20% of Cipla FY17 revenues to come from US: Chirag Talati

Talking to CNBC TV18, Chirag Talati, Kotak Institutional Equities, says Cipla would get 20 percent of its earnings in FY17 from their US business. This rise in earnings from their US wing comes mainly after the acquisition of InvaGen Pharmaceuticals Inc., a US generic drug company.  When asked about the company's Indore plant, which has come under the USFDA scanner for manufacturing norms violations, Talati said the facility is not a major contributer to Cipla earnings. Hence this news, he feels should not affect sales.He suggested buying Cipla at a target price brought down to Rs 700 from Rs 790. He failed to comment about Aurobindo Pharma and Dr Reddys Laboratories.For entire interview, watch accompanying video.