Pharma

Monthly Update
September 17, 2021 Non-COVID portfolio dominates contribution for
IPM growth in Aug-21
Quick Pointers:
PL Coverage
 IPM grew 17.7% YoY in Aug-21 v/s 13.7% in Jul-21 and -2.2% Aug-20, while
CMP TP
Company Names Rating Jul-Aug growth was 14.0% YoY.
(Rs) (Rs)

Aurobindo Pharma HOLD 746 795

Cadila Healthcare BUY 557 695
 MAT growth stood at 14.5% in Aug-21, led by robust growth of non-Covid
Cipla Accumulate 954 980 products and few COVID products.
Dr. Lal PathLabs SELL 3,981 2,626
Dr. Reddy's Laboratories Accumulate 4,885 5,114  Amongst top therapies Anti-Infective, VMN, GI, Pain/Analgesics and Cardiac
Eris Lifesciences BUY 763 909 MAT growth was 25.4%, 21.6%, 20.2%, 15.6% and 13.0% YoY respectively in
Glenmark Pharma HOLD 519 555
Aug-21.
Indoco Remedies BUY 485 518
Ipca Laboratories Accumulate 2,493 2,290
IPM is gradually gaining ground around core products, as non-COVID
Lupin Reduce 949 955
Sun Pharma Ind. BUY 770 922 portfolio led the Aug-21 growth. We expect encouraging trend to continue as
Thyrocare Technologies Under Review 1,264 NA COVID cases remains low with more than 50% of total adult population
Source: PL UR=Under Review vaccinated (at least one dose of vaccine). Low spread of Covid wave-3 will
augur well for IPM to maintain healthy growth of its core portfolio in 2HFY22E.
The growth trend of parameters like volume, value and new products of IPM
were highly balanced in Aug-21, which again indicates normalization in the
industry. Similarly, falling trend of COVID-portfolio sales in past three month
was the lead indicator and base of our assumption for normalized IPM growth
in near term. The sales growth of Non-Covid portfolio stood at 12.8% backed
by (a) normalcy in seasonal disease trends, (b) regularity in demand trend of
seasonally agnostic non-COVID drugs, (c) accelerated slow-down in COVID
portfolio and (d) growth of non-COVID portfolio in top companies.

Amongst top therapies, anti-infective continued to maintain its leading

position and continued its highest contribution of 14.3% in the IPM. Cardiac,
GI, anti-diabetic and VMN contributed 13.2%, 11.5%, 9.5% and 9.2%
respectively. IPCA posted highest growth at 38.5% YoY amongst PL coverage
universe in Aug’21. Indoco, DRRD, SUNP, LPC and ERIS were some
companies from our coverage universe that reported double-digit growth of
33.0%, 26.4%, 15.8%, 14.6% and 13.6% YoY respectively.

IPM growth breakup: MAT growth was 14.5% in Aug-21 led by 5.5% price growth
and 4.1% sale growth from new products while volume growth was 4.9%.

Key Highlights:

 Encouraging monthly IPM performance with robust bounce back from Non-
COVID product portfolio.

Surajit Pal  Normalization has mainly observed in diseased patterns and correction in
surajitpal@plindia.com | 91-22-66322259 COVID drugs has been observed in top 40 companies.
Akshaya Shinde
akshayashinde@plndia.com |

September 17, 2021 1

 Pharma

CIPLA: Lower demand of COVID portfolio

impacted growth
 Adjusted (Ex-OTC / Consumer and COVID drugs) growth in Aug-21 was 4.6%
v/s reported growth of 12.6%.

 CIPLA maintains its leadership in market share of Remdesivir at 50% with

decline in sales by 27% MoM to Rs179m.

The continuous fall in contribution from Actemra and Remdesivir has lowered
overall growth of CIPLA in the domestic market, which was main growth drivers of
company since pandemic emergence in FY21. We expect that, faster expansion of
vaccinated population and measures to ensure normalization of industries shall
help in controlling growth of active COVID cases across the country. This may spell
negative for companies such as CIPLA, CDH and GNP who benefitted from super-
normal growth of COIVD portfolio (Remdesivir, Favipiravir & Actermra) since
pandemic broke out globally. Meanwhile, the increasing demand of Non-COVID
products and movement of seasonal disease pattern in line with expectation will
augur well for core portfolio of the company. With strong tailwind in anti-infective
products, we expect better growth profile from its core portfolio as CIPLA is highly
dominated by acute therapy products.

