Moneycontrol PRO
Upcoming Webinar:Join us for 'The Future Techshot' on Sept 22, 10:30am to gain insights into role of tech in streamlining businesses. Register Now!

Hold Lupin; target of Rs 760: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Lupin with a target price of Rs 760 in its research report dated December 19, 2019.

December 20, 2019 / 11:31 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Lupin


Although Lupin management has guided to achieve sales of USD100-150mn (Rx) in US$600m Bacterial Vaginosis (BV) market in the US (3% CAGR), we expect Solosec to reach peak sales of only US$50-60m (US$3-5mn/quarter currently) and achieve break-even in FY22E. We believe competition from metronidazole due to a) proven track record b) lower price and c) better efficiency (58-100% cure rate) will limit the shift towards Solosec. We expect Metronidazole will continue to be the market leader in Rx, and the preferred choice of medical practitioners even though Solosec has benefits of single-dose treatment. Currently, Solosec is the major revenue contributor to the branded business, and LPC is highly focused to make Solosec a successful brand in women's healthcare.


Outlook


We believe lower than expected ramp-up of Solosec and four plants under OAI status will continue pose strong valuation overhang. Maintain 'Hold' with TP Rs760.


For all recommendations report, 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.

Broker Research
first published: Dec 20, 2019 11:31 am

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark