Aurobindo Pharma Ltd - gCymbalta share strong; Outlook ahead brighter - Emkay

Reco: BUY
CMP: Rs 385
Target Price: Rs 518

- Latest IMS data suggests that Aurobindo has attained 14.5% market share (7 player market size - USD5.4bn) in gCymbalta. It has partnered with Citron Pharma for marketing this drug

- Another media report suggested Aurobindo has plans to acquire API units of Actavis. We believe (if true) strategy is in line with focus on sterile injectables and backward integration

- We read these developments in a positive light for Aurobindo although actual impact on cash flow from any acquisition can be ascertained only post confirmation and further details

- Aurobindo has been our Top Pick & we continue to believe in the story. We rollover our TP based on Dec-16 TTM EPS of Rs 43.2 & maintain a BUY with TP of Rs 518 (Rs 365 earlier).

Source : Equity Bulls

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