bloomberg data

Weekly sales data shows that Dr Reddys sold $1.61mill worth of fonda during the week ending 27/4 (the most recent week where data is available). This is second highest weekly sales figure Dr Reddy's have recorded, and hospital sales are not yet at full strength. Add in a conservative percentage of the hospital market, and it is not difficult to see Dr Reddy's selling $1.8mill worth of fonda a week before too long.

This indicates ACL profit share of around US$28+ per year, which has ACL trading on a forward PE of around 4. At current prices then, the market seems to be valuing fonda on a very modest earnings multiple, and assuming oncology is worth basically nothing at all.

Bloomberg data also shows that Dr Reddy's is now strongly out selling all competitors in the retail market. If similar market share is gained in the hospital setting, the numbers cited above will look very conservative.