Dr. Reddy's Acquires STUGERON Portfolio for USD 50.5 Million, Expanding CNS and Anti-vertigo Presence

Hyderabad, September 11, 2025: Dr. Reddy’s Laboratories Ltd. (NSE: DRREDDY, BSE: 500124, NYSE: RDY, NSE IFSC: DRREDDY) has signed a definitive agreement with Janssen Pharmaceutica NV, a Johnson & Johnson affiliate, to buy the STUGERON brand portfolio for USD 50.5 million, or approximately ₹445 crore. The deal includes 18 markets in Asia-Pacific and EMEA, including India and Vietnam. The transaction also encompasses its top-line variants, STUGERON FORTE and STUGERON PLUS. As per the company, operations transfer will be phased in order to ensure streamlined integration.

Strategic Fit and Market Position

The STU͏GERON ͏brand, based on Cinnarizine, is͏ ͏wi͏del͏y ͏prescribed ͏by p͏hysi͏cians for vertigo an͏d vestib͏ular disorders. I͏n͏ India, it hol͏ds the leadi͏n͏g ͏position i͏n the Cinnarizine segment and ra͏nks s͏econd in the overall ͏anti-v͏ertigo therapy͏ mar͏ket. With thi͏s acqu͏isition, Dr. ͏Redd͏y’͏s͏ st͏rengthens its Cen͏tral Nervo͏us S͏ystem portfoli͏o wh͏ile simultaneously expanding its footprint in the h͏igh-gr͏o͏wth anti-vertigo market.

Stock Market Reaction

In spite of the strategic logic, investor reaction was subdued in early trading. As of 12:31 pm IST, Dr. Reddy’s shares dropped around 0.46% to ₹1,298.20 on the BSE after the announcement. The stock is still fluctuating between its 52-week low of ₹1,025.90 and high of ₹1,404.60. Analysts blamed the fall on near-term doubts over deal price and integration expenses despite the acquisition being seen to drive long-term growth.

Management Outlook

M. V. Ramana, Branded Markets for India and Emerging Markets’ CEO, noted that the acquisition is part of the crucial move towards Dr. Reddy’s 2030 vision to touch more than 1.5 billion patients around the world. He pointed out that the inclusion of the STUGERON range will bring patient access to 18 more countries and enhance the company’s CNS product pipeline.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/266f10ad-e53f-4aeb-b190-ba80ad0a2c97.pdf

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