Buy Aurobindo Pharma; target of Rs 850: Axis Direct

Axis Direct's research report on Aurobindo Pharma
Aurobindohas launched (post approval)generic version of Renvela (Sevelamer Carbonate tablets – kidney ailment drug) in the US (market size of USD 1.9 bn as per IMS vs USD 745mn, in our view), following gRenvela OS^ (IMS market size of USD140mn) approval in Jun’17. Aurobindois the first and the only generic player to receive final approval for gRenvela (tablets + OS).

Outlook

we estimate the US market size of USD 745 mn for gRenvela tablets.We expect USD 116 mn in FY18 sales: USD 107mn from tablets and USD 9mn from OS. We expect additional generic competition in end FY18-19.

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