Glenmark Pharmaceuticals Ltd. - Hydrocortisone Butyrate launch with FTF - Emkay

Reco: BUY
CMP: Rs 532
Target Price: Rs 644

- Glenmark announced launch of Hydrocortisone Butyrate cream in the US (generic for Locoid Lipocream). Glenmark also has 180 days exclusivity on the product

- According to IMS Health sales data for the 12 month period ending September 2013, Hydrocortisone Butyrate cream garnered annual sales of approximately USD 36.8mn

- It is likely that AG on the drug would go off the market leaving Glenmark as the only generic player. We believe it can attain 60-70% market share with USD 10-15mn sales

- We expect steady growth in India and US business going forward, maintain a BUY rating on the stock with a target price of Rs 644 (18x FY15E EPS of Rs 35.8).

Source : Equity Bulls

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