General views of drugs (Photographer: Brent Lewin/Bloomberg)

Dr. Reddy’s Loses More Than Half Of Yearly Gains After U.S. Court Order

Dr. Reddy’s Laboratories Ltd. wiped off more than half of its yearly gains after a U.S. appeals court temporarily prevented it from selling a generic version of Indivior Plc’s Suboxone opioid addiction treatment drug in its biggest market.

Shares of India’s third-largest drugmaker by market value fell as much as 6.7 percent, the most in nearly five months, according to Bloomberg data. The stock was up 12.5 percent year-to-date as per yesterday’s close.

Dr. Reddy’s Loses More Than Half Of Yearly Gains After U.S. Court Order

“The markets had assumed an immediate launch for Dr. Reddy’s and any delay will be viewed as a negative,” brokerage firm Equirus securities in a note. “After the appeals court ruling, we had revised our FY19 estimates by 11 percent assuming a four- to five-month launch window, and any delay will accordingly impact estimates.”

Of the 41 analysts covering the stock, 18 have a ‘Buy’ rating, 11 suggest a ‘Hold’ and 12 recommend a ‘Sell’.

Also read: What Suboxone Win Means For Dr. Reddy’s Labs

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