The 45 reports from 11 analysts offering long term price targets
for Aurobindo Pharma Ltd. have an average target of 1048.82. The consensus estimate
represents an upside of 18.39%
from the last price of 885.90.
IPM is struggling for growth above 10% even after MoM abating COVID concerns and with MRs, physician activities almost reaching pre-COVID level. We believe key reasons for growth below par are (i) subdued new prescription (Rx) leading to volume de-growth (ii) digital marketing yield going south and (iii) sustained lower demand of acute products. Cardiac and anti-diabetic growth takes a breather in Jan-21 at 8.8% and 5.3% after reporting double digit growth in most months during lockdown. While amongst top therapies Gastro and VMN reported double digit growth of 14%...
EBITDA grew 13.3% YoY, EBITDA margin expanded 100bps to 21.5% mainly due to increased gross margin (+60bps YoY), and partially offset by higher R&D; spends. Net profit surged 4x YoY, on account of...
We ascribe NPV of Rs51/sh. for PLI opportunity and revise our TP to Rs1,080/sh. Maintain BUY. Q3 revenue/PAT grew by 8%/17% YoY, in line with estimates. Barring weakness in API (-14% YoY), most markets grew at healthy pace. In contrast to peers, Aurobindo's US business (ex-Natrol) performed well and grew 4% QoQ driven by volume gains and improvement in injectables revenues. In addition to PLI scheme investments (Rs30bn, benefits to be back ended), Aurobindo plans to augment its capacities in APIs (to invest Rs8bn over 2-2.5 years) and expects to double its revenues over the next 4-5 years. The progress on complex/vaccine pipeline remains on track and we remain positive on Aurobindo's capabilities to monetize these over the next few years. The growth outlook for EU, ARVs and RoW markets remain strong with ~7-10% revenue CAGR estimated over FY21-23e. The balance sheet is further strengthened as it turned net debt free as of Dec20
CAPA completed for Unit-I, IX, VII and XI. Awaiting USFDA inspection. We upgrade ARBP rating to Accumulate (earlier Hold) as we increase the multiple assigned on FY23E to 15x (PE) v/s earlier 13x. This multiple re-rating...
Aurobindo Pharma's (APL) 3QFY21 revenue at Rs63,649mn was flattish QoQ and up 8% on YoY basis. Revenue were broadly in line with our/consensus estimate. US Formulation sales at US$441mn stood flat QoQ and grew by 3% YoY (in CC terms). Injectable sales at US$69mn declined by 11% YoY, but increased by 6% QoQ, led by opening up of the US economy and revival in elective surgeries. Other business segments (ARV, API and Emerging Markets) were weaker and declined in low teens QoQ. EBITDA at Rs13,686mn (down 4.5% QoQ) and net profit at Rs29,465mn were in line with estimates. Net profit benefitted from capital gains from Natrol divestment transaction, which was partially offset by provision for impairment on certain intangible assets. Adjusted for the Natrol divestment gains and...
Adjusting for certain one-off exceptional items, Q3 results were in line with I-direct estimates on all fronts. Aurobindo has one of the most enduring generics ecosystems among peers (vertically integrated model, lower product concentration) to withstand volatility in the US and other generics space. It has also significantly improved its net debt position from foregoing the Sandoz deal and from the recent sale of Natrol business. This also bodes well as the company plans to venture into complex areas like biosimilars, vaccines and complex injectables where capital requirements are higher and...
Aurobindo Pharma Ltd (ARBP) ABRP has witnessed strong growth in different business verticals like Injectables, ARV, API and Growthmatkets. ABRP has planned to incur capex of USD$ 180mn - USD$ 200mn in Injectibles and Biosimilars to drive growth in upcoming years.
Further, Aurobindo is investing ~$180 -200 million (~Rs. 1,350-1,500 crore each) towards capacity expansion in FY2021 and FY2022 and encompassing areas of injectables and oral solids across geographies....
CAPA completed for Unit-I, IX, VII and XI. We increase our earnings estimate by 5% for FY21E and FY22E on the back of early normalization of Auromedics (Gx-Injectable) in US. The 2Q earnings were higher than our estimate due to much higher growth in EM and ARV....
Aurobindo Pharma's (APL) 2QFY21 revenue at Rs64,834mn was up 9.3% QoQ and 15.6% YoY. Revenue was 2.4% above our estimate and 4.5% above consensus estimate. Strong growth in Emerging Markets (up 54% QoQ and 40% YoY) and the ARV segment (up 18% QoQ and 111% YoY) led to the outperformance. North America sales grew by 5% QoQ (in cc terms), led by the revival in injectable sales (30% QoQ growth). European sales grew by 15% QoQ and 8% YoY. Going forward, North America sales should slightly decline as the company has divested its OTC dietary supplement business (Natrol) to PE firm New Mountain Capital for US$550mn. Natrol is 12% of Aurobindo Pharma's US sales. New...