Report & Adj. growth (%): deprived of benefits Revenues break-up (Rs m)
(Rs mn) May-21 Jun-21 Jul-21 Aug-21
Adj. Gr. Rept. Gr.
Core biz 6,939 5,149 5,707 6,257
80 73.5 73.3 Actemra 188 81 67 60
70 Consumer Sales 240 220 230 240
60 53.8
49.4 Favipiravir 24 9 6 4
50
40 Remdesivir 655 334 244 179
30 Total 8046 5793 6254 6740
20 14.5 12.6
8.7 5.7 4.6 Source: AIOCD,PL
10 1.7
0
-10 -3.4 -3.5
Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21

Source: AIOCD,PL

Remdesivir Aug-21 market share (%)

SUNPHARMA
7

DR.REDDYS
18

CIPLA
50
HETERO
9

MYLAN
3
CADILA
13
Source: Company, PL, AIOCD

September 17, 2021 2

 Pharma

Glenmark: Positive dynamics of Favipiravir

 FABIFLU sales declined by 32.4% MoM to Rs162m in Aug-21; maintaining
highest market share at 67%.

 Ex-FABIFLU, adj. sales declined by 21.7% v/s reported decline of 17% in Aug-
21.

Glenmark Pharma’s (GNP’s) first entry in Favipiravir (FABIFLU) market helps it to

continue its leadership in the molecule. It leads the molecule market with 67%
market share as on Aug-CY21, despite market being crowded with 50 Favipiravir
brands (25 companies) launched by peers. Favipiravir is the first oral antiviral used
in treatment of mild-to-moderate COVID-19 in India to receive regulatory approval
in Jun-20. With Covid-19 cases falling, Favipiravir sales witnessed steep fall in
Aug’21. As second wave subsided while third wave remains subdued, favipiravir
demand for treatment of COVID patients declined in IPM. Further normalization and
increased vaccination, FABIFLU sales would further fall in 2HFY22E.

Adjusted Growth (Ex-Favipiravir) GNP Favipiravir sales trend

Adj Gr-Ex Favipiravir (%) Reported Gr (%) Favipiravir Montly Sales (Rs mn)
200 181.0 4000 3519
143.5 3500
150 3000
2500 2122
100 2000
48.4 1500
50 23.2 30.0 1000 483 350 240 162
6.0 4.6 500 116
0 0
May-21

Jun-21
Mar-21

Apr-21

Aug-21
Feb-21

Jul-21
-8.7 -14.4 -17.0
-50 -21.4 -21.7
Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21
Source: Company, AIOCD, PL Source: Company, AIOCD, PL

Aug-21 Market share for Favipiravir (%)

OTHERS
13
BLUE CROSS
5

CADILA
4

FDC
6

MACLEODS GLENMARK
5 67

Source: Company, AIOCD, PL

September 17, 2021 3

 Pharma

Zydus Cadila: Lower demand led to tepid growth

 Adjusted growth (Ex-Remdesivir) was 10.8% in Aug-21 v/s reported growth
13.3%.

 CADILA REMDAC sales declined by 21% MoM, while market share increased
to 13% from 10% in Aug’21.

With lower demand and reduced active COVID cases in last couple of months,
Zydus Cadila’s (CDH) REMDAC (remdesivir) brand continued to grow at lower rate
yet was able to maintain its second highest position in the domestic market against
peers, thereby showing its consistency in the IPM. We believe that further
normalization will tend to lower contribution from COVID portfolio across the market.
CDH also showed increased traction from its Non-COVID portfolio since Jul-21 and
we expect it to be balanced, going forward.

CADILA Report & Adjusted growth (%)

Adjusted Gr % (Ex COVID Products) Reported Gr %

60
48.8
50 46.3
41.8
37.9
40

30

20 16.2
13.7 12.0 13.3
10.3 9.9 10.8
10 7.4

0
Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21

Source: Company, PL

September 17, 2021 4

 Pharma

Indian Pharma Market (IPM)–Aug-21 Performance (Value in Rs m)

