Dr. Reddy's shares in focus after $50.5 million acquisition marking anti-vertigo foray

Hyderabad-based drugmaker Dr. Reddy's Laboratories has informed 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 spans 18 markets across the APAC and EMEA regions, with India and Vietnam identified as key markets.

Stugeron contains Cinnarizine, an antihistamine indicated for the treatment of vestibular disturbances and vertigo.

In India, Stugeron currently holds the top position in the Cinnarizine-represented pharmaceutical market (RPM) and ranks second in the extended anti-vertigo represented pharmaceutical market (eRPM). This acquisition presents a strategic opportunity for Dr. Reddy’s to expand its footprint in the anti-vertigo segment and strengthen its Central Nervous System (CNS) portfolio.

Through this acquisition, Dr. Reddy's will gain access to the Stugeron brand and its related portfolio across the designated markets. Operations will be gradually transitioned to ensure the smooth integration of the business.

"Dr. Reddy's acquisition of the Stugeron brand reflects a steady advancement in our efforts to expand into the anti-vertigo therapeutic segment, contributing to the continued development of our CNS portfolio. Backed by our strong market access, we intend to extend the reach of Stugeron and its associated products across 18 key markets in the APAC and EMEA regions including India and Vietnam. This strategic step is in line with our broader commitment to improving patient access and advancing toward our goal of reaching over 1.5 billion patients by 2030," said MV Ramana, Chief Executive Officer, Branded Markets (India and Emerging Markets) at Dr. Reddy’.

Shares of Dr. Reddy's Laboratories Ltd. settled 0.87% higher on Wednesday at ₹1,302.50. The stock is down 5% so far in 2025.