Vishal Manchanda
Long/short equity, Deep Value, special situations, contrarian

Sell Ranbaxy And Buy AstraZeneca: Good Chance Nexium Generic Launch Delayed

Ranbaxy (OTC:RBXZF) stock is up 30 percent from the new lows it created last month. This time the rally is in expectation of superlative gains from launch of Nexium generics expected in May 27 2014 (as per settlement agreement with AstraZeneca (NYSE:AZN) ). In 2013, Nexium generated $2.1b in annual sales and the street is widely expecting Ranbaxy to reap a bonanza ($250m in incremental profits) as it has a first to file 180-days exclusivity on it.

But I feel investors are missing on the details and are being carried away as

1) There is a strong chance that Ranbaxy may not be able to launch Nexium Generics timely and in that case AstraZeneca would be...

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