Dr. Reddy's Laboratories, gets a favourable district court verdict for Suboxone: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking):

"The District Court of Delaware has ruled in favour of Dr Reddy's Laboratories Ltd. against Reckitt Benckiser for the blockbuster drug Suboxone. Dr Reddy's bought Suboxone Film's abbreviated new drug application (ANDA) from Teva Pharmaceuticals for US$70mn in June '2016 with seven generic filers. The key patent expires in April 2024. Suboxone Film treats opioid addiction and has a brand size of US$1.7bn in America, as per IMS Health data.

Assuming that 3-4 generics version of the drug hit the market, generic Suboxone could add INR 15 to its EPS. However, this upside may take some time as the innovator most likely will appeal the decision in a higher court and Dr. Reddy's, on the other hand, still needs to get an approval from the U.S. Food and Drug Administration. We maintain our ACCUMULATE rating with a price target of INR 2,219."

Shares of DR.REDDY'S LABORATORIES LTD. was last trading in BSE at Rs.2217.35 as compared to the previous close of Rs. 2020.4. The total number of shares traded during the day was 243803 in over 17181 trades.

The stock hit an intraday high of Rs. 2230.2 and intraday low of 2121.3. The net turnover during the day was Rs. 533201700.

Source : Equity Bulls

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