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Monday, August 30, 2010

C&O Pharma target raised to $0.65 by Phillip Securities

As reported at
Phillip Securities lifts C&O Pharmaceutical (E92.SG) target price to $0.65 from $0.53, implying 13.7x FY11 P/E, after increasing FY11 earnings estimate by 8.6% to HK$175 million ($30.5 million) to assume stronger growth across all business segments, contributions from roll-out of new drugs, keeping Buy call, according to Dow Jones.

Phillip expects new drug Edaravone, used to aid neurological recovery, to be major earnings driver in coming years considering fewer than five manufacturers in China capable of producing it.

Broker notes market for this drug, which C&O expects to get regulatory approval for mass production by October, worth about RMB1 billion ($200 million) in 2009. Shares flat at $0.465.

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