Dr Reddys adds 2%, UBS ups target post USFDA nod for VIDAZA
UBS today raised its target price on the stock to Rs 2,750 from Rs 2,600 on account of approval for VIDAZA. The brokerage house also raised earnings per share estimates for FY14/15 by 4 percent/6 percent.
Investors continued its ride on Dr Reddys Laboratories as the stock gained more than 2 percent in morning trade Wednesday on top of a 3.7 percent rally in previous session.
UBS today raised its target price on the stock to Rs 2,750 from Rs 2,600 on account of approval for Vidaza. The brokerage house also raised earnings per share estimates for FY14/15 by 4 percent/6 percent.
The Hyderaband-based pharma company received approval from USFDA for Azacitidine injection, a bioequivalent injection version of Vidaza. It had US sales of approximately USD 378.5 million for 12 months ended July 2013, according to IMS Health. It is used for treatment of myelodysplastic syndrome (to treat certain types of bone marrow cancers).
Citi also has a buy rating on the stock with a target price of Rs 2,720. The brokerage house sees strong growth in injectables business on the back of fourth approval received by the pharma company in CY13. Citi also maintained as its top large-cap pick.
Meanwhile, CLSA on Tuesday has an outperform rating on the stock with a target price of Rs 2,475.
According to the brokerage house, US business growth of the pharma company is likely to exceed expectations.
"We expect strong market share gains on recent launches and see 16 percent CAGR over FY13-16 with upside potential," CLSA report said.
The stock gained 2.24 percent at Rs 2,356.85 on the Bombay Stock Exchange at 11:07 hours IST.
(Posted by Sunil Shankar Matkar)