Dr. Reddy's Labs slips on plan to sell neurology branded products

Dr. Reddy's Laboratories fell 1.55% to Rs 2,546 at 10:45 IST on BSE after the company announced that it has entered into a definitive agreement to sell its neurology branded products to Upsher-Smith Laboratories.

Meanwhile, S&P BSE Sensex was down 106.13 points or 0.27 % at 39,635.23.

On BSE, 13,000 shares were traded in Dr. Reddy's Laboratories counter, compared to a 2-week average of 44,000 shares. The share price hit an intraday high of Rs 2,586 and an intraday low of Rs 2,542. It hit a 52-week high of Rs 2,965.20 on 2 May 2019 and a 52-week low of Rs 2,017.20 on 20 July 2018.

Dr. Reddy's Laboratories has announced that it has entered into a definitive asset purchase agreement with Upsher-Smith Laboratories. Dr. Reddy's Laboratories would sell its US and select territory rights for 'Zembrace Symtouch' 3 mg and 'Tosymra' 10 mg, also known as "DFN-02", which are commercialized through its wholly owned subsidiary, Promius Pharma. Under the agreement, Dr.Reddy's Laboratories will receive $70 million as upfront consideration, $40.5 million in near term milestones and additional financial considerations including, existing contractual obligation and inventory.

Dr. Reddy's Laboratories' consolidated net profit has increased 67.4% to Rs 455.4 crore on a 13.6% increase in net sales to Rs 4016.6 crore in Q4 March 2019 over Q4 March 2018.

Dr. Reddy's Laboratories is an India-based pharmaceutical company with headquarters and registered office in Hyderabad, Telangana, India. Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products - the company offers a portfolio of products and services, including Active Pharmaceutical Ingredients (API), Custom Pharmaceutical Services (CPI), generics, biosimilars, differentiated formulations and New Chemical Entities.

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