Dr Reddys up 4%, CLSA rates 'outperform' on strong US biz

Moneycontrol Bureau

Dr Reddys Laboratories gained 4 percent Tuesday. CLSA 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.

Meanwhile, the Hyderaband-based pharma company received approval from USFDA for Azacitidine injection, a bioequivalent injection version of VIDAZA that 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.

Generic drugs maker's first quarter (April-June) net profit rose by 7 percent year-on-year to Rs 361 crore and revenue increased just 12 percent Y-o-Y to Rs 2,845 crore.

At 12 hours IST, the stock was up 3.92 percent to Rs 2,310.35 on the Bombay Stock Exchange.

(Posted by Sunil Shankar Matkar)