Top 10
CHRONIC/SUB
MAT-AUG-21 MS % MAT Gr % Vol Gr % Price Gr % NP Gr % YoY Gr % Product
CHRONIC %
Contri%
IPM 1,632,625 14.5 17.7
SUN PHARMA 83,054 5.1 21.8 12.7 3.1 6.0 15.8 68 28
ABBOTT HC 47,253 2.9 27.8 14.5 6.7 6.6 5.2 51 50
CIPLA 81,170 5.0 31.3 19.8 6.7 4.8 12.6 55 30
MANKIND 68,872 4.2 19.7 12.7 2.7 4.3 27.1 48 24
CADILA 56,709 3.5 23.6 15.9 1.5 6.2 13.3 45 29
LUPIN 61,925 3.8 23.8 13.4 4.1 6.3 14.6 73 23
ALKEM 52,731 3.2 34.5 18.6 10.8 5.1 19.8 41 43
TORRENT 50,151 3.1 23.4 13.2 3.5 6.6 22.5 75 27
DR. REDDYS 48,159 2.9 26.0 15.4 3.7 6.9 26.4 46 27
JB CHEMICALS 8,765 0.5 18.3 10.1 1.4 6.8 1.0 71 82
GLAXO SMITH 41,820 2.6 16.3 8.8 1.0 6.5 18.6 30 60
GLENMARK 43,807 2.7 31.7 28.9 -1.8 4.6 -17.0 49 51
PFIZER 38,548 2.4 24.2 12.3 6.4 5.4 8.2 43 52
SANOFI 35,858 2.2 23.0 12.0 5.3 5.6 9.2 55 54
IPCA 26,609 1.6 42.3 22.6 14.3 5.4 38.5 34 42
ALEMBIC 18,394 1.1 17.4 9.8 1.7 5.8 16.7 43 37
ERIS LIFE 15,729 1.0 19.1 14.9 -0.8 5.0 13.6 91 38
NOVARTIS 11,383 0.7 -1.2 -0.5 -3.2 2.5 -3.5 56 84
FDC 13,587 0.8 39.2 22.0 15.1 2.1 33.6 22 62
NATCO 7,742 0.5 -54.3 -25.9 -23.1 -5.3 -30.8 49 79
AJANTA 10,704 0.7 39.6 21.7 11.6 6.3 31.7 62 44
INDOCO 10,474 0.6 28.6 15.4 7.0 6.3 33.0 17 58
Source: AIOCD, PL*Highlighted Company under PL Coverage

Indian Pharma Companies revenue mix region-wise (%) for FY21

Company Domestic US Europe Africa Emerging Mkt API Others
Ajanta 29 22 0 10 40 0 0
Alkem 66 28 0 0 6 0 0
Aurobindo 0 60 13 0 9 12 6
Biocon 19 33 0 0 19 0 29
Cadila 41 47 0 0 0 0 12
Cipla 44 22 6 11 10 4 3
Dr Reddy's 18 37 8 0 12 19 6
Glenmark 32 30 10 11 3 12 2
Indoco 52 12 20 1 4 8 3
IPCA 39 0 16 5 9 30 1
Lupin 35 37 0 0 9 9 10
Natco 35 41 0 0 5 10 9
Sun Pharma 31 30 17 0 16 6 0
Torrent 50 16 13 0 8 0 13
Source: AIOCD, PL *IPCA: 27% of revenue is generated from API business (Domestic + Export).

September 17, 2021 5

 (%)

