Dr. Reddy’s Laboratories (RDY) recently announced the initiation of dosing of DRL-17822 in patients suffering from dyslipidemia. The drug is being studied for the prevention or treatment of dyslipidemia, atherosclerosis and associated cardiovascular disease.
DRL-17822 is currently in a phase II study, which is being conducted in a number of countries in Europe. The study is designed to evaluate the efficacy and safety of DRL-17822 in patients with type-II dyslipidemia. In the study, patients (n=160) will be dosed 50 mg, 150 mg and 300 mg of DRL-17822, once daily for four weeks, to assess the elevation in HDL (good) cholesterol and reduction in LDL (bad) cholesterol from baseline compared to placebo.
We note that DRL-17822 was found to be safe and well tolerated in phase I studies.
Recently, Dr. Reddy’s has been in news quite frequently. Last month, the company entered into a settlement agreement with Pfizer Inc. (PFE) to resolve the litigation related to Lipitor (10 mg, 20 mg, 40 mg, and 80 mg), generically known as atorvastatin calcium tablets.
Pfizer’s cholesterol drug Lipitor, is set to lose patent protection in November 2011.
Moreover, in July, the company entered into an agreement with India based JB Chemicals & Pharmaceuticals to acquire the latter’s pharmaceutical prescription portfolio in Russia and other CIS (Commonwealth of Independent States) regions for about $34.85 million. The companies also entered into a supply agreement, under which JB Chemicals will manufacture and supply the acquired products to Dr. Reddy’s.
We currently have an Underperform recommendation on Dr. Reddy’s. The stock carries a Zacks #5 Rank (Strong Sell rating) in the short run.
