Dr. Reddy's Laboratories Ltd. wiped off more than half of its yearly gains after a U.S. appeals court temporarily prevented it from selling a generic version of Indivior Plc's Suboxone opioid addiction treatment drug in its biggest market.
Shares of India's third-largest drugmaker by market value fell as much as 6.7 percent, the most in nearly five months, according to Bloomberg data. The stock was up 12.5 percent year-to-date as per yesterday's close.
“The markets had assumed an immediate launch for Dr. Reddy's and any delay will be viewed as a negative,” brokerage firm Equirus securities in a note. “After the appeals court ruling, we had revised our FY19 estimates by 11 percent assuming a four- to five-month launch window, and any delay will accordingly impact estimates.”
Of the 41 analysts covering the stock, 18 have a ‘Buy' rating, 11 suggest a ‘Hold' and 12 recommend a ‘Sell'.
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