Back to top

Analyst Blog

Dr. Reddy's Laboratories Ltd. (RDY - Analyst Report) recently announced the launch of its therapeutic equivalent generic version of Novartis AG’s (NVS - Analyst Report) Reclast (zoledronic acid 5 mg/100 mL) Injection in the US. The launch followed the approval by the US Food and Drug Administration (FDA) of the company’s Abbreviated New Drug Application (ANDA) for Reclast.

Reclast is once-a-year osteoporosis treatment for postmenopausal osteoporosis. According to IMS Health, Reclast generated US revenues of approximately $355 million for the 12 months ending Feb 2013.

Dr. Reddy's boasts of a strong generic product portfolio. The company’s Global Generics segment revenues jumped 25% year over year to $380 million in the third quarter of fiscal 2013 (ended Dec 31, 2012). Strong sales in North America and the emerging market territories were primarily responsible for the growth displayed by the Global Generics division.

Generics revenue increased in North America (up 38%), Russia and other CIS (Commonwealth of Independent States) markets (up 32%), India (up 12%) and the rest of the world/RoW (up 42%).  However, generic revenues declined 20% in Europe.

A few days back, Dr. Reddy's had launched Zenatane (isotretinoin) capsules, its generic version of Hoffman-La Roche Inc.’s acne drug Accutane. The US regulatory body granted approval to the company’s generic version of the 10 mg, 20 mg and 40 mg dosage strengths of the drug. Dr. Reddy’s has not yet launched the 10 mg version. According to IMS Health, the generic version of Accutane generated US revenues of approximately $309 million for the 12 months ending Jan 2013.

The stock carries a Zacks Rank #3 (Hold). Other generic players like Mylan Inc. (MYL - Analyst Report) and Akorn, Inc. (AKRX - Snapshot Report) carry a Zacks Rank #2 (Buy).

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
UTD THERAPE… 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%