Dr Reddy's strong drug pipeline comes to the fore

With regulatory woes receding, earnings growth over the next two years expected to be robust

Dr Reddy’s was the biggest gainer among Sensex stocks on brokerage upgrades, and US Food and Drug Administration (FDA) approval for one of its plants saw the stock move up 7.5 per cent. These two developments will help it launch new products and capitalise on niche opportunities.

This is the second unit to receive the establishment inspection report after the one in Miryalaguda (Telangana) got an FDA green signal in February. The receding plant-related worries means the Street will now turn to the company’s product portfolio and launch timeline to gauge revenue potential in the US.

Deepak Malik of Edelweiss