Dr Reddy's Lab gains on easing worries about spending

Dr Reddy's Laboratories gained 2.05% to Rs 2,605.50 at 14:36 IST on BSE on reports that the company's expenses would reduce after FY 2016.

Meanwhile, the S&P BSE Sensex was up 278.24 points or 1.11% at 25,378.16

On BSE, so far 11,018 shares were traded in the counter as against average daily volume of 38,045 shares in the past one quarter.

The stock hit a high of Rs 2,611.10 and a low of Rs 2,560 so far during the day. The stock had hit a record high of Rs 2,939.80 on 28 February 2014. The stock had hit a 52-week low of Rs 2,025 on 21 August 2013.

The stock had outperformed the market over the past one month till 27 June 2014, rising 10.46% compared with 2.24% rise in the Sensex. The scrip, however, underperformed the market in past one quarter, falling 1.31% as against Sensex's 12.99% rise.

The large-cap company has equity capital of Rs 85.17 crore. Face value per share is Rs 5.

As per reports, Dr Reddy's Laboratories annual report last week provided key details about spending on building capacity, raising hopes that expenses would reduce after year ending 31 March 2016 (FY 2016).

Dr Reddy's said in its annual report filed with the US Securities and Exchange Commission that the company would finance expansion plans through operating cash flow and through cash and other investments, and that the majority of these projects would be completed during FY 2015 and FY 2016.

Investors had worried about Dr Reddy's spending after the company's Q4 March 2014 net profit declined over Q4 March 2013 following rise in expenses.

Dr Reddy's Laboratories announced during market hours on Friday, 27 June 2014 said that it has launched Duloxetine Delayed-Release Capsules USP 20 mg, 30 mg and 60 mg, therapeutic equivalent generic version of CYMBLATA (Duloxetine Delayed-Release Capsules) in the US market on 26 June 2014. Dr Reddy's ANDA (abbreviated new drug application) is approved by the United States Food and Drug Administration (USFDA). The stock had gained 1.93% to Rs 2,553.15 on Friday, 27 June 2014.

According to IMS Health, the CYMBALTA brand and generic had US sales of approximately $5.04 billion for the most recent twelve months ended April 2014, Dr Reddy's Lab said in a statement.

Dr Reddy's Laboratories' consolidated net profit declined 15.6% to Rs 481.60 crore on 4.2% growth in net sales to Rs 3480.90 crore in Q4 March 2014 over Q4 March 2013.

Dr Reddy's Laboratories is an integrated global pharmaceutical company. Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products - Dr Reddy's offers a portfolio of products and services including active pharmaceutical ingredients (APIs), custom pharmaceutical services, generics, biosimilars and differentiated formulations.

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