Lupin receives FDA approval for Generic Epivir; Maintain BUY rating with PT of Rs1,710 :: IndiaNivesh

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Our View: Lupin received final approval for its Lamivudine tablets (g-Epivir) for
150mg and 300mg strength on 18 December 2014. Lupin has guided for commencing
the marketing the product shortly. Lamivudine are indicated in combination with
other retro-viral agents for the treatment of human immunodeficiency virus (HI0056-
1) infection.
Epivir Tablets had annual sales of US$40mn as per IMS MAT September 2014. With
3 players – Apotex, Aurobindo Pharma and Hetero Lab already in the market for
past two years and market size also small, we expect Lupin to gain marginal business
from this product.
Valuation: At CMP of Rs1,406, the stock is trading at 25.5x FY15E EPS of Rs51 and
20.6x FY16E EPS of Rs68.4. We believe that LPC is on track in terms of building
blocks for future growth in sales as well as profitability We maintain BUY rating
with price target of Rs1,710 based on 25x FY16E earnings.