Latest news with #gRevlimid
Economic Times
6 days ago
- Business
- Economic Times
I-Sec downgrades Aurobindo Pharma to Add, target price Rs 1,330
ICICI Securities has downgraded Aurobindo Pharma to Add (from Buy earlier) with a revised target price of Rs 1,330 (earlier Rs 1,445). The current market price of Aurobindo Pharma Ltd. is Rs 1147.95. Aurobindo Pharma, incorporated in 1986, is a Large Cap company with a market cap of Rs 66664.41 crore, operating in the Pharmaceuticals sector. ADVERTISEMENT Aurobindo Pharma's key products/revenue segments include Pharmaceuticals, Sale of services, Export Incentives and Scrap for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 8516.93 crore, up 4.68 % from last quarter Total Income of Rs 8135.81 crore and up 10.38 % from last year same quarter Total Income of Rs 7715.77 crore. The company has reported net profit after tax of Rs 935.02 crore in the latest quarter. The company's top management includes Mr.M Ramasubramanian Kumar, Mukherjee, Mahajan, P Vanvari, Mr.P Sarath Chandra Reddy, Makkapati, Mr.P V Ramprasad Reddy, Mr.M Madan Mohan Reddy, Mr.K Nithyananda Reddy, Pant Joshi. Company has Deloitte Haskins & Sells as its auditors. As on 31-03-2025, the company has a total of 58 Crore shares outstanding. Investment Rationale ADVERTISEMENT Aurobindo Pharma?s US sales growth (up 8.8% YoY to $470 million) in Q4FY25 was driven by gRevlimid; however, sales run-rate is likely to come down in FY26 as pricing competition intensifies, manufacturing at Pen-G plant has been temporarily halted due to fire in the coal yard near conveyor belt. However, production may resume soon post approval from Andhra Pradesh Pollution Control Board which the management expects in next couple of months. Europe business continues to grow at a faster pace and going ahead new launches may boost growth. Management expects traction in Europe to improve ahead led by new product launches and will launch biosimilars in Europe and UK in Q2FY26. Aurobindo has signed a definitive agreement with Merck Sharpe and Dohme (MSD Singapore) for contract manufacturing of innovative biologics, civil work on this plant is on and in FY27 it expects to commission this plant; revenue generation to start in FY28. ICICI Securities lowered its FY26/27E EBITDA by ~12%/8%, respectively, to factor in lower sales from Eugia. The stock currently trades at 17.1x FY26E and 14.3x FY27E earnings, and EV/EBITDA multiples of 9.1x FY26E and 7.6x FY27E. They have lowered rating on the stock to ADD (from Buy) with lower target price of Rs 1,330 (Rs 1,445 earlier), based on 16x FY27E EPS (18x FY26E EPS earlier). Key downside risks include regulatory hurdles, currency volatility and delay in US launches. Promoter/FII Holdings Promoters held 51.82 per cent stake in the company as of 31-Mar-2025, while FIIs owned 15.33 per cent, DIIs 26.23 per cent. (You can now subscribe to our ETMarkets WhatsApp channel) Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.
Time of India
6 days ago
- Business
- Time of India
I-Sec downgrades Aurobindo Pharma to Add, target price Rs 1,330
ICICI Securities has downgraded Aurobindo Pharma to 'Add' with a revised target price of Rs 1,330, citing potential decline in gRevlimid sales due to pricing competition and a temporary halt in Pen-G plant production. While Europe business shows promise with new launches and biosimilars, lowered FY26/27E EBITDA reflects anticipated lower sales from Eugia. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads (Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.)
Business Upturn
28-05-2025
- Business
- Business Upturn
Aurobindo Pharma shares fall over 2% after Citi maintains ‘Sell' rating, cuts target price to Rs 1,100
By Aman Shukla Published on May 28, 2025, 10:08 IST Aurobindo Pharma shares fell over 2% after Citi maintained a 'Sell' rating and lowered its target price to ₹1,100. Citi expressed concerns about flattening growth in the US market and rising margin pressures ahead. As of 10:06 AM, the shares were trading 2.12% lower at Rs 1,165.90. In Q4FY25, Aurobindo reported a 10.6% year-on-year revenue increase to ₹8,382 crore, but net profit slightly dipped 0.5% to ₹902.8 crore. Citi highlighted that the company's adjusted EBITDA was around 5% below expectations. Excluding the $40–60 million contribution from gRevlimid, the baseline EBITDA margin stood at 18.5%, down 100 basis points compared to last year, despite a one-time ₹1,000 crore cost benefit. Management's outlook was described as underwhelming, projecting only high single-digit revenue growth and no significant improvement in injectables for FY26. Citi pointed out that although the US business saw 10% volume growth in FY25, signs of flattening sales and the removal of gRevlimid from the product mix may pressure margins over the next few quarters. Due to these factors, Citi cut its FY26–27 earnings per share estimates by 8%, indicating cautious sentiment around Aurobindo's near-term prospects. Investors should watch the company's US market performance closely as margin risks remain a key concern. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
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Business Standard
20-05-2025
- Business
- Business Standard
Sun Pharma Q4 preview: Analysts expect 18% jump in profit; check details
