The BSE-Sensex is trading up by 145 points while NSE-Nifty is trading 47 points above the dotted line. The BSE Midcap and BSE Small cap indices are up by 1.0% and 0.9% each. The rupee is trading at 44.55 to the US dollar.
Most of the
pharma stocks are currently trading firm with Dr Reddy's Laboratories, Glenmark Pharma and Elder Pharma leading the pack of gainers. However, IPCA Labs and Cipla are trading weak. As per a leading financial daily, Dr Reddy's Laboratories (DRL) has received final approval from US Food and Drugs Administration (FDA) to sell Fondaparinux Sodium injection. The latter is used for the treatment and prevention of deep vein thrombosis (DVT). As per the management, it is a complex generic molecule and difficult to manufacture at a large scale. Hence, the company foresees a limited competition for the drug in the near future. It plans to leverage this opportunity. It plans to execute a phased launch in select wholesale and retail outlets, and subsequently enhance share over time in the coming quarters. DRL will manufacture the injection under license using a patented process developed by Australia's Alchemia. Dr Reddy's Fondaparinux Sodium injection is a generic version of GlaxoSmithKline's Arixtra. Arixtra sales grew 16% year-on-year to US$ 340 m for the 12 months ending May 2011.
At present, DLF holds 74% stake in the joint venture with Prudential Financial, the second-largest life insurer in the US. Therefore, the deal may face regulatory hurdle. As per the current guidelines, the original partner in a life insurance joint venture cannot sell its stake in the company during the first ten years of operations. The stock of DLF is currently trading firm.