-6
-4
-2
0
2
4
6
8
10
12
14

10.0
15.0
20.0
25.0
30.0
35.0

-15.0
-10.0
0.0
5.0

-5.0
-9
1
11
21
31
41
51

-29
-19
IPM 15.2 Mar'20 2.0 5.4 2.4
Mar'20

1.1
5.3
2.5

Source: AIOCD
Source: AIOCD
IPCA 28.8 Apr'20 1.3 4.5 2.1

Source: PL, AIOCD

Apr'20

4.3
1.2

-16.7

September 17, 2021

FDC 28.2
May'20 0.3 4.1 2.0
May'20

4.3
1.2

-14.4
INDOCO 26.5
Jun'20 0.2 3.9 2.0
Jun'20

4.8
1.7
-4.1
AJANTA 26.4
Jul'20 -2.0 5.0 2.0
Jul'20

4.6
2.2
-6.6
Macleods 25.0
Aug'20 -2.9 4.9 2.1
DR. REDDYS 22.2 Aug'20

4.4
2.5
-9.2
Sep'20 -3.5 4.8 2.2
MANKIND 21.7 Sep'20

4.6
3.8
-4.0
IPM MAT Growth (%) – 14.5% for Aug-21

ALKEM 18.1 Oct'20 -3.2 4.9 2.3

VOL GR

VOL GR
Oct'20

0.9
5.0
3.7
SUN 18.0 Nov'20 -4.2 4.8 2.4
Nov'20

4.7
3.2
-6.9
TORRENT 17.7
Dec'20 -4.2 4.8 2.5
PRICE GR

PRICE GR
Dec'20

0.3
5.0
3.1
LUPIN 15.1
Jan'21 -4.5 4.8 2.5
Jan'21

4.9
2.4
-2.9
IPM YoY Gr (%): Growth has stabilized in Aug-21 with 14.5% YoY

GLAXO 14.1
NP GR

NP GR

Feb'21 -5.4 4.8 2.5

Feb'21

4.8
2.1
-5.8
ABBOTT HC 13.9

Mar'21 Mar'21 -5.4 4.8 2.6

1.6
5.1
ALEMBIC 11.8 3.6

ERIS 11.7 Apr'21 Apr'21 -1.8 5.1 3.3

7.0

34.5
10.0

CADILA 10.9 May'21 May'21 1.6 5.3 3.9

7.0
9.3

31.5

Jun-Aug 21 Gr (%)-balanced growth from COVID & Non-COVID portfolio of pharma majors
SANOFI 9.7
Jun'21 Jun'21 2.3 5.3 4.0
4.0
5.7
4.4

CIPLA 9.0
Jul'21 3.3 5.4 4.1
4.5
5.7
3.5

Jul'21
PFIZER 7.7
Aug'21
4.9
5.5
4.1

Aug'21 4.9 5.5 4.1

GLENMARK -10.1
Pharma

6
 Pharma

Therapy-wise growth (%): Anti-Infectives back on Top

MAT Value Market
(Rs mn) Aug-21
MAT Gr % YoY GR %
Share (%)
IPM 1,632,625 14.5 17.7
ANTI-INFECTIVES 233,649 25.4 29.2 14.3
CARDIAC 215,637 13.0 6.3 13.2
GASTRO INTESTINAL 187,654 20.2 21.9 11.5
ANTI DIABETIC 155,346 7.4 8.6 9.5
VITAMINS / MINERALS / NUTRIENTS 149,825 21.6 10.6 9.2
RESPIRATORY 117,779 7.0 38.2 7.2
DERMA 106,241 11.9 12.4 6.5
PAIN / ANALGESICS 108,303 15.6 32.4 6.6
NEURO / CNS 95,498 8.9 14.0 5.8
GYNAECOLOGICAL 77,030 13.1 21.3 4.7
ANTI-NEOPLASTICS 30,491 7.3 0.6 1.9
HORMONES 30,069 14.5 16.1 1.8
OPHTHAL / OTOLOGICALS 25,384 6.3 21.3 1.6
VACCINES 21,349 -1.1 -8.3 1.3
UROLOGY 23,194 17.3 12.1 1.4
BLOOD RELATED 17,665 6.5 8.1 1.1
OTHERS 14,022 12.0 25.5 0.9
STOMATOLOGICALS 9,759 23.2 12.8 0.6
SEX STIMULANTS / REJUVENATORS 8,238 12.4 33.0 0.5
ANTI MALARIALS 5,493 -4.6 18.7 0.3
Source: AIOCD, PL

Key Highlights:

 Amongst top therapies- Anti-Infective, Cardiac, GI, anti-diabetic and VMN led
IPM growth and contributed around 57.7% of market share during the month.

 In Aug-21, among top 5 therapies, Anti-Infective, GI and VMN segments

recorded strong growth of 29.2%, 21.9% and 10.6% YoY respectively, while
Anti Diabetic and Cardiac segments grew moderately at 8.6% and 6.3% YoY.

