Nomura Financial Advisory and Securities has maintained 'Buy' on Dr Reddy's Laboratories with revised target price of Rs 3,532 as against current market price (CMP) of Rs 3,685 in its report.

Commenting on the investment rationale, Nomura said, ''Dr Reddy's Laboratories has disclosed that it has made three NDA filings with the USFDA, more than its earlier indications for 1-2 NDA filings by end-FY15. Unlike ANDAs, the timeline for approval of NDAs is shorter, hence approval can come through in around 18 months. Therefore, these products can potentially be launched in FY17F. DRRD's new drug development efforts are geared towards new formulations of existing molecules and not new molecules.

Thus, there is less regulatory risk and relatively more clarity on market potential. Some of these products may earn limited exclusivity period. DRRD had earlier disclosed that each of its NDAs that are under development have peak revenue potential of USD30-300mn.

We believe peak sales could take 2-5 years to achieve as they need to be promoted. DRRD has a sales force of 40 in the US, which may be increased to promote migraine/neurology products. DRRD has 8-9 additional products (NDAs) under development/clinical trials. We maintain our Buy rating.''

Shares of the company declined Rs 64.05, or 1.71%, to trade at Rs 3,691.80. The total volume of shares traded was 8,361 at the BSE (11.50 a.m., Thursday).

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