Moneycontrol
Oct 03, 2017 11:01 AM IST | Source: Moneycontrol.com

Dr Reddy's Lab rises 4% on launch of kidney drug in US market

This is the company’s eight overall and fourth limited competition launch this fiscal year.

Dr Reddy's Lab rises 4% on launch of kidney drug in US market

Moneycontrol News

Shares of Dr Reddy's Laboratories rose nearly 4 percent intraday Tuesday on the launch of kidney diseases drug Renvela generic in the US market.

The company has launched Sevelamer Carbonate tablets 800 mg, a theraupeutic equivalent generic version of Renvela tablets, approved by United States Food & Drug Administration (USFDA).

Alok Sonig, executive vice-president and head of the North America Generics business at Dr Reddy's said, "We are pleased to bring Sevelamer Carbonate tablets to market at this time."

"This launch represent Dr Reddy's expertise and commitment to provide affordable alternatives for complex, limited-competition products to market," he added.

This is the company’s eight overall and fourth limited competition launch this fiscal year.

The Renvela brand and generic had US sales of approximately USD 1.88 billion MAT sales for the most recent 12 months ending in July 2017, according to IMS Health.

Dr Reddy’s Sevelamer Carbonate tablets, 800 mg are available in the bottle count size of 270 tablets.

Renvela is a trademark of Genzyme Corporation.

Nomura has kept buy rating on the stock with a target of Rs 3281. According to the firm, the new launches and cost savings are key drivers of earnings growth.

Brokerage house expect sales of USD 30 million in FY18 and USD 40 million in FY19 from sale of Renvela drug.

According to Goldman Sachs the drug can add around 5 percent to net income over the next 12 months.

Morgan Stanley has estimated sales of USD 70-80 million assuming 30 percent market share and 50 percent price drop. The product will have high margins of above 80 percent.

At 09:52 hrs Dr Reddy’s Laboratories was quoting at Rs 2,367.60, up Rs 38.20, or 1.64 percent on the BSE.

Posted by Rakesh Patil
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