September 17, 2021 7

 Pharma

Top 5 Drug Performance Company wise

Companies under PL Coverage– (MAT Value and GROWTH)
BRAND Aug-21 (Rs m) Gr (%) BRAND Aug-21 (Rs m) Gr (%)
SUN PHARMA ERIS LIFESCIENCES LTD
LEVIPIL 3,027 1.7 GLIMISAVE M 1,364 14.3
GEMER 2,444 7.7 RENERVE PLUS 1,115 22.6
ISTAMET 2,396 -6.0 GLIMISAVE MV 920 10.3
SUSTEN 2,104 9.2 TENDIA M 415 -5.1
PANTOCID 2,015 11.8 REMYLIN D 410 -13.6
RANBAXY LABORATORIES LTD IPCA LABORATORIES PVT LTD.
VOLINI 3,517 26.8 ZERODOL SP 3,069 43.3
ROSUVAS 3,394 12.9 ZERODOL P 1,989 39.0
REVITAL H 1,957 31.5 HCQS 1,537 -6.7
MOX 1,347 4.7 FOLITRAX 828 15.1
STORVAS 1,263 10.3 ZERODOL TH 791 29.8
CIPLA LTD. INDOCO REMEDIES LTD
FORACORT 3,632 8.2 CYCLOPAM 1,144 20.3
CIPREMI 3,655 NA ATM 872 61.7
DUOLIN 2,734 15.2 FEBREX PLUS 829 -2.1
BUDECORT 2,659 10.6 KARVOL PLUS 688 78.3
SEROFLO 2,046 3.2 SENSODENT-K 654 18.6
LUPIN LTD ZYDUS CADILA
GLUCONORM-G 2,825 8.6 REMDAC 2,272 NA
HUMINSULIN 1,820 0.5 ATORVA 1,787 5.2
BUDAMATE 1,500 8.4 DERIPHYLLIN 1,814 9.8
CIDMUS 1,341 25.4 MIFEGEST KIT 1,673 3.4
GIBTULIO 1,231 -3.9 SKINLITE 1,351 -4.4
DR. REDDYS ZYDUS CADILA - WELLNESS
OMEZ 1,993 18.6 COMPLAN 33 86.9
OMEZ D 1,703 25.6 GLUCON D 30 25.3
ATARAX 1,271 1.4 NYCIL CLASSIC 13 25.3
STAMLO 1,263 31.4 COMPLAN (KESAR BADAM) 7 72.0
RAZO D 1,209 29.6 GD 2 -31.8
GLENMARK PHARMA
FABIFLU 8,994 NA
TELMA 3,359 7.1
TELMA H 2,064 -10.2
CANDID 1,406 -2.8
TELMA AM 1,397 -3.5
Source: AIOCD, PL

September 17, 2021 8

 Pharma

MNC companies not under PL Coverage – (MAT Value and GROWTH)

BRAND Aug-21 (Rs m) Gr (%) BRAND Aug-21 (Rs m) Gr (%)
ABBOTT HEALTHCARE NOVO NORDISK INDIA PVT LTD
PHENSEDYL COUGH LINCTUS 2,001 -25.3 MIXTARD 5,836 5.5
LIMCEE 1,938 169.4 NOVOMIX 3,241 4.5
STEMETIL 1,694 34.2 ACTRAPID 1,906 34.3
ACITROM 1,477 27.4 RYZODEG 1,697 2.3
LMWX 1,386 128.3 NOVORAPID 1,359 12.3
ABBOTT INDIA LTD. PFIZER LTD
THYRONORM 3,972 14.1 BECOSULES 4,152 14.7
UDILIV 3,746 31.7 MUCAINE 2,170 24.0
DUPHASTON 2,958 -8.5 GELUSIL MPS 2,045 4.6
VERTIN 2,269 23.5 MAGNEX 1,954 1.7
DUPHALAC 2,202 26.7 MINIPRESS XL 1,763 12.0
ASTRAZENECA PHARMA INDIA SANOFI INDIA LTD.
BRILINTA 1,574 0.1 LANTUS 5,675 8.1
FORXIGA 1,097 -20.6 CLEXANE 2,055 50.4
CRESTOR 530 -1.5 COMBIFLAM 2,186 12.1
SELOKEN 492 4.8 ALLEGRA 1,726 -6.1
XIGDUO 443 -14.0 AMARYL M 1,534 -0.2
GLAXOSMITHKLINE NOVARTIS INDIA LTD
AUGMENTIN 4,955 8.9 GALVUS MET 2,716 -8.4
CALPOL 3,300 37.3 VOVERAN 1,981 9.5
BETNOVATE N 2,592 32.7 VYMADA 1,312 4.8
BETNOVATE C 2,470 14.9 GALVUS 1,133 -15.5
T BACT 2,481 28.4 METHERGIN 625 23.7
MERCK SPECIALITIES PVT.LTD
CONCOR 776 29.1
CONCOR COR 659 35.9
CONCOR AM 418 21.1
ERBITUX 363 19.7
LODOZ 151 10.2
Source: AIOCD, PL

