Dr. Reddy’s Receives Approval For Emergency Use Of Sputnik V In India
Integrated pharmaceutical company Dr. Reddy’s Laboratories Ltd. has been allowed to import the Sputnik V vaccine, which is a vaccine against COVID-19, into India by the Drug Controller General of India (DCGI). This is an emergency use authorization under the country’s Drugs and Cosmetics Act.
GV Prasad, Co-Chairman and Managing Director, Dr. Reddy’s Laboratories, (RDY) said, “We are very pleased to obtain the emergency use authorization for Sputnik V in India. With the rising cases in India, vaccination is the most effective tool in our battle against COVID-19. This will enable us to contribute to our nation’s effort of vaccinating a significant proportion of our population.”
The company teamed up with the Russian Direct Investment Fund (RDIF) in September 2020 to conduct the clinical trials of the vaccine and to distribute it in India. (See Dr. Reddy’s Laboratories stock analysis on TipRanks)
On top of the Sputnik V trials carried out in Russia by RDIF, Dr. Reddy’s conducted Phase 2 and 3 trials of the vaccine in India. Sputnik V has an efficacy rate of 91.6% and has been approved in 60 countries so far.
Recently, Barclays analyst Balaji Prasad upgraded the stock to Buy from Hold and also increased its price target to $70 (6.3% upside potential) from $56.
Prasad upgraded the stock based on earnings upside from Sputnik V, with a projected run rate of 250 million doses by 2H22, launches of gVascepa and gNuvaring and a stabilizing US generics market.
The other analyst covering the stock, Citigroup’s Prashant Nair, also has a Buy rating on the stock. The two ratings add up to a Moderate Buy consensus rating alongside an average analyst price target of $70. Shares have gained about 40.5% over the past year.
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