Complex product launches and Specialty businesses to drive growth
Glenmark is an India-based pharmaceutical company with commercial presence in more than 60 countries across the globe. It manufactures and markets generic formulation products & active pharmaceutical ingredients (API). The company has been focusing on key areas including inflammation (asthma/COPD, rheumatoid arthritis etc.) and pain (neuropathic pain and inflammatory pain). Further, several molecules of the company are in various stages of clinical development.
View & Valuvation
We expect revenue and PAT to grow at a CAGR of 15.1% and 21.4% respectively over FY16-19E. Further, we expect EBITDA margin to expand by 160bps to 22.4% over FY16-19E on account of on account of a) exclusivity (up to 180 days) on certain product launches including Zetia b) shifting of portfolio mix towards high-margin niche products Hence, we recommend Glenmark with ‘BUY’ rating with a TP of Rs1039 based on 19.5x FY19E PE.
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