S&P REITERATES STRONG BUY OPINION ON ADSS OF DR REDDY'S LABORATORIES (Standard & Poor's) Jun-Q EPS of $0.27, down from $0.29, were in line with our estimate. Sales fell 7.4% from a year ago, which included exclusive U.S. sales of generic Imitrex. However, sales in India and other emerging markets increased. Despite recent legal challenges, we expect RDY to launch 8-10 new generic products in the U.S. in FY 11 (Mar), several of which will probably be significant. In total, RDY has some 71 ANDAs before the FDA, of which 36 are Paragraph IVs, and 12 are first-filers. We reiterate our target price of $38, based forward P/E and DCF assumptions.