Dr. Reddy's Labs slips

Dr. Reddy's Labs slips

Dr Reddys Laboratories slipped 0.12% to Rs 522 at 14:37 IST on BSE, after entering into an agreement with the British drug maker SkyePharma to undertake a feasibility study of a product utilizing two of SkyePharma's drug delivery systems.

The company made this announcement during trading hours today, 8 February 2008.

Meanwhile, BSE Sensex was down 95.81 points or 0.55% to 17,431.12.

On BSE, 8,931 shares were traded in the counter. The scrip had an average daily volume of 74,644 shares in the past one quarter.

The stock hit a high of Rs 529.90 and a low of Rs 515.60 so far during the day. The stock had a 52-week high of Rs 760 on 2 January 2008 and a 52-week low of Rs 510 on 5 February 2008.

The mid-cap scrip had underperformed the market over the past one month till 7 February 2008, declining 25.03% compared to the Sensex’s decline of 16.02%. It had also underperformed the market in the past one quarter, declining 13.63% compared to Sensex’s decline of 7.30%.

The company’s current equity is Rs 84.07 crore. Face value per share is Rs 5.

The current price of Rs 522 discounts its Q3 December 2007 annualized EPS of Rs 10.06, by a PE multiple of 51.89.

Dr Reddy Laboratories (DRL) will pay the costs of this study. If the feasibility study is successful, full development activities will begin later this year.

DRL’s net profit declined 91.6% to Rs 42.29 crore on 34.5% fall to Rs 775.55 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and marketing pharmaceutical products. The group operates in seven segments: generics, active pharmaceutical ingredients (API) and intermediates, formulations, critical care and biotechnology, custom pharmaceutical services, drug discovery and other.