Indoco Remedies Q1 Review - U.S., India Offer Double Pivot For Growth: Prabhudas Lilladher

pills manufactured spill out of a bottle in an arranged photograph. (Photographer: Gary Gardiner/Bloomberg News)

Indoco Remedies Q1 Review - U.S., India Offer Double Pivot For Growth: Prabhudas Lilladher

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Prabhudas Lilladher Report

Indoco Remedies Ltd. maintains robust guidance in U.S. generics with growth of 67%/24% in FY22E/FY23E.

Its business expansion will drive 25% plus growth in Europe.

We note that India formulation sales growth of more than 17% with revenue contribution of 55-60% will have multiplier benefit on sales and headline margins going forward.

This along with strong and sustainable growth in U.S. will improve Ebitda margin from 15-16% to 18-20% in FY22E/23E.

We maintain our positive outlook on Indoco Remedies as we believe that-

  1. Medical representative productivity would improve to Rs 3lakhs/month along with existing field force,

  2. India formulations growth to return to more than 15% on sustainable basis,

  3. U.S. launch of ophthalmic and oral abbreviated new drug applications in partnerships and

  4. there will be lower remediation cost, as regulatory issues are resolved.

Click on the attachment to read the full report:

Prabhudas Lilladher Indoco Remedies Q1FY22 Result Update.pdf

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