Dr. Reddy’s Laboratories (RDY - Analyst Report) recently announced the launch of its generic version of Roche’s (RHHBY - Analyst Report) Boniva following the receipt of US Food & Drug Administration (FDA) approval for its Abbreviated New Drug Application (ANDA).
Dr. Reddy’s launched its generic version of Boniva tablets (150 mg) in the US on June 29, 2012. Boniva is marketed for treating or preventing osteoporosis in women after menopause. It also helps to reduce the chances of spinal fracture.
As per IMS Health, the Boniva brand and generic recorded sales of around $486 million in past year (ending March 31, 2012). Notably, Watson Pharmaceuticals, Inc. also launched its generic version of Boniva tablets (150 mg).
Dr. Reddy’s had quite a few generic launches this year. In May 2012, it launched its generic version of Novartis AG’s (NVS - Analyst Report) over-the-counter (OTC) drug, Prevacid. The FDA had approved the ANDA for 15 mg formulation of the generic drug.
Dr. Reddy’s also announced the US launch of its generic version of Bristol-Myers Squibb & Co.’s (BMY - Analyst Report) blood thinner Plavix a few days back. The FDA approved the ANDA for 75 mg and 300 mg formulations of the generic version of the drug. Plavix lost patent exclusivity in the US on May 17, 2012.
We currently have a Neutral recommendation on Dr. Reddy’s. We believe that generic launches will continue to contribute to Dr. Reddy’s Global Generics segment’s revenues, which climbed 32% to $1.38 billion in the first quarter of 2012.
Primary contribution came from North America (up 68%), followed by Russia and other CIS (Commonwealth of Independent States) markets (up 22%) and India (up 11%). Growth was mainly driven by new generic launches and was aided by an increase in the sales volume. The company carries a Zacks #4 Rank (Sell rating) in the short run.