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5 Drug Stocks With Upside Potential of 25%

2. Dr. Reddy's is an India-based pharmaceutical company operating in three business segments: global generics, pharmaceutical services and active ingredients.

During the September quarter, revenue improved 2%. Global generics sales rose 8% during the quarter, while pharmaceutical services and active ingredients saw a revenue decline of 14%. However, operating profit margin increased to 17% from 14% in the year-earlier period. Net profit improved 32% year on year during the same period.

The company announced the launch of 41 new generic products and filing of 21 new product registrations and 13 drug master files globally. Growth in North America and Europe, the company's largest markets, contributing more than 50% towards sales was slower than in markets like India and Russia. Revenue from North America and Europe declined 2% and 14% for the September quarter, respectively, compared to a 21% and 17% growth for India and Russia, respectively.

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