Health Check Glenmark Pharma. -25 -35 -58 -52 8183 -5 5 21 ...content.icicidirect.com/mailimages/IDirect_HealthCheck...Glenmark Pharma. -25 -35 -58 -52 8183 Jubilant Life -4 -2 -34

ICIC

I S

ecurit

ies –

Retail E

quit

y R

esearch

Monthly

Sector U

pdate

October 11, 2019

Health Check

Scepticism encircles generic players with flurry of

cGMP issues

In 2019, Indian companies received seven warning letters, ~10 Official

Action Indicated (OAI) and a number of adverse observations from USFDA.

In a recent update, Aurobindo Pharma’s Unit-7 has received Form 483 from

USFDA with seven observations. The USFDA conducted cGMP related

inspection at this unit from September 19-27, 2019. As per media reports,

this plant is contributing 25-30% to US revenues. The company has ~33

pending USFDA approvals as of Q1FY20 from Unit VII. We believe the

observations are critical and the company is likely to face further remedial

action from the USFDA like warning letter or in worst case scenario an

import alert. We await further action from the USFDA. Although the

company owns one of the best US generic ecosystem (lower product

concentration- top 25 products account for just ~40% of US sales; growing

non-oral franchise; number of alternate plants at the disposal; ~70% own

API source), the overhang of a fourth plant coming under scrutiny within a

span of few months is taking huge toll on the stock.

In another cGMP related incident, Torrent's Indrad (Gujarat) facility received

a warning letter from the USFDA. We were expecting this warning letter after

it received OAI status from the USFDA in August 2019. The management

expects no impact on existing supply and revenue generated from the

facility. As per media reports, Indrad contributes ~80% of the company's US

revenues (US is ~20% of total revenues). This, along with the fact that the

Dahej unit (second most ANDAs filed after Indrad) is also under OAI is likely

to affect future approvals. We expect minimal financial impact.

In yet another incident, Glenmark's Baddi facility received a warning from

USFDA. The inspection was conducted from April 15-20 earlier this year and

was classified as official action indicated (OAI). As per the company, existing

manufacturing & sale of products will not be impacted. Also, Baddi does not

have any major pending approvals in the next 12 months. Expected sales

from Baddi for FY20 are ~US$30 million (7% of US sales). We expect

minimal financial impact on account of likely increase in remedial cost.

Finally, the Indian pharmaceutical market (IPM) grew 11.9% YoY to | 12492

crore in September 2019. The growth was attributable to price hike: 5.6%,

new product launches: 2.9% and volume growth: 3.5%. On a MAT basis,

IPM growth was 9.8% YoY to | 136802 crore.

Regulatory concern magnified; stock specific approach remains

In the past few quarters, financially, things are looking much stable. The US

generics narrative is reflecting some sort of normalcy on the back of a

stability in base business performance and new launches besides

rationalisation of unviable products. Domestic formulations are also

showing a steady performance on an annual basis. Profitability is also likely

to improve as the management commentary continues to suggest

rationalisation of R&D and other related expenses, MR optimisation and

concentrated focus on marketing costs for specialty and biosimilars. Waning

concerns on Chinese raw material sourcing besides improving operating

leverage are also likely to contribute to margin expansion. Similarly, the

companies are moderating capex plans to focus on better RoCE. However,

a sudden spurt in warning letters and OAIs even for players with hitherto

unblemished cGMP record (read Torrent and Glenmark) have once again

brought scepticism towards US focused generic players. In this backdrop,

we continue to maintain our stock specific approach. India focused MNCs,

CRAMs players and hospitals are our preferred picks in healthcare segment.

Stock Performance

Mcap

Company 1M 3M YTD 1Y 10-Oct

Sun Pharma.Inds. -10 -1 -10 -36 92876

Divi's Lab. 3 3 13 29 44360

Dr Reddy's Labs -4 2 1 6 43762

Cipla -11 -23 -19 -34 34035

Lupin -10 -9 -18 -19 31363

Biocon 3 -3 -24 -22 28848

Torrent Pharma. -2 9 -5 5 28535

Aurobindo Pharma -26 -22 -36 -40 27305

Cadila Health. -2 2 -33 -40 23751

Abbott 11 24 46 50 23358

Apollo Hospitals -6 7 12 26 19625

Pfizer -2 -3 9 15 14259

Sanofi -9 0 -10 -5 13155

Syngene Int. -4 -1 11 5 12398

Ipca Labs. -8 -10 7 38 10828

Fortis Health 11 9 0 7 10615

Alembic Pharma 8 3 -10 -10 10180

Natco Pharma -6 3 -19 -18 10001

Ajanta Pharma -4 7 -17 -7 8539

Glenmark Pharma. -25 -35 -58 -52 8183

Jubilant Life -4 -2 -34 -30 7491

Narayana Hrudayalaya-5 5 21 -1 4812

Suven Life -7 0 11 -1 3204

FDC Ltd -1 -3 -5 -17 2843

Hikal -4 -13 -9 -13 1759

Hester Bio 1 -3 51 56 1446

Indoco Remedies -11 -7 -35 -24 1294

NGL Fine-Chem 7 3 19 6 320

Return (%)

Source: Bloomberg

Global Indices Performance

Company 1M 3M YTD 1Y 3Y 5Y

S&P 500 Pharm Index (US)0 -6 1 -3 6 7

NASDAQ Biotechnology (US)-5 -10 1 -12 1 3

S&P Pharmaceuticals (US)-6 -11 -5 -22 -7 -5

DJ Pharma and Biotech (US)-2 -7 1 -6 5 5

DJ STOXX Healthcare (EU)0 2 19 15 8 7

MSCI World Pharm & Biotech0 -3 6 0 6 5

NSE Pharma -10 -9 -18 -25 -14 -6

Return (%)

Source: Bloomberg

Research Analyst

Siddhant Khandekar

[email protected]

MItesh Shah, CFA

[email protected]

Sudarshan Agarwal

[email protected]

