Dr Reddy’s share price rises 4% on new drug launch in US; what should investors do with this pharma stock? | The Financial Express

Dr Reddy’s share price rises 4% on new drug launch in US; what should investors do with this pharma stock?

Dr Reddy’s Laboratories share price jumped 3.7 per cent to Rs 4,568 apiece on BSE in Monday’s otherwise weak market.

Dr Reddy’s share price rises 4% on new drug launch in US; what should investors do with this pharma stock?
According to the pharma company, Curatio’s reported revenue for FY21-22 was Rs 224 Crores. (File)

Dr Reddy’s Laboratories share price jumped 3.7 per cent to Rs 4,568 apiece on BSE in Monday’s otherwise weak market. This jump in share price came after the company launched a generic version of fesoterodine fumarate extended-release tablets to treat overactive bladder in the US market. Analysts say that the stock is showing strength on its daily and intraday charts, with a probability of a strong up trend in near term.

“The momentum indicators are suggesting a good move ahead supported with robust volumes. Dr Reddy’s stock may touch the levels of 4800 from the current levels. Investors may take this opportunity for fresh long positions keeping a 3-month perspective,” Ravi Singh, VP & Head Research, Share India Securities, told FinancialExpress.com.

The company along with its subsidiaries announced the launch of Dr. Reddy’s Fesoterodine Fumarate Extended-Release Tablets, a therapeutic generic equivalent to Toviaz (fesoterodine fumarate) extended-release tablets in the U.S. market approved by the U.S. Food and Drug Administration (USFDA). The company said in a press release that Dr Reddy’s fesoterodine fumarate extended-release tablets are available in 4 mg and 8 mg tablets, each in bottle count sizes of 30.

Last week, ICICI Direct Research said that Dr Reddy’s Laboratories stock price had consolidated in a broader range between 4100 and 4400 over the past one month. “At the start of the June expiry, the stock witnessed selling pressure but reverted from the lower range once again. Since then, it has seen gradual closure in open interest and started the new series with 25% lower open interest compared to the June series,” it added.

In the past few sessions, pharma stocks have been showing significant resilience. ICICI Direct Research believes that Dr Reddy’s Laboratories is likely to lead the up move from here. It has recommended to buy Dr Reddy’s Laboratories July in the range of Rs 4310-4350 with a target price of Rs 4749.5 and stop loss of Rs 4,114.8.

The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.

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First published on: 11-07-2022 at 02:05:07 pm
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