Dr.Reddy's revenues and profitability in 2H 10 are expected to be weaker than 1H 10 with Sumatriptan's exclusivity ending in 2Q 10. Omeprazole's launch, expected in 2Q 10 was delayed due to operational reasons and now expected to add to revenues from 3Q 10. We expect Omeprazole sales will partially offset the revenue decline from the loss of Sumatriptan exclusivity. With the exception of the European market…

The common stock price for Dr. Reddy's Laboratories Limited (Dr. Reddy) has appreciated 22.9% since our 1Q 10 update report, dated 07 August 2009 following reports which suggested that UK-based GlaxoSmithKline Plc may acquire the company. Given our fundamental outlook we maintain the common stock rating at a SELL. We will reassess our target price and rating in our next update report, once the company announces its 2Q 10 results....

Dr. Reddy's Laboratories Limited (Dr. Reddy) recorded a significant y-o-y increase in revenues in 1Q 10, primarily due to strong revenue growth of the Global Generic segment, particularly due to higher sales of sumatriptan in North America. Although 1Q 10 performance was below our expectations and loss of revenues from sumatriptan will impact future performance; the strategic tieup with GloxoSmithkline Inc. (Glaxo) to sell generics is…