Japanese brokerage house Nomura said the deal is positive both from a strategic as well as a financial perspective.
Dr Reddy's Laboratories shares fell more than a percent from their intraday high on April 15 even as the company acquired ANDA portfolio in the US.
The stock gained 0.7 percent in opening after the acquisition news, but immediately corrected more than half a percent. At 11:45 hours IST, it was quoting at Rs 2,794.90, down Rs 11.45, or 0.41 percent on the BSE.
Dr Reddy's Laboratories, on April 13, said it has acquired a portfolio of 42 abbreviated new drug applications (ANDAs) in the US.
It has entered into a definitive agreement to acquire yet to be marketed portfolio of ANDAs, including more than 30 generic injectable products, the company said in its BSE filing.
These products will require to be technology transferred and could be launched within the next one to two years, it added.
The value of total addressable market for these products in the US is around $645 million for the calendar year ending in December 2018.
This transaction will help augment the company's injectables product portfolio in the US market and globally, Dr Reddy's said.
While maintaining buy call with a price target at Rs 3,414 per share (implying 22 percent potential upside), Japanese brokerage house Nomura said the deal is positive both from a strategic as well as a financial perspective.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.The Great Diwali Discount!
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