Ranbaxy Laboratories Ltd - gDiovan sourcing positive; Toansa key going ahead - Emkay

Reco: HOLD
CMP: Rs 416
Target Price: Rs 447

- According to media reports, Ranbaxy Labs has tied up with a pharma company for sourcing API for generic Diovan, though management is yet to confirm the development

- Reports say that it has already filed an application with USFDA seeking permission for its tie-up to source API for gDiovan. We see it as a better assurance of gDiovan launch

- However, the same is also a sign of low confidence on Toansa facility inspection outcome. This tie-up is a fall back option to save one-time opportunities for the company

- We continue to build a launch of gDiovan, gNexium and gValcyte in our FY15E projections with a 180-day exclusivity period.

Source : Equity Bulls

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