DRL seeks a booster from Sputnik V but hurdles in scaling up remain

Even as the company investigates complaints of malpractice in the Ukraine, hurdles in scaling up the Russian vaccine remain the bigger challenge in the near term

Hyderabad-based drug major Dr Reddy’s Labora­tories (DRL) is navigating a challenging business environment after a tough first quarter in fiscal 2021-22 — from muted revenue growth in overseas geographies to a subpoena from the US market regulator to delays in scaling up its Covid-19 vaccine.

Last Tuesday, the stock hit a three-month low, falling 10 per cent to Rs 4,844 on the BSE, after the company reported a one per cent year-on-year (YoY) decline in net profit to Rs 570.8 crore for the June quarter. Reports of a subpoena from the US Securities and Exchange Commission (SEC) for documents concerning