September 17, 2021 9

 Pharma

Companies not under PL Coverage – (MAT Value and GROWTH)

BRAND Aug-21 (Rs m) Gr (%) BRAND Aug-21 (Rs m) Gr (%)
AJANTA PHARMA MANKIND
MET XL 1,358 16.5 MANFORCE 2,847 16.4
ATORFIT CV 571 9.2 MOXIKIND CV 2,233 -5.6
MELACARE 510 -0.9 CANDIFORCE 1,753 -15.1
ROSUTOR GOLD 484 59.4 GLIMESTAR M 1,533 7.9
FEBURIC 462 23.8 UNWANTED KIT 1,504 0.5
ALEMBIC NATCO PHARMA LTD
AZITHRAL 2,741 50.3 VELPANAT 1,648 -4.5
ALTHROCIN 872 -2.3 GEFTINAT 1,359 10.9
WIKORYL 631 -4.7 LENALID 742 7.0
ULGEL 443 8.8 VEENAT 623 -25.9
GESTOFIT 467 15.7 ERLONAT 420 -59.6
ALKEM TORRENT
CLAVAM 3,754 3.5 SHELCAL 2,821 19.6
PAN 3,563 12.4 CHYMORAL FORTE 1,726 14.3
PAN D 3,081 16.2 NEXPRO RD 1,419 30.4
A TO Z NS 2,597 37.7 NIKORAN 1,356 8.3
TAXIM O 2,144 -2.6 AZULIX-MF 1,114 3.8
ARISTO FDC
MONOCEF 4,958 33.7 ELECTRAL 2,283 28.7
PANTOP 2,915 33.3 ZIFI 2,221 9.7
MIKACIN 2,602 28.0 ENERZAL 756 48.2
MONOCEF SB 2,476 58.1 VITCOFOL 536 24.4
MONOCEF O 1,801 17.7 ZOCON 523 3.9
Source: AIOCD, PL

September 17, 2021 10

 Pharma

Inventory days (incl. in-transit) for top 6 therapies

No of
Days
GROUP Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21
Chg
YoY
CARDIAC 40 38 39 41 39 38 38 37 31 33 40 36 40 0
ANTI-INFECTIVE 47 39 43 44 50 54 52 39 23 28 51 37 35 -12
GASTRO 43 39 41 44 42 39 38 37 27 31 36 31 35 -8
ANTI DIABETIC 37 35 35 37 35 34 33 33 29 30 34 30 33 -4
VMN 42 38 41 48 46 46 43 39 27 32 40 34 38 -4
RESPIRATORY 51 45 46 42 46 49 47 44 27 29 50 39 34 -17

Source: AIOCD, PL

Key Highlights

 With majority of population vaccinated and subsiding fear of new Covid wave,
the recent trend of inventory days over previous year is lead indicator of pick-
up of secondary sales which is IPM’s biggest base for normalization.

 In last couple of months, inventory days of key therapeutic segments have

maintained its pre-covid level. We expect it to continue without any further
disruption such as lockdown or next COVID wave.

Top 5 Brands in IPM (Rs mn)

Company Brand API MAT Value (Rs m) MAT Gr %
Glenmark Fabiflu Favipiravir 8,994 498
Apex Zincovit Ascorbic Acid 6,180 123
Abbott MIXTARD Human Premix Insulin 5,836 5.5
USV Glycomet GP Glimepiride+Metformin 5,800 8.4
Sanofi Lantus Glargine 5,675 8.1
Source: Company, PL

 Fabiflu an emergency treatment against COVID-19 has maintained its Top

most position of MAT, while declined growth on MoM due to lower active cases
in the last couple of months.

 Zincovit, the second fastest growing brand has also declined by around 9% in
terms of value as well as volume in Aug’21. This was amongst the top 10
brands and most favored precautionary treatment against COVID-19.

 The rest 3 brands are most preferred prescribed brands of IPM for the
treatment of diabetic patients and remained constant amongst top 5 brands in
Aug-21.

