Dr Reddy's Laboratories rose 0.55% to Rs 3081.50 at 9:37 IST on BSE after the company signed pacts to acquire a portfolio of eight abbreviated new drug applications in the US for $350 million in cash.
The announcement was made on Saturday, 11 June 2016.
Meanwhile, the BSE Sensex was down 254.55 points, or 0.96%, to 26,381.20.
On BSE, so far 4,217 shares were traded in the counter, compared with an average volume of 19.48 lakh shares in the past one quarter. The stock hit a high of Rs 3,095.90 and a low of Rs 3,073 so far during the day. The stock hit a record high of Rs 4,382.95 on 20 October 2015. The stock hit a 52-week low of Rs 2,750 on 21 January 2016. The stock had underperformed the market over the past one month till 10 June 2016, rising 3.05% compared with 3.28% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 4.59% as against Sensex's 7.76% rise.
The large-cap company has an equity capital of Rs 85.30 crore. Face value per share is Rs 5.
Dr Reddy's Laboratories (DRL) inked a definitive agreement with Teva Pharmaceutical Industries and an affiliate of Allergan plc to acquire a portfolio of eight Abbreviated New Drug Applications (ANDAs) in the US for $350 million in cash. The acquired portfolio consists of products that are being divested by Teva as a precondition to its completion of the acquisition of Allergan's generics business. The portfolio being acquired is a mix of filed ANDAs pending approval and one approved ANDA. The portfolio comprises of complex generic products across diverse dosage forms. The branded versions of these drugs had aggregate sales of about $3.5 billion in the United States for 12-month period ended April 2016, according to IMS Health data. DRL is acquiring this portfolio of drugs on a cash-free, debt-free basis and expects to finance the transaction using a combination of cash on hand and available borrowings under existing credit facilities. The acquisition of these ANDAs is contingent on the successful completion of the Teva/Allergan generics transaction and approval by the US Federal Trade Commission of DRL as a buyer.
Dr Reddy's Laboratories' consolidated net profit fell 85.6% to Rs 74.60 crore on 2.4% decline in total income to Rs 3792.80 crore in Q4 March 2016 over Q4 March 2015.
Dr Reddy's Laboratories is an integrated global pharmaceutical company. Through its three businesses - Pharmaceutical Services & Active Ingredients, Global Generics and Proprietary Products - Dr Reddy's offers a portfolio of products and services including active pharmaceutical ingredients (APIs), custom pharmaceutical services, generics, biosimilars and differentiated formulations.
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