FDA Green Signal Spurs DRL Stock

Mumbai, October 22: | Updated: Oct 23 2002, 05:30am hrs
Dr Reddys Laboratories (DRL) stock edged up in lacklustre market conditions, following the announcement that the US Food and Drug Administration (FDA) has determined the New Drug Application (NDA) submitted by the company for its iodipine maleate as approvable.

On The Stock Exchange, Mumbai (BSE), DRL closed at Rs 742.05, 1.3 per cent higher than its previous close of Rs 731.95. A total number of 2,04,567 shares changed hands at the DRL counter on Tuesday.

Dealers said that the recovery at the DRL counter follows a sharp fall over the last few sessions after a recent court ruling on a patented drug christened Prilosec, which was seen as a setback to generic suppliers.

In five trading sessions, the DRL stock plunged 11.4 per cent to Rs 731.95 on October 21, 2002, from Rs 826.75 on October 11, 2002.

Pharma analysts opined that the stock should find support at lower levels as valuations become attractive at the lower levels vis-a-vis the good business model of the company.

Analysts remain largely bullish on the future performance of the stock, keeping in mind its business model which is expected to entail a 25 to 30 per cent growth in bottomline in the next two to three years.