NLEM-NON-NLEM Share & Growth details (%) for IPM

(Rs mn) NLEM Share in IPM(%) Gr % NON-NLEM Share in IPM(%) Gr %
JUN'21 16.6 10.5 83.4 14.8
JUL'21 16.7 9.6 83.3 14.5
AUG'21 16.9 11.7 83.1 19.0
Source: Company, PL

September 17, 2021 11

 Pharma

Market share in Therapeutic areas

Row Labels DIABETIC INFECTIVES CARDIAC DERMA GASTRO GYNAEC NEURO PAIN RESPI VMN
ABBOTT HC 1.3 3.2 3.8 5.0 3.3 0.0 3.8 3.3 3.5 3.0
ABBOTT INDIA . 0.0 0.6 0.3 0.5 7.4 5.5 5.1 0.4 0.1 5.1
AJANTA PHARMA 0.2 0.1 2.2 1.5 0.0 0.0 0.3 0.6 0.1 0.2
ALEMBIC 0.8 2.0 1.4 0.3 1.2 2.3 0.1 0.7 1.8 0.8
ALKEM 1.7 8.1 1.1 2.2 5.4 1.1 3.0 3.4 0.9 4.9
ARISTO 1.3 9.2 2.2 0.8 4.9 1.9 1.5 1.5 1.3 1.0
ASTRAZENECA 1.4 0.0 1.5 0.0 0.0 0.0 0.0 0.0 0.1 0.0
CIPLA . 0.7 9.0 4.5 2.0 2.4 1.7 2.8 2.0 22.7 0.5
DR. REDDYS 2.0 1.8 2.6 4.7 4.8 0.2 2.6 3.4 4.5 1.8
ERIS 3.2 0.0 1.9 0.0 0.5 0.7 1.2 0.4 0.1 2.3
FDC . 0.1 2.4 0.3 0.5 1.9 0.5 0.2 0.1 0.3 0.6
GLAXOSMITHKLINE 0.0 4.1 0.1 10.9 0.2 0.3 0.0 4.3 2.0 1.8
GLENMARK 2.0 6.0 4.4 8.7 0.1 0.0 0.1 0.1 5.9 0.1
INDOCO 0.3 0.8 0.0 0.4 0.7 0.2 0.0 0.3 1.6 0.5
IPCA 0.8 0.8 1.9 1.2 0.9 0.0 1.1 7.9 0.8 0.3
JB CHEMICALS 0.0 0.1 1.9 0.2 2.0 0.1 0.0 0.1 0.0 0.0
LUPIN 9.1 3.3 7.1 0.2 2.5 3.1 3.1 2.0 6.8 1.5
MANKIND 3.3 6.0 3.8 3.3 3.7 6.1 2.3 2.4 4.3 6.2
NATCO 0.0 1.0 0.2 0.0 0.0 0.0 0.0 0.4 0.0 0.0
NOVARTIS INDIA 2.5 0.1 0.6 0.0 0.0 0.9 0.5 2.3 0.2 0.5
PFIZER 0.0 2.7 2.0 0.2 2.5 4.4 2.5 1.8 1.9 3.6
RANBAXY 0.9 5.6 3.7 6.9 1.1 0.0 0.0 5.7 1.3 2.6
SANOFI INDIA . 6.7 0.5 2.8 0.5 1.7 0.0 2.2 2.7 3.1 1.0
SUN PHARMA 6.5 0.3 6.6 0.2 7.5 5.9 22.4 2.8 3.9 1.5
TORRENT 2.9 0.8 7.0 1.2 4.7 1.4 7.7 2.9 0.2 4.4
ZYDUS CADILA 0.0 0.8 0.1 0.0 0.0 0.2 0.0 0.3 0.0 0.4
Source: AIOCD, PL Highlight Rule: Market Share above 5% in therapy

