Dr Reddy’s Partners with Takeda to Launch Innovative Gastrointestinal Drug in India

On July 18, 2024, Dr Reddy’s Laboratories Ltd announced a non-exclusive patent licensing agreement with Takeda Pharmaceutical Company Limited. This agreement allows Dr Reddy’s to market Vonoprazan tablets in India. Vonoprazan is a new, orally active medication that blocks stomach acid and is used to treat conditions like reflux esophagitis and other acid-peptic disorders. Dr Reddy’s will sell the tablets under the brand name VONO™ in 10mg and 20mg strengths.

Acid Peptic Disorders (APD), including Gastroesophageal Reflux Disease (GERD) and Peptic Ulcer Disease (PUD), are very common in India. A nationwide survey of doctors showed that APD affects 37-39% of the population, especially those aged 18-59, with heartburn and upper stomach pain being common symptoms.

M.V. Ramana, CEO of Branded Markets (India & Emerging Markets), Dr Reddy’s, said, “For over 3 decades, patients and healthcare professionals have trusted our products in the gastrointestinal segment, including well-known brands such as Omez®, Razo™ and others. Leveraging our expertise in this therapy area, we are pleased to make the first-in-class drug Vonoprazan (Vono™), available to patients in India. The non-exclusive patent licensing agreement with Takeda is part of our continuous efforts to make innovative medicines available to patients in India through strategic collaborations to meet unmet needs and enhance standard of care.”

Financial Highlights

Dr Reddy’s Laboratories Ltd reported a net profit of ₹1,307 crore for the January-March quarter, a 36% increase from the previous year. This was driven by strong sales in the US market. The company had a net profit of ₹960 crore in Q4FY23. For the full year ending March 31, 2024, Dr Reddy’s net profit rose to ₹5,568 crore, up from ₹4,507 crore in the 2022-23 financial year.

The company’s revenue was ₹7,083 crore in Q4FY24, a 12.5% increase from ₹6,297 crore in Q4FY23. The company’s EBITDA grew nearly 15% year-on-year to ₹1,872 crore. The EBITDA margin increased to 26.4% from 25.9% the previous year.

About Dr. Reddy’s Laboratories Ltd

Dr Reddy’s Laboratories Ltd. is a global pharmaceutical company based in Hyderabad, India. Founded in 1984, the company provides affordable and innovative medicines. Guided by the motto “Good Health Can’t Wait,” Dr Reddy offers a wide range of products, including active pharmaceutical ingredients (APIs), generics, branded generics, biosimilars, and over-the-counter (OTC) medications.

On July 19, 2024, Dr Reddy’s Laboratories share price opened at ₹6,660.00, touching the day’s high of ₹6,692.05 as of 10:04 AM on the NSE.

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