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Dr. Reddy hits record high; gains over 20% in four days

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Capital Market
Last Updated : Sep 18 2020 | 1:04 PM IST

Dr Reddy's Laboratories surged 8.83% to Rs 5252.75, extending gains for fourth day in a row.

The stock has added 20.34% in four sessions from its recent closing low of Rs 4,364.65 on 14 September 2020.

It jumped as much as 9.86% at the day's high at Rs 5302.85 today, which is a record high for the counter.

On the technical front, the stock's RSI (relative strength index) stood 79.147. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is currently trading above its 50-day, 100-day and 200-day simple moving average (SMA) placed at 4391.38, 4159.49 and 3644.56, respectively.

In a BSE filing made after market hours on Thursday, Dr. Reddy's Laboratories announced that it has settled patent litigation with Celgene, a wholly-owned subsidiary of US based Bristol Myers Squibb (BMS), for Revlimid (lenalidomide) capsules.

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As part of the settlement, Celgene has agreed to provide Dr Reddy's with a licence to sell volume-limited amounts of generic lenalidomide capsules in the US after March 2022 subject to regulatory approval.

Additionally, Celgene has agreed to provide Dr. Reddy's Lab with a license to its patents required to manufacture and sell an unlimited quantity of generic lenalidomide in the US beginning no earlier than 31 January 2026.

Earlier this week, the Russian Direct Investment Fund (RDIF), Russia's sovereign wealth fund, and Dr Reddy's Laboratories agreed to cooperate on clinical trials and distribution of Sputnik V vaccine in India. Upon regulatory approval in India, RDIF shall supply to Dr. Reddy's 100 million doses of the vaccine. The Sputnik V vaccine, which is based on well-studied human adenoviral vector platform with proven safety, is undergoing clinical trials for the coronavirus pandemic.

Dr. Reddy's Laboratories is a pharmaceutical company. Through its three businesses - pharmaceutical services and active ingredients, global generics and proprietary products - the company offers a portfolio of products and services, including active pharmaceutical ingredients (API), custom pharmaceutical services (CPI), generics, biosimilars, differentiated formulations and new chemical entities.

The drug major's consolidated net profit skid 12.11% to Rs 594.60 crore on 14.93% jump in revenue from operations to Rs 4,417.50 crore in Q1 June 2020 over Q1 June 2019.

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First Published: Sep 18 2020 | 12:24 PM IST

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