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Dr Reddy's gains on key drug approval; brokers raise estimates

Reuters Market Eye - Shares in Dr.Reddy's Laboratories(NSI:DRREDDY.NS - News) up 1.2 percent after gaining 3.6 percent on Tuesday following the U.S. drug regulator's approval for selling a generic version of Celgene Corp's (NSQ:CELG - News) anti-cancer drug "Vidaza".

UBS raises Dr.Reddy's earnings estimates for FY14 and FY15 by 4 and 6 percent, respectively. It says, "First in class approvals like Vidaza and Dacogen and filing for Copaxone demonstrate Dr Reddy's strong capabilities in injectables space and focus on driving growth through niche products."

HSBC remains "overweight" but raises its target price on the stock to 2,660 rupees from 2,525 rupees. UBS maintains "buy" rating but raises its target price to 2,750 rupees from 2,600 rupees, citing higher estimates after the approval for generic Vidaza.

(Reporting by Abhishek Vishnoi)