ICICI Securities | Retail Research 2

ICICI Direct Research

Monthly Sector Update | Health Check

Exhibit 1: Warning Letters/OAIs issued to Indian companies

in 2019

Date Company Plant Status

Mar-19 Lupin Somerset facility OAI

Mar-19 Jubilant Life Roorkee Plant Warning Letter

Apr-19 Lupin Unit 2, Pithampur OAI

May-19 Aurobindo Unit I OAI

May-19 Aurobindo Unit IX OAI

May-19 Aurobindo Unit XI OAI

May-19 Lupin Goa OAI

Jun-19 Aurobindo Unit XI Warning Letter

Jul-19 Torrent Dahej facility OAI

Jul-19 Indoco Remedies Unit 1, Goa Warning Letter

Jul-19 Strides Pharma Puducherry Plant Warning Letter

Aug-19 Cadila Moraiya Plant OAI

Aug-19 Torrent Indrad facility OAI

Sep-19 Lupin Mandideep Plant Warning Letter

Oct-19 Glenmark Baddi Plant Warning Letter

Oct-19 Torrent Indrad facility Warning Letter

Source: Company, ICICI Direct Research




Healthcare Q2FY20 Results Preview

One-offs, consolidations and base effect to drive Q2 numbers

The I-direct healthcare universe is expected to register 16% YoY growth to

| 34789 crore mainly due to one-offs (Lupin exclusivities in the US, Dr

Reddy’s- sale of branded products) consolidations (Sun– Pola pharma,

Aurobindo- Spectrum business, Cadila- Craft portfolio in wellness segment)

and lower base. Domestic formulations (selected pack) are expected to grow

14% YoY to | 5634 crore mainly due to inventory adjustment and lower base

in Sun Pharma. Excluding the Sun base effect, domestic formulations are

expected to grow at 8.4%. US (selected pack) is expected to grow 14% YoY

to |10278 crore led by 1) growth in base business due to waning price

erosion and lower base, 2) opportunities created by high profile exits and 3)

new launches (including limited competition launches) besides

consolidations. Europe is expected to grow 17% YoY. Growth in other

emerging markets is likely to be driven by new launches. On the other hand,

due to high base effect, the API segment is expected to decline 6% YoY. For

Q2FY20, average YoY rupee depreciation vis-à-vis US$ was mere 0.4%. In

case of Apollo Hospitals, growth is likely to be driven by newly

commissioned hospitals and pharmacy additions.

On the companies front, eight out of 10 companies are likely to report double

digit growth. Among key outliers, Dr Reddy’s Labs (income from sale of

branded portfolio), Biocon (biologics traction) and Cadila (consolidation of

craft portfolio in wellness) are likely to register above 20% growth in

revenues.

EBITDA to grow 22% YoY; margins likely to expand 121 bps

EBITDA of the I-direct healthcare universe is expected to grow 22.6% YoY

to | 7706 crore. EBITDA margins are likely to improve 121 bps to 22.2% on

the back of improved operational leverage, improvement in product mix and

efficient cost control measures, thus mitigating higher raw material cost due

to raw material supply constraints from China and higher promotional cost

of specialty products.

Net profit to grow 12% due to strong operational performance

Net profit growth is expected to grow 12% YoY to | 4232 crore. A strong

operational performance is likely to be offset partially by higher depreciation

and financial cost.

Exhibit 2: Estimates for Q2FY20 (| Crore)

Revenue EBITDA PAT

Q2FY20E YoY QoQ Q2FY20E YoY QoQ Q2FY20E YoY QoQ

Aurobindo Pharma 5,588.4 17.6 2.6 1,168.3 18.5 1.5 683.0 7.0 5.3

Biocon 1,618.3 22.5 10.4 446.1 31.4 2.0 208.0 25.4 0.8

Cadila Healthcare 3,579.8 20.9 2.4 784.0 14.0 24.0 420.7 0.8 38.5

Divi's Lab 1,351.4 5.2 16.2 487.9 -5.1 26.0 350.4 -11.9 28.6

Dr. Reddys 4,587.1 20.2 18.9 1,222.0 60.9 61.2 790.0 52.4 14.1

IPCA Labs 1,122.4 10.7 11.0 235.7 25.0 20.8 172.8 27.5 30.9

Lupin 4,410.9 11.6 -0.2 816.0 48.5 -5.2 314.0 18.0 3.6

Sunpharma 8,072.0 16 -3.6 1,655.8 8 -17.0 988.9 -1 -28.7

Torrent Pharma 2,035.1 7.5 0.6 527.1 11.4 -2.6 201.6 12.6 -6.7

Apollo Hospitals 2,423.4 15.9 8.7 362.9 40.7 11.4 102.9 30.3 29.7

Total 34,788.6 15.9 3.9 7,705.7 22.6 5.8 4,232.4 11.6 -0.2

Change (%) Change (%) Change (%)

