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• ANDA 0% Rate It
• BMY 75% Rate It
• RDY 100% Rate It
• TEVA 100% Rate It

Dr. Reddy's Laboratories ( RDY ) recently announced the U.S. launch of a generic version of Bristol-Myers Squibb & Co. 's ( BMY ) 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, 2012.

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 31, 2012.

Last month Dr. Reddy's launched the generic version of Teva Pharmaceutical Industries Ltd. 's ( TEVA ) 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 Teva.

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.

Our View

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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