pharma.
Reco
Neutral
Buy
Buy
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Neutral
Buy
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Neutral
EPS (INR)
CMP TP
(%)
(INR) (INR) Upside FY18E FY19E FY20E
504 555
10
24.8 25.6 30.5
2,012 2,500 24
65.4 89.5 110.6
1,158 1,560 35
53.0 51.6 65.0
618 820
33
43.8 48.7 53.6
623 600
-4
6.2 10.8 19.8
393 555
41
16.0 20.1 23.3
591 600
2
21.6 26.2 32.0
1,207 1,100
-9
32.9 44.0 52.7
2,072 2,575 24
67.1 114.1 146.1
153 185
21
1.5
2.8
7.3
524 550
5
30.6 32.9 41.1
99
175
76
6.3
7.9 11.0
2,347 2,500
7
38.3 42.6 48.5
729 750
3
21.4 29.2 37.3
828 1,110 34
47.8 62.6 72.5
503 613
22
19.0 29.1 35.7
775 940
21
31.0 40.2 54.1
4,876 5,600 15
141.7 161.8 186.9
465 686
48
13.3 24.3 30.6
552 989
79
14.1 40.8 55.7
512 675
32
13.2 21.5 27.7
1,360 1,400
3
48.0 61.3 78.5
P/E (x)
FY18E
20.3
30.8
21.9
14.1
100.4
24.6
27.4
36.7
30.9
104.1
17.1
15.7
61.2
34.0
17.3
26.4
25.0
34.4
34.9
39.1
38.8
28.3
FY19E
19.7
22.5
22.4
12.7
57.7
19.6
22.6
27.4
18.2
55.4
15.9
12.5
55.1
24.9
13.2
17.3
19.3
30.1
19.1
13.5
23.8
22.2
FY20E
16.5
18.2
17.8
11.5
31.5
16.9
18.5
22.9
14.2
21.0
12.8
9.0
48.4
19.5
11.4
14.1
14.3
26.1
15.2
9.9
18.5
17.3
EV/EBITDA (x)
FY18E
13.6
19.8
15.6
9.6
45.2
15.6
16.6
25.4
15.3
22.9
11.6
9.5
39.6
19.7
10.2
12.5
13.1
19.3
23.5
15.6
21.4
17.6
FY19E
12.8
16.0
16.6
8.3
29.0
12.6
14.0
18.4
9.6
13.3
11.1
7.2
36.8
14.6
8.2
9.4
10.7
15.8
17.0
9.1
14.3
12.1
FY20E
10.6
12.9
13.2
7.1
18.4
10.9
11.6
15.2
7.4
8.3
9.2
5.6
31.8
11.7
7.0
8.0
8.2
13.4
13.3
7.1
11.0
10.1
FY18E
22.5
16.4
26.0
24.2
7.2
21.6
12.4
16.0
9.0
1.2
16.4
13.2
19.7
10.5
19.7
14.1
10.1
16.1
11.0
4.6
8.5
17.6
ROE (%)
FY19E
19.8
19.5
20.4
21.7
11.5
22.8
13.3
20.0
13.9
2.2
15.3
13.9
27.2
13.0
21.4
18.3
12.1
16.8
17.4
12.1
13.2
19.9
FY20E
20.1
20.6
21.5
19.6
18.3
22.0
14.1
21.3
15.6
5.6
16.2
17.4
30.9
14.7
20.4
18.8
14.6
17.5
18.3
14.5
15.3
22.3
8 May 2018
11

Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
Healthcare
*In case the recommendation given by the Research Analyst becomes inconsistent with the investment rating legend, the Research Analyst shall within 28 days of the inconsistency, take appropriate measures to make the recommendation consistent with the investment rating legend.
NOTES
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Motilal Oswal Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock broking services,
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The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the
specific recommendations and views expressed by research analyst(s) in this report.
Disclosure of Interest Statement
Analyst ownership of the stock
Companies where there is interest
No
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary trading desk of MOSL or
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and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong)
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registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOSL is not a registered
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The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and therefore, may not be subject
to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
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completeness or fairness of the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the
views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval.
MOSL, its associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform
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Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm
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na@motilaloswal.com,
Contact No.:022-30801085.
Registration details of group entities.: MOSL: SEBI Registration: INZ000158836 (BSE/NSE/MSE); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100.
Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities Products. * Motilal Oswal Real
Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
8 May 2018
12