Dr Reddy’s shares slip nearly 2% on investor concerns amid $50 million foray into anti-vertigo category

Core Insights - Dr. Reddy's Laboratories has signed a definitive agreement to acquire the Stugeron brand and its related portfolio from Janssen Pharmaceutica NV for $50.5 million, covering 18 markets across APAC and EMEA, with a focus on India and Vietnam [1][6]. Company Strategy - The acquisition of Stugeron, which contains the antihistamine Cinnarizine used for vestibular disorders and vertigo, will enhance Dr. Reddy's Central Nervous System (CNS) portfolio and expand its presence in the anti-vertigo therapeutic area [1][3]. - The company aims to improve patient access and reach over 1.5 billion patients by 2030, leveraging strong market access to expand Stugeron's reach across the targeted markets [3]. Financial Performance - Dr. Reddy's reported a 2% year-on-year growth in consolidated net profit at Rs 1,418 crore for the first quarter ended June, with revenue from operations increasing by 11% year-on-year to Rs 8,545 crore [5]. - The revenue growth was broad-based, supported by contributions from the acquired consumer healthcare portfolio in Nicotine Replacement Therapy (NRT) and sustained performance in branded markets [5]. Market Reaction - Following the announcement of the acquisition, Dr. Reddy's shares experienced a slight decline of 1.6% to Rs 1,283.20 on the BSE, although the shares have risen over 16% in the last six months [6].