Dr Reddy's share price jumped nearly 9%, registering their sharpest intraday gain in a year.Pharma major Dr Reddy's Laboratories hit a near two-month high on Wednesday after a US court allowed the company to sell a copycat version of Indivior Plc's opioid treatment Suboxone Film.
Dr Reddy's share price jumped nearly 9 per cent, registering their sharpest intraday gain in a year, before trading at Rs 2,606.25, up Rs 163.10 or 6.68 per cent at 11:35 am on the National Stock Exchange (NSE).
It was the top Nifty gainer on the NSE.
On the Bombay Stock Exchange (BSE), Dr Reddy's share price was at Rs 2604.00, with a gain of Rs 153.75 or 6.27 per cent.On Tuesday, Dr Reddy's said that the US Court of Appeals for the Federal Circuit lifted a preliminary injunction that blocked it from selling the generic drug, saying a lower court judge erred in granting the request."We are pleased with the decision of the appellate court in Dr.
Reddy's favor, vacating the preliminary injunction that had prevented Dr.
Reddy's from bringing this important drug to the public," said a company spokesperson in a BSE filing.Investors welcomed the news, with shares of Dr Reddy's reaching their highest in nearly two months at Rs 2,655 in intraday trade.
Close to 25 lakh shares had changed hands by 10:07 am, more than triple the 30-day average of about 7.88 lakh shares.Dr Reddy's shares were also the top gainers on Nifty Pharma which traded 1.3 per cent higher on the NSE.
Dr Reddy's share price hit an intraday of Rs 2,655 on the NSE before opening at Rs 2,608 against the previous close of Rs 2,443.15.Jefferies analysts said they consider the ruling to be near-term positive, and one that allows the company to immediately re-launch the product, but still at-risk.
Nomura analysts said they believe Dr Reddy's is likely to be compensated in due course for the preliminary injunction, but await clarity whether the compensation could be higher than $72 million.Meanwhile, the BSE benchmark Sensex traded at 35,163.82, with a loss of Rs 310.69 or 0.88 per cent while the NSE barometer Nifty50 was at 10,579.45, down 76.75 points or 0.72 per cent.
(With Reuters inputs)