Dr. Reddy's Laboratories
(
RDY
) recently launched its generic version of
Pfizer's
(
PFE
) pulmonary arterial hypertension (PAH) drug, Revatio
(sildenafil) tablets. We note that Dr. Reddy's is not the only
company to launch a generic version of Revatio. Earlier this
month,
Mylan
(
MYL
) had launched its generic version of the drug.
Apart from Mylan and Dr. Reddy's,
Watson Pharmaceuticals
(
WPI
) also gained approval for its generic version of Revatio. Watson
Pharma intends to launch its product shortly.
According to IMS Health, US sales of Revatio tablets in the 12
months ending September 30, 2012, were $338.7 million. While
Revatio tablets lost exclusivity in September 2012, Revatio
intravenous injection is slated to lose exclusivity in May
2013.
During the second quarter of fiscal 2013, Dr. Reddy's launched
4 new generic products and filed 4 abbreviated new drug
applications (ANDAs) with the US Food and Drug Administration
(FDA).
Dr. Reddy's generics division delivered a strong performance
in North America (47%) in the second quarter of fiscal 2013.
Generics revenues were driven by limited competition for the
company's generic versions of Pfizer's Geodon (ziprasidone),
Astellas Pharma's Prograf (tacrolimus),
GlaxoSmithKline's
(
GSK
) Arixtra (fondaparinux) and
Bristol-Myers Squibb's
(
BMY
) and
Sanofi's
(
SNY
) Plavix (clopidogrel). Revenues were also boosted by products
from the Shreveport facility and the ramp-up in the antibiotics
portfolio.
Our Recommendation
We currently have an Outperform recommendation on Dr. Reddy's,
which carries a Zacks #1 Rank (short term 'Strong Buy' rating).
We are pleased with Dr. Reddy's geographic reach and product
depth along with the robust generic product pipeline. We expect
the US generics business to continue performing well in the
coming quarters. Other generic companies like Mylan and Watson
Pharma currently carry a Zacks #2 Rank (short-term 'Buy' rating).
BRISTOL-MYERS (BMY): Free Stock Analysis
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GLAXOSMITHKLINE (GSK): Free Stock Analysis
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MYLAN INC (MYL): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
DOCTOR REDDYS (RDY): Free Stock Analysis
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SANOFI-AVENTIS (SNY): Free Stock Analysis
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WATSON PHARMA (WPI): Free Stock Analysis
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