5099.40 121.30 (2.44%)
NSEOct 27, 2020 03:31 PM
The 44 reports from 13 analysts offering long term price targets for Dr. Reddy's Laboratories Ltd. have an average target of 4865.73. The consensus estimate represents a downside of -4.58% from the last price of 5099.40.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-10-14||Dr. Reddy's Laborato..||Prabhudas Lilladhar||5058.15||5648.00||5058.15 (0.82%)||10.76||Accumulate|
|2020-10-05||Dr. Reddy's Laborato..||Prabhudas Lilladhar||5153.00||5153.00 (-1.04%)||Accumulate|
|2020-10-01||Dr. Reddy's Laborato..||Axis Direct||5112.05||6200.00||5112.05 (-0.25%)||21.58||Buy|
The recent approval for gRevlimid could create a peak oppportunity of USD $250 mn USD $300 revenue per year during the period FY23E-FY25E. Therfore, we have increased our Target Price INR 6,200 for DRRD (PE multiple of 28x to FY23E earnings).
|2020-09-24||Dr. Reddy's Laborato..||Prabhudas Lilladhar||5112.20||5648.00||5112.20 (-0.25%)||10.76||Accumulate|
FY23E and, 4) gVascepa could be a near-term opportunity after receiving favorable outcome from the court with expected EPS contribution of Rs4.5/1.60/0.50 in FY21/22/23E. We incorporate benefits from new launches and roll forward our base year of valuation to FY23E (from FY22E) though maintained our assigned PE 24x, given its sustainability of improved earnings visibility led by new host of launches. Our new TP is Rs5,648 (earlier Rs4,326) with gRevlimid benefit contributing Rs262/share (assigning 1x(PE) to discounted cash flow of gRevlimid benefit over FY23E-26E). We also change...
|2020-09-18||Dr. Reddy's Laborato..||HDFC Securities||5333.35||5054.00||5333.35 (-4.39%)||Target met||Accumulate|
We increase our target price to Rs5,054 to factor gRevlimid launch in FY23 and maintain our ADD rating. Key catalysts are launch of gVascepa, approval for gCopaxone and gNuvaring. Meaningful addition: Dr. Reddys settles patent litigation with Celgene (Bristol Myers Squibb) in the US for gRevlimid (USD7.6bn). The drug is indicated for multiple myeloma (cancer). As per the settlement terms, Dr. Reddys is licensed to sell volume-limited quantity after Mar 2022 and without volume-restriction after Jan 31, 2026 subject to product approval from the US FDA. While the details pertaining to launch date and market share are not disclosed, the opportunity can add an NPV of Rs384/share to our target price in a base case scenario (assuming 5-20% market share, 30-45% price erosion between FY23-26).
|2020-09-18||Dr. Reddy's Laborato..||ICICI Securities Limited||5333.35||5710.00||5333.35 (-4.39%)||11.97||Buy|
ICICI Securities Limited
Dr Reddy's (DRL) has announced the settlement of its Revlimid capsules (Lenalidomide) patent litigation with Celgene [Bristol Myers Squibb (BMS)] in the US. This makes DRL the third player after Natco and Alvogen to sign a settlement agreement with the innovator for gRevlimid. Under the terms of the settlement, Celgene will provide DRL with a license to sell generic volume-limited amounts of gRevlimid capsules in the US after Natco's launch in March 2022 subject to regulatory approval. This limited volume constraint will be applicable till January 31, 2026 post which DRL will be able...
|2020-09-18||Dr. Reddy's Laborato..||Dolat Capital||5333.35||5333.35 (-4.39%)||Buy|
Dr Reddy's settles with BMS on multiple myeloma drug, Revlimid for a limited volume launch during FY23-26, post which the volume cap will be lifted. Dr Reddy's is the third company to settle post Natco and Alvogen, though details of the settlement term are not known yet. The key...