Company

Source: Company, ICICI Direct Research

Expected growth in domestic formulations

(| cr) Q2FY20E Q2FY19 % Q1FY20 %

Biocon 139 164 -15.0 133 4.8

Cadila 956 893 7.0 948 0.9

Ipca 534 469 14.0 453 18.0

Lupin 1,348 1,203 12.0 1,308 3.0

Dr Reddy's 789 686 15.0 696 13.4

Sun Pharma2,351 1,860 26.4 2,314 1.6

Torrent 864 816 5.9 907 -4.7

Total 5634 4888 15.3 9381 -39.9

Expected growth in US formulations

(| cr) Q2FY20E Q2FY19 % Q1FY20 %

Aurobindo 2,721 2,227 22.2 2,688 1.2

Cadila 1,432 1,320 8.5 1,367 4.8

Lupin 1,464 1,249 17.2 1,541 -5.0

Dr Reddy's 1,673 1,427 17.3 1,632 2.5

Sun Pharma2,615 2,401 8.9 2,947 -11.3

Torrent 372 394 -5.6 376 -1.1

Total 10278 9017 14.0 10552 -2.6

Expected growth in Europe formulations

(| cr) Q2FY20E Q2FY19 % Q1FY20 %

Aurobindo 1,397 1,157 20.8 1,392 0.4

Cadila 49 52 -5.0 47 4.2

Dr Reddy's 239 192 25.0 240 -0.4

Lupin 146 154 -5.0 140 4.0

Torrent 276 251 10.0 262 5.4

Total 2108 1805 16.8 2082 1.2

Expected growth in API segment

(| cr) Q2FY20E Q2FY19 % Q1FY20 %

Aurobindo 735 817 -10.0 732 0.4

Cadila 76 89 -15.0 69 9.3

Divi's Lab 669 637 5.0 580 15.2

Ipca Labs 256 225 13.9 298 -14.1

Lupin 351 335 5.0 349 0.7

Dr Reddy's 470 603 -22.0 454 3.6

Sun Pharma 447 426 5.0 491 -8.8

Total 2336 2494 -6.4 2393 -2.39




IPM grows ~12% YoY in September, price led growth again…

The Indian pharmaceutical market (IPM) grew 11.9% YoY to | 12492 crore

in September 2019. The growth was attributable to price hike: 5.6%, new

product launches: 2.9% and volume growth: 3.5%.

Drugs under NLEM list grew 13.2% YoY & non-NLEM drugs grew 11.8 %.

The fixed dosage combination (FDCs) related market showed a decline of

66.5% while the approved FDC market grew 12.3%.

Among companies under I-direct coverage 8 companies (Dr Reddy’s, FDC,

Lupin, Torrent, Abbott, Glenmark, Indoco, and Sun Pharma) have

outperformed industry growth rate.

Therapy wise, nine major therapies have registered faster than industry

growth. Notable among them with growth rates- vaccines - 20.5%,

stomatologicals – 19.1%, urology – 18.6%, anti-diabetic -14.2%, cardiac –

13.7%, pain – 12.6% and GI – 12.1%.

Domestic companies have grown at 11.6% YoY while MNC companies have

grown at 13.5%.

On a MAT basis, IPM growth was 9.8% YoY to | 136802 crore.

Exhibit 3: Domestic formulations - growth trend

Source: ICICI Direct Research; AIOCD

Exhibit 4: Companies growth in domestic market in September 2019

Source: ICICI Direct Research, AIOCD

7.2

12.4

7.0

9.7

10.8

9.8

8.8

10.4

7.1

6.7

13.2

9.5

11.9

0.0

5.0

10.0

15.0

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Jun-19

Jul-19

Aug-19

Sep-19

(%

)

Indian Pharma Market

13.9

5.7

0.2

7.6

11.8

5.9

24.022.9

9.3

13.9

9.2

19.3

5.2

9.4

11.4

12.9

17.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Abbott

Aja

nta

Ale

mbic

Bio

con

Cadila

Cip

la

DR

L

Gle

nm

ark

GS

K P

harm

a

Indoco

Ipca L

abs

Lupin

Natco

Pfiz

er

Sanofi

Sun P

harm

a

Torrent

(%

)

Therapy wise performance (| crore)

Therapy Sep'19 Sep'18 %Aug'19 %

Anti-Infectives 1898 1712 10.9 1806 5.1

Cardiac 1473 1296 13.7 1463 0.7

GI 1408 1257 12.1 1423 -1.1

Anti Diabetic 1147 1004 14.2 1164 -1.5

Vitamins 1076 966 11.4 1079 -0.2

Respiratory 946 877 7.8 872 8.5

Pain 874 776 12.6 866 0.9

Derma 829 751 10.3 813 2.0

Neuro 721 645 11.9 715 0.8

Gynaecological 586 543 7.9 585 0.2

Anti-Neoplastics 255 230 11.2 245 4.1

Hormones 225 201 11.8 219 2.5

Ophthal 219 197 10.8 219 -0.1

Vaccines 192 159 20.5 187 2.5

Urology 167 140 18.6 163 2.4

Blood Related 158 135 17.1 148 7.4

Others 117 99 18.2 112 4.8

Anti Malarials 75 67 11.2 62 20.0

Stomatologicals 65 55 19.1 65 0.5

Sex Stimulants 61 50 21.8 62 -1.5

Top brands in Indian pharma market (MAT;

| crore)



Acute vs Chronic vs Sub Chronic

Source: ICICI Direct Research; AIOCD; As per AIOCD MAT Sep 2019

Acute

47%

Chronic

33%

Sub

Chronic

20%

Brand Company Therapy Sep'19YoY %

Mixtard Abbott Anti Diabetic 539 8.4

Lantus Sanofi IndiaAnti Diabetic 499 18.4

Galvus Met Novartis Anti Diabetic 483 10.3

Glycomet GpUSV Anti Diabetic 474 15.8

Janumet MSD Anti Diabetic 469 16.0

Augmentin GSK Anti-Infectives429 18.2

Liv 52 Himalaya GI 397 4.7

Duphaston Abbott Hormones 388 26.0

Clavam Alkem Anti-Infectives370 14.7

Thyronorm Abbott Hormones 352 11.9




Exhibit 3: Domestic formulations – Market Share (MAT Value September 2019)


Exhibit 4: Acute vs. Chronic vs. sub chronic (MAT Value September 2019)


8%

6%

5%

4%4%

3%

2% 2% 2% 2%

1%1%

1% 1% 1% 1%0%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Sun

Abbott

Cip

la

Cadila

Lupin

Torrent

Pfiz

er

Dr.

Reddys

Sanofi

Gle

nm

ark

Ipca

Ale

mbic

FD

C

Natco

Indoco

Aja

nta

Bio

con

38 39

57

3242

52

77

40

82

65

27

88

41

62

44 40

26

54

4051

2460

45 29

9

41

527

57

0

55 15 5245

52

31

2210

209 13

2013 19

13 7 16 114

23

415

21 16

0

20

40

60

80

100

120

Abbott

Aja

nta

Ale

mbic

Bio

con

Cip

la

Dr.

Reddys

FD

C

Gle

nm

ark

Indoco

IPC

A

Lupin

Sun

Novartis

Pfiz

er*

Sanofi

Sun

Torrent

Cadila

%

Acute Chronic Sub Chronic




IPM grows ~12% YoY in Q2FY20, price led growth…

The Indian pharmaceutical market (IPM) grew 11.5% YoY to | 36725 crore

in Q2FY20. The growth was attributable to price hike: 5.5%, new product

launches: 2.8% and volumes growth: 3.2%

The fixed dosage combination (FDCs) related market showed a decline of

67.0% while the approved FDC market grew 12.2% and single product

market grew 11.9%.

