Dr Reddy's Laboratories - Improving visibility in US generics - Kotak

We believe the recent US launches for Dr. Reddy's provide additional comfort on near-term earnings and on execution of the complex generics strategy. The approval for Dacogen will provide impetus to the US injectables portfolio. We remain positive on the US pipeline and the ability to transition to a sustainable business. We view the US opportunity to turn challenging over the next 3-5 years - we believe Dr.Reddy's focus on complex generics in US and diverse R&D efforts provide comfort on longer-term earnings trajectory.

We will review estimates post earnings - maintain BUY with unchanged TP (at Rs2,400; 20X one-year forward EPS).

Source : Equity Bulls

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