Cadila Healthcare Q1 Review - Domestic Formulations Drive Earnings: Motilal Oswal

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Cadila Healthcare Q1 Review - Domestic Formulations Drive Earnings: Motilal Oswal

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Motilal Oswal Report

Cadila Healthcare Ltd.’s Q1 FY22 performance was in line with our expectations, led by strong growth in domestic formulations, owing to its Covid-19 related product portfolio, but was offset to some extent by higher than expected price erosion in the U.S.

Cadila Healthcare's in-licensing and niche product portfolio for the U.S. are shaping up well, with benefits expected to accrue from FY23.

We reduce our FY22E/FY23E earnings per share estimate by 5%/6% to reflect:

  1. higher price erosion in the U.S.,

  2. expected competition in Mesalamine products, and

  3. margin expansion aided by cost optimisation.

Click on the attachment to read the full report:

Motilal Oswal Cadila Healthcare Q1FY22 Result Update.pdf

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