 "Dr Reddy's launches gastric ulcer drug, stock gains 5.5%")
Dr Reddy's has launched generic version of anti ulcer drug Nexium tablets ( Esomeprazole Magnesium) in the US market. The drug is used for treating gastric ulcers and has a market size of about $ 5.2 billion. The product was launched following an approval from US Food and Drugs Administration (USFDA).
The company stock reacted positively to this drug launch and gained 5.5 percent closing at Rs 4,191.85.
"The product is expected to contribute around $30-50 million in sale for the rest of this financial year," said Sarabjit Kour Nangra, vice president, research-pharma at Angel Broking.
The patent on Nexium drug held by pharma major Astra Zeneca expired last May and in January FDA allowed Teva Pharmaceutical to launch the first generic version of the drug. Ranbaxy (now owned by Sun Pharmaceuticals) had a 180 day exclusivity to launch the drug after the expiry of the patent last May but its approval was withdrawn by FDA.
