Dr. Reddy’s Laboratories (NYSE: RDY - News) recently announced the US launch of the generic version of Novartis AG’s (NYSE: NVS - News) Exelon. The drug is available worldwide as a treatment for Alzheimer’s disease dementia and dementia associated with Parkinson's disease.
The generic drug will be available in 1.5 mg, 3 mg, 4.5 mg and 6 mg strengths as Rivastigmine Tartrate Capsules.
According to IMS Health, the US sales of Exelon and its generic equivalents amounted to about $92.6 million for the twelve months ended June 30, 2011.
Earlier this month, Dr. Reddy’s announced the initiation of dosing of DRL-17822 in patients suffering from dyslipidemia. The drug is being studied for the prevention or treatment of dyslipidemia, atherosclerosis and associated cardiovascular disease.
DRL-17822 is currently in a phase II study, which is being conducted in a number of countries in Europe. The study is designed to evaluate the efficacy and safety of DRL-17822 in patients with type-II dyslipidemia. In the study, patients (n=160) will be dosed 50 mg, 150 mg and 300 mg of DRL-17822, once daily for four weeks, to assess the elevation in HDL (good) cholesterol and reduction in LDL (bad) cholesterol from baseline compared to placebo.
We note that the candidate was found safe and well tolerated in early-stage studies.
We currently have a Neutral recommendation on Dr. Reddy’s. The stock carries a Zacks #3 Rank (Hold rating) in the short run. We believe the company’s Global Generics segment, which recorded sales of $323 million (up 21%) in the quarter ended June 2011, will continue to benefit from the huge potential presented by the US generics market, as quite a few drugs are slated to lose patent exclusivity in the coming years.Zacks Investment Research