“Aurobindo Pharma has great time to add exposure as the negligible impact is saw of lawsuit filed in the US for two generic drugs in relation to price conspiracy and cartelization”, said Motilal Oswal. Broking house said, with a target price of Rs 1,050, Aurobindo held its position of one of top picks in the sector with the closing price of Rs 691.
Motilal Oswal said in its study note, “current lawsuit is not appeared major impact to the company’s sales.” Its price fall over 4% is also recovered. US filed a civil lawsuit to its 20 states’ six generic pharma companies with the charge of plot on the value generic drugs (Doxycycline Hyclate) and Glyburide (oral diabetes machine).
Related news – Aurobindo Pharma Ltd gets USFDA tentative nod for HIV drug
These six companies include the Aurobindo Pharma Company. US pricing probe can file a lawsuit against various companies as previously lawsuit have been filed against Taro Pharma, Sun Pharma, Cadila Healthcare and Aurobindo.
Risk is looking limited because Aurobindo primarily rely on number of launches and manufacturing strength to fuel expansion. Aurobindo is successfully far the best launching track records among Indian generic players operating in the US.
88 ANDA (abbreviation new drug application) approvals has been received and has launched more than 55 products and the it delays due to capacity constraints. Motilal Oswal said that company is expecting to launch about 25 ANDAs after the first half of the FY17, including 6-7 injectables and 20 oral solids.
Related post – Buy Aurobindo Pharma with a target of Rs. 800, says Ashwani Gujral
Key launches- Vancomycin, Meropenem and Fenofibrate are expexted to be launched in fourth quarter of FY17. Brokers consider Aurobindo the best place beside pricing because it does not rely on only single product.
In course of time, Kaveri Seeds has been upgraded by the Aurobindo by buying with the target price of Rs 489 afret first quarter.
The post Motilal Oswal sees 52% upside in Aurobindo appeared first on Mcr World.