Dr. Reddy's Laboratories in action on new drug launch in US market

Dr. Reddy's Laboratories (DRL) introduced the Esomeprazole Magnesium Delayed-release capsules, which is the generic version of AstraZeneca's Nexium, in the US market. The share price of the company increased by 6.32 per cent on BSE and is trading at Rs 4187.65 on intraday basis.

The company has launched Esomeprazole Magnesium Delayed-Release Capsules USP 20 mg and 40 mg, a therapeutic equivalent generic version of AstraZeneca Plc's Nexium in the US market on September 25, 2015, following the approval by the United States Food & Drug Administration (USFDA). According to IMS Health, The Nexium (esomeprazole magnesium) Delayed-Release capsules brand and generic had U.S. sales of approximately USD 5.2 billion moving annual total (MAT) for the most recent 12 months ending July 2015.

DRL will strengthen its US market business through the launch of gastro drug Nexium. The company derives almost half its revenue from the US amounting to Rs 7074 crore in FY15. Its shareholding pattern indicates that FII holdings contracted by 111 basis points to 37.75 per cent however DII holdings expanded by 48 basis points to 5.92 per cent during June 2015 quarter.

DRL is in action and has various recent developments. Australian drug discovery and development company Alchemia has entered into an agreement for sale of exclusive intellectual property rights of fondaparinux sodium to DRL, for USD 17.5 million. The company also tied up with Australian pharmaceutical company Hatchtech to commercialise head lice topical lotion Xeglyze in a deal valued at around USD 198 million based on regulatory and sales milestones, Colorado based PanTheryx and DRL declared a multi-country supply and licensing agreement. The agreement grants the company exclusive right to market and distribute PanTheryx breakthrough nutritional intervention, DiaResQ, for infectious diarrhoea in India, Nepal, Russia, Myanmar, Vietnam, Ukraine, Sri Lanka, Kazakhstan, Belarus, Jamaica, and select LATAM markets. Dr. Reddy's will market the product in India and Nepal under the 'Reliqua' brand.

DRL is an integrated global pharmaceutical company that is engaged in providing medicines. The Company operates in three segments viz. Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The Global Generics segment consists of its business of manufacturing and marketing prescription and over-the-counter finished pharmaceutical products, marketed under a brand name (branded formulations) or as generic finished dosages with therapeutic equivalence to branded formulations (generics). The PSAI segment includes the Company's business of manufacturing and marketing active pharmaceutical ingredients and intermediates, also known as API or bulk drugs. The Proprietary Products segment consists of the differentiated formulations business, its new chemical entities (NCEs) business, and the dermatology sub segment focused on specialty business is operated through Promius Pharma.