Analyst at Antique Stock Broking said, Dr.Reddy's (4QFY21 launch assumed) being one of the 4 filers in gNuvaring is now likely to be 12 months behind Amneal and 8-10 months behind Teva, in our view.
"While the Amneal launch is a negative, we believe the inherent drug device complexity is likely to keep competition to 4-5 players in the next couple of years. As a result, we see NuvaRing market to be in the range of USD 220-280 million in FY22 (assuming 60-70 per cent price erosion) making it an attractive market for late-entrants," the brokerage firm said in event update.
The analysts, however, remain positive on the stock on the back of a fast growing domestic franchise, improving quality of US launches (Vitamin K1, Hemabate, Zenatane, bortezomib), high-quality EM business, strong cost control and a leaner balance sheet. The brokerage firm maintains ‘buy’ rating on the stock with a target price of Rs 3,100 per share.
At 01:15 pm, Dr Reddy’s recovered its partial losses and was trading 3 per cent lower at Rs 2,818 on the NSE. In comparison, the benchmark Nifty50 index was up 0.86 per cent at 12,074 points.