Drugs under NLEM list grew 13.5% YoY while non-NLEM drugs grew 11.4%.

Growth was mainly driven by price hikes.

Among companies under I-direct coverage 8 companies (Dr Reddy’s, Lupin,

FDC, Indoco, Abbott, Cadila, Sanofi, Torrent) have outperformed industry

growth rate.

Therapy wise, 12 major therapies have registered faster than industry

growth. Notable among them with growth rates- anti-malarials -18%,

stomatologicals -17.1%, urology -17%, vaccines – 14.1%, anti-infectives –

14%, sex-stimulants – 13.7%, anti-diabetic – 13.5%, respiratory – 12.4%,

pain – 12.2%, hormones -11.6%.

Domestic companies have grown at 11.3% YoY while MNC companies have

grown at 12.6%

Exhibit 5: Domestic formulations - growth trend


Exhibit 6: Companies growth in domestic market in Q2FY20

Source: ICICI Direct Research, AIOCD

0.1

7.0 7.1 7.3

1.9 2.3 2.5

0.1

3.2

-2.1 -1.6-1.1 -0.9

5.0 4.94.9

5.1

5.5

2.7

2.7

2.7 2.7 2.7 2.7 2.5

2.9

2.8

0.7

6.4

8.6 9.0 9.79.8 9.9

8.1

11.5

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20

Volumes Price Increases New Products

12.3

5.8

2.5

8.1 7.6

19.3

16.9

8.2

16.6

10.2

16.9

(3.2)

7.8

14.1

11.4 12.7

13.7

(5.0)

-

5.0

10.0

15.0

20.0

25.0

Abbott

Aja

nta

Ale

mbic

Bio

con

Cip

la

Dr.

Reddys L

ab

FD

C

Gle

nm

ark

Indoco

IPC

A

Lupin

Natco

Pfiz

er

Sanofi

Sun

Torrent

Cadila

(%

)

Therapy wise performance (| crore)

Therapy Q2FY20 Q2FY19 %Q1FY20 %

Anti-Infectives5303 4653 14.0 4128 28.4

Cardiac 4418 3960 11.5 4331 2.0

GI 4251 3833 10.9 3983 6.7

Anti Diabetic 3488 3074 13.5 3374 3.4

Vitamins 3249 2943 10.4 3046 6.6

Respiratory 2585 2299 12.5 2112 22.4

Pain 2562 2284 12.2 2279 12.4

Derma 2451 2266 8.2 2245 9.2

Neuro 2151 1953 10.2 2076 3.6

Gynaecological1772 1663 6.5 1756 0.9

Anti-Neoplastics749 713 5.1 757 -1.0

Hormones 661 592 11.6 613 7.7

Ophthal 659 599 10.0 650 1.4

Vaccines 573 502 14.1 527 8.7

Urology 494 422 17.0 474 4.2

Blood Related 456 392 16.2 414 10.1

Others 340 300 13.1 318 7.0

Anti Malarials 195 165 18.0 183 6.1

Stomatologicals187 159 17.1 193 -3.3

Sex Stimulants 183 161 13.7 105 75.1





Exhibit 7: Top five brands in value terms (MAT Value September 2019)

