Dr Reddy's Labs pares early gains

Shares of Dr Reddy's Laboratories ended the session on a flat note after climbing as much as 3 per cent earlier in the day.

The drug maker shares opened at Rs 2,406, touched a high of Rs 2,415 and a low of Rs 2,355 on the BSE. The stock ended the session up by 0.33 per cent at Rs 2,337.15 on the BSE. On the NSE, the shares closed down by 0.16 per cent at Rs 2,325.

The shares jumped in today's trade as the company informed bourses that it has launched Sevelamer Carbonate tablets, 800 mg, a therapeutic equivalent generic version of Renvela (sevelamer carbonate) tablets, in the US market following approval by the US Food and Drug Administration.

A release issued by the drug maker citing IMSE Health said Renvela brand and generic had US sales of approximately $1.88 billion (moving annual turnover) for the most recent twelve months ending in July 2017.

The launch can add 7 per cent to the company's FY18 earnings per share, says brokerage firm Jefferies.

The new launch and the recent win in a lawsuit over opioid addiction treatment drug Suboxone highlight the strength of the complex product launches from the company; however concerns on facility standards still remain, it says.

Dr Reddy's was one of the drugmakers sued by Indivior's US subsidiary alleging infringement of a patent regarding Suboxone. Jefferies has retained “underperform” rating with a price target of Rs 2,150.