Share price of Dr Reddy’s opened higher on December 29 after all claims against the company in the litigation with respect to Revlimid generic were dismissed in the US.
At 9:20am, the stock was quoting at Rs 4,338.75 on the National Stock Exchange, higher by 2 percent. For the year, the stock is down 11 percent.
Dr Reddy’s along with Celgene, Bristol Myers Squibb, and several other generic pharmaceutical companies were accused of restrained competition and shared monopoly in the sale of generic Revlimid in the US.
“On December 22 and December 27, the plaintiffs voluntarily dismissed Dr. Reddy’s Laboratories Ltd. and Dr. Reddy’s Laboratories, Inc., respectively, from the case,” as per the exchange filing.
Revlimid, also known as lenalidomide, is an oral drug that is used for the treatment of multiple myeloma or blood cancer. According to IQVIA, Revlimid capsules had sales of approximately $2.58 billion in the US for the 12-month period ending June 2022.
In Q2FY23, pharmaceutical major Dr Reddy’s reported better-than-expected 12 percent year-on-year (YoY) growth in consolidated net profit at Rs 1,113 crore. The Hyderabad-based drugmaker also reported a 9 percent increase in consolidated revenue at Rs 6,306 crore against revenue of Rs 5,763 crore in year-ago period.The strong financial performance in the current quarter was driven by the launch of Lenalidomide capsules in the US market, GV Prasad, Co-Chairman and Managing Director had said.