Shares of Dr Reddy Labs rose 4.3% intraday to a fresh 52-week high of Rs 3,336 on Thursday after the pharma major announced that it acquired select divisions of Wockhardt’s generics business in India, Nepal, Sri Lanka, Bhutan and Maldives for Rs 1,850 crore.
Following the update, Dr Reddy Labs share price hit a new high of Rs 3,291.5 on BSE today, rising 4.3% against the previous close of Rs 3197.55. On NSE, the Dr Reddy Labs share rose 4.4% and touched a fresh 52-week high of Rs 3,336.
Dr Reddys Lab stock price is trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The large-cap stock has gained 5.65% in the last three days of consecutive gain. Dr Reddy Labs stock has outperformed the ‘pharmaceuticals’ sector on BSE by 3.33%, which has risen 0.77% intraday.
The share has risen 5.3% in one week, 12.7% in one month, 15% year-to-date and 25% in the last year’s period. The market capitalisation of the large-cap stock stood at Rs 53,435 crore. Market depth data suggests 50% buying against 50% selling. Volume-wise, 0.42 lakh and 14.69 lakh shares are changing hands on BSE and NSE today.
The agreement comprises a portfolio of 62 brands in multiple therapy areas such as respiratory, neurology, VMS, dermatology, gastroenterology, pain and vaccines.
GV Prasad, Co-Chairman and Managing Director of Dr. Reddy’s said: “India is an important market for us and this acquisition will help in considerably scaling-up our domestic business. The acquired portfolio shall enhance Dr. Reddy’s presence in the high growth therapy areas with market leading brands such as Practin, Zedex, Bro-zedex, Tryptomer and Biovac. We believe the portfolio holds a lot of potential and will get an impetus under Dr Reddy’s. We welcome the team joining as part of the deal to the Dr. Reddy’s family.” The transaction is expected to be closed in the first quarter of the financial year 2020-21.