Cancer drug licence in US biggest opportunity for DRL | Economic Times

The good news on the stock probably will sustain and it will continue to outperform the index, says Vishal Manchanda, Equity Research Analyst - Pharma, Nirmal Bang Securities.What are the implications of Dr Reddy’s settling its litigation with Celgene for patents for the generic version of a prescription medicine used to treat blood cancer? Dr Reddy’s will have the licence to sell volume-limited amounts of the Revlimid capsule in the US from March 2022.This is a very important settlement for Dr Reddy and the Street has been waiting for this. From an opportunity perspective, it will kind of give Dr Reddy very large sales numbers but since the volume details are not disclosed, in my view, on a very conservative basis the drug can add about $300 million to their sales in FY23-FY24. It can be even higher depending on what volumes they have been allowed to sell in the US markets. This will be the largest opportunity that Dr Reddy has ever had in the US. Apart from agreement, they continue to deliver on the complex approval, semi complex approvals and other complex approvals are also lined up. The good news on the stock probably will sustain and it will continue to outperform the index. There has also been news on other pharma names like Lupin and Cipla. Perrigo has voluntarily recalled albuterol inhalation and that comes as an unexpected positive for Lupin and Cipla. Your view on that?Vishal Manchanda: That comes as a positive news for the Indian players. Perrigo was marketing the albuterol inhaler in the US. Cipla launched gProventil in April 20, Lupin’s gProAir launch is expected this month. Now Perrigo has an issue with their manufacturing and they have to recall the products and they will not be selling any more new batches unless they resolve the quality issues. At least until the end of this calendar year, they will not be back to the market. The ProAir Albuterol inhaler is a billion dollar market and Perrigo roughly had about 11% share. Perrigo will be losing market share and that will allow Lupin and Cipla to further ramp up their market share in this category. This is quite a sticky business and once you kind of ramp up it remains in the bill so it is a big opportunity for the Indian players.