Emkay puts buy on Piramal Life Science; target Rs 270
Emkay Global Financial Services has initiated ‘buy’ on Piramal Life Sciences for a target price of Rs 270.
By ET Online |
MUMBAI: Emkay Global Financial Services has initiated ���buy��� on Piramal Life Sciences for a target price of Rs 270. The demerged R&D entity of Piramal Healthcare began operations a decade ago. Piramal Life Sciences today boasts of a world class drug discovery facility, a strong pipeline of 15 molecules (half of them in Phase I and Phase II) and in-licensing agreements with global innovator companies like Eli Lilly, Merck and Pierre Fabre Laboratories.
Piramal Life Sciences��� innovation philosophy of finding a drug that is safe and effective by focusing on well defined targets having strong commercial viability minimises the risk associated with drug discovery research.
From the infrastructure view, the company is a value play. The replacement cost of its R&D facility is 50 per cent of its current Enterprise Value. Piramal Life Sciences trades at a significant discount to its only comparable competitor, SPARC. Despite having a stronger pipeline of 15 molecules as against 8 for SPARC, Piramal Life Sciences trades at a significant discount (80%) to SPARC's market cap.
Piramal Life Sciences��� innovation philosophy of finding a drug that is safe and effective by focusing on well defined targets having strong commercial viability minimises the risk associated with drug discovery research.
From the infrastructure view, the company is a value play. The replacement cost of its R&D facility is 50 per cent of its current Enterprise Value. Piramal Life Sciences trades at a significant discount to its only comparable competitor, SPARC. Despite having a stronger pipeline of 15 molecules as against 8 for SPARC, Piramal Life Sciences trades at a significant discount (80%) to SPARC's market cap.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
