Stock Views on Cadila Healthcare, Ranbaxy,

KRChoksey on Ranbaxy Laboratories - Target of Rs 183

KRChoksey has maintained its buy rating on Ranbaxy Laboratories with a price target of Rs 183 in its research report.

"Ranbaxy to launch Daiichi Sankyo’s innovative antihypertensive drug, “Olvance” in India. We have revised our earnings estimate keeping in view the revenue inflow from the approval for the generic version of Imitrex and the launching of anti hypertensive drug, Olvance. We are positive about Ranbaxy as Medicines and Healthcare products Regulatory Agency (MHRA) of UK, and the Therapeutic Goods Administration (TGA), Department of Health and Ageing of the Australian Government, have issued Good Manufacturing Practice (GMP) certificates for its manufacturing site at Paonta Sahib (India), following a joint audit conducted in October 2008."


"The MHRA approval will not only cover product filings for the UK but will also apply to product filings for the entire European Union. We maintain our BUY rating to the stock with a price objective of Rs 183," says KRChoksey's research report.


Reliance Money on Ranbaxy - Target of Rs 189

Reliance Money has upgraded its rating on Ranbaxy Laboratories from hold to buy with a target price of Rs 189 in its research report.

"Ranbaxy’s Paonta Sahib plant (that has been under U.S. Food and Drug Administration (USFDA) Import Alert since September 2008) receives approval from United Kingdom (UK- MHRA) and Australian (TGA) regulatory authorites for GMP Compliance. Moreover, the UK - MHRA approval will also apply to all product filings for the entire European Union region. At the CMP, Ranbaxy is attractively valued at 8x its CY09E earnings (after factoring the NPV value worth Rs 70 for its FTF pipeline). Hence, with about 25% price correction in in Ranbaxy, we upgrade our rating from 'Hold' to 'Buy' with the earlier fixed target price of Rs 189," says Reliance Money's research report.


Emkay Global on Cadila Healthcare - Target of Rs 339


Emkay Global Financial Services has maintained its buy rating on Cadila Healthcare with a target price of Rs 339 in its research report.


"Cadila Healthcare entered into an agreement with the US-based pharma major Eli Lilly for the discovery and development of drugs in the area of cardiovascular research. Under the agreement, Lilly would have an option to license any resulting molecules at different stages. Cadila Healthcare would receive potential milestone payment of up to USD 300 million and royalties on sales upon the successful launch of any compounds. The exact impact on earnings will not be ascertained because of lack of information. However, we view this development as positive for the company as it demonstrates the R&D capabilities of Cadila Healthcare. We reiterate our Buy rating on the stock with a target price of Rs 339," says Emkay Global Financial Services' research report.