Sun Brand Therapy Sales

1 Rosuvas Cardiac 269

2 Levipil Neuro 266

3 Istamet Anti Diabetic 259

4 Volini Pain 251

5 Gemer Anti Diabetic 200

Cipla Brand Therapy Sales

1 Foracort Respiratory 324

2 Budecort Respiratory 226

3 Duolin Respiratory 214

4 Seroflo Respiratory 191

5 Asthalin Respiratory 167

Cadila Brand Therapy Sales

1 Skinlite Derma 170

2 Deriphyllin Respiratory 161

3 Atorva Cardiac 133

4 Pantodac GI 121

5 Mifegest Kit Gynaecological 120

Lupin Brand Therapy Sales

1 Gluconorm-G Anti Diabetic 253

2 Huminsulin Anti Diabetic 186

3 Budamate Respiratory 124

4 Gibtulio Anti Diabetic 122

5 Ondero Anti Diabetic 106

Torrent Brand Therapy Sales

1 Shelcal Vitamins 219

2 Chymoral FortePain 152

3 Nikoran Cardiac 107

4 Azulix-Mf Anti Diabetic 101

5 Losar H Cardiac 97

Dr. Reddys Brand Therapy Sales

1 Omez GI 142

2 Omez D GI 125

3 Econorm GI 124

4 Atarax Derma 102

5 Razo D GI 84

Glenmark Brand Therapy Sales

1 Telma Cardiac 258

2 Telma H Cardiac 205

3 Telma Am Cardiac 132

4 Candid Derma 117

5 Ascoril Plus Respiratory 109

IPCA Brand Therapy Sales

1 Zerodol Sp Pain 189

2 Zerodol P Pain 122

3 Hcqs Anti Malarials 113

4 Folitrax Anti-Neoplastics 63

5 Glycinorm M Anti Diabetic 51

Alembic Brand Therapy Sales

1 Azithral Anti-Infectives 162

2 Althrocin Anti-Infectives 80

3 Wikoryl Respiratory 70

4 Roxid Anti-Infectives 53

5 Gestofit Gynaecological 49

Natco Brand Therapy Sales

1 Velpanat Anti-Infectives 190

2 Hepcinat Anti-Infectives 160

3 Geftinat Anti-Neoplastics 122

4 Erlonat Anti-Neoplastics 104

5 Natdac Anti-Infectives 94

Indoco Brand Therapy Sales

1 Febrex Plus Respiratory 87

2 Cyclopam GI 55

3 Sensodent-K Stomatologicals 51

4 Oxipod Anti-Infectives 50

5 Atm Anti-Infectives 46

Ajanta Brand Therapy Sales

1 Met Xl Cardiac 106

2 Atorfit Cv Cardiac 55

3 Melacare Derma 50

4 Feburic Pain 34

5 Met Xl Am Cardiac 26

Biocon Brand Therapy Sales

1 Insugen Anti Diabetic 114

2 Basalog Anti Diabetic 87

3 Canmab Anti-Neoplastics 80

4 Insugen R Anti Diabetic 25

5 Erypro Blood Related 22

Abbott Brand Therapy Sales

1 Mixtard Anti Diabetic 539

2 Duphaston Gynaecological 388

3 Thyronorm Hormones 352

4 Novomix Anti Diabetic 308

5 Phensedyl Cough LinctusRespiratory 288

Sanofi Brand Therapy Sales

1 Lantus Anti Diabetic 499

2 Allegra Respiratory 187

3 Combiflam Pain 183

4 Amaryl M Anti Diabetic 160

5 Hexaxim Vaccines 155

Source: ICICI Direct Research; AIOCD; Sanofi includes Sanofi India and Sanofi Pasteur (Vaccine)




Exhibit 8: Top five therapies in value term (MAT value September 2019)

Sun Therapy Sales (|cr)

1 Cardiac 1980

2 Neuro 1882

3 GI 1348

4 Anti-Infectives 1126

5 Anti Diabetic 1036

Cipla Therapy Sales (|cr)

1 Respiratory 2186


3 Cardiac 842

4 GI 464

5 Urology 369

Cadila Therapy Sales (|cr)


2 Cardiac 777

3 GI 608

4 Respiratory 618

5 Pain 537

Lupin Therapy Sales (|cr)

1 Cardiac 1239



4 Respiratory 637

5 GI 378

Torrent Therapy Sales (|cr)

1 Cardiac 1297

2 GI 672

3 Neuro 624

4 Vitamins 535

5 Anti Diabetic 341

Dr. Reddys Therapy Sales (|cr)

1 GI 725

2 Cardiac 428

3 Derma 343


5 Respiratory 257

Glenmark Therapy Sales (|cr)

1 Derma 860

2 Cardiac 834

3 Respiratory 528


5 Anti Diabetic 265

IPCA Therapy Sales (|cr)

1 Pain 564

2 Cardiac 324

3 Anti Malarials 296

4 GI 134


Alembic Therapy Sales (|cr)


2 Cardiac 258

3 Respiratory 216

4 GI 200

5 Gynaecological 192

Natco Therapy Sales (|cr)

1 Anti-Neoplastics 516


3 Pain 33

4 Cardiac 4

5 Blood Related 2

Indoco Therapy Sales (|cr)

1 Respiratory 157


3 Stomatologicals 164

4 GI 126

5 Vitamins 72

Ajanta Therapy Sales (|cr)

1 Cardiac 345

2 Ophthal 195

3 Derma 132

4 Pain 47

5 Vitamins 29

Biocon Therapy Sales (|cr)

1 Anti Diabetic 261

2 Anti-Neoplastics 138


4 Cardiac 10

5 Blood Related 24

Abbott Therapy Sales (|cr)


2 GI 1452

3 Vitamins 893

4 Neuro 722

5 Cardiac 638

Sanofi Therapy Sales (|cr)

1 Anti Diabetic 942

2 Cardiac 486

3 Vaccines 398

4 Respiratory 321

5 Pain 268

Source: ICICI Direct Research, AIOCD; Sanofi includes Sanofi India and Sanofi Pasteur (Vaccine)




Monthly Sector News

Price hikes, new launches, recalls, approvals

Glenmark receives Orphan Drug Designation for its antibody candidate

Glenmark receives Orphan Drug Designation from USFDA for GBR 1342, a

bispecific antibody candidate under evaluation for the treatment of Multiple

Myeloma

Torrent Pharma expands Losartan recall in US

As per USFDA, Torrent Pharma has expanded recall of its hypertension

drugs, Losartan potassium tablets & Losartan

potassium/hydrochlorothiazide tablets in US due to detection of trace of N-

Methylnitrosobutyric, a known animal & potential human carcinogen

Dr Reddy's wins bid under China's pilot programme

As per a Chinese media report, Dr Reddy’s has won a bid for supplying

Olanzapine, an antipsychotic used to treat schizophrenia & bipolar disorder.

The company had offered a 35 % price cut under China’s drug procurement

pilot program to secure the bid. The drug will be supplied to public hospitals

in several provinces of China including Zhejiang, Hunan and Guangxi

GSK Pharma recalls Ranitidine drug in India, halts global supply

GSK pharma has suspended supply and distribution of its ranitidine

hydrochloride (Zinetac) products worldwide due to regulatory concerns into

presence of genotoxic nitrosamine NDMA in the drug. The company has

also issued a voluntary recall of Zinetac Tablets in India.

Biocon plans 70% cut in insulin prices

As per media reports, Biocon plans to bring down the cost of insulin to US$

0.10 (~| 7) in low & middle income countries. Currently blended median

patient prices are US$ 9 per 10ml vial (~US$ 0.36 per day for 40 units)

Biocon launches insulin biosimilar in Australia

Biocon and Mylan N.V. have launched the first insulin Glargine biosimilar

(Semglee, 3mL pre-filled pen) for injection, 100 IU/mL available on the

Pharmaceuticals Benefit Scheme in Australia

Dr Reddy’s suspends its Ranitidine supply worldwide

As per media reports, Dr Reddy’s has suspended supply of its OTC drug

Ranitidine (GI therapy) worldwide, as a precautionary measure due to

USFDA probe into reported presence of impurity N-

nitrosodimethylamine(NDMA) at low levels.

Lawsuits, court rulings, settlements, regulatory issues

USFDA inspects Glenmark’s Indore Unit

As per media reports, Glenmark's Indore unit did not receive any

observations from the USFDA after the cGMP inspection conducted from

September 9-13, 2019

Cipla’s Pithampur facilities get GMP certificate from UK MHRA

As per media reports, Cipla's manufacturing facilities in Pithampur, Madhya

Pradesh(unit I/II/IV) has gotten UK MHRA’s GMP certification for the

inspection conducted on June 04, 2019

Lupin receives warning letter from USFDA

Lupin’s Mandideep (Unit-1) facility in Madhya Pradesh has received a

warning letter from the USFDA. This plant manufactures cephalosporin API

and formulations. The warning letter follows an inspection of the plant in

Dec’18 and its classification as OAI (official action indicated) in Mar’19.

