Cadila Healthcare - Q3 FY13 Result First Cut
Rajesh Desai
Dear Sir/Madam,
Cadila Healthcare announced its Q3 FY13 results on 8th Feb 2013. The top line grew by 15%. Indian formulation business which contributes 39% of top-line grew by 21% y-o-y with the help of 15 new launches including line-extensions. The revenue from US (24% contribution) increased by 14% y-o-y. Two products are launched from Nesher Pharma during last week of Dec’12. At the end of the year, Cadila is likely to launch 4 products (3 from control substance). The company has total 90 ANDA (55 oral) pending including control manufacturing.
The gross margin was down by 104 basis points on y-o-y basis due to lack of new product launches in USA, lower Biochem margins and lower sales in Brazil coupled with strike in ANVISA.
On account of the R&D cost for ANDA filings and higher marketing expenditure in Zydus Wellness, EBITDA margin witnessed de-growth by 349 basis points.
Cadila is likely to commence commercial supply to Abbott for out-licensing deal of 30+ products in the emerging markets from Q4 FY13. The management is maintaining its $3bn guidance for the top-line by FY2016.
We recommend “HOLD” for the stock.
Regards,
Team Microsec Research
Microsec Capital Limited
Tel: 91 33 30512100
Fax: 91 33 30512020
CA. Rajesh Desai