DRL gains for sixth day, Morgan Stanley says overweight

Healthcare firm Dr Reddy's Laboratories gained for the sixth consecutive session on Friday, rising more than four percent in six days.

The foreign research firm Morgan Stanley has put an overweight rating on the stock with a target price of Rs 2,039. "Generic Propecia seems to be a USD 20 million opportunity for the company and could boost FY13 earnings per share by 3 percent," the firm reasoned.

Dr Reddy's Laboratories had launched it's generic Finasteride tablets used for treating male pattern hair loss in the American market on January 2. The tablets are bioequivalent generic version of Merck Sharp & Dohme Corp, a subsidiary of Merck & Co Inc's Propecia tablets.

The Propecia tablets brand has US sales of approximately USD 136 million for the most recent twelve months ending in October 2012 according to IMS Health," Dr Reddy's said in its release.
    
At 10:03 hours IST, the stock was up 0.22 percent to Rs 1,885.15 on the Bombay Stock Exchange.