Dr Reddy's hurt by Lilly's patent call

DALAL STREET SPIKES

Stock of domestic pharma firm Dr Reddy's lost grounds after a US federal judge on Thursday upheld the validity of a patent on Lilly's blockbuster schizophrenia drug, which was challenged by Dr Reddy's, Ivax Corp and Teva Pharma.

The sock of domestic pharma major, hit a low of Rs 700 before closing at Rs 711.80, down 3.41 per cent. More than 76 thousand shares changed hands at the counter on BSE on Friday.

Other pharma stocks were also impacted and ended lower. Cipla was down 6 per cent to Rs 234.40, while Ranbaxy ended 3.43 per cent lower to Rs 951.95.

Analysts said, pharma stocks continue to witness selling amid concerns that the results of pharma companies may not be very encouraging on account of MRP-based excise duty structure.

For Dr Reddy's, which had been looking to win the case, it is a big blow because the blockbuster drug would have bring the company healthy profits after several dismal quarters, said an analyst. The drug has global sales of $4.42 billion last year.