Indoco Remedies has received a nod from the USFDA for two of its facilities in Goa. The US health regulator has approved the sterile facility (plant-II) and solid dosage facility (plant -III) located at Verna.
Commenting on the same, Sarabjit Kour Nangra, VP Research - Pharma, Angel Broking said, "The nod will facilitate the generic approvals in the US market and subsequent product launches there and will boost high-margin revenues from the highly remunerative US market. Officials from the US drug regulator visited the facilities in August last year.
The development is very positive, as Indoco's ophthalmic business, as company has filed products from these facilities, and hence the approval opens up avenues for high-margin, low-competition product sales in the US. In the last four years, the company has filed 15 ANDAs in the ophthalmic space and expects to secure approval for 5 products over FY15-FY16E, addressing opportunities of USD 1 billion brand sales. Thus we estimate, the company to garner around Rs 1.2 billion sales in FY2016, and hence enhance our estimates on sales and net profit front by 12.1% and 34.1% respectively. Thus for FY2014-16E, we expect the company to post a sales and net profit of CAGR of 17.9% and 47.5% respectively. Also we upgrade our price target on the stock to Rs 192 with a Buy rating on the stock."