September 17, 2021 12

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Valuation Summary

TP MCap Sales (Rs bn) EBITDA (Rs bn) PAT (Rs bn) EPS (Rs) RoE (%) PE (x)
Company Names S/C Rating CMP (Rs)
(Rs) (Rs bn) FY20 FY21 FY22E FY23E FY20 FY21 FY22E FY23E FY20 FY21 FY22E FY23E FY20 FY21 FY22E FY23E FY20 FY21 FY22E FY23E FY20 FY21 FY22E FY23E
Aurobindo Pharma C HOLD 746 795 437.2 227.4 245.6 234.7 263.1 45.0 51.2 47.1 51.1 28.8 53.9 28.0 31.0 49.2 92.0 47.7 52.9 18.8 27.8 12.1 12.0 15.2 8.1 15.6 14.1
Cadila Healthcare C BUY 557 695 570.6 138.1 148.2 156.8 195.6 23.4 30.6 36.6 46.3 15.9 20.9 23.4 32.4 15.5 20.4 22.9 31.6 15.3 17.8 16.6 19.3 35.9 27.4 24.3 17.6
Cipla C Accumulate 954 980 769.2 166.9 189.9 206.8 217.7 27.7 40.8 48.6 52.0 15.9 24.2 29.9 34.1 19.8 30.0 37.1 42.2 10.4 14.2 16.2 18.4 48.2 31.8 25.7 22.6
Dr. Lal PathLabs C SELL 3,981 2,626 331.6 13.3 15.8 22.2 24.1 3.6 4.4 6.4 6.8 2.4 2.9 4.4 4.8 28.9 35.0 52.5 57.9 24.4 25.6 32.9 30.7 137.7 113.8 75.9 68.7
Dr. Reddy's Labs. C Accumulate 4,885 5,114 812.8 175.2 190.5 204.5 227.4 41.5 76.8 43.6 53.3 37.0 57.7 27.3 34.2 222.8 346.5 160.4 205.0 25.0 34.7 14.6 16.1 21.9 14.1 30.5 23.8
Eris Lifesciences C BUY 763 909 103.6 10.6 11.9 13.6 15.4 3.5 4.1 4.8 5.6 3.0 3.6 4.2 4.9 21.8 26.1 31.1 36.4 24.2 24.7 24.3 23.5 35.0 29.2 24.5 21.0
Glenmark Pharma C HOLD 519 555 146.4 104.0 108.1 113.1 123.9 14.5 19.5 20.2 20.6 7.8 9.7 10.6 11.2 27.5 34.4 37.5 39.7 13.3 14.8 14.0 13.1 18.9 15.1 13.9 13.1
Indoco Remedies C BUY 485 518 44.7 10.8 12.2 15.6 18.8 1.0 2.0 3.0 3.6 0.2 0.9 1.4 2.1 2.6 10.1 15.7 22.5 3.6 12.8 17.2 19.3 185.3 48.0 31.0 21.5
Ipca Laboratories S Accumulate 2,493 2,290 316.3 46.5 54.2 55.5 63.2 9.1 15.4 13.6 16.3 6.0 11.4 9.9 12.1 47.8 90.0 78.0 95.4 17.9 27.4 19.2 19.7 52.2 27.7 32.0 26.1
Lupin C Reduce 949 955 430.6 151.4 149.3 156.2 177.9 21.2 23.3 24.6 34.8 3.5 12.3 15.8 19.8 7.8 27.1 34.8 43.7 2.7 9.3 11.2 13.0 122.1 35.1 27.2 21.7
Sun Pharma Inds. C BUY 770 922 1,847.2 323.3 332.3 387.7 432.8 64.8 82.3 106.2 118.6 41.9 109.0 74.0 92.1 18.5 27.5 33.5 38.4 9.7 23.8 15.7 18.3 41.5 28.0 23.0 20.0
Thyrocare Tech. C Under Review 1,264 NA 66.8 4.3 4.9 6.5 7.0 1.7 1.7 2.5 2.7 0.9 1.1 1.7 1.8 16.4 21.4 31.8 33.1 21.6 28.5 34.7 29.0 77.1 59.1 39.7 38.1
Source: Company, PL C = Consolidated / S = Standalone / UR = Under Review

September 17, 2021 13

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Analyst Coverage Universe
Sr. No. Company Name Rating TP (Rs) Share Price (Rs)
1 Aurobindo Pharma Hold 795 761
2 Cadila Healthcare BUY 695 547
3 Cipla Accumulate 980 945
4 Dr. Lal PathLabs Sell 2,626 3,889
5 Dr. Reddy's Laboratories Accumulate 5,114 4,843
6 Eris Lifesciences BUY 909 768
7 Glenmark Pharmaceuticals Hold 555 569
8 Indoco Remedies BUY 518 442
9 Ipca Laboratories Accumulate 2,290 2,171
10 Lupin Reduce 955 1,050
11 Sun Pharmaceutical Industries BUY 922 774
12 Thyrocare Technologies UR - 1,343

PL’s Recommendation Nomenclature

Buy : > 15%
Accumulate : 5% to 15%
Hold : +5% to -5%
Reduce : -5% to -15%
Sell : < -15%
Not Rated (NR) : No specific call on the stock
Under Review (UR) : Rating likely to change shortly

September 17, 2021 14

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Date: 2021.09.17 20:47:28 +05'30'