 "Cadila Healthcare surges post Q1 results")
Cadila Healthcare has surged nearly 10% to Rs 380 on the BSE in intra-day trade after the management guided for 12-15 launches in calendar 2016.
The pharmaceutical company has reported a 22.6% year-on-year (YoY) decline in consolidated net profit to Rs 356 crore for the quarter ended June 30, 2016 (Q1FY17). Consolidated total income from operations dipped 4% YoY at Rs 2,287 crore for the quarter under consideration.
“Cadila Healthcare financial performance was below our estimates, due to moderate y?y growth in domestic formulation (DF) and year-on-year decline in US sales as company witnessed increased competition in its key molecule in US,” said Daljeet S. Kohli, head of research at IndiaNivesh Securities.
The company intends to make up for loss in key molecule through new launches. The management intends to launch 12-15 products in US by December 2016 out of which 2-3 could be $20-30 million opportunities. All these products have been filed from facilities other than Moraiya, the brokerage firm said in a results update.
“The management believes that the Hydroxychloroquin (HCQS) impact is largely in the base and margins should improve as product launches pick up over ensuing quarters (12-15 launches by Dec’16). While there was no additional clarity on Moraiya resolution, management expects to invite the USFDA for a re-inspection soon,” Religare Securities said in a results review.
“Concall commentary quite positive on US revenues in FY17 with 12-15 launches with several high revenue grossing (USD 30 million –USD 50 million), these approvals expected from Nesher, SEZ and Baddi facility,” analysts at Emkay Global Financial Services said.
At 11:34 am, the stock was up 8% at Rs 374 on the BSE as compared to 0.25% rise in the S&P BSE Sensex. The trading volumes on the counter jumped an over four-fold with a combined 3.88 million shares changed hands on the BSE and NSE.
The pharmaceutical company has reported a 22.6% year-on-year (YoY) decline in consolidated net profit to Rs 356 crore for the quarter ended June 30, 2016 (Q1FY17). Consolidated total income from operations dipped 4% YoY at Rs 2,287 crore for the quarter under consideration.
“Cadila Healthcare financial performance was below our estimates, due to moderate y?y growth in domestic formulation (DF) and year-on-year decline in US sales as company witnessed increased competition in its key molecule in US,” said Daljeet S. Kohli, head of research at IndiaNivesh Securities.
The company intends to make up for loss in key molecule through new launches. The management intends to launch 12-15 products in US by December 2016 out of which 2-3 could be $20-30 million opportunities. All these products have been filed from facilities other than Moraiya, the brokerage firm said in a results update.
“The management believes that the Hydroxychloroquin (HCQS) impact is largely in the base and margins should improve as product launches pick up over ensuing quarters (12-15 launches by Dec’16). While there was no additional clarity on Moraiya resolution, management expects to invite the USFDA for a re-inspection soon,” Religare Securities said in a results review.
“Concall commentary quite positive on US revenues in FY17 with 12-15 launches with several high revenue grossing (USD 30 million –USD 50 million), these approvals expected from Nesher, SEZ and Baddi facility,” analysts at Emkay Global Financial Services said.
At 11:34 am, the stock was up 8% at Rs 374 on the BSE as compared to 0.25% rise in the S&P BSE Sensex. The trading volumes on the counter jumped an over four-fold with a combined 3.88 million shares changed hands on the BSE and NSE.