Hold Glenmark Pharma; target of Rs 805: Sharekhan

Sharekhan`s research report on Glenmark Pharma“Glenmark Pharma is in the process of building a strong product pipeline for its key markets like the USA, setting up a manufacturing base in the US market, expanding its R&D focus to newer areas like oncology and tapping the fast expanding Indian and emerging markets to ensure a long-term sustainable growth.”“The near-term growth opportunity emanating from the approval of the two key products in the USA, namely telmisartan (market size $250 million) and fluocinonide (market size $100 million), and the strong traction in the Indian market, as reflected in the retail sales data, appears to be factored in the current stock price. But we are confident the growth will be sustained in the long term driven by 71 ANDAs pending approval from the USFDA, out-licencing opportunities for its oncology molecule, GBR1302, and focus on niche segments like dermatology, hormones, controlled substances and oncology.” “In this note we introduce our estimates for FY2017 and roll over our valuation to FY2017E earnings in view of better visibility of the company’s future earnings. We also revise the price target up to Rs805 (including Rs55 for the R&D pipeline). However, owing to a limited upside from these levels we maintain our Hold rating on the stock,” says Sharekhan research report.   

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.

Read More