Buy Glenmark Pharma for Target Rs 728
Buy Glenmark Pharma for Target Rs 728
Religare Research has maintained ‘buy’ on Glenmark Pharmaceuticals for a target price of Rs 728. The company has acquired seven pharmaceutical brands in Poland from Iceland-based Actavis and its affiliate Biovena for an undisclosed sum.
The acquisition will give Glenmark an entry point into Poland and apart from opening up newer geographies, it will allow the company to replicate its domestic product portfolio in the region.
Glenmark estimates sales of $15 million from the seven brands for 2008-09 with a 20 per cent growth in 2009-10.
Religare has valued the non-R&D business at 18x FY10E earnings, in line with peers, which yields a fair value of Rs 508 per share and the three lead molecules of Genmark’s NCE pipeline at Rs 220 per share. At the target price, the stock would trade at 21.7x FY09E and 17x FY10E earnings.
