Why Dr Reddy’s Labs Share Price Fell in Today’s Trade?


by Sandip Das on 1 March 2024,  5 min read


The share price of Dr Reddy’s Labs declined 3.5 percent on March 1, 2024, after the company was named as a defendant in a complaint in the US District Court for New Jersey.

This is to inform you that Dr. Reddy’s Laboratories, Inc., a wholly owned step-down subsidiary of the Company, and Dr. Reddy’s Laboratories Limited were named as defendants in a complaint that was made public on February 29, 2024, in the United States District Court for the District of New Jersey,” Dr Reddy’s Labs said in a BSE filing.

“The complaint, filed by Walgreen Co., Kroger Specialty Pharmacy, Inc. and CVS Pharmacy, Inc., asserts claims under federal antitrust law alleging that Dr. Reddy’s, acting in connection with Celgene Corporation, Bristol-Myers Squibb Co., Natco Pharma Ltd., and Teva Pharmaceuticals USA, Inc., improperly restrained competition and maintained a shared monopoly in the sale of brand and generic Revlimid through their respective settlements of patent litigation,” the filing stated.

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“The complaint alleges that the challenged agreements improperly delayed generic entry entirely until 2022 and then improperly limited generic competition through 2026. The complaint seeks damages for purported overpayments and equitable relief. This lawsuit has been consolidated by the court with several other lawsuits making similar allegations against Dr. Reddy’s and several other pharmaceutical companies. Dr. Reddy’s believes that the allegations against it lack merit and will vigorously defend the litigation,” it added.

Dr Reddy’s Labs share price closed at Rs 6,190, down Rs 234.25 or 3.65 percent. The stock hit an intraday high of Rs 6473 per share and an intraday low of Rs 6172.10 per share on NSE.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment.

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