Dr. Reddy's Laboratories Ltd. share price target

Europe was partly offset by decline in North America Generics (NAG). Pharmaceutical Services and Active Ingredients (PSAI) segment revenue rose 10% to Rs 791.50 crore in Q4 FY21 over Q4 FY20....

US remains a key driver, contributing ~37% to revenues as of FY21. DRL has a strong pending pipeline comprising 92 ANDAs (47 Para IV filings, 23 FTFs) and three NDAs under 505 (b) (2) route. We expect US sales to grow...

We marginally reduce our estimate by 1-2% for FY22E-23E, due to delay in launch of key molecules (gCopaxone, gVascepa and gNuvaring) along with increased overhead costs, higher freight costs and key clinical trials. DRRD recently received another CRL for gCopaxone, which would delay the launch by 4-6months, while new generic launches in gVescepa (by Hikma) and...

Dr Reddy's Labs (DRRD) delivered a marginally lower-than-expected performance in 4QFY21, led by (a) weak US sales, (b) moderation in YoY growth in the India business, and (c) currency headwinds in Russia. DRRD is progressing well with building a preventive/curative COVID portfolio and gearing up for niche launches over the near-to-medium term. We raise our EPS estimate by 5%/6% for FY22/FY23E and continue to value DRRD at a P/E multiple of 25x, factoring in (a) improved visibility on the commercialization of limited-competition products in North America (NAM),...

The Sputnik-V vaccine has been given Emergency Use Authorization by the Indian govt. The vaccine has a proven efficacy rate of 91.5 percent, which is the highest after the candidates of Moderna Inc and Pfizer-BioNTech. The cost of Sputnik V could be in the range of $3.5 per dose.

IPM is struggling for growth above 10% even after MoM abating COVID concerns and with MRs, physician activities almost reaching pre-COVID level. We believe key reasons for growth below par are (i) subdued new prescription (Rx) leading to volume de-growth (ii) digital marketing yield going south and (iii) sustained lower demand of acute products. Cardiac and anti-diabetic growth takes a breather in Jan-21 at 8.8% and 5.3% after reporting double digit growth in most months during lockdown. While amongst top therapies Gastro and VMN reported double digit growth of 14%...

The drug maker's consolidated revenue increased 12% year on year to Rs 4930 crore in Q3 FY21. Dr. Reddy's registered a profit before tax of Rs 284.3 crore in Q3 FY21 compared with pretax loss of Rs 527.40 crore posted in the same period last year. Tax expense surged to Rs 264.5 crore in Q3 FY21 as against Rs 42.30 crore in Q3 FY20. The company reported impairment charge of about Rs 600 crore during the quarter. In January 2021 there has been an additional generic launch for the product Nuvaring, which has led to...

We remain positive on the stock with new product launches across geographies, higher R&D; investment in key segments and synergy benefits. Hence, we reiterate our BUY rating on the stock with a rolled forward target price of Rs. 5,712 based on 24x FY23E adj. EPS. Growth across the key segments led by new launches Consolidated revenue went up 12.4% YoY to Rs. 4,942cr (+0.6% QoQ), led by growth in Generics business (+13.4% YoY, +2.2% QoQ) partially offset by muted growth in PSAI segment (+2.2% YoY, -14.6% YoY QoQ). North America improved to Rs. 1,793cr...

Q3 revenues grew 12.4% YoY to | 4942 crore (I-direct estimate: | 5014 crore). Domestic revenues grew 25.6% YoY to | 959 crore due to Wockhardt integration and new product launches. Europe revenues grew 33.9% YoY to | 414 crore due to new launches. US revenues grew 8.7% YoY to | 1739 crore on the back of new product launches, favourable forex rate partly offset by price erosion. Adjusting for impairment charge of | 597.2 crore in Q3FY21, | 1320 crore in Q3FY20, EBITDA margins were down 46 bps YoY at 23.0% (I-direct estimate: 23.4%) due to lower gross margins amid price...