Centrum's research report on Aurobindo Pharma
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 Novartis AG, Switzerland and three manufacturing sites in the US for $900mn(Rs63bn). This would make APL the second largest player in dermatology and second largest generic player by prescriptions in the US. The deal also includes over 300 products, pending ANDAs, in-licensed products and FTF products thus making APL a leading player in the US. APL is among our top picks in the pharma sector.
Outlook
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.
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