Buy Aurobindo Pharma; target of Rs 850: Motilal Oswal

Motilal Oswal's research report on Aurobindo Pharma

Receives approval for Renvela in US :  ARBP  has  received final USFDA  approval to manufacture sevelamer carbonate  tablet 800mg ( brand nameRenvela; innovator – Genzyme) in the US. Notably, ARBP is the first generic player to receive approval for Renvela , which is  indicated for the control of serum phosphorus in patients with chronic kidney disease on dialysis.

Outlook

We expect ARBP stock to remain range bound in the near term as the stock has  moved up ~50% in less than two months since  end- May 20 17. However, the key  catalysts in 2HFY18  (including launch of Fondaparinux, Toprol XL, DTG combination,  injectable s business ramp -up,  and EU business margins improvement ) will help drive  growth in the medium term.