Buy Alembic Pharma; target of Rs 86: Nirmal Bang – Moneycontrol.com

Published on Sat, May 05, 2012 at 10:48 |  Source : Moneycontrol.comUpdated at Sat, May 05, 2012 at 11:14  0

Nirmal Bang is bullish on Alembic Pharma and has recommended buy rating on the stock with a target of Rs 86 in its May 2, 2012 research report.

“Alembic Pharma, sequential results are not comparable due to seasonality factor. Q4 is seasonally weak quarter for the company. Exports drove the sales growth for the quarter as well as for FY12. During the quarter exports grew by 28.1% yoy as compared to domestic growth of 7.5% yoy. For FY12 exports reported impressive growth of 41.2% as compared to 11.3% domestic growth. During the quarter R&D expenses have increased substantially to Rs 22.1 cr (6.5% of sales; includes one-time filing cost of NDA of Rs 5 cr) as against Rs 9.1 cr (2.4%) in Q3FY12 and Rs 15.7 cr (5.3%) in Q4FY11, on account of higher filings for European and Brazil regions and more Para IV and 505 (b) (2) filings. We have also incorporated higher R&D cost for future years (4.8% of sales in FY13E and FY14E as compared to 4.0% in FY12).”

“The company has filed four ANDAs and three DMFs during the quarter taking the cumulative filings to 45 ANDAs and 62 DMFs. It has received two approvals as well in Q4FY12 taking the total approvals to 19. Management expects domestic formulations growth to be strong however it would be limited by current capacity constraints. The management expect 15% growth in FY13 however it also feels that FY14 would be the turnaround year in terms of growth as new capacity would ease the current constraints and it would be able to take the full benefit of increasing demand.”

“For FY12-14, we expect Alembic Pharma’s revenues to grow at 15.6%. However, PAT is expected to grow faster i.e. 25.0% during the same period on account of favorable change in product mix, shift from API to formulations, launch of new products and higher economies of scale. We had initially recommended Alembic Pharma on 22nd March 2012 at Rs 43. Since then the stock has given 26% returns. We maintain our “BUY” with a revised target price of Rs. 86 (earlier Rs 97) indicating a potential upside of 59% over next two years. Major reason for revision in numbers is slow down in FY13 numbers due to constraints in capacity and higher R&D expenses,” says Nirmal Bang research report.  

Non-Institutions holding more than 90% in Indian cos   

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment

document.write(page_mob_footer);function poll_value(option){var option_selected = option;//alert(option_selected);document.getElementById(‘prce_opt’).value = option_selected;//alert(document.getElementById(‘mc_option’).value);document.mc_m3poll.action=”http://mmb.moneycontrol.com/india/messageboard/view_topic_msgs.php”;document.mc_m3poll.submit();}function msg_close(){$(‘#pollM3Almc’).hide(‘slow’);}document.getElementById(“m3Ppoll_top”).innerHTML=””;document.getElementById(“m3Ppoll_top”).innerHTML=document.getElementById(“article_stk_poll”).innerHTML; function postquote(keysearch) { len = keysearch.companyname.value.length; if(len 10) { tempvar=companyname; flag1=”true”; break; } else { j=i+1; result= companyname.charAt(i); preval=companyname.charAt(j); if(result==” ” || preval==” ” || result==”.” || preval==”.” || len=0; i–) revstr+=str.charAt(i) return revstr; } function sector_newsletter(){ var email = document.getElementById(“email_newsletter”).value; emailRe = /^\w+([\.-]?\w+)*@\w+([\.-]?\w+)*\.(\w{2}|(com|net|org|edu|int|mil|gov|arpa|biz|aero|name|coop|info|pro|museum))$/ if(email==” || email==’Enter email address’) { alert(“Enter Email address.”); document.getElementById(’email_newsletter’).focus(); return false; }else if(!emailRe.test(email)) { alert(“Enter Valid Email”); document.getElementById(’email_newsletter’).focus(); return false; }else{ var emailstr = toHex(email); var str = strrev(emailstr); document.nlfrm.action =’/sector-newsletters/index.php?email=’+str; return true; } } function tabs_news_rhs(a) { if(a==1) { document.getElementById(“news_mp”).style.display=”block”; document.getElementById(“news_ep”).style.display=”none”; document.getElementById(“rhs_tab_1”).className = “act”; document.getElementById(“rhs_tab_2”).className = “”; } else { document.getElementById(“news_mp”).style.display=”none”; document.getElementById(“news_ep”).style.display=”block”; document.getElementById(“rhs_tab_1”).className = “”; document.getElementById(“rhs_tab_2”).className = “act”; } }

IOB Q4 NII At `1,340 Cr Vs `1,215 Cr (YoY)

The latest earning numbers FIRST on CNBC-TV18Subscribe toMoneycontrol Newsletters

View the original article here

Indian pharma companies like Hetero, Alembic, Lupin, Dr Reddy's dominating US … – Economic Times

