Another generic from Dr. Reddy's

The generics drugmaker plans to tackle AstraZeneca's blockbuster antipsychotic drug Seroquel next.

By Zacks.com Apr 2, 2012 10:20AM

By Zacks Equity Research
 
Dr. Reddy's Laboratories (RDY) recently announced the U.S. launch of its generic version of AstraZeneca's (AZN) drug, Seroquel.


Late last month, the U.S. Food and Drug Administration had approved Dr. Reddy's abbreviated new drug application for the generic drug. Seroquel is approved for the treatment of schizophrenia and bipolar mania.


According to IMS Health, U.S. sales of the Seroquel brand amounted to about $4.6 billion for the 12 months ended December 31, 2011.


Last month, Dr. Reddy's launched its generic version of Pfizer Inc.'s (PFE) antipsychotic drug, Geodon (ziprasidone) in the U.S. The drug is approved for the treatment of schizophrenia and bipolar disorder.


We expect generic launches at regular intervals to add to Dr. Reddy's Global Generic revenues, which soared 57% year-over-year to $402 million in the third quarter of fiscal 2012.


During the reported quarter, generics' revenues climbed 133% in North America, 15% in Russia and other CIS (Commonwealth of Independent States) markets, 14% in Europe and 11% in India. Growth was mainly driven by the launch of a generic version of Eli Lilly & Co.'s (LLY) Zyprexa (olanzapine) 20 mg.


Our Take


We currently have a "neutral" recommendation on Dr. Reddy's. The stock carries a Zacks #2 Rank ("buy" rating) in the short-run. We believe Dr. Reddy's is in a strong position to benefit from the huge potential presented by the U.S. generics market, as quite a few blockbuster drugs such as Johnson & Johnson's (JNJ) Concerta and Pfizer's Lipitor have lost patent exclusivity, and more drugs are slated to go off-patent in the coming years.


Read this article on Zacks.com

Read the full analyst report on "RDY" (registration required)

Read the full analyst report on "AZN" (registration required)

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

116
116 rated 1
265
265 rated 2
429
429 rated 3
612
612 rated 4
499
499 rated 5
525
525 rated 6
701
701 rated 7
533
533 rated 8
337
337 rated 9
131
131 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
COPCONOCOPHILLIPS9
TAT&T Inc9
DVNDEVON ENERGY CORPORATION9
EOGEOG RESOURCES Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.