Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/lotus-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:20568:1" rel="noopener">Lotus Pharmaceutical (1795 TT)</a> ended 2022 on a strong note. Full-year 2022 revenue grew 15.7% YoY to NT$14.6B. 2022 was the third consecutive year that Lotus achieved double-digit annual growth.</li>
<li>The export markets outside of Asia grew 28% YoY, largely contributed by the launch of multiple myeloma drug lenalidomide in a number of markets around the world, including the U.S.</li>
<li>In December, Lotus took over the Eli Lily’s Alimta business in Taiwan for $62M. Alimta is a first-line treatment for NSCLC with high brand loyalty.</li>
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Lotus Pharmaceutical (1795 TT) ended 2022 on a strong note. Full-year 2022 revenue grew 15.7% YoY to NT$14.6B. 2022 was the third consecutive year that Lotus achieved double-digit annual growth.
The export markets outside of Asia grew 28% YoY, largely contributed by the launch of multiple myeloma drug lenalidomide in a number of markets around the world, including the U.S.
In December, Lotus took over the Eli Lily’s Alimta business in Taiwan for $62M. Alimta is a first-line treatment for NSCLC with high brand loyalty.


Lotus Pharmaceutical (1795 TT): 2022 Ends with Mid-Teen Revenue Growth; Further Steam Still Left

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<a href="https://www.smartkarma.com/entities/cipla-ltd" target="_blank" data-smartkarma-citation="entities:3918:1" rel="noopener">Cipla Ltd (CIPLA IN)</a> is a strong play in Indian generic pharmaceutical industry, due to its niche and differentiated respiratory and peptide injectable portfolio, which has less competition.</li>
<li>The company has launched couple of complex respiratory products in the US market, which has accelerated its revenue growth. Multiple high-value launches are also lined up for this year.</li>
<li>Cipla’s India business is on a strong footing, led by core portfolio tailwind in prescription and trade generics businesses. Q2FY23 marked the sixth consecutive quarter of market beating growth.</li>
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Cipla Ltd (CIPLA IN) is a strong play in Indian generic pharmaceutical industry, due to its niche and differentiated respiratory and peptide injectable portfolio, which has less competition.
The company has launched couple of complex respiratory products in the US market, which has accelerated its revenue growth. Multiple high-value launches are also lined up for this year.
Cipla’s India business is on a strong footing, led by core portfolio tailwind in prescription and trade generics businesses. Q2FY23 marked the sixth consecutive quarter of market beating growth.


2023 High Conviction Idea: Cipla (CIPLA IN)- Complex Generics and India Business to Drive Growth

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Ajanta Pharma is a focused player in branded, which constitutes ~72% of overall sales, spread across geographies including India.</li><li>As of Q2FY23, overall exports: domestic formulations ratio was at 66:34</li><li>Among exports, Asia accounts for ~41% of export formulations, Africa 29% and US 30%.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Ajanta Pharma is a focused player in branded, which constitutes ~72% of overall sales, spread across geographies including India.As of Q2FY23, overall exports: domestic formulations ratio was at 66:34Among exports, Asia accounts for ~41% of export formulations, Africa 29% and US 30%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ajanta Pharmaceuticals - Margins Weak but Branded Generics Outlook Strong…

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<a href="https://www.smartkarma.com/entities/ajanta-pharma-ltd" target="_blank" data-smartkarma-citation="entities:10053:1" rel="noopener">Ajanta Pharma (AJP IN)</a> has a well-diversified business model in terms of markets and therapies. The company’s largest revenue contributing segment, branded generics is seeing healthy double-digit revenue growth.</li>
<li>Ajanta focuses on limited competition product in US. Going forward, the US business will see accelerated growth, driven by new launches. Ajanta plans to file 10–12 ANDAs during FY23.</li>
<li>Ajanta has taken 1% price increase across all its market, which should drive margin improvement in coming quarters. The company has guided for EBITDA margin of 26–27% for FY23.</li>
</ul>



Ajanta Pharma (AJP IN) has a well-diversified business model in terms of markets and therapies. The company’s largest revenue contributing segment, branded generics is seeing healthy double-digit revenue growth.
Ajanta focuses on limited competition product in US. Going forward, the US business will see accelerated growth, driven by new launches. Ajanta plans to file 10–12 ANDAs during FY23.
Ajanta has taken 1% price increase across all its market, which should drive margin improvement in coming quarters. The company has guided for EBITDA margin of 26–27% for FY23.


Ajanta Pharma (AJP IN): Branded Generics Focus Ensures Consistent Growth

Thematic (Sector/Industry)

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<li>Most of the large Indian pharmaceutical companies have reported double-digit revenue growth in their respective U.S. business in Q1FY23. New launches are mostly offsetting the impact of price erosion.</li>
<li>Although the companies are still facing price erosion in the U.S. market, the pace has slowed down. Price erosion seems to be near its bottom.</li>
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<a href="https://www.smartkarma.com/entities/dr-reddy-s-laboratories-ltd" target="_blank" data-smartkarma-citation="entities:16406:1" rel="noopener">Dr. Reddy's Laboratories (DRRD IN)</a> and <a href="https://www.smartkarma.com/entities/zydus-lifesciences-ltd" target="_blank" data-smartkarma-citation="entities:12914:1" rel="noopener">Zydus Lifesciences Ltd (ZYDUSLIF IN)</a> remain our top picks. Aided by new launches both the companies are seeing sustainable recovery in U.S. business.</li>
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Most of the large Indian pharmaceutical companies have reported double-digit revenue growth in their respective U.S. business in Q1FY23. New launches are mostly offsetting the impact of price erosion.
Although the companies are still facing price erosion in the U.S. market, the pace has slowed down. Price erosion seems to be near its bottom.

Dr. Reddy's Laboratories (DRRD IN) and Zydus Lifesciences Ltd (ZYDUSLIF IN) remain our top picks. Aided by new launches both the companies are seeing sustainable recovery in U.S. business.


Indian Generic Pharmaceutical Companies: The US Business Is Recovering Slowly

India

Ajanta Pharma Limited is a pharmaceutical company involved in the areas of product research, manufacturing, and marketing. The Company's manufacturing capabilities include segments such as antiretrovirals, antimalarials, cardiovascular, dermatology, and ophthalmology. The Company also markets over the counter products that include some nature-based remedies.

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Ajanta Pharma (AJP IN)

Lotus Pharmaceutical (1795 TT): 2022 Ends with Mid-Teen Revenue Growth; Further Steam Still Left

Driven by lenalidomide launch in US, 2022 revenue grew 16%, marking 3rd consecutive year of double-digit growth. New product introduction and...

Tina Banerjee

2023 High Conviction Idea: Cipla (CIPLA IN)- Complex Generics and India Business to Drive Growth

Cipla is a strong play on Indian pharma. Riding on a differentiated product portfolio and new launches gaining market share, Cipla is well...

Tina Banerjee

Ajanta Pharmaceuticals - Margins Weak but Branded Generics Outlook Strong…

Ajanta Pharma is a focused player in branded, which constitutes ~72% of overall sales, spread across geographies including India

ICICI Securities Limited