- Dr Reddy’s upbeat on readying new molecules for clinical trials
Hot Pursuit Thursday, September 21, 2006 12:42 Hrs IST

Print this page

Dr Reddy’s upbeat on readying new molecules for clinical trials

Dr. Reddy’s Laboratories rose 1.28%, to Rs 763.50, on media reports that it has lined up seven new chemical entities for clinical trials.

The stock rose sharply from a low of Rs 610 on 19 July, to Rs 747.47 on 18 August, only to slip to Rs 711.75, by 12 September. Here, the stock advanced to Rs 753.85, by 20 September 2006.

At the current market price of Rs 763.50, Dr. Reddy’s Laboratories trades at 11.36 times its Q1 June annualized consolidated EPS of Rs 67.20.

As per reports, Dr Reddy’s Lab has lined up seven new chemical entities in its drug discovery fold, and is hopeful of its most promising diabetes molecule DRF-2593 to enter the phase-III clinical trials soon. The company has entered into a co-development and commercialization deal with Rheoscience for DRF-2593. In terms of agreement, Rheoscience will fund all costs associated with the phase-III clinical trials. Dr Reddy’s to pay a pre-determined amount towards its share of the development costs. The arrangement allows Dr Reddy’s to have full rights for North America, Japan and the rest of the world, except Europe (excluding Russia and CIS) and China.

In June, the company launched the generic version of Merck's Proscar drug to treat enlarged prostates in the US. The Hyderabad-based Indian pharma major bought Betapharm for $572 million, earlier this year. Last year, it bought Roche's active pharmaceutical ingredients business in Mexico for $59 million.

The laboratories, through its wholly-owned subsidiary, Reddy Pharma Iberia, S.A., had in July acquired marketing rights of the pharmaceutical specialties, marketing authorisation applications and a trademark along with physical inventories of the related products from Laboratories Litaphar, S.A. (Litaphar) for Rs 21.89 crore.

Dr Reddy's Laboratories reported 108.10% surge in net profit for the Q1 June 2006, to Rs 131.81 crore from Rs 63.34 crore in Q1 June 2005. Net sales rose 43.40%, to Rs 768.50 crore (Rs 535.78 crore).

Previous Stories
More 4
Other Stories
4  L&T Finance Holdings gains after reporting decent Q4 results (2-May 15:30 Hrs IST)
4  HDFC trading higher after declaring Q4 result (2-May 15:06 Hrs IST)
4  Marksans Pharma surges after receiving USFDA approval for drug (2-May 15:04 Hrs IST)
4  Maruti gains after reporting good growth in April sales (2-May 14:22 Hrs IST)
4  HDFC gains after declaring good Q4 result (2-May 14:15 Hrs IST)
4  Volumes jump at Rajapalayam Mills counter (2-May 13:47 Hrs IST)
4  Shriram Transport hits 52-week high (2-May 13:28 Hrs IST)
4  Yes Bank gains after RBI approves hike in investment limit by foreign investors (2-May 12:52 Hrs IST)
4  Navin Fluorine International scales record high after strong Q4 outcome (2-May 12:18 Hrs IST)
4  Astra Microwave Products gains after reporting strong Q4 results (2-May 12:06 Hrs IST)