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.
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