Motilal Oswal 's research report on Aurobindo Pharma
Despite slowdown in ANDA approvals due to regulatory hurdles, ARBP delivered better-than-expected earnings on increased market share in existing products. With the VAI classification at Unit-4 and an increasing number of filings from sites under successful compliance, we expect the pace of launches to improve in the US market going forward. Turnaround in Apotex and continuous effort to better margins in the EU business would further boost overall profitability.
Outlook
We raise our EPS estimates for FY21/FY22E by 4.4%/9% to factor a robust launch pipeline for the US market and improving profitability in the EU business. Accordingly, we revise our price target to INR880 (from INR745 earlier), valuing ARBP at 13x 12M forward earnings. Maintain Buy.
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