X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Cipla: Omeprazole uncertainty intensifies - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 5, 2001

    Cipla: Omeprazole uncertainty intensifies

    The uncertainty prevailing over the export of Omeprazole by Cipla to Andrx has further intensified. Omeprazole, which is the largest selling pharma product in both US and the World export, is considered to be a key earning opportunity for the company. Cipla has an arrangement to supply Omeprazole (bulk drug) to Andrx. Andrx in turn claims to have a six-month marketing exclusivity for the drug. However, the issue is caught in a long legal tangle. Recently, the US FDA had granted two more patents to AAI Pharma, which is working together with AstraZeneca (the original patent holder of the drug).

    Yesterday, the US FDA for the first time indicated to Andrx (and all other ANDA applicants) that the final marketing approval for generic version of Prilosec (Omeprazole) might be delayed. The US FDA is currently addressing issues raised by AstraZeneca relating to patents granted to AAI Pharma.

    This announcement by US FDA would further intensify the ongoing legal battle and consequently, further delay the launch of the generic drug. The eventual launch of the drug is now contingent on the successful resolution of the patent litigation and FDA approval. The markets would be closely watching developments on the Omeprazole front in the coming months.

    While Cipla has an agreement with Andrx to supply bulk omeprazole, Dr. Reddy’s has also filed an ANDA to market generic Omeprazole in the US and is expecting to receive a first to file status for the 40-mg version. Due to uncertainty, we had not incorporated any earnings upside from Omeprazole in both the companies and thus we maintain our projections.

    Current Valuations
    Particulars CMP Mkt.Cap P/E (x) EV/EBITDA (x)
      (Rs.) (In Mn.) 2002E 2003E 2002E 2003E
    Cipla 1045 62669 24 19 20 17
    Dr.Reddy's 1768 55957 21 16 16 15

     

     

    Equitymaster requests your view! Post a comment on "Cipla: Omeprazole uncertainty intensifies". Click here!

      
     

    More Views on News

    Cipla: Operating Margins Improve (Quarterly Results Update - Detailed)

    Mar 8, 2017

    Cipla has announced its results for the December quarter (1QFY17) results. The company has reported a decline of 6.4% YoY in sales while profits were down by 43.7% YoY.

    Cipla: Weak Quarter, Positive Triggers Ahead (Quarterly Results Update - Detailed)

    Sep 19, 2016

    Cipla has announced its results for the June quarter (1QFY17) results. The company has reported a decline of 6.4% YoY in sales while profits were down by 43.7% YoY.

    Sun Pharma: Bottomline Slips into the Red Amidst Challenging Environment (Quarterly Results Update - Detailed)

    Aug 14, 2017

    A challenging environment and one-time expense pushes Sun Pharma into a loss in the first quarter.

    Lupin: Bigger Challenges or Bigger Margin of Safety? (Quarterly Results Update - Detailed)

    Aug 14, 2017

    GST impact coupled with price erosion in US leads to lower profits for the quarter.

    Dr Reddy's: US Pressure Continues to Haunt (Quarterly Results Update - Detailed)

    Aug 8, 2017

    Profits plunge due to higher raw material costs.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    CIPLA SHARE PRICE


    Aug 18, 2017 (Close)

    TRACK CIPLA

    CIPLA - ADCOCK INGRAM COMPARISON

    Compare Company With Charts

    COMPARE CIPLA WITH

    MARKET STATS