Dr Reddy’s Laboratories shares surged over 5 per cent intraday on Thursday on reports that the company has received approval from US health regulator to start selling generic version of anti-nausea injection called Aloxi from 2018.

At 1.55 pm, the scrip was trading 5.69 per cent up at Rs 3,186. The scrip opened at Rs 3050 and has touched a high and low of Rs 3187.95 and Rs 3050, respectively, in trade so far. Share price of the company  closed 5.77 per cent up at Rs 3188.35.

JP Morgan, which is “Overweight” on Dr Reddy’s Labs shares with price target of Rs 3,800, says risk-reward remains favourable for the stock at current levels.

For the quarter ended December 2015, pharma major posted a consolidated net profit of Rs 579.20 crore, up 0.82 per cent, against Rs 574.50 crore in the corresponding quarter a year ago.

In the past one year, the share price of Dr Reddy’s Labs slid 10.92 per cent to Rs 3014.40 till March 2, whereas the BSE Sensex plunged 17.71 per cent during the same period.

(With inputs from Reuters)