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HSBC cuts price target of Glenmark on lower earnings estimates, stock falls

December 13
16:05 2017
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While maintaining a hold rating on Glenmark Pharma, HSBC slashed target price of the stock to Rs 625 (from Rs 700 per share) following lower earnings estimates.

The research house reduced its FY18/19/20 EPS estimates by 6.3 percent/12.7 percent/12.4 percent.

“We don’t expect possible escalation of issues at Baddi to have material impact,” HSBC said.

Its Baddi unit underwent an US FDA audit from November 6-11, 2017. The USFDA issued seven observations through the form 483.

At this point in time, we would like to inform you that the Baddi unit contributes approximately 10 percent of the revenue of US sales.

According to the research house, 4-5 launches in US per quarter can largely offset price erosion in base portfolio.

At 15:14 hours IST, the stock price was quoting at Rs 533, down 1.31 percent on the BSE.

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