Indian pharma companies like Hetero, Alembic, Lupin, Dr Reddy’s dominating US generic space – Economic Times You are here: Home>Collections>AlembicIndian pharma companies like Hetero, Alembic, Lupin, Dr Reddy’s dominating US generic spaceRupali Mukherjee, TNN May 4, 2012, 05.57AM ISTTags:Sun Pharma|Nectar Life Sciences|Lupin|Hetero|Glenn Saldanha|Glenmark Pharma|Dr Reddy’s|Alembic

MUMBAI: India is playing a dominant role in the US generic pharma space, having cornered over half the certified dossiers filed globally for active pharmaceutical ingredients (API). Drug companies from India filed 51% of the overall global applications, also called drug master filings (DMF), in the US market during calendar year 2011. DMFs are essentially approvals to supply complex raw materials to all generic manufacturers servicing the US market, which is the most lucrative of all global markets.

Over the last three years, there has been a sustained increase in the trend of such applications from India. Of the global DMF filings in the US, India accounted for 45% in 2009, which increased to 49% in 2010 and 51% in 2011 (see chart).

Against this, China which is the leading API supplier in emerging markets, cornered only 18% of the total DMFs filed in the US in 2011, down from 20% in 2010. Interestingly, midrung companies like Hetero, and even smaller ones like USV, Nectar Life Sciences, Shilpa Medicare and Gland Pharma are now filing for such approvals from the US Food and Drug Administration.

Says Glenn Saldanha, chairman and MD, Glenmark Pharma, “Indian companies are playing a huge role in providing tangible, long-term value to generic players in the US market. US being the largest standalone generic market, continues to offer attractive partnership opportunities as most US dosage manufacturers (barring the top four or five) are not backward integrated.”

Among the companies, Hyderabad-based Hetero had the maximum new filings at eight during the fourth quarter of 2011.Others like Alembic, Emcure and Gland have filed four DMFs each. Among large players, Lupin and Dr Reddy’s filed three each, while Sun Pharma had two filings, and Cadila filed for one. Other significant filers were Jubilant, Aurobindo, Ipca (two each), while Orchid and Torrent filed for one each.

It was the first time that domestic players filed for 22 molecules during the quarter (higher than eight in 3Q11), of which the Prasugrel filing by Dr Reddy’s may lead to a new chemical entity, according to a JM Financial analyst.

Says Sujay Shetty, partner, PwC India, “Domestic companies have moved up the value curve by filing complex certified dossiers. These filings are important for domestic as well as US companies, which are filing for approvals to launch generic drugs (abbreviated new drug application), and are truly indicative of the quality and regulatory compliance, which has become critical. Also, for Indian manufacturers in the US, sourcing APIs from Indian companies, lowers costs.” Sales of APIs in the US have also started augmenting US revenues of these Indian companies .

In the past, industry experts say domestic companies targeted less-regulated markets for API and this space is now extremely competitive. So, many of them decided to make the transition of supplying APIs to regulated markets. And to do this they naturally had to build on their R&D capabilities to meet the stringent requirements of countries like the US.

“Basically, two aspects have emerged… Not only are Indian companies offering standalone APIs but are also increasingly offering finished dosages as part of vertically integrated partnership deals. This is most true for mid-rung players which presently do not have a direct presence in the US market ,” adds Saldanha.

Budget 2012 at ET: Budget 2012 | Union Budget | Rail Budget 2012 | Budget News FEATURED ARTICLESAuto Expo 2012: Maruti to launch 4 new cars across segments this yearInfosys staff to get steep cut in variable pay post salary freezeMaruti Suzuki Ertiga launched at starting price of Rs 5.89 lakhsMore:DoT seeks legal opinion on absorbing 1,600 staff from BSNLMaruti Suzuki Ertiga launched at starting price of Rs 5.89 lakhsSony to hire 500 people in India in 2012-13BookMyShow.com ties up with five IPL teamsGold may touch $7,000 per ounce before end of uptrendPiaggio launches Vespa at Rs 66,661; to double scooter capacity in IndiaRELATED ARTICLESAurobindo Pharma goes global with bulk drugs
June 4, 2003Alembic plans to take its bulk drugs to US
May 23, 2003Indian pharma firms top in filing DMFs
January 21, 2004IN-DEPTH COVERAGEAlembicApis© 2012 Bennett, Coleman & Co. Ltd. All rights reservedIndex by Keyword|Index by Datehttp://www.economictimes.comFeedback|Privacy Policy|Terms of Use|Advertise with us document.write(unescape(“%3Cscript src='” + (document.location.protocol == “https:” ? “https://sb” : “http://b”) + “.scorecardresearch.com/beacon.js’ %3E%3C/script%3E”)); COMSCORE.beacon({ c1:2, c2:6036484, c3:””, c4:””, c5:””, c6:””, c15:”” });

View the original article here