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Dr. Reddy's (RDY), Kainomyx Sign Potential Deal for Malaria Drug
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Dr. Reddy’s Laboratories (RDY - Free Report) signed a non-binding Memorandum of Understanding (MoU) with Kainomyx, Inc. to develop and commercialize affordable anti-malarial drug in the United States, EU and low and middle-income countries. Kainomyx is a U.S.-based company that utilizes its proprietary platform to develop candidates with a novel mechanism of action.
Per Dr. Reddy’s, the MoU is subject to the signing of a definitive agreement.
There is a significant unmet medical need in the treatment of malaria and other parasitic diseases as drug resistance to existing therapeutics is rapidly developing. Therefore, new drug discovery with differentiated mechanisms of action is quintessential.
Year to date, shares of Dr. Reddy’s have gained 19.5% compared with the industry’s 19% growth.
Image Source: Zacks Investment Research
Under the terms of the MoU, Kainomyx will lead the technical strategy and oversee the drug discovery and clinical phases. Meanwhile, Aurigene, a subsidiary of Dr. Reddy’s, will focus on developing cost-effective and scalable drug chemistry. As the clinical program advances, the collaboration will enable Kainomyx to leverage RDY’s expertise in regulatory affairs and market access, accelerating the delivery of a potential treatment to patients.
Malaria remains a major health issue, particularly in low-income countries where vulnerable populations are most affected. In 2022, the WHO reported 249 million malaria cases and 608,000 deaths. Climate change is expected to worsen the spread of such diseases.
Through this collaboration, Dr. Reddy’s and Kainomyx aim to combine their strengths to advance a comprehensive research and development program to address this challenge more effectively.
Meanwhile, RDY’s global generics business, which comprises unbranded prescription drugs along with over-the-counter (OTC) drugs, continues to remain its primary area of focus. The company has been investing heavily to further expand its global generics business.
Last month, Dr. Reddy’s reported its fiscal first-quarter 2025 results. Although the company’s earnings of $1 per American Depositary Share during the reported quarter missed estimates, its revenues of $921 million beat the same. The 14% year-over-year increase in revenues was primarily driven by growth in global generics business in North America and India.
Recently, Dr. Reddy’s signeda definitive agreement with Haleon plc (HLN - Free Report) to acquire Nicotinell and related brands in the Nicotine Replacement Therapy category in several markets globally, excluding the United States. In consideration of the transaction, RDY is liable to make an upfront cash payment of GBP 458 million and milestone payments of up to GBP 42 million, payable in 2025 and 2026, to Haleon. This brings the total deal value to GBP 500 million. The transaction is expected to close in the fourth quarter of 2024.
The strategic move is set to further strengthen Dr. Reddy’s OTC business. The proposed acquisition of Haleon’s Nicotinell and its related portfolio will provide RDY with a strong presence in the EU and other global markets, complementing and expanding its existing global footprint and capabilities.
In the past 60 days, estimates for Illumina’s 2024 earnings per share have moved up from $1.07 to $3.16. Earnings per share estimates for 2025 have improved from $2.93 to $4.49. Year to date, shares of ILMN have lost 4.8%.
Illumina’s earnings beat estimates in each of the trailing four quarters, the average surprise being 463.46%.
In the past 60 days, estimates for Arcturus Therapeutics’ 2024 loss per share have improved from $4.39 to $2.60. The estimate for 2025 is currently pegged at earnings of 21 cents per share. Year to date, shares of Arcturus Therapeutics have plunged 32.5%.
Earnings of Arcturus Therapeutics beat estimates in each of the last four quarters, delivering an average earnings surprise of 56.73%.
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Dr. Reddy's (RDY), Kainomyx Sign Potential Deal for Malaria Drug
Dr. Reddy’s Laboratories (RDY - Free Report) signed a non-binding Memorandum of Understanding (MoU) with Kainomyx, Inc. to develop and commercialize affordable anti-malarial drug in the United States, EU and low and middle-income countries. Kainomyx is a U.S.-based company that utilizes its proprietary platform to develop candidates with a novel mechanism of action.
Per Dr. Reddy’s, the MoU is subject to the signing of a definitive agreement.
There is a significant unmet medical need in the treatment of malaria and other parasitic diseases as drug resistance to existing therapeutics is rapidly developing. Therefore, new drug discovery with differentiated mechanisms of action is quintessential.
Year to date, shares of Dr. Reddy’s have gained 19.5% compared with the industry’s 19% growth.
Image Source: Zacks Investment Research
Under the terms of the MoU, Kainomyx will lead the technical strategy and oversee the drug discovery and clinical phases. Meanwhile, Aurigene, a subsidiary of Dr. Reddy’s, will focus on developing cost-effective and scalable drug chemistry. As the clinical program advances, the collaboration will enable Kainomyx to leverage RDY’s expertise in regulatory affairs and market access, accelerating the delivery of a potential treatment to patients.
Malaria remains a major health issue, particularly in low-income countries where vulnerable populations are most affected. In 2022, the WHO reported 249 million malaria cases and 608,000 deaths. Climate change is expected to worsen the spread of such diseases.
Through this collaboration, Dr. Reddy’s and Kainomyx aim to combine their strengths to advance a comprehensive research and development program to address this challenge more effectively.
Meanwhile, RDY’s global generics business, which comprises unbranded prescription drugs along with over-the-counter (OTC) drugs, continues to remain its primary area of focus. The company has been investing heavily to further expand its global generics business.
Last month, Dr. Reddy’s reported its fiscal first-quarter 2025 results. Although the company’s earnings of $1 per American Depositary Share during the reported quarter missed estimates, its revenues of $921 million beat the same. The 14% year-over-year increase in revenues was primarily driven by growth in global generics business in North America and India.
Recently, Dr. Reddy’s signeda definitive agreement with Haleon plc (HLN - Free Report) to acquire Nicotinell and related brands in the Nicotine Replacement Therapy category in several markets globally, excluding the United States. In consideration of the transaction, RDY is liable to make an upfront cash payment of GBP 458 million and milestone payments of up to GBP 42 million, payable in 2025 and 2026, to Haleon. This brings the total deal value to GBP 500 million. The transaction is expected to close in the fourth quarter of 2024.
The strategic move is set to further strengthen Dr. Reddy’s OTC business. The proposed acquisition of Haleon’s Nicotinell and its related portfolio will provide RDY with a strong presence in the EU and other global markets, complementing and expanding its existing global footprint and capabilities.
Dr. Reddy's Laboratories Ltd Price and Consensus
Dr. Reddy's Laboratories Ltd price-consensus-chart | Dr. Reddy's Laboratories Ltd Quote
Zacks Rank & Stocks to Consider
Dr. Reddy’s currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall healthcare sector are Illumina, Inc. (ILMN - Free Report) and Arcturus Therapeutics (ARCT - Free Report) . While ILMN currently sports a Zacks Rank #1 (Strong Buy), ARCT carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Illumina’s 2024 earnings per share have moved up from $1.07 to $3.16. Earnings per share estimates for 2025 have improved from $2.93 to $4.49. Year to date, shares of ILMN have lost 4.8%.
Illumina’s earnings beat estimates in each of the trailing four quarters, the average surprise being 463.46%.
In the past 60 days, estimates for Arcturus Therapeutics’ 2024 loss per share have improved from $4.39 to $2.60. The estimate for 2025 is currently pegged at earnings of 21 cents per share. Year to date, shares of Arcturus Therapeutics have plunged 32.5%.
Earnings of Arcturus Therapeutics beat estimates in each of the last four quarters, delivering an average earnings surprise of 56.73%.