Shares of Dr Reddy's Lab jump 6.5% in intraday trade on new drug launch

Shares of Dr Reddy's Laboratories (DRL) on Monday surged 6.5% in the intraday trade after the company launched the generic version of Astrazeneca's Nexium, used to treat acid reflux, in the US market.

The stock jumped 6.32% to Rs 4,222.75 at the BSE. On the NSE, it rose by 6.46% to Rs 4,226.90.

The scrip was the top gainer among the blue-chip stocks on both Sensex and Nifty.

However, the firm's share prices have gone down from the maximum, but still in  the green. At 1358 hours, the Dr Reddy's stock were up Rs 219.80  to Rs 4191.45 .

In a BSE filing, DRL said "it has launched Esomefprazole magnesium delayed release capsules USP, 20 mg and 40 mg, a therapeutic equivalent generic version of Nexium delayed release capsules, in the US market on September 25, following approval from the US Food and Drug Administration."

Quoting IMS Heath data, the company said Nexium and generic had US sales of approximately $5.2 billion for the most recent 12 months ending in July, 2015.

Eesomeprazole is a proton pump inhibitor that decreases the amount of acid produced in the stomach.