Dr Reddy’s Lab shares surged over 6 per cent on Monday after it announced US launch of a generic version of Nexium, which is used in the treatment of gastrointestinal ulcers.
“Dr Reddy’s Laboratories announced today that it has launched Esomeprazole Magnesium Delayed-Release capsules USP, 20 mg and 40 mg, a therapeutic equivalent generic version of Nexium Delayed-Release capsules in the US market on September 25, 2015, following the approval by the united States Food & Drug Administration(USFDA),” the company said in a release to Bombay Stock exchange.
As per the IMS Health data, the Nexium delayed-release capsules and its generic versions had US sales of approximately $5.2 billion for the 12 months ending July 2015, Dr Reddy’s said in the release.
Surjit Pal, pharma analyst at Prabhudas Lilladher, said with the launch of the generic version of Nexium, Dr. Reddy’s will be able to capture 10-12 per cent of market share in one year, which may add approximately Rs 12 to its annual earnings per share.
As of 10.51 a.m., shares of Dr Reddy’s Lab traded 5.25 per cent higher at Rs 4,180 apiece. It was the top gainer in the blue chip Nifty index.