|2020-09-18||Dr. Reddy's Laborato..||Nirmal Bang Institutional||5333.35||5656.00||5333.35 (-4.39%)||10.92||Buy|
Dr. Reddy's Laboratories- Company Update- Dr. Reddy announce settlement of Revlimid Litigation with Bristol Myers
Nirmal Bang Institutional
Dr. Reddy announce settlement of Revlimid Litigation with Bristol Myers Dr. Reddy has announced that they have settled the ongoing Revlimid (lenalidomide) Litigation with Bristol Myers. The settlement gives DRL a license to sell limited volumes of gRevlimid from an undisclosed date which is post March 2022 ( post settlement date with Natco Pharma). The details on volume and exact timelines are not disclosed. There are now 3 players Natco Pharma, Dr. Reddy and Alvogen which have entered into a settlement agreement with the innovator. Will Bristol Myers also settle with other Litigants and potential timelines: Other generic players...
|2020-09-17||Dr. Reddy's Laborato..||BOB Capital Markets Ltd.||5333.35||4640.00||5333.35 (-4.39%)||9.01||Sell|
BOB Capital Markets Ltd.
Dr Reddy's (DRRD) has announced a key settlement of the patent litigation with Celgene for US Revlimid (lenalidomide capsules) used to treat multiple myeloma.
|2020-09-15||Dr. Reddy's Laborato..||HDFC Securities||4442.35||4670.00||4442.35 (14.79%)||Target met||Accumulate|
We increase our EPS forecast by 7-8% for FY21/22 to factor gVascepa launch and our target multiple to 22x (from 20x earlier) to factor improved visibility in the US and API business. We upgrade Dr Reddys to ADD (from REDUCE) and increase TP to Rs4,670. The growth visibility of the US business has improved with the strong momentum of new launches (12 launches in YTD FY21) including niche ones such as gCiprodex (first to market). The dependence of gCopaxone and gNuvaring on FY22 earnings reduces with the new product flow and favourable ruling of gVascepa (now in our estimates). Structural tailwinds in the API business (15% of revenues) will lead to double digit growth over the next few years.
|2020-09-08||Dr. Reddy's Laborato..||Axis Direct||4348.80||5270.00||4348.80 (17.26%)||Target met||Buy|
|2020-08-04||Dr. Reddy's Laborato..||SMC online||4583.05||4583.05 (11.27%)|
Other operating income at Rs. 118 million compared to Rs. 3.8 billion in Q1FY20. Previous year included Rs. 3.5 billion received from Celgene pursuant to an agreement entered towards settlement of any claim the Company or its affiliates may have had for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company's ANDS for a generic version of REVLIMID brand capsules,...
|2020-07-30||Dr. Reddy's Laborato..||Motilal Oswal||4516.60||4600.00||4516.60 (12.90%)||Target met||Neutral|
DRRD is well-placed to erosion in the base business, b) robust ANDA launches for the US segment, c) improving benefit from cost rationalization, d) a favorable demand-supply scenario in the PSAI segment, and e) synergy benefit through the addition of the Wockhardt portfolio. After three years of YoY decline in US sales, DRRD exhibited 5% growth in FY20, led by new launches, improved market share, and the reduced impact of price erosion in the base portfolio. The PSAI business has remained sluggish over the past three years, with a CAGR With a strong order book, a favorable demand-supply scenario, and the low base of the past year, DRRD delivered 88% YoY growth in the PSAI segment in to de-risk API supplies and b) stocking up on APIs in preparation of unexpected We expect the PSAI business to post a CAGR of 23% over FY2022 as clients focus on alternate sources of RMs to de-risk their businesses.
