What happened to R & D? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

What happened to R & D?

Aug 8, 2000

Around nine months back the market was agog with rumours of Indian companies doing path breaking research. Ranbaxy developed a new single dosage delivery mechanism for ciprofloxacin, which it sold to Bayer. Dr. Reddy’s licensed two anti–diabetes molecules to Novo Nordisk and received its first milestone payment. Cipla was reported to be working on new chemical entities (NCEs). Nine months later the aura seems to have worn off. Cipla is yet to announce any pathbreaking result. The management of Dr Reddy’s has been unduly cagey about reports of the second milestone payment being received from Novo Nordisk.

Ranbaxy is also supposed to be receiving a second milestone payment for its deal with Bayer in the third quarter. It’s high time the company actually did! The stock has almost halved over the last nine months and the first half performance of the company has been nothing to write home about. Ranbaxy was also supposed to be working on a BPH (benign prostrate hyperplasia) compound, but the company has yet to announce the progress on the research.

The world over pharma companies make regular disclosures about the stage at which each molecule is (i.e whether the molecule has completed pre clinical trials or phase I or phase II of clinical trials). Indian companies are still very secretive about these issues.

Equitymaster requests your view! Post a comment on "What happened to R & D?". Click here!


More Views on News

DR. REDDYS LAB Announces Quarterly Results (3QFY19); Net Profit Up 67.0% (Quarterly Result Update)

Feb 4, 2019 | Updated on Feb 4, 2019

For the quarter ended December 2018, DR. REDDYS LAB has posted a net profit of Rs 5 bn (up 67.0% YoY). Sales on the other hand came in at Rs 39 bn (up 0.8% YoY). Read on for a complete analysis of DR. REDDYS LAB's quarterly results.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why am I Recommending Caution? (Fast Profits Daily)

Sep 9, 2020

This is why I have changed my short-term view on the market.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 22, 2020 03:37 PM


  • Track your investment in DR. REDDYS LAB with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks