Stock of the Day

September 30, 2021

Dr. Reddy's Laboratories (RDY)

$12.64
-$0.07 (-0.5%)
Market Cap: $10.60B

About Dr. Reddy's Laboratories

Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segments. The company's Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations, as well as engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. This segment also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids in accordance with the specific customer requirements. The Others segment engages in developing therapies in the fields of oncology and inflammation; research and development of differentiated formulations; and provides digital healthcare and information technology enabled business support services. The company offers its products for various therapeutic categories primarily include gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology. Dr. Reddy's Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.

Today's Trend

Dr. Reddy’s Laboratories (NYSE: RDY) shares have risen amid a wave of analyst upgrades and strategic collaborations that underscore the company’s growth prospects in both branded and biosimilars markets.

  • HSBC upgraded RDY from “hold” to “strong-buy,” later affirming a “buy” rating with a $16.90 price target (8.8% upside).
  • Hsbc Global Research raised its rating on RDY to “strong-buy,” highlighting improved earnings visibility.
  • Alvotech and Dr. Reddy’s entered into a collaboration to co-develop a biosimilar candidate to Merck’s Keytruda® (pembrolizumab), expanding RDY’s biosimilars footprint.
  • HSBC cited a semaglutide-driven earnings rebound as a catalyst for upgrading RDY to “buy.”
  • Shares gapped up in pre-market trading, prompting MarketBeat to flag RDY as a potential buy.
  • RDY outperformed peers in recent trading sessions, fueled by investor optimism around its pipeline and margin expansion.

Investors are focusing on these positive developments—analyst upgrades with higher targets, a high-profile biosimilar partnership and strong pipeline drivers—which together are supporting the uptick in Dr. Reddy’s stock today.

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