Shares of Dr Reddy’s Laboratories Ltd are trading flat after touching a day’s high of Rs 1,304 on 11th September, despite the company informing the bourses that it has entered into a definitive agreement with Janssen Pharmaceutica NV (JPNV), an affiliate of Johnson & Johnson, to acquire Stugeron and its locally recognised brands Stugeron Forte and Stugeron Plus for $50.5 million.

The deal covers 18 markets across the APAC and EMEA regions, with India and Vietnam as key markets.

Stugeron, which contains Cinnarizine, is used to treat vertigo and vestibular disturbances. In India, it leads the Cinnarizine market and ranks second in the wider anti-vertigo segment. The acquisition gives Dr. Reddy’s a chance to expand in the anti-vertigo space and strengthen its Central Nervous System (CNS) portfolio.

Dr. Reddy’s will gradually integrate Stugeron operations while gaining access to the brand and related products across the designated markets.

CEO MV Ramana said the acquisition supports the company’s growth in the anti-vertigo segment and CNS portfolio. Dr. Reddy’s plans to extend Stugeron’s reach across 18 key markets, aiming to improve patient access and reach over 1.5 billion patients by 2030.

At 1:44 PM, the shares of Dr Reddy’s were trading 0.32% lower at Rs 1,300 on NSE.

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