Dr. Reddy's Laboratories
) recently announced the launch of its generic version of
Merck & Co
) Singulair oral granules (montelukast) following the receipt of US
Food and Drug Administration (FDA) approval for its Abbreviated New
Drug Application (ANDA).
Dr. Reddy's launched its generic version of Singulair oral
granules in 4 mg dosage in the US on September 26, 2012.
According to IMS Health, US branded sales of Singulair oral
granules were approximately $61 million for the twelve months ended
July 30, 2012. We note Singulair lost patent exclusivity in the US
in August 2012.
Dr Reddy's had launched its generic version of Singulair tablets
(10 mg) and chewable tablets (4 mg & 5 mg) in the US on August
Dr. Reddy's had quite a few generic launches this year. On
September 17, 2012, it launched its generic version of
) Amoxil (amoxicillin) tablets (500 mg and 875 mg), capsules (250
mg and 500 mg) and oral suspension (125 mg/5 ml, 200 mg/5 ml, 250
mg/5 ml, and 400 mg/5 ml) in the US.
Other recent launches include Dr. Reddy's generic version of
) cholesterol drug, Lipitor,
Roche Holdings Ltd.
) Boniva, Glaxo's Requip and
) over-the-counter (OTC) drug, Prevacid.
We currently have a Neutral recommendation on Dr. Reddy's. The
stock carries a Zacks #3 Rank ("Hold" rating) in the short run. We
believe that generic launches will continue to drive revenues at
Dr. Reddy's Global Generics segment, which climbed 32% to $343
million in the first quarter of fiscal 2012.
Primary contribution came from both North America and Russia and
other CIS (Commonwealth of Independent States) markets (up 38% y/y)
followed by India (up 19% y/y) and Europe (up 14% y/y). Growth was
mainly driven by new generic launches and an increase in the market
share of existing key products.
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