|2020-07-30||Dr. Reddy's Laborato..||Nirmal Bang Institutional||4521.05||3998.00||4521.05 (12.79%)||21.60||Sell|
Nirmal Bang Institutional
Dr. Reddy's Laboratories or DRL's 1QFY21 revenue at Rs44,175mn is flat QoQ and was up 14.9% YoY. Sequentially, revenue growth was aided by strong performance in Europe and PSAI, which was offset by a slowdown in North America and domestic market. EBITDA for the quarter at Rs11,622mn was higher by 2.5%/16.1% YoY/QoQ, respectively. Adjusting for the exceptional charge in Q1FY20, the company reported a 47% growth YoY. Net profit stood at Rs5,793mn, which was down 12.6% YoY but adjusting for the exceptional items was up 74%. Gross margin for the quarter stood at 56%, which was up 457bps QoQ and 437bps YoY. Better productivity, improved product mix and favourable foreign exchange rate helped the gross margin expansion....
|2020-07-30||Dr. Reddy's Laborato..||ICICI Securities Limited||4516.60||5000.00||4516.60 (12.90%)||Target met||Buy|
ICICI Securities Limited
Despite challenging times, the US remains a key driver for the company, contributing ~37% to total revenues as of FY20. The company has a strong pending pipeline comprising 99 ANDAs (54 Para IV filings, 28 FTFs) and two NDAs under 505 (b) (2) route. We expect US sales to grow at a CAGR of...
|2020-07-29||Dr. Reddy's Laborato..||Prabhudas Lilladhar||4634.85||4326.00||4634.85 (10.02%)||Target met||Hold|
We downgrade DRRD to HOLD (earlier Accumulate) due to limited upside potential at current valuation. We retain our earnings estimates and TP of Rs4,326 (PE 24x FY22E). DRRD continues to be one of the best companies in large cap pharma space structurally, though there is limited headroom for further upgrade in earnings estimate and PE expansion. However re-rating in...
|2020-05-29||Dr. Reddy's Laborato..||Geojit BNP Paribas||4071.25||4344.00||4071.25 (25.25%)||Target met||Buy|
Geojit BNP Paribas
Strong pipeline and new product launches are the key positives. Additionally, smooth operation ahead of VAI from US FDA for the company's facilities should support topline growth over the medium term. Hence, we upgrade our rating to BUY on the stock with a revised target price of Rs. 4,344 based on 23x FY22E adj. EPS....
|2020-05-26||Dr. Reddy's Laborato..||SMC online||3887.75||3887.75 (31.17%)||Results Update|
Dr Reddy's Labs spurts after Q4 PAT jumps 76% to 764 cr, above estimates On a consolidated basis, the drug major recorded net profit of Rs 781.10crore in Q4 March 2020 compared with net profit of Rs 455.40 crore in Q4 March 2019. Consolidated revenues rose...
|2020-05-22||Dr. Reddy's Laborato..||Hem Securities||3892.85||4100.00||3892.85 (30.99%)||Target met||Hold|
Dr Reddy's Laboratories has been catering to the needs of the pharmaceutical sector for over two decades. Active Pharmaceutical Ingredients (API) are their core strength, having a wide range of portfolio. The company also manufactures generic medicines with business spread across India, Russia, US and Germany as well as Proprietary Products which inlcudes NCE research, biologics business and differentiated formulations conducted in the US. Under this the...
|2020-05-21||Dr. Reddy's Laborato..||HDFC Securities||3847.50||3770.00||3847.50 (32.54%)||26.07||Sell|
We maintain Reduce rating with a revised TP of Rs3,770 based on 20x FY22 EPS. Dr. Reddys' Q4 PAT came ahead of expectations led by strong revenue growth (+15% YoY, 6% beat) and tax write back. EBIDTA margins came in line as lower gross margins were offset by lower SG&A; spends. Improved growth trajectory and cost control initiatives have led to EBIDTA margin expansion (~300bps) over the last three years. Going forward, while we continue to factor cost savings, a large part (~20%) of our FY22 estimates hinges on key product approvals in the US (gNuvaring, gCopaxone), the approval timelines for which remain uncertain. Despite factoring these launches and margin expansion as per company guidance, we dont see upside from current levels. The stock trades at 27x/21x FY21/22 EPS which leaves limited room for execution miss.