July 12, 2018 / 5:32 AM / 10 months ago

BUZZ-India's Dr.Reddy's rises on US drug hopes; UK rival Indivior cuts guidance

** Dr.Reddy’s Laboratories Ltd rise as much as 3.8 pct to 2,387.65 rupees, its highest in 3 weeks

** Rival British drugmaker Indivior lowered its full-year sales forecast saying it was losing sales of its opioid addiction drug Suboxone to a copycat launched last month by Dr Reddy’s and U.S. firm Mylan NV.

** Suboxone, which Indivior launched in the United States in February, contributes 80 percent to its total revenue

** Indivior filed an injunction last month against FDA decision allowing sale of the Dr Reddy’s and Mylan drug, and a U.S. court ruled to restrain Dr. Reddy’s from selling their generic Suboxone till end of June

** “We will get to know the court’s word on Friday about whether or not Reddy’s can launch Suboxone. But with Indivior having pulled up their guidance, it is giving off the sentiment that it is likely they may lose in the court,” says Vishal Manchanda, analyst with Nirmal Bang Institutional Equities

** The drug is going to be a meaningful opportunity for Reddy’s as they could make about $100 mln this FY if they are able to launch it now. We can safely assume that the drug launch could result in 50-60 pct net margin for Reddy’s - Manchanda

** Dr.Reddy’s shares have fallen 4.7 pct this year as of last close

** Indivior shares plunged as much as 37 pct on Wednesday

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below