Dr. Reddy’s Laboratories (RDY) recently announced the launch of its generic version of Merck & Co’s (MRK) Singulair oral granules (montelukast) following the receipt of US Food and Drug Administration (FDA) approval for its Abbreviated New Drug Application (ANDA).
Dr. Reddy’s launched its generic version of Singulair oral granules in 4 mg dosage in the US on September 26, 2012.
According to IMS Health, US branded sales of Singulair oral granules were approximately $61 million for the twelve months ended July 30, 2012. We note Singulair lost patent exclusivity in the US in August 2012.
Dr Reddy’s had launched its generic version of Singulair tablets (10 mg) and chewable tablets (4 mg & 5 mg) in the US on August 6, 2012.
Dr. Reddy’s had quite a few generic launches this year. On September 17, 2012, it launched its generic version of GlaxoSmithKline’s (GSK) Amoxil (amoxicillin) tablets (500 mg and 875 mg), capsules (250 mg and 500 mg) and oral suspension (125 mg/5 ml, 200 mg/5 ml, 250 mg/5 ml, and 400 mg/5 ml) in the US.
Other recent launches include Dr. Reddy’s generic version of Pfizer Inc.’s (PFE) cholesterol drug, Lipitor, Roche Holdings Ltd.’s (RHHBY) Boniva, Glaxo’s Requip and Novartis AG’s (NVS) over-the-counter (OTC) drug, Prevacid.
Our Recommendation
We currently have a Neutral recommendation on Dr. Reddy’s. The stock carries a Zacks #3 Rank (“Hold” rating) in the short run. We believe that generic launches will continue to drive revenues at Dr. Reddy’s Global Generics segment, which climbed 32% to $343 million in the first quarter of fiscal 2012.
Primary contribution came from both North America and Russia and other CIS (Commonwealth of Independent States) markets (up 38% y/y) followed by India (up 19% y/y) and Europe (up 14% y/y). Growth was mainly driven by new generic launches and an increase in the market share of existing key products.
GLAXOSMITHKLINE (GSK): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
DOCTOR REDDYS (RDY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment