Dr. Reddy's Laboratories Ltd. share price target

Near term launch profile also remains lackluster, as per mgmt. DRRD has received the target action date for Copaxone 20mg with approval slated sometime in November 2017. Maintain our HOLD rating with revised EPS estimates of Rs110/132 for FY18/19. Near...

US District Court has ruled that Dr Reddy's (DRRD) NDA (505 (b)(2))for Aloxi (Palonosetron) infringes 3 outstanding patents and also turned down its claim's to invalidate 2 patents.

Dr. Reddy's Laboratories (DRL) posted lower than expected results for 3QFY2017. In INR terms, the consolidated revenues came in at Rs3,707cr (v/s. Rs4,000cr expected) v/s. Rs3,989cr in 3QFY2016, down 6.6% yoy, mainly driven by pressure on the generic market. The global generic market with sales at Rs3,064cr (down 9.0% yoy), was mainly lea..

While Dr Reddy's (DRRD) Q3 positively surprised us with expansion in gross margin (+300bps QoQ on better revenue mix), guidance of relatively softer Q4 on(1) delay in launch/ approval of key products (gAloxi, gGleevec) in US and (2) manufacturing issues in one of its key product was disapp..

Background: Dr. Reddy's is a global generic pharmaceutical company with focus on the US, Europe, Russia and India. Finished dosage and API account for a bulk of the revenues, with up to 60% of sales derived from overseas operations. With a strong research pipeline, its R&D; is focused in the areas of cancer, diabetes, cardiovascular, inflammation and bacterial infections. Dr. Reddy's offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars, differentiated formulations and NCEs. It has one of the largest ANDA & a patent challenge pipeline has strengthened presence through the launch of several...

ICICI Securities Ltd | Retail Equity Research Revenues declined 6.6% YoY to | 3707 crore (I-direct estimate: | 3659 crore) mainly due to 15% decline in US sales to | 1660 crore (I-direct estimate: | 1681 crore). The Indian formulations business grew a mere 2% to | 595 crore (I-direct estimate: | 604 crore) EBITDA margins declined 258 bps to 23.5% (I-direct estimate: 18.0%) but increased 594 bps QoQ mainly due to a sharp improvement in gross margins as well as lower SG&A; and R&D; spend...

Revenue rose by 3.37% to Rs. 3706.5 Cr in Q3FY17 when compared to the previous quarter. On the other hand, it fell by 6.59% when compared with Q3FY16.

DRRD fared better in 3QFY17, beating estimates on margins by ~300bps. Revenues were in line with expectations, de-growing ~7% YoY. The margin expansion was led by improved gross margins and targeted cost cutting in SG&A expenses. The US sales continue to remain sluggish, adding only US$ 7mn over 2Q.

DRL's revenues decreased by 6.6% YoY to Rs 37 bn (higher than our estimates of Rs35.8 bn) due to tepid performance across Generics (-8.7%). Gross margins were in line on YoY at 59% in Q3FY17 ( higher than our estimates of 56.2%). Its operating profit has tanked to Rs 8713mn during the quarter due to decline in revenues, higher R & D expenses. Net profit de-grew by 18.8% YoY to Rs 4.71bn (higher than our estimates of Rs 2.6 bn).

Dr. Reddy's Laboratories (DRL) posted results lower than expected on net profit front. While the sales were marginally higher than expected, operating profit was much lower than expected. In INR terms, the consolidated revenues came in at Rs3,586cr (vs. Rs3,500cr expected vs. Rs3,989cr in 2QFY2016), down by 10.1% yoy, mainly driven by pre..