Glenmark Pharma (Buying Range: |430-|410)
• The company is the one of the few generic companies, which
enjoys a substantial foothold in therapies like Derma and oral
contraceptives in the US market, which has caused strong CAGR
of 21% between FY08 and FY12 in the US. We believe the growth
story will only get better on the back of robust pipeline of 81
ANDAs approved and 43 ANDAs pending for approval from
USFDA. The 43 pending applications include 19 are Para IV filings
• As per latest AIOCD data, Glenmark is the second largest player in
the dermatology space after GSK Pharma in the domestic market
with a market share of 11%. It also enjoys decent market share in
therapies like respiratory and cardiac. The company keeps on
introducing at least 20 new products and line extensions in the
domestic market to strengthen the market share. Sales in the
domestic market grew at a CAGR of 18% between FY08 and FY12
• We expect sales, EBITDA and profit to grow at a CAGR of 19%,
18% and 28%, respectively, between FY12 and FY14E. The
company is currently trading at ~21x FY13E EPS of | 20.7 and
~15x FY14E EPS of | 27.9
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