Dr. Reddy's divests certain non-core brands in dermatology in India to Eris Lifesciences to focus on strengthening core

Dr. Reddy's Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY, along with its subsidiaries together referred to as "Dr. Reddy's"), today announced the signing of a deal to divest certain non-core brands of the company in the dermatology segments to Eris Lifesciences Limited (BSE: 540596, NSE: ERIS).

Under the agreement, Eris Lifesciences will be assigned the trademark of these brands by Dr. Reddy's for a consideration of Rs. 275 cr. As per IQVIA MAT December 2022, the divested portfolio saw sales of Rs. 60 cr in India.

M.V. Ramana, CEO - Branded Markets (India & Emerging Markets), said: "India is a focus market for us. We aspire to break into the top 5 in India. Today's announcement is in line with our stated intention of pursuing a strategy that involves growing brands organically combined with acquisitions that are a strategic fit and divestment of non-core brands. This deal is a further step towards consolidating our core and helping us deliver focused play in India in keeping with our purpose of 'Good Health Can't Wait'."

Shares of Dr. Reddy's Laboratories Limited was last trading in BSE at Rs. 4383.00 as compared to the previous close of Rs. 4396.85. The total number of shares traded during the day was 3196 in over 955 trades.

The stock hit an intraday high of Rs. 4426.65 and intraday low of 4369.10. The net turnover during the day was Rs. 14033437.00.

Source : Equity Bulls

Keywords

DrReddysLaboratories INE089A01023 RDY NonCoreBrands Divestment Dermatology ErisLifesciences