Dr Reddy’s to be hit by US court injunction

Pharma major Dr Reddy's today said that the US court injunction on the launch of Allegra D24 in America will affect the revenue targets.

Pharma major Dr Reddy’s today said that the US court injunction on the launch of Allegra D24 in America will affect the revenue targets.

According to Dr Reddy’s Vice-Chairman and CEO GV Prasad they are studying the impact of the court order.

“Revenues from the US would get affected with the court order,as the launch is delayed. However,we cannot quantify it at this time,” Prasad said.

In FY’10,the company’s revenue from North America stood at USD 473 million compared to USD 537 million in the previous year,down 12 per cent.

The recent development,which forces to delay the launch,may impact the revenues from the USD 200 million market of Allegra,according to an industry expert.

Prasad said they are in discussions with their advocates to file an appeal before the court to lift the injunction order.

“We cannot say when we are going to file (the appeal in the court). We will definitely file it. I can’t say how long it will take,” said Prasad but refused to answer if it could happen this month.

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He said he can’t comment on the chances of out of court settlement with Albany Molecular Research,Inc. (AMRI) and Sanofi-Aventis US,which filed the petition in an US district court against the Indian pharma giant,to refrain it from the launching Allegra-D 24 (fexofenadine hydrochloride/pseudoephedrine hydrochloride 180 mg/240 mg extended release tablet) in the US.

Based on the petition,the US district court of New Jersey recently granted a preliminary injunction on the launch of the drug.

Dr Reddy’s scrip took a beating after the news broke.

The stock,which opened at Rs 1,430 at the Bombay Stock Exchange yesterday closed at Rs 1,410.35. It opened at Rs 1,405 today.