Dr Reddy's Lab tumbles on setback in ADR on NYSE
Dr Reddy's Laboratories (DRL) slumped 5.87% to Rs 729.05 following a sharp fall in its ADR on Thursday ahead of the pricing of its fresh ADR issue.
The Dr Reddy’s Lab ADR plunged 5% on Thursday to $16.45. The drug major today priced its 12.5 million American Depositary Receipts (ADR) issue at $16 a share. That is at a 2.7% discount to its ADR closing price of $ 16.45 on Thursday. The ADR issue is expected to close on 22 November 2006.
The stock saw volumes of 2.45 lakh shares on BSE. It had slipped to an intra-day low of Rs 726.10, after opening at Rs 770 today.
Dr Reddy’s Laboratories (DRL) shares have surged since late-October 2006 after the company reported robust Q2 results. From Rs 711.75 on 26 October, the stock surged to Rs 795.10 by 13 November 2006 on strong buying demand. Here it witnessed profit booking and slipped to Rs 774.50 on 16 November 2006.
On 13 November 2006, the company had filed a shelf registration statement on Form F-3 and preliminary supplement prospectus with the US Securities and Exchange Commission relating to a proposed offering of American Depositary Shares, or ADSs of up to 13.5 million shares, excluding the underwriter's over- allotment option.
DRL’s quarterly net profit more than tripled in Q2 September 2006, helped by strong growth in the key US market and gains from drugs exclusivity. DRL’s net profit, according to US accounting standards, rose to Rs 280 crore from Rs 89 crore. Total revenue jumped to Rs 2,000 crore from Rs 580 crore, while revenue from its core businesses, excluding the contribution from authorised generics and acquisitions, grew 42% to Rs 820 crore.
Some time back, DRL acquired Betapharm, based in Augsburg, Germany, which gives it better access to the European market. Similarly, on 30 December 2005, it had acquired 100% of the share capital of Falcon, a Roche group company in Mexico. Falcon primarily manufactures APIs: naproxen, naproxen sodium and steroids.
Dr Reddy’s Laboratories is a leading pharmaceutical company in the country, with a presence across the pharmaceutical value chain: basic research, finished dosages, generics, bulk actives, biotechnology and diagnostics.
The Dr Reddy’s Lab ADR plunged 5% on Thursday to $16.45. The drug major today priced its 12.5 million American Depositary Receipts (ADR) issue at $16 a share. That is at a 2.7% discount to its ADR closing price of $ 16.45 on Thursday. The ADR issue is expected to close on 22 November 2006.
The stock saw volumes of 2.45 lakh shares on BSE. It had slipped to an intra-day low of Rs 726.10, after opening at Rs 770 today.
Dr Reddy’s Laboratories (DRL) shares have surged since late-October 2006 after the company reported robust Q2 results. From Rs 711.75 on 26 October, the stock surged to Rs 795.10 by 13 November 2006 on strong buying demand. Here it witnessed profit booking and slipped to Rs 774.50 on 16 November 2006.
On 13 November 2006, the company had filed a shelf registration statement on Form F-3 and preliminary supplement prospectus with the US Securities and Exchange Commission relating to a proposed offering of American Depositary Shares, or ADSs of up to 13.5 million shares, excluding the underwriter's over- allotment option.
DRL’s quarterly net profit more than tripled in Q2 September 2006, helped by strong growth in the key US market and gains from drugs exclusivity. DRL’s net profit, according to US accounting standards, rose to Rs 280 crore from Rs 89 crore. Total revenue jumped to Rs 2,000 crore from Rs 580 crore, while revenue from its core businesses, excluding the contribution from authorised generics and acquisitions, grew 42% to Rs 820 crore.
Some time back, DRL acquired Betapharm, based in Augsburg, Germany, which gives it better access to the European market. Similarly, on 30 December 2005, it had acquired 100% of the share capital of Falcon, a Roche group company in Mexico. Falcon primarily manufactures APIs: naproxen, naproxen sodium and steroids.
Dr Reddy’s Laboratories is a leading pharmaceutical company in the country, with a presence across the pharmaceutical value chain: basic research, finished dosages, generics, bulk actives, biotechnology and diagnostics.
posted by SY at 4:22 PM
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