Why did Dr Reddy's share rise over 2% in overall subdued market? Details

Dr. Reddy’s Labs share price today: Shares of pharmaceutical major Dr. Reddy’s Laboratories (Dr. Reddy’s Labs) rose as much as 2.08 per cent to hit an intraday high of ₹1,250.25 

 

At 12:30 PM, Dr. Reddy’s shares were trading 2.03 per cent higher at ₹1,249.65 per share. In comparison, BSE Sensex was trading flat with a positive bias at 84,943.47 levels. 

 

Why did Dr. Reddy’s shares rise today?

 

Dr. Reddy’s Laboratories’ stock gained after the company announced that the European Commission (EC) has granted marketing authorisation for AVT03, a biosimilar of Prolia and Xgeva (denosumab). Notably, Prolia and Xgeva are registered trademarks of Amgen Inc.

 

Prolia is used to treat osteoporosis in postmenopausal women and men at high fracture risk, as well as bone loss related to hormone ablation or long-term glucocorticoid therapy. Xgeva is prescribed to prevent bone complications in adults with advanced cancers involving bone and to treat giant cell tumours of bone in adults and skeletally mature adolescents.

 

The EC approval, applicable across all EU Member States and European Economic Area countries (Iceland, Liechtenstein and Norway), follows a positive opinion by the CHMP in September 2025. The decision is backed by comprehensive analytical, PK/PD and clinical data from a confirmatory study.

 

Dr. Reddy’s and Alvotech had signed a licensing and supply agreement in May 2024 under which Alvotech will develop and manufacture AVT03, while Dr. Reddy’s will handle registration and commercialisation in key markets, including the US and Europe. Dr. Reddy’s holds exclusive rights in the US and semi-exclusive rights in Europe and the UK. 

 

Following approval, the product will be marketed as Acvybra (60 mg/mL pre-filled syringe) and Xbonzy (70 mg/mL vial). 

 

What is AVT03?

 

AVT03 is a human monoclonal IgG2 antibody and a proposed biosimilar to denosumab (Prolia/Xgeva). It targets the RANK ligand membrane protein, inhibiting the RANK ligand–RANK interaction to reduce osteoclast formation and function, thereby lowering bone resorption and cancer-related bone destruction.

 

Dr Reddy's Laboratories is a leading Indian pharmaceutical firm established in 1984 by Kallam Anji Reddy. The company specialises in a broad spectrum of products, including generics, biosimilars, and differentiated formulations.

 

It is also involved in the production of active pharmaceutical ingredients (APIs), custom pharmaceutical services (CPS), and a diverse array of pharmaceuticals.