Dr Reddy’s stock up 1%; US court says NuvaRing patent valid
Shares of Dr. Reddy’s Laboratories are likely to gain after media reports said that a US Appeals court has ruled that the patent for Merck’s birth control device NuvaRing is valid.
Dr. Reddy’s, which has applied for marketing approval from the US Food and Drug Administration for the generic version of NuvaRing, is expected to launch the device in April 2018, when Merck’s patent expires.
Dr. Reddy’s acquired the abbreviated new drug application for NuvaRing from Teva Pharmaceutical Industries in 2016.
Dr. Reddys Laboratories Ltd is currently trading at Rs 2406.95, up by Rs 34.4 or 1.45% from its previous closing of Rs 2372.55 on the BSE. The scrip opened at Rs 2389 and has touched a high and low of Rs 2416.2 and Rs 2389 respectively. The stock is currently trading above its 200 DMA.
Dr. Reddy’s deals in pharmaceutical services and active ingredients, global generics and proprietary products. It derived 66% of FY17 revenues from export formulations, followed by domestic formulations (16%), APIs(15%) and others (3%). The company’s key markets include India, USA, Russia and Germany.