172@29@17@136!~!172@29@0@53!~!|news|business|stocks|buy-dr-reddys-laboratories-target-of-rs-5710-icici-direct-5865491.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Subscribe to Moneycontrol Pro and get 365 bonus InterMiles! Use Code: INTERMILES
Last Updated : Sep 21, 2020 02:36 PM IST | Source: Moneycontrol.com

Buy Dr Reddy’s Laboratories; target of Rs 5710: ICICI Direct

ICICI Direct is bullish on Dr Reddy’s Laboratories recommended buy rating on the stock with a target price of Rs 5710 in its research report dated September 18, 2020.

Broker Research
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Dr Reddy’s Laboratories


Dr Reddy’s (DRL) has announced the settlement of its Revlimid capsules (Lenalidomide) patent litigation with Celgene [Bristol Myers Squibb (BMS)] in the US. This makes DRL the third player after Natco and Alvogen to sign a settlement agreement with the innovator for gRevlimid. Under the terms of the settlement, Celgene will provide DRL with a license to sell generic volume-limited amounts of gRevlimid capsules in the US after Natco’s launch in March 2022 subject to regulatory approval. This limited volume constraint will be applicable till January 31, 2026 post which DRL will be able to sell the drug in the US without any volume limitations whatsoever. The oncology drug, indicated for treatment of multiple myeloma, had annual US sales of US$9 billion in CY19 as per BMS report.


Outlook


We maintain BUY and arrive at a target price of Rs 5710, which includes base business value of ~Rs 5200 (26x FY22E EPS of Rs 200) + Rs 510 for NPV of gRevlimid.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Sep 21, 2020 02:36 pm
Sections