Dolat Capital: Cadila Healthcare’s Top-Line Driven By API; Pinning Hope On Injectables

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Cadila Healthcare Ltd.’s Q1 results were higher than our estimates driven by lower opex. The 4% revenue beat was driven by higher active pharmaceutical ingredient (API) sales hydrooxychloroquine (HCQ) while India and U.S. were in-line.As has been the trend in the sector, lower opex led to 340 basis points beat in Ebitda margins at 22.4% (we saw 19%). Though U.S. sales were lower 28 million U.S. dollar QoQ at 215 million U.S. dollar, higher contribution from Asacol HD aided gross margins at 65% coupled with currency benefit.In U.S. business, we expect sales erosion in gAsacol HD to be more than offset by new launches including transdermals and injectables (guidance of 45 injectable launches in next two-three years, including partnered products).While site transfer to Liva facility (first site transfer product approved in May 2020) should aid launches, clearance of warning letters for Moraiya facility is critical. It is in the process of filing complex injectables now which should start contributing from FY23/24 onwards.Injectables currently contribute sales of 15 million U.S. dollar and is expected to scale upto 150- 200 million U.S. dollar by FY24E in the U.S.Cadila guided for net debt reduction of Rs 10 billion in FY21..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dolat Capital: Cadila Healthcare’s Top-Line Driven By API; Pinning Hope On Injectables

Dolat Capital: Cadila Healthcare’s Top-Line Driven By API; Pinning Hope On Injectables

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