Dr. Reddy's Launches Generic Amoxil

Dr. Reddy’s Laboratories ( RDY - Snapshot Report ) recently announced the launch of its generic version of GlaxoSmithKline’s ( GSK - Analyst Report ) Amoxil (amoxicillin) tablets, capsules, and oral suspension in the US following the receipt of Food and Drug Administration (FDA) approval for its Abbreviated New Drug Application (ANDA).

Dr. Reddy’s launched its generic version of Amoxil 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 on September 17, 2012.

Amoxil is marketed for the treatment of bacterial infection of the ear, nose, throat, genitourinary tract, skin and skin structure, and lower respiratory tract.

According to IMS Health, US branded and generic sales of Amoxil tablets (875 mg), capsules and oral suspension were approximately $22.2 million, $67.2 million and $89.5 million, respectively, for the twelve months ended June 30, 2012.

We note Dr. Reddy’s had quite a few generic launches this year. On September 11, 2012, it launched its generic version of AstraZeneca’s ( AZN - Analyst Report ) hypertension drug Toprol XL (metoprolol succinate extended release) - tablets (25 mg, 50 mg, 100 mg and 200 mg) in the US.

Dr. Reddy’s also launched a generic version of Merck & Co.’s ( MRK - Analyst Report ) blockbuster asthma and allergy drug Singulair and Pfizer Inc.’s ( PFE - Analyst Report ) blockbuster cholesterol drug, Lipitor. Other recent launches include Dr. Reddy’s generic version of Roche Holdings Ltd.’s ( RHHBY ) Boniva, Glaxo’s Requip and Novartis AG’s ( NVS - Snapshot Report ) over-the-counter (OTC) drug, Prevacid.

Our Recommendation

Currently, we have a Neutral recommendation on Dr. Reddy’s. The stock carries a Zacks #3 Rank (short-term Hold rating).