Dr Reddy's shares hit all-time high on migraine drug launch in US

fe Bureau Posted online: Wednesday, Feb 26, 2014 at 0000 hrs
Mumbai : Shares of Dr Reddys Laboratories touched all-time high of Rs 2,823 on Wednesday after the drugmaker in an exchange release on Tuesday said that it has launched Sumatriptan injection USP, used for migraine, in the US market.

The announcement came after the market hours.

The scrip gained 1.77% in intra-day on the back of the announcement. At 1.00pm IST the stock was trading at Rs 2,810 or 1.3% higher.

Analysts have been bullish on the scrip. "We have increased our FY14/15 EPS estimates by 12%-5% post the strong 3Q results and performance of recent launches. As a result of this and rolling forward our timeframe to Mar-15 from Sep-14, our target price rises to Rs 3,000, implying 12% upside from the current share price," JP Morgan said in a research report. The drugmaker posted net profit of Rs 618 crore in Q3, up 70.21% on a y-o-y basis.