Buy Orchid Chemicals, target Rs.184: Sharekhan
Tuesday, 22 September 2009, 23:12 IST
By SiliconIndia
By SiliconIndia
Bangalore: Following the approval from the U.S. Food and Drug Administration (U.S. FDA) for its Abbreviated New Drug Application (ANDA) for Piperacillin and Tazobactam injection, Sharekhan has recommended buy rating on Orchid Chemicals and Pharmaceuticals, with price target of Rs.184.
These approvals by U.S. FDA cover Orchid's generic equivalents in 2.25g, 3.375g and 4.5g vial as well as 40.5g (pharmacy bulk package) dosage forms and strengths.
In its report, Sharekhan stated, "The launch of Tazo-Pip in the U.S. and the incremental revenues from the Penem segment (expected in Q4FY2010) would act as major triggers for Orchid Chemicals and Pharmaceuticals in the near term, whereas the reduction in debt levels and interest cost would drive the stock in medium to long term."
In the quarter ended June 30, 2009, the company has reported net loss by 5.9 percent to Rs.29.7 crore compared with Rs.31.6 crore in the corresponding period last year. Net sales increased by eight percent to Rs.305.8 crore against Rs.282.5 crore.
These approvals by U.S. FDA cover Orchid's generic equivalents in 2.25g, 3.375g and 4.5g vial as well as 40.5g (pharmacy bulk package) dosage forms and strengths.
In its report, Sharekhan stated, "The launch of Tazo-Pip in the U.S. and the incremental revenues from the Penem segment (expected in Q4FY2010) would act as major triggers for Orchid Chemicals and Pharmaceuticals in the near term, whereas the reduction in debt levels and interest cost would drive the stock in medium to long term."
In the quarter ended June 30, 2009, the company has reported net loss by 5.9 percent to Rs.29.7 crore compared with Rs.31.6 crore in the corresponding period last year. Net sales increased by eight percent to Rs.305.8 crore against Rs.282.5 crore.
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