Buy Cadila Healthcare target of Rs 695: Prabhudas Lilladher

Prabhudas Lilladher's research report on Cadila Healthcare

CDH’s vaccine ZyCoV-D received emergency user approval (EUA) from Indian regulator DCGI which is world’s first ever ‘plasmid DNA’ based 3-dose vaccine with needle-free/painless delivery. CDH conducted phase-3 clinical trial of the vaccine on 28,000 volunteers, including 1400 subjects in the age group of 12-17 age group. With favorable and acceptable safety profile, the approval was unique as it allows ZyCoV-D to be administered (first time in India) with adolescent age group (12-17 yrs) along with adult population (18 yrs and above). CDH also applied for 2-dose vaccine which may take another 1-2 months for expert group of DCGI to evaluate its efficacy profile data. Thermo-stability (2-8degree temp. for storage) of the vaccine helps in easing storage and transportation costs. Stock filling of the vaccine and commercial supply across India will commence in Oct’21 with annual manufacturing capacity of 100-120mn doses from newly built vaccine plant.

Outlook

The optional value may further increase with approvals of 2-dose ZyCoV-D and 3-11 yrs age group along with WHO approval and lifting of GOI restriction on vaccination exports as and when those occurs. We maintain ‘Buy’ and retain TP at Rs695.

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