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NEW DELHI: Drug major Dr Reddy's extended its winning streak for the eighth session in a row on Friday.
The company today announced it has received final approval from the US Food and Drug Administration (USFDA) to launch Buprenorphine and Naloxone Sublingual Film, 2 mg/0.5 mg, 4 mg/1 mg, 8 mg/2 mg, and 12 mg/3 mg, a therapeutic equivalent generic version of Suboxone (buprenorphine and naloxone) sublingual film, in the US market.
The product is being launched with an approved Risk Evaluation and Mitigation Strategy (REMS) Program, it said in a BSE filing.
Buprenorphine and naloxone are used to treat adults with opioid dependence/addiction.
Dr Reddy's will be the third company to exit the Sensex pack as part of the index reconstitution.
India’s healthcare sector will have the lightest weighing in eight years on the benchmark Sensex when Dr Reddy’s Labs exits the crucial gauge next week after a tepid run from the entire pharmaceuticals industry since 2015, ET reported.
In December, two pharmaceutical stocks — Lupin and Cipla — had been replaced by YES Bank and IndusInd Bank in the Sensex as part of the rejig.
Global brokerage firm Nomura has a 'buy’ rating on the stock with a 12-month target price of Rs 2,704, implying a potential upside of near 20 per cent from the current market price.
The company's management believes that its US business should grow with 15 plus launches in FY19.
The drugmaker is likely to complete remediation activities by June-July for both Srikakulam and Duvvada plants.
"Hence, it is unlikely that we will see lucrative approvals coming in from these two plants in FY19, leading to further erosion in the US base business," said HDFC Securities in its research report.
The brokerage has 'Neutral' rating on the stock with a target price of Rs 2,340.
At 10:24 am, shares of the company were trading at Rs 2,353 on the BSE, up nearly 4 per cent.
