Dr Reddy’s jumps 1.58% after USFDA clears Rituximab biosimilar; Nomura keeps Buy at Rs 1,740 target
AI Market Summary
Dr Reddy's gained after USFDA approved its Rituximab biosimilar, and Nomura reiterated "Buy" while highlighting improved compliance at the Bachupally biologics site, which may de-risk a future Abatacept approval and launch. However, near-term fundamentals remain mixed given weak recent earnings and a sharp EBITDA margin contraction, limiting broader market relevance outside the single name.
Impact level
● Low
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● Neutral
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Dr Reddy’s Laboratories said it received US Food and Drug Administration approval for its Rituximab biosimilar, sending the stock up 1.58% to Rs 1,166.20. Nomura reiterated its “Buy” rating with a target price of Rs 1,740 and said the decision improves the odds of a timely launch of the Abatacept biosimilar. The brokerage raised its Abatacept revenue estimates to $309 million in FY28 and $431 million in FY29, adding that the upside is not reflected in its current earnings model. Dr Reddy’s EBITDA margin fell year on year to 10.6% over the same period.
