Dr. Reddy's Laboratories Ltd. (RDY - Free Report) recently announced the launch of its therapeutic equivalent generic version of Novartis AG’s (NVS - Free 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 - Free Report) and Akorn, Inc. (AKRX - Free Report) carry a Zacks Rank #2 (Buy).