Buy Dishman Carbogen Amcis; target of Rs 435: HDFC Securities

HDFC Securities' research report on Dishman Carbogen Amcis

One of the molecules from Dishman Carbogen Amcis’ (DCAL) pipeline, crenolanib (disclosed by us in our IC note ‘Highly potent’), has received fast track designation from the US FDA for the indication of relapsed or refractory (R/R) acute myeloid leukemia (AML). A drug program with Fast Track status is afforded greater access to the FDA for the purpose of expediting the drug’s development, review, and potential approval. With this, crenolanib is in three expedited Phase III trials for the US market – two for AML and one for GIST.

Outlook

We expect this to not only drive further growth and profitability, but also reduce dependence on single blockbuster products (like niraparib), leading to lower earnings risk. Maintain BUY with a revised TP of Rs 435 (11x Dec-19E EV/EBITDA). For all recommendations report, click here

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