The double-digit growth in the US would be a strong driver, as the company was witnessing high competitive intensity and pricing pressures in the past.
Analysts at JPMorgan, too, see positive news flow, with smaller generic approvals and litigation wins, which should improve visibility over the medium term. With the US contributing more than a third to overall sales, improvement in revenue will reflect in the overall earnings. On average, analysts expect the company’s earnings to grow between 20 per cent and 25 per cent annually over the next two years.
Domestic business, too, is expected to grow in double digits and will get a boost with the completion of strategic acquisition of Wockhardt’s portfolio. The company has a more diversified business growth model, with key geographies contributing to growth. Analysts at JPMorgan see continued scope of rerating in the stock. Further triggers include clearance of Srikakulam active pharmaceutical ingredient facility in Andhra Pradesh and margin expansion.