At a time when its revenues from the all too important US market are more or less stagnating, new product approvals are hit by delays and there no major breakthrough product approvals in the US, Dr Reddy's had a good revenue upside opportunity coming its way.
But, it is not to be, at least for the moment. We are referring to the news from the company on Thursday that the United States district court for New Jersey has upheld the patent infringements claims against Dr Reddy's in case of an anti-nausea product it was seeking to launch. It is a medication that is usually administered on cancer patients to help overcome chemotherapy induced nausea.
Analysts feel that it meant the company misses that revenue upside opportunity. The company now proposes to pursue an appeal in due course.
The product in question is palonosetron hydrochloride. The company is tight lipped on the possible revenue upside that was expected though estimates from analysts vary and is around $ 50 million and upwards. The company had just posted its third quarter results showing revenues from North America at Rs 16.6 billion, a year-on-year decline of 15 per cent, "primarily on account of increased competition in valgancyclovir and our injectables franchise coupled with continuing pricing pressure."