In-line with my previous post, I have sold out Divis Laboratories (1% position) completely and switched it to Cadila Healthcare (1% position). Cash level remains at 3% and I am looking for opportunities to deploy the same. This keeps my broad pharma allocation at the same level, but I get a nice asset at a much cheaper price. Cadila’s biosimilar portfolio is something worth looking at. They have also been growing their generic business well and have focused on de-risking their US business by growing their biosimilar business in emerging markets and in India. Their valuations are below long term average (EV/sales ~ 3 x vs long term EV/sales of 3.5-4x). Updated portfolio is below:
