Underperform Dr Reddy's Laboratories, target Rs 2900: BofA-ML

BofA-ML maintains underperform rating on Dr Reddy's Laboratories with a 12-month target price of Rs 2900. The pharma major has acquired eight ANDAs from Teva in US for total consideration of $350mn.

Teva's acquired portfolio boost MT growth outlook in the US. The global brokerage firm is of the view that Dr Reddy's has a niche portfolio with half of them may be launched in 2018. The US growth is likely to accelerate from FY18 onwards given niche launches.