Cipla’s Bengaluru API facility receives EIR from USFDA

Inspection of Cipla's API manufacturing facility at Virgonagar, Bengaluru has

been closed with receipt of establishment inspection report (EIR) from




USFDA. The facility had received seven observations after the cGMP

inspection conducted from July 15-19, 2019

Biocon’s new Bengaluru facilities receives Form 483 from USFDA

USFDA conducted pre-approval Inspection at two of Biocon’s new Biologics

Manufacturing facilities in Bengaluru from Sep 10-19, 2019. The inspection

included a new Drug Substance (DS) and a Drug Product (DP) unit. At the

end of inspection, USFDA issued a Form 483 with four observations for the

new DS facility, three observations for the new DP facility and one general

observation

USFDA inspects Lupin’s Tarapur Unit

Lupin’s API facility at Tarapur receives three observations from USFDA after

the inspection carried out from September 16-20, 2019

Cadila’s API unit at Ankaleshwar receives NAI status from USFDA

Cadila’s API manufacturing facility at Ankaleshwar, Gujarat has received EIR

from USFDA classifying it as ‘No Action Indicated’ (NAI), indicating clearance

of plant. The inspection was conducted by USFDA from July 22-26, 2019

USFDA completes inspection of Alembic’s Gujarat formulation facility

Alembic Pharma’s (Aleor Derma JV) formulation manufacturing facility at

Karkhadi, Gujarat has received one observation at the end of USFDA

inspection carried out from September 16-20, 2019

Sebi imposes | 22.7 crore fine on Aurobindo Pharma for insider trading

As per media reports, SEBI has imposed a penalty of | 22.7 crore on

Aurobindo Pharma, it's promoters & related entities for violation of insider

trading norms in relation to a licensing deal it entered into with Pfizer in 2009.

The regulator had investigated trading in the company's scrip based on

unpublished price sensitive information (UPSI) from July 2008 to March

2009

Cipla gets Form 483 after USFDA inspection

Cipla's Goa manufacturing facility has received Form 483 with 12

observations from USFDA after the cGMP inspection conducted from

September 16-27

Lupin's Goa facility completes Japan's PMDA inspection

Lupin's Goa facility (Unit - I & II) has completed GMP inspection by

Pharmaceutical and Medical Devices Agency (PMDA), Japan. As per the

company, no critical or major observations were issued after the inspection

that was conducted from September 24-27, 2019

Glenmark receives Russian MoH approval to market rhinitis drug

Glenmark Pharma has received approval from the Russian Ministry of

Healthcare to market Montlezir (Levocetirizine Dihydrochloride 5mg +

Montelukast Sodium 10mg) film‐coated tablets as a prescription product. The drug is indicated for the treatment of seasonal and perennial allergic

rhinitis. It is expected to be available in the Russian market by Q3 FY19‐20

Natco’s API facility at Mekaguda receives EIR from USFDA

Natco Pharma has received an establishment inspection report (EIR) from

USFDA indicating closure of inspection for its API facility at Mekaguda

Village near Hyderabad. The inspection was conducted from 5-9 August,

2019 at the end of which the facility had received a Form 483 with six

observations

Dr Reddy’s API facility receives EIR from USFDA

Dr Reddy's API facility at Bollaram, Hyderabad (Plant 2) has received an

establishment inspection report (EIR) from USFDA indicating audit closure.




The facility, now classified as voluntary action indicated (VAI), had earlier in

July received a Form 483 with five observations

USFDA issues warning letter to Glenmark's Baddi facility

USFDA issued a warning letter to Glenmark's Baddi facility in Himachal

Pradesh. The inspection was conducted from April 15-20 earlier this year

and was classified as official action indicated (OAI). As per the company,

existing manufacturing & sale of products will not be impacted and there are

no major pending approvals from Baddi in the next 12 months. The Baddi

facility's expected sales for FY20 are ~US$30 million (7% of US sales).

We do not expect any material impact on the company's financials, except

a likely increase in remedial cost. However, stock is likely to remain under

pressure in near term due to this amendment

Aurobindo's Unit VII receives seven USFDA observations

The company's Unit-7 has received Form 483 from USFDA with seven

observations. The USFDA conducted cGMP related inspection at this unit

from September 19-27, 2019. As per the management, none of the

observations are related to data integrity. It is confident of addressing these

issues within the stipulated timeline

Unit VII is one of the largest and oldest plants for the company. As per media

reports, this plant is contributing 25-30% to US revenues. The company has

~33 pending USFDA approvals (including 14 tentative approvals) by the end

of Q1FY20 from Unit VII. We believe the observations are critical and the

company is likely to face further remedial action from the USFDA like

warning letter or in worst case scenario an import alert. We await further

action from USFDA. Until then, we believe the stock is likely to remain under

pressure

Lupin's Mandideep facility receives GMP certificate from Japan's PMDA

Lupin's Mandideep API facility (Unit - II) has received GMP certificate from

Pharmaceutical and Medical Devices Agency (PMDA), Japan. As per the

company, no critical or major observations were issued after the inspection

that was conducted from May 14-17, 2019

Torrent's Gujarat Indrad facility receives warning letter from USFDA.

Torrent's Gujarat Indrad facility receives warning letter from USFDA. Earlier

in August 2019 the US regulator had classified the facility (API &

Formulations) as official action indicated (OAI) after the inspection in April.

M&As, demergers, tie-ups and JVs

Cipla, Stempeutics sign agreement for novel stem cell product

As per media reports, Stempeutics Research signs an out-licensing deal with

Cipla for novel stem cell product 'Stempeucel-DFU' for treatment of non-

healing diabetic foot ulcer. As per the agreement Cipla will get marketing

rights for 5 years in India while Stempeutics will supply and manufacture the

product

CCI approves restructuring of Apollo’s Pharmacy business

CCI has approved restructuring & sale of Apollo Hospitals’ (AHEL) Pharma

business. This will help AHEL bring down its net debt. After the exercise

AHEL will hold 25.5% stake in Apollo Pharmacy Ltd

Biocon expands its R&D footprint through acquisition

Biocon acquired a 60,000 sq ft biologics R&D facility at TICEL bio-park in

Chennai from Pfizer Healthcare.