We trim our EPS forecast by 1-2% over FY21-23e to factor Natrol divestment. Revise TP 1,005/sh. Maintain BUY. Recovery in US injectables (+26% QoQ), good performance across markets and favorable product mix offset increased R&D; spend (+200bps QoQ), driving EBITDA beat of 7%. The progress on complex/specialty pipeline development remains on track (4 biosimilars are in clinics, vaccines monetization from FY22/23). We remain positive on Aurobindos capabilities to monetize these opportunities over the next few years. Management also guided for strong growth outlook (~20%) for the generic injectables business (~11% of revenues) over the next three years. Despite higher R&D; investments (~6% vs. 4.3% in FY20), companys endeavor to maintain EBITDA margin is noteworthy. Balance sheet remains comfortable (net debt/equity at 0.08x).
After filing its first ANDA in US in 2003, it has come a long way as current ANDA filings are at 629. US revenues have grown from ~US$100 million in 2009 crossing $1.6 billion sales as on 2020. In rupee terms, US sales have grown at 17% CAGR to | 11484 crore in FY16-20. US formulations now comprise 50% of turnover, up from 30% in FY13. Despite calling off acquisition of Sandoz' US dermatology, oral solid portfolio, sale of Natrol business, we expect US revenue to reach | 13661 crore in FY23E at 6% CAGR...
CAPA completed for Unit-I, IX, VII and XI. We increase our earnings estimate by 5% for FY21E and FY22E on the back of early normalization of Auromedics (Gx-Injectable) in US. The 2Q earnings were higher than our estimate due to much higher growth in EM and ARV....
Natrol had annual sales of US$157 million (4.8% of consolidated sales) in FY20. Hence, this transaction values the business at 3.5x sales, a compelling deal by any standards. The company will utilise proceeds to reduce debt and other new strategic initiatives. We believe a significant portion of the company's current debt (| 4777 crore as of Q1FY21) is working capital based. Therefore, a major portion of cash generated through this deal is likely be utilised for strategic investments. The sale of this non-core segment is likely to improve focus on new and complex ventures such as biosimilars,...
Aurobindo Pharma (ARBP) has announced the divestment of Natrol, a whollyowned unit of its US-based subsidiary, for USD550m (~INR40b) as an all-cash deal. Considering Natrol's FY20 sales/PAT at USD157m/USD27m, the deal is attractive at valuation of 3.5x EV/Sales and 20x P/E on FY20 basis....
27 September 2020 ARBP's future pipeline comprises differentiated and margin-accretive products in Oncology, Depot Injections, Inhalers, Biosimilars, Vaccines, Topicals, and Patches. Overall it has 6MDIs, 2 Dry Powder Inhalers (DPIs), 14 Biosimilars, 26 Topicals, 8 Transdermals, 3 Depot Injections and 2 Vaccines under development. We expect ARBP to deliver 10% sales CAGR in the US over FY20-22E. While there has been COVID-led slowdown in the EU business, ARBP remains on track to expand its product offerings, adding newer markets and increasing its penetration in existing markets. We expect ARBP to deliver 6% sales CAGR in the EU business over FY20-22E. ARBP has completed the corrective and preventive action (CAPA) at Units 1, 9, and 11/Aurolife and is awaiting feedback from the USFDA on desktop reviews. ARBP should complete the CAPA at Unit 7 soon. Aurobindo Pharma We expect ARBP to deliver 15% earnings CAGR over FY20-22E, led by new launches /increased market share in key markets of the US/EU and lower financial leverage.
Aurobindo Pharma Limited (Aurobindo) is witnessing improved traction in its US business, which constitutes around half of overall sales. Aurobindo is one of the few pharmaceutical companies reporting an impressive performance in the US as compared to others, which have been facing challenges. The US business is expected to grow in double digits going ahead. A combination of factors, including a sturdy new product pipeline, easing of pricing pressures, opportunities arising from shortage of products in the US, and an expected recovery in the injectable business would be key drivers for the US business....
Aurobindo Pharma Limited (ARBP) manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company's robust product portfolio is spread over 6 major therapeutic/product areas encompassing Antibiotics, Anti-Retroviral, CVS, CNS, Gastroenterological
