Healthcare I U.S. Generics - Turning The Tide? Motilal Oswal's Thematic View

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Resurgence in optimism: The prospect of the U.S. generics market has experienced a revival in the recent past. This has been driven by price stability in the base portfolio and lesser competition due to financial and/or regulatory constraints of some companies. Though restrained: However, our analysis of industry-level approvals showcases a cautious stance on this optimism. The U.S. Food and Drug Administration has approved ~420 products in seven months-CY23 (~725 annualised) versus pre-Covid annual run-rate of 670 (CY17-CY19). The pace of inspection – while yet to reach pre-Covid levels – is on the rise, implying mounting regulatory risk. Would propel growth contingent on product-specific executions: We believe that the U.S. generics market remains a product-specific play from the incremental business perspective. This would not only offset the erosion in base portfolio but also deliver growth effectively. Upgrade Cipla Ltd. to 'Buy' under this backdrop: Cipla’s robust abbreviated new drug application pipeline with complex products (inhalers, peptides, injectable, etc.) should drive consistent growth in the U.S. generics segment. This along with a steady outperformance in branded generics market (of India/South America) would enable 16% earnings compound annual growth rate over FY23-25.Accordingly, we raise our price/earning multiple to 25 times (from 22 times earlier; in line with its threeyear/five-year average) on 12 months forward earnings and add g-Revlimid’s net present value (Rs 30) to arrive at our target price of Rs 1,420. Upgrade to 'Buy'..Click on the attachment to read the full report:.Strides Pharma's Tentative Approved HIV Drug To Generate Revenues Only After 2027.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Healthcare I U.S. Generics - Turning The Tide? Motilal Oswal's Thematic View

Cipla’s robust ANDA pipeline with complex products should drive consistent growth in the U.S. generics segment.

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