Aurobindo Pharma Ltd. share price target

Aurobindo Pharma Ltd Q2FY19 results Comment Revenue grew by 11.61% to Rs. 4667.12 Cr in Q2FY19 when compared to the previous quarter. Also, it increased by 7.19% when compared with Q2FY18.

Q2FY19 numbers were largely in line with I-direct estimates on operational front. Revenues grew 7.1% YoY to | 4751.4 crore (I-direct estimate: | 4639 crore) due to 26.3% growth in RoW to | 307.5 crore and 17.6% growth in ARV segment to | 244 crore. US revenues grew 6.1% YoY to | 2226.8 crore (I-direct estimate: | 2152.5 crore) EBITDA margins contracted 443 bps YoY to 20.8% mainly due to high base of gRenvela exclusivity. EBITDA declined 11.7% to | 986.2 crore against I-direct estimate of | 964.3 crore...

Injectable Portfolio & New Launches to Drive US Biz; Maintain BUY Aurobindo Pharma (ARBP) has delivered a better-than-expected performance on all metrics in 2QFY19. Aided by strong sequential growth in the US, ARV and RoW business (barring Europe), its revenue/EBITDA/PAT exceeded our estimate by 3%/8%/15%, respectively. Its revenue grew by 11.8% QoQ to Rs47.5bn led by healthy US business (+17.8% to US$318mn), ARV (+57%), RoW (+20%) and API business (+9%), while Europe sales declined by 3.6%. Despite recovery in high margin injectable biz and sales from NBO, gross margin contracted by 314bps YoY (+188bps QoQ) due to change in business-mix (higher growth in ARV and RoW business)....

We maintain our Buy rating on Aurobindo Pharma (APL) and revise TP to Rs1,270 (earlier Rs1,010) based on 18x March'20E EPS of Rs70.4. APL has agreed to acquire the dermatology and oral solid business of Sandoz-a division of...

Aurobindo Pharmaceuticals (APL) has acquired dermatology and oral solids businesses from Sandoz Inc., USA for an upfront purchase price of US$0.9bn in cash. With this acquisition, Aurobindo adds sales of US$0.9bn and would become the 2nd largest generic player in the US by number of prescriptions. Acquisition is funded by debt and values ..

ICICI Securities Ltd | Retail Equity Research Aurobindo has entered into an agreement with US based Sandoz Inc. (generics / biosimilars arm of Novartis AG) to acquire its US Dermatology and Oral solid businesses for a consideration of US$ 900 million. Acquired portfolio comprises of 1) Portfolio of dermatology and oral solids, 2) authorised generics and in-licensed products, branded dermatology products (~US$ 50 million), 3) three manufacturing facilities at Hicksville - NY (Derma), Melville NY (Derma) and Wilson- NC (OSD)...

6 September 2018 a definitive agreement with Sandoz, USA to acquire its dermatology and oral solids businesses. The upfront purchase price is USD900m in cash, which includes a potential upside in near-term earn-out and additional potential earn-out on pipeline products in outer years. The portfolio to be acquired has a revenue contribution of 70% from oral solids and 30% from dermatology. ARBP guided for sales of USD900m in the first 12 months after the closure of transaction, adjusting for the expiration of certain in-licensed product contracts and the rationalization of the acquired products. acquisition will add ~300 products, including those that are already commercialized and also the ones that are yet to be approved. The deal also adds two derma- dedicated manufacturing facilities (including dermatology dedicated R&D; facility) in the US. The sales guidance of USD900m on a 12-month basis post the closure of transaction and the EBITDA margin guidance of ~22-23% imply an EBITDA of ~USD198m.

Aurobindo Pharma consolidated revenue from operation grew 15.5% on a YoY basis to `4250.27 Crs. in Q1. Growth has been aided by API segment, US, and Europe formulation business segments. However, the ARV business contracted 36% on YoY basis due to weak...

We maintain our Buy rating on Aurobindo Pharma (APL) and revise TP to Rs1,010 (earlier Rs1,070) based on 18x March'20E EPS of Rs56.2. The company's Q1FY19 revenue was in-line with our expectations. However, EBIDTA margin and net profit were below expectation. APL's sales grew 16% YoY, margin declined 460bps to 18.3% and net profit declined by 12% YoY. Its specialised segments such as injectables, penam, microspheres, hormones, oncology, vaccines, neutraceutical, depot injections, OTC and peptides would improve margins due to complexity in the manufacturing. APL has developed a robust pipeline of 487 ANDAs for the US...

Maintain BUY rating, with a revised TP of Rs 691 (16x FY20E). Aurobindo Pharmas (ARBP) revenue in 1QFY19 came in at Rs 4.6bn, up 16.7%YoY and 5%QoQ, beating our estimates by 8%. This was aided by good double-digit growth in the formulations segment, with US and Europe/RoW growing at 11.5% and 31% YoY respectively. Gross margin dropped to 55% (v/s 59% in 1QFY18) due to one-off inventory provisions and shelf stock adjustment.