Sharekhan's research report on CiplaMylan recently announced that its abbreviated new drug applications (ANDAs) for fluticasone propionate 100, 250, 500mcg and salmeterol 50mcg inhalation powder have been accepted for filing by the US Food and Drug Administration (USFDA). The USFDA has provided Mylan a goal date of March 28, 2017 (meaning if the product is approved under a standard review period, generic Advair could be launched in 2017). Mylan has now become the third generic player to file for generic Advair after Sandoz and Hikma. Owing to the above mentioned concerns coupled with the closure of InvaGen and Exelan acquisition, and pending 483s at Indore SEZ, Cipla is likely to face operational pressure over the next two years. Hence, we have revised our earnings estimates down by 9% for FY2017 and FY2018 each. Valuing the stock at 20x its FY2017 earnings per share (EPS) of Rs29.1, our revised price target comes to Rs581, giving a limited upside. Thus, we have downgraded our rating to Hold. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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