Dr. Reddy’s Share Price Down by 2.98%; Executes 1:5 Stock Split

Dr. Reddy’s Laboratories share price is in focus on Tuesday. The company underwent a significant share split, with the shares turning ex-split on October 28, 2024. The split, executed in a ratio of 1:5, means that each equity share of ₹5 will now be subdivided into 5 equity shares of ₹1 each. This decision was approved by the company’s members, with October 28 set as the record date for determining the entitlements of equity shareholders.

Launch of New Medication for Chronic Constipation

On Monday, Dr. Reddy’s also announced the launch of Elobixibat, a first-in-class medication aimed at treating chronic constipation. Marketed in India under the brand name BixiBat®, this innovative drug received approval from the Central Drugs Standard Control Organisation (CDSCO) following a successful Phase-3 clinical trial submitted to the agency’s Subject Expert Committee. Dr. Reddy’s is notably the first company to both receive approval for and launch Elobixibat in India.

Elobixibat represents a significant advancement in the treatment landscape for chronic constipation. It functions by inhibiting the reabsorption of bile acids from the ileum, which increases their concentration in the colonic lumen. This mechanism promotes increased bowel movements through enhanced colonic motility and fluid secretion, independent of transit speed. Given that studies reveal nearly 40% of patients with chronic constipation in Asia are dissatisfied with existing treatment options, the introduction of Elobixibat addresses a pressing medical need. Additionally, approximately 12% of India’s population suffers from constipation symptoms, severely affecting their quality of life.

Dr Reddy Share Price

On October 29, 2024, Dr Reddy share price opened at ₹1,327.00, up from its previous close of ₹1,311.50. However, at 11:01 AM, the share price of Dr Reddy’s was trading at ₹1,272.40, down by 2.98%.

As Dr. Reddy’s prepares to announce its financial results for the quarter and six months ending September 30, 2024, on November 5, 2024, investors are keenly watching the latest developments. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.