Glenmark Pharmaceuticals - Glenmark launches Mupirocin cream - Kotak

The at-risk launch of Mupirocin in US by Glenmark will contribute Rs2.1/share for FY2014E (+7% upside to EPS; Rs1 bn in profits for the period till Oct 2014). With additional generic entry expected post patent expiry, we expect sustainable profits to have +1% EPS impact. Glenmark has also filed for declaratory judgment of non-infringement on the two unexpired patents.

We maintain REDUCE rating with unchanged TP of Rs510 - the stock is fully valued on FY2014E EPS.

Source : Equity Bulls

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