Apollo Hospitals to set up JV with Wellysis

As per media reports, Apollo Hospitals (AHEL) has launched a cardiac

command centre with connected technologies like tele-ECG monitoring,

tele-ECHO monitoring and remote Cathlab. AHEL has also signed an MoU




with Wellysis (Samsung SDS South Korea spin-off) to set up a JV in Chittoor,

Andhra Pradesh. The JV will develop, manufacture and commercialize

cardiac wellness, diagnostics, monitoring and therapeutic devices.

Lupin completes sale of its subsidiary in Japan, Kyowa CritiCare

Lupin has completed the sale of Kyowa CritiCare's injectables business and

related assets to the Neopharma Group.

Cadila to sell its cholesterol lowering drug rights in US & Canada

Cadila Healthcare has signed an agreement to sell rights of its cholesterol

lowering Zypitamag (pitavastatin) to Medicure Inc for US & Canada markets.

Under terms of the agreement, Cadila will receive an upfront payment of

US$ 5 million and US$2 million in deferred payments over the next four

years along with sales milestone contingent payments & royalties.

Biocon, Evotec enter strategic deal for an early stage biosimilar

Biocon biologics, Just-Evotec ink pact for an early stage, pre-clinical

biosimilar asset. Biocon through this strategic in-licensing agreement will

expand its therapy basket & assume all development, manufacture &

commercialization for the asset. Evotec will receive milestone payments in

addition to the license fee.

Others

Apollo Hospitals launches AI-enabled Health Risk Assessment program

As per media sources, Apollo Hospitals has launched an AI-enabled

personalised Health Risk Assessment program 'Apollo Prohealth'. It has

been introduced in Chennai & Hyderabad, and will be extended to other

cities.

Apollo Hospitals’ promoter releases pledge shares

Apollo Hospitals’ promoter has released pledge on 79.4 lakh shares (5.7%

share capital) on Sept 19-20 by repaying debt obligations

Cadila announces positive clinical trial results from investigational molecule

Cadila healthcare has announced positive results from clinical trials

(EVIDENCES IV) of Saroglitazar Magnesium, for treatment of non-alcoholic

fatty liver disease (NAFLD) and non-alcoholic Steatohepatitis (NASH)

Sun Pharma presents positive trial results from ILUMYA

Sun Pharma presents results of long-term Phase 3 trials for ILUMYA

(tildrakizumab-asmn) showing significant skin clearance, maintained over

four years in people with moderate to severe plaque psoriasis at the 28th

European Academy of Dermatology and Venereology Congress (EADV) in

Madrid, Spain

ANDA Approvals

Lupin has received sANDA approval for generic version of Unithroid

(Levothyroxine Sodium) Tablets, 25/50/75/88/100/112/125/137

/150/175/200/300 mcg. The drug is used in treatment of hypothyroidism &

for Pituitary Thyrotropin Suppression. The drug(Unithroid & Synthroid) had

annual sales of ~US$2581 million in the US(IQVIA MAT June 2019).

Cipla has launched the generic version of Cubicin (Daptomycin, antibiotic)

single-dose 500mg/vial for injection in US. This drug had an annual sales of

~US$606 million in the US (IQVIA MAT June 2019).

Cadila gets USFDA approval for the generic version of Clobex (Clobetasol

Propionate, Therapy - derma) Lotion, 0.05% in US.

Lupin has launched the generic version of Pfizer’s Viagra (Sildenafil) Tablets,

25/50/100 mg in US. The drug, used for treatment of erectile dysfunction,

had an annual sales of ~US$ 216 million in US as per IQVIA MAT July 2019.

Lupin gets USFDA approval for the generic version of Pfizer’s Dilantin

(Extended Phenytoin Sodium, CNS therapy) Capsules, 100 mg. The drug,




indicated for treatment & prevention of seizures, had annual sales of ~US$

105 million in US as per IQVIA MAT June 2019.

Alembic Pharma (Aleor Derma, JV) gets USFDA approval for generic version

of Galderma's Clobex (Clobetasol Propionate, Therapy - derma) Spray,

0.05% in US. The drug, used in treatment of moderate to severe plaque

psoriasis, had an estimated market size of ~US$ 22 million in US as per

IQVIA MAT December 2018.

Lupin has launched the generic version of Roche's immunosuppressant

Cellcept (Mycophenolate Mofetil) capsules, 250mg in US. The drug, used for

prophylaxis of organ rejection during transplants, had annual sales of ~

US$53 million in the US (IQVIA MAT August 2019).

Glenmark has received tentative ANDA approval from USFDA for the

generic version of Biogen's Tecfidera (Dimethyl Fumarate, CNS therapy)

delay-released Capsules, 120/240 mg. The drug, used to treat relapsing

multiple sclerosis (MS), had annual sales of ~US$ 3.7 billion in US as per

IQVIA MAT August 2019.

Cadila Healthcare has received final USFDA approval to market cholesterol

lowering Colesevelam Hydrochloride (RLD – Welchol) Tablets, 625mg in US.

The drug will be manufactured at the formulations facility at SEZ,

Ahmedabad.

