Analyst Note| Damien Conover, CFA |
Dr. Reddy’s reported fourth-quarter results that were largely in line with our forecasts, therefore we maintain our $35 fair value estimate and our no-moat rating. Fourth-quarter revenue slightly exceeded expectations but was not significant enough to change our fair value estimate. In the core generics business, higher volume and new product launches outpaced the industry-wide deflationary pressure on prices. Few data points were provided on the COVID product portfolio, though management confirmed they expect to vaccinate 125 million people over the next 12 months. Guidance was withheld for fiscal 2022, in keeping with management’s cautious attitude toward the pandemic recovery.