Dr Reddys Lab gains after Russian firm acquires 2 anti-bacterial brands

Dr. Reddy's Laboratories rose 1.37% to Rs 4380.40 after Russia's Binnopharm Group signed a deal to acquire the Indian drug maker's two anti-bacterial medicine brands in Russia, Uzbekistan and Belarus.

The Sistema Group company, Binnopharm Group, one of the leading pharmaceutical production companies in Russia via its affiliate Joint Stock Company 'Alium', will acquire anti-bacterial medicines under the Ciprolet and Levolet brands from Dr. Reddy's in Russia, Uzbekistan and Belarus. The portfolio includes various dosage forms such as tablets, solution for infusions and eye drops.

During the transition period, Dr. Reddy's will continue to supply the product to Binnopharm Group to ensure availability in the market.

For Dr. Reddy's, this divestment of brands from its non-core areas will allow the company to focus its resources and capabilities on its key therapy spaces of gastro-enterology, pain management, cold and flu, allergy, oncology, neurology, paediatrics and women's health as the Russia and CIS region continues to be a strong performer for the company.

M.V. Ramana, CEO - Branded Markets (India & Emerging Markets), said: "Our Russia and CIS markets continue to be strong performers for the company. This deal is a step towards divesting brands in non-core areas in order to consolidate and strengthen our play further in our key focus therapy areas of gastro-enterology, pain management, cold and flu, allergy, oncology, neurology, paediatrics and women's health. This will help us accelerate access to affordable and innovative medicines in the region in these segments."

Dr. Reddy's Laboratories is an integrated pharmaceutical company. It offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations. Its major markets include - USA, India, Russia & CIS countries, and Europe.

On a consolidated basis, the drug maker reported a net profit of Rs 706.50 crore in Q3 December 2021, steeply higher than 19.80 crore in Q3 December 2020. Revenue from operations rose 7.91% to Rs 5,319.70 crore in in Q3 December 2021 over Q3 December 2020.

Separately, the drug maker announced today that its formulations manufacturing facilities (FTO 7 & FTO 9) at Duvvada, Visakhapatnam has received the Establishment Inspection Report (EIR) from the US drug regulator indicating closure of the inspection.

The USFDA conducted an audit at the company's Duvvada facilities in October 2021 and issued a Form 483 with 8 observations.

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