Dr Reddy’s rises upon divesting two of its non-core anti-bacterial brands
With this divestment, the company aims to consolidate and strengthen its position by focusing its resources and capabilities on its key therapy spaces.
Dr Reddy’s Laboratories Limited, a leading multinational pharmaceutical company has inked an agreement with Binnopharm Group for the acquisition of two anti-bacterial brands from Dr Reddy’s in the Russia and CIS region.
To ensure availability in the market, Dr Reddy’s will continue to supply the product to Binnopharm Group during the transition period.
The latter is one of the leading pharmaceutical production companies in Russia. It acquired anti-bacterial medicines under the Ciprolet and Levolet brands through its affiliate joint-stock company, Alium. Both the brands comprise various dosage forms such as tablets, solutions for infusions and eye drops. With this acquisition, Binnopharm Group intends to strengthen its antibiotic portfolio.
Why this divestment?
Dr Reddy’s operates in multiple therapeutic areas, with the key spaces being gastrointestinal, oncology, cardiovascular, pain management, respiratory, neurology, paediatrics and women’s health.
Both Ciprolet and Levolet brands fall under Dr Reddy’s non-core areas. With this divestment, the company aims to consolidate and strengthen its position by focusing its resources and capabilities on its key therapy spaces as the Russia and CIS region continues to be its strong performing markets.
Earlier this month, the company had entered into an exclusive sales and distribution agreement with Novartis India Limited for select Indian brands.
Looking at the performance in Q3FY22, on a consolidated basis, Dr Reddy’s net revenue went up by 8.33% YoY to Rs 5103.10 crore. PBIDT (ex OI) 125.42% YoY to Rs 1215.70 crore, whereas the corresponding margin expanded by 1186 bps YoY to 22.77%. The PAT increased by a stellar 5297% YoY to Rs 690.80 crore. The PAT margin expanded by 1268 bps YoY to 12.94%.
At noon, the share price of Dr Reddy’s Laboratories Limited was trading at Rs 4354.45, an increase of 0.77% from the previous week’s closing price of Rs 4321 on BSE.
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