Dr. Reddy's Laboratories
) recently announced the U.S. launch of a generic version of
Bristol-Myers Squibb & Co.
) blood thinner, Plavix. The U.S. Food and Drug Administration
(FDA) approved the Abbreviated New Drug Application (ANDA) for 75
mg and 300 mg formulations of the generic version of the drug.
Plavix lost patent exclusivity in the U.S. on May 17,
Since Dr. Reddy's was among the first few companies to submit an
ANDA for generic Plavix, it has the 180 days of marketing
exclusivity for the 300 mg formulation.
According to the IMS Health data, Plavix sales in the U.S.
amounted to about $6.74 billion for the twelve months ended March
Last month Dr. Reddy's launched the generic version of
Teva Pharmaceutical Industries Ltd.
) antipsychotic drug, Zyprexa in the U.S. The generic drug was
awarded 180-day marketing exclusivity in the U.S. on October 26,
2011, following a commercial, manufacture and supply agreement with
According to the IMS Health data, the U.S. branded and generic
sales of Zyprexa were about $3.28 billion for the twelve months
ended January 31, 2012.
We currently have a Neutral recommendation on Dr. Reddy's. We
believe that generic launches will continue to contribute towards
Dr. Reddy's Global Generics segment's revenues, which climbed 32%
to $1.38 billion in the first quarter of 2012. Primary contribution
came from North America (up 68%), Russia and other CIS
(Commonwealth of Independent States) markets (up 22%) and India (up
11%). Growth was mainly driven by new generic launches and was
aided by an increase in the sales volume.
However, in Europe, sales declined 2%, primarily due to exchange
rate fluctuation and the pricing pressure in the German market.
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