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Dr. Reddy's Launches Generic Caduet

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Dr. Reddy's Laboratories Ltd. (RDY) announced the launch of its therapeutic equivalent generic version of Pfizer Inc.’s (PFE) Caduet.

Caduet combines two medicines — Norvasc and Lipitor. Norvasc is prescribed to treat high blood pressure, chest pain and blocked arteries. Lipitor, on the other hand, is used along with a low-fat diet to lower the low-density lipoprotein (LDL) and triglycerides in the blood.

According to IMS Health, Caduet and its generic versions generated U.S. revenues of approximately $163 million MAT (moving annual total) in the 12 months ending Jan 2014.

Revenues at the Global Generics segment rose 41% to $475 million in the third quarter of fiscal 2014 ended Dec 31, 2013. Strong sales in North America and the emerging markets led to the upside. Strong sales of the generic versions of Vidaza, Dacogen, Aricept, Toprol XL and Depakote ER boosted segmental results.

Generics revenues increased in North America (76%), Russia and other CIS (Commonwealth of Independent States) markets (21%), rest of the world or RoW (35%) and India (5%). Revenues in India were, however, tempered by the new pricing policy. Revenues in Europe declined 4%.

During the third quarter of fiscal 2014, Dr. Reddy’s filed two abbreviated new drug applications (ANDAs) with the U.S. Food and Drug Administration (:FDA). The company has 62 ANDAs pending approval with the FDA, of which 38 are Para IV filings and 8 are first-to-file.

Dr. Reddy's carries a Zacks Rank #1 (Strong Buy). Investors interested in the pharma sector may consider companies like Salix Pharmaceuticals Ltd. (SLXP) and Lannett Co., Inc. (LCI). Both the stocks carry the same rank as Dr. Reddy’s.

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