Exhibit 9: One Year forward PE

Source: ICICI Direct Research, Bloomberg

0.0

10.0

20.0

30.0

40.0

Sep-16

Mar-17

Sep-17

Mar-18

Sep-18

Mar-19

Sep-19

x

NSE500 Index NSE Pharma

42% Premium




Exhibit 10: ICICI Direct coverage Universe (Healthcare)

Company I-Direct CMP TP Rating M Cap

Code (|) (|) (| cr) FY18 FY19 FY20E FY21E FY18 FY19 FY20E FY21E FY18 FY19 FY20E FY21E FY18 FY19FY20EFY21E

Ajanta Pharma AJAPHA 977 1,010 Hold 8522 53.0 43.5 47.5 60.2 18.4 22.4 20.6 16.2 30.0 21.8 20.8 22.4 23.0 17.1 16.4 18.0

Alembic PharmaALEMPHA 542 560 Hold 10226 21.9 31.4 29.9 24.7 24.8 17.3 18.1 22.0 18.0 19.6 17.5 15.8 18.6 21.7 17.1 14.2

Apollo HospitalsAPOHOS 1407 1,500 Buy 19576 8.5 17.7 25.7 39.1 166.4 79.6 54.7 36.0 6.3 8.8 11.1 14.0 3.6 7.4 9.9 13.4

Aurobindo PharmaAURPHA 464 735 Buy 27173 41.6 42.1 49.1 61.2 11.1 11.0 9.5 7.6 20.0 15.9 14.3 16.3 20.7 17.7 17.3 18.0

Biocon BIOCON 240 330 Buy 28746 3.1 6.2 8.2 9.1 77.2 38.6 29.3 26.3 8.1 10.9 13.4 16.1 7.2 12.2 13.4 15.2

Cadila HealthcareCADHEA 232 250 Hold 23751 17.5 18.1 13.7 17.9 13.2 12.8 16.9 12.9 16.7 13.0 10.6 12.7 20.5 17.8 12.2 14.2

Cipla CIPLA 422 520 Hold 33987 18.3 18.6 21.4 25.9 23.0 22.7 19.7 16.3 9.6 10.9 12.4 13.7 10.4 10.0 10.5 11.5

Divi's Lab DIVLAB 1665 1,640 Hold 44201 33.3 51.0 50.3 63.1 50.0 32.7 33.1 26.4 20.0 25.5 21.7 23.3 14.9 19.4 16.8 17.9

Dr Reddy's LabsDRREDD 2643 2,770 Hold 43890 57.0 114.8 163.4 157.7 46.3 23.0 16.2 16.8 6.1 11.1 16.1 15.6 7.2 13.6 16.6 14.2

Glenmark PharmaGLEPHA 291 410 Hold 8197 28.5 26.9 28.3 34.2 10.2 10.8 10.3 8.5 14.6 14.5 13.5 14.5 15.6 13.5 12.6 13.3

Hikal HIKCHE 143 205 Buy 2022 6.3 8.4 10.1 13.6 22.8 17.1 14.1 10.5 12.2 14.3 14.8 17.2 11.5 13.6 14.5 16.5

Ipca Laboratories IPCLAB 858 1,195 Buy 10840 19.0 35.1 47.5 59.7 45.2 24.5 18.1 14.4 9.1 15.0 18.7 20.7 8.9 14.2 16.6 17.8

Jubilant Life JUBLIF 470 710 Buy 7489 41.3 52.1 54.1 64.9 11.4 9.0 8.7 7.2 14.9 14.4 15.9 17.1 15.7 16.9 15.8 16.5

Lupin LUPIN 694 755 Hold 31390 20.8 16.5 25.4 37.7 33.4 41.9 27.3 18.4 10.4 9.4 10.3 13.2 6.9 5.4 7.8 10.6

Narayana HrudalayaNARHRU 235 260 Buy 4809 2.5 2.3 6.2 9.0 94.0 103.8 37.7 26.0 6.3 7.6 11.9 14.7 4.9 4.3 10.5 13.3

Natco Pharma NATPHA 552 595 Hold 10026 37.7 34.9 35.9 26.4 14.6 15.8 15.4 20.9 27.4 21.3 19.3 13.1 22.7 18.5 16.1 10.7

Sun Pharma SUNPHA 389 470 Hold 93236 13.0 15.9 21.0 23.9 30.0 24.5 18.5 16.2 9.7 10.3 12.4 12.6 8.2 9.2 11.0 11.2

Syngene Int. SYNINT 309 358 Hold 12372 7.6 8.3 9.9 10.3 40.6 37.4 31.3 30.0 15.1 14.8 14.5 13.8 17.7 16.8 16.8 15.0

Torrent Pharma TORPHA 1681 1,750 Buy 28440 40.1 48.9 51.3 72.9 41.9 34.3 32.8 23.1 11.2 14.2 15.4 19.2 14.7 17.5 16.1 19.6

RoE (%)EPS (|) PE(x) RoCE (%)

Source: ICICI Direct Research, Bloomberg




RATING RATIONALE

ICICI Direct endeavours to provide objective opinions and recommendations. ICICI Direct assigns ratings to its

stocks according to their notional target price vs. current market price and then categorises them as Buy, Hold,

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

Buy: >15%;

Hold: -5% to 15%;

Reduce: -5% to -15%;

Sell:




ANALYST CERTIFICATION

We /I, Siddhant Khandekar, Inter CA, Mitesh Shah, CFA, Sudarshan Agarwal, PGDM (Finance), Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed

in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to

the specific recommendation(s) or view(s) in this report. It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies mentioned

in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report.

Terms & conditions and other disclosures:

ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI

Securities Limited is a SEBI registered Research Analyst with SEBI Registration Number – INH000000990. ICICI Securities Limited SEBI Registration is INZ000183631 for stock broker. ICICI

Securities is a subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance,

general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com

ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment

banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons

reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.

Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing

on a company's fundamentals and, as such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical

Research Reports.

Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.

ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Retail Research. The views and opinions

expressed in this document may or may not match or may be contrary with the views, estimates, rating, target price of the Institutional Research.

The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly

confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or

reproduced in any form, without prior written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securities is under no

obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate

that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where

ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.

This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness

guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe

for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat

recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy

is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own

investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent

judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign

exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily

a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ

materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.

ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other

assignment in the past twelve months.

ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report

for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or

specific transaction.

ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its analysts did

not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI

Securities nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report.

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 or their relatives 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.

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.

This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such

distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such

jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come

are required to inform themselves of and to observe such restriction.

Documents

Health Check Glenmark Pharma. -25 -35 -58 -52 8183 -5 5 21 ...content.icicidirect.com/mailimages/IDirect_HealthCheck...Glenmark Pharma. -25 -35 -58 -52 8183 Jubilant Life -4 -2 -34