* Court lifts injunction; asks plaintiffs for $40 mln
* Dr Reddy's only generic player for Allegra D24-analyst
* Drugmaker's shares rise nearly 4 pct in weak Mumbai
(Adds quotes, details, background)
MUMBAI, Jan 31 India's No.2 drugmaker Dr
Reddy's Laboratories Ltd (REDY.BO) said on Monday a U.S.
district court has cleared the sale of its generic version of
Sanofi-Aventis' (SASY.PA) allergy medicine Allegra D24, sending
its shares up nearly 4 percent.
The U.S. District Court of New Jersey lifted an injunction
passed last June against the Indian drugmaker from selling a
copycat version of the drug, Dr Reddy's said in a statement.
"This is a positive for the company. Since Dr Reddy's is
the only player for this product, it should be able to do
decent sales," Sarabjit Kour Nangra, vice president of research
and who tracks the sector at Angel Broking said.
Shares in the company, which dropped over 4 percent in the
past four trading sessions on last week's lower-than-expected
quarterly results, rose as much as 3.7 percent early on Monday
in a weak Mumbai market.
Last week, Dr Reddy's said it had settled patent
litigations with AstraZeneca (AZN.L) on two drugs.
Bino Pathiparampil, vice president at IIFL Capital said he
expects the product to add 4-5 percent to Dr Reddy's per-share
earnings in the next fiscal year ending March 2012.
Dr Reddy's said in its statement on Monday the U.S. court
had also asked the plaintiffs -- Sanofi and Albany Molecular
Research (AMRI.O) -- to post a security of $40 million towards
the possibility the injunction had been wrongfully granted.
"Having been excluded from launching the generic product
since the June 2010 hearing, Dr Reddy's intends to pursue an
award of this security," the drugmaker said in the statement.
In 2009, Albany Molecular had sued the Indian generic maker
alleging infringement of patents related to the manufacturing
process of the drug. [ID:nSGE62M0K6]
Last week, Dr Reddy's reported a swing in profit in the
third quarter, but missed analysts estimates, hurt by poor
sales at its German unit. [ID:nSGE70O087]
Global demand for cheaper generic drugs from drugmakers
such as Dr Reddy's and domestic rivals Ranbaxy Laboratories
RANB.BO, Cipla Ltd (CIPL.BO) and Sun Pharmaceutical
Industries (SUN.BO) is booming as developed nations battle
rising healthcare costs.
(Reporting by Bharghavi Nagaraju; editing by Malini Menon)