Dr Reddy’s Laboratories share price rises as drug maker enters trade generics biz

Shares of Dr Reddy’s Laboratories Ltd (Dr Reddy's Labs) climbed 2 per cent in Friday's trade after the drug maker said it has entered into the trade generics business in India with the launch of its new dedicated division ‘RGenX’.

Through this, Dr Reddy’s Labs aims to provide patients with access to a wider range of products and increased affordability. The new business will boost the company’s goal of reaching over 1.5 billion patients by 2030, the drug maker said in a BSE filing.

Following the development, the stock rose 2.35 per cent to hit a high of Rs 5015 on BSE. A total of 47,000 shares changed hands on the counter on BSE, nearly six times the average two-week volume of 8,028 shares. The stock hit a 52-week high of Rs 5,021.15 on June 19.

Dr Reddy’s aims to roll out its trade generics across cities and towns in India, including rural areas. The company will work closely with its channel partners to ensure availability of its products.

Chief Executive Officer for India and Emerging Markets MV Ramana said: “India is a key focus market for us. Today’s announcement is a continuation of our effort to build a well-rounded business in India. We continue to strengthen our branded generics business in India by growing brands, new product launches, productivity enhancement through digital and analytics, and select strategic acquisitions. We are exploring strategic collaborations in India, and investing in innovative healthcare spaces that we see as future growth drivers."

Ramana said the foray into trade generics will add to our reach and depth by making high-quality medicines of Dr. Reddy’s accessible to more patients around the country.

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