Dr Reddy's Lab slips on buzz of patent infringement

Meanwhile, the S&P BSE Sensex was down 53.94 points, or 0.28%, to 19,169.34.

On BSE, 8,856 shares were traded in the counter as against an average daily volume of 26,684 shares in the past one quarter.

The stock hit a high of Rs 2,150 and a low of Rs 2,080.05 so far during the day. The stock had hit a record high of Rs 2,207.80 on 10 June 2013. The stock had hit a 52-week low of Rs 1,528 on 19 June 2012.

The stock had outperformed the market over the past one month till 18 June 2013, rising 2.62% compared with the Sensex's 5.24% fall. The scrip had also outperformed the market in past one quarter, rising 17.67% as against Sensex's 0.36% fall.

The large-cap pharmaceutical company has an equity capital of Rs 85 crore. Face value per share is Rs 5.

US-based drug maker AbbVie Inc, the spun-off entity of Abbott, has reportedly dragged Dr Reddy's Laboratories (DRL) to court for allegedly infringing the former's patented drug Zemplar on six counts concerning three patents.

Zemplar is a drug used for the prevention and treatment of secondary hyperparathyroidism (excessive secretion of parathyroid hormone) associated with chronic renal failure.

According to reports, AbbVie Inc requested the court to pass an order to restrain DRL from commercially manufacturing, using, offering for sale, selling, marketing, distributing, or importing DRL's generic paricalcitol injectable products prior to the expiration of said patents.

Dr Reddy's filed an Abbreviated New Drug Application (ANDA) with the US Food and Drug Administration (USFDA), seeking approval to sell a generic copy of US drug maker's Zemplar injectable products in 2 microgram/ml and 5 microgram/ml formulations, prior to the expiration of the patents owned by and exclusively licensed to the complainants, the petition reportedly said.

Dr Reddy's Laboratories' consolidated net profit surged 66.6% to Rs 570.89 crore on 25.6% growth in net sales to Rs 3339.94 crore in Q4 March 2013 over Q4 March 2012.

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 APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations and NCEs. Therapeutic focus is on gastro-intestinal, cardiovascular, diabetology, oncology, pain management, anti-infective and pediatrics. Major markets include India, USA, Russia and CIS, Germany, UK, Venezuela, South Africa and Romania.

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