Back to top

Analyst Blog

Dr. Reddy's Laboratories Ltd. (RDY - Analyst Report) announced the launch of its therapeutic equivalent generic version of Sunovion Pharmaceuticals Inc.’s Lunesta tablets (1 mg, 2 mg and 3 mg).

Lunesta is a prescription sleep medicine used in adults for the treatment of insomnia.

According to IMS Health, Lunesta and its generic versions generated U.S. revenues of approximately $887 million MAT (moving annual total) in the 12 months ending Jan 2014.

During the third quarter of fiscal 2014 ended Dec 31, 2013, Dr. Reddy’s filed two abbreviated new drug applications (ANDAs) with the U.S. Food and Drug Administration (FDA). The company has 62 ANDAs pending approval with the FDA, of which 38 are Para IV filings and 8 are first-to-file.

Revenues at the Global Generics segment rose 41% to $475 million in the third quarter of fiscal 2014. Strong sales in North America and the emerging markets led to the upside. Impressive sales of the generic versions of Vidaza, Dacogen, Aricept, Toprol XL and Depakote ER boosted segmental results.

Generics revenues increased in North America (76%), Russia and other CIS (Commonwealth of Independent States) markets (21%), rest of the world or RoW (35%) and India (5%). Revenues in India were, however, tempered by the new pricing policy. Revenues in Europe declined 4%.

Dr. Reddy's carries a Zacks Rank #2 (Buy). Other well-placed stocks that look attractive include Salix Pharmaceuticals Ltd. (SLXP - Analyst Report), Impax Laboratories Inc. (IPXL - Snapshot Report) and Enanta Pharmaceuticals, Inc. (ENTA - Snapshot Report). Salix Pharma and Enanta carry a Zacks Rank #1 (Strong Buy) while Impax Labs holds a Zacks Rank #2.

Read the Full Research Report on RDY
Read the Full Research Report on ENTA
Read the Full Research Report on IPXL
Read the Full Research Report on SLXP


Zacks Investment Research

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%