Sun Pharma Q4 results preview: Pharmaceutical major Sun Pharmaceutical Industries is expected to report decent set of numbers in the March 2025 quarter (Q4 FY25) on the back of continued expansion of speciality products like Odomzo and Ilumya in emerging markets (EM) and the rest of the world (ROW). In addition, new product launches are expected to boost the company's leadership in branded generics in India, according to analysts. Sun Pharma Q4 results 2025 date: The company is scheduled to announce its fourth quarter results on Thursday, May 22, 2025. Sun Pharma Q4 results: Profit expectations Sun Pharma Q4 results: Revenue expectations The pharma major's revenue for the quarter under review is expected to increase 13 per cent to ₹13,550 crore, on average, as compared to ₹11,982.9 crore in the corresponding quarter of the previous fiscal. On a sequential basis, revenue is expected to remain flat compared to ₹13,675 crore in the December 2024 quarter. Brokerages expected the company's earnings before interest, tax, depreciation and amortisation (Ebitda) to increase nearly 20.5 per cent to ₹3,726 crore in Q4FY25 compared to ₹3,091.5 crore in the year-ago period. Here's how analysts expect Sun Pharma to perform in Q4 FY25: Phillip Capital: Analysts at Phillip Capital expect Sun Pharma to report 14 per cent growth in sales on account of sustained double-digit growth in US speciality, ramp up in gRevlimid sales and sustained growth in domestic formulations. The company's margins are likely to stand at 28 per cent, led by sustained momentum in Revlimid sales, US speciality business and domestic formulation, resulting in a 25 per cent increase in Ebitda. With stable operating performance, earnings are likely to grow 22 per cent on a yearly basis but decline sequentially. Nirmal Bang Institutional Equities: The domestic brokerage firm expects Sun Pharma's Q4 revenue to increase 15 per cent Y-o-Y, on the back of continuous growth in Winlevi, Ilumya, and Cequa along with ramp up of gRevlimid. The company's India business is likely to grow 11 per cent Y-o-Y, led by gains across segments. 'ROW and EMs should expand 20 per cent and 35 per cent, respectively, owing to the launch of Ilumya in China and other new products. Ebitda margin is expected to remain strong at 27.2 per cent,' the brokerage said. HDFC Securities: Analysts at HDFC Securities expect the pharma major's US generic business to grow sequentially, led by gRevlimid sales and steady Taro sales. Speciality sales are also expected to grow 10 per cent Y-o-Y. Steady gross margin and costs will lead to Ebitda margin expansion.
Time of India
19-05-2025
- Business
- Time of India
DRL gears up for biosimilar push, consumer health growth post record FY25
Dr Reddy's Laboratories (DRL) has gained 5.5% on bourses in six trading sessions since declaring the fourth quarter numbers compared with a 3.6% increase in the BSE Healthcare index. The company reported double-digit growth in revenue and net profit for the March 2024 quarter. Revenue growth was driven by the acquisition of Nicotine Replacement Therapy (NRT) portfolio from UK's Haleon in June 2024. The next phase of growth once Revlimid sales taper after the drug goes off patent in January 2026, will be driven by biosimilars and Semaglutide portfolios. The company is likely to post double-digit revenue growth for FY26 but EBITDA margin may shrink to 25% from 28% in FY25 due to tapering sales of gRevlimid. Given this, analysts have reduced the target prices of the stock by 6-14%. Despite cuts, the target prices were 6-18% higher than the stock price on May 09 when the quarterly result was out and continue to remain above Monday's closing price of Rs1,219. Also, biosimilars and semaglutide offer future growth potential thereby supporting the stock price. On a year-on-year basis, DRL's revenue and net profit rose 20% and 21% year-on-year to Rs8,506 crore and Rs1,587 crore in the March 2025 quarter, respectively. Excluding NRT sales, revenue growth slowed to 12%. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased for the fifth consecutive quarter to Rs2,474.9 crore, a year-on-year 32.2% growth. Full-year R&D investment was Rs2,738 crores, up 20% year-on-year. However, its proportion in revenue fell by 118 basis points to 8.5%. The company expects to retain the R&D expenditure in a similar range even after the gRevlimid sales normalise. It will be driven by building a differentiated pipeline spanning small molecules, biosimilars, and complex generics including peptides and cancer therapy. DRL completed 95 global generic filings, bringing the total for FY25 to 249. The company is about to launch GLP-1 (Semaglutide) globally during the current calendar year. Abatacept, a medication used to treat rheumatoid arthritis and other autoimmune diseases, is into Phase III and the company plans to submit it for approval towards the end of 2025. The biosimilar segment remains a key growth driver in the coming quarters. According to Axis Securities, the company's two biosimilar drugs slated for launch in Europe have the potential to contribute $40–50 million in sales in FY26. Additionally, osteoporosis drug Denosumab, scheduled for launch in FY27, is estimated to generate $50 million in annual sales. The brokerage has cut the target price to Rs1,250 from Rs1,450 earlier, valuing the company at 17 times FY27 expected earnings. Elara Capital has lowered its FY26 earnings estimate 10% in anticipation of lower gRevlimid sales while raising FY27 estimate by 4% in anticipation of margin stability. The brokerage has highlighted price erosion in the US market and delay in product approvals as major risks to its forecast.
