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RDY Positive Sentiment Score: 70/100

Dr. Reddy's Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, India. CIN : L85195TG1984PLC004507 Tel : +91 40 4900 2900 Fax : +91 40 4900 2999 Email : mail@drreddys.com www.drreddys.co

Key Takeaway: Dr. Reddy's Laboratories Ltd. has announced the divestment of certain non-core dermatology brands to Eris Lifesciences for Rs. 275 crore. The decision aligns with the company's strategy to strengthen its core offerings while liquidating non-essential assets. This move is part of Dr. Reddy's goal to enhance its presence in the Indian market and aims at achieving a top 5 ranking. The divested brands achieved sales of Rs. 60 crore in India as of December 2022.

Market Sentiment Analysis

POSITIVE FACTORS

  • Dr. Reddy's is refocusing on core brands, enhancing strategic direction.
  • The divestment generates substantial capital of Rs. 275 crore.
  • Eris Lifesciences assumes strong brand portfolio for growth.

Full Press Release Details

National Stock Exchange of India Ltd. (Scrip Code: DRREDDY-EQ)
BSE Limited (Scrip Code: 500124)
Please find enclosed a Press Release on "Dr.
Reddy's divests certain non-core brands in dermatology in India to Eris Lifesciences to focus on strengthening core."
This is for your information.
For Dr. Reddy's Laboratories Limited
Company Secretary, Compliance Officer and Head-CSR
CC:- New York Stock Exchange Inc.(Stock Code :RDY)
CONTACT
DR. REDDY'S LABORATORIES LTD. Investor relationS Media relationS
8-2-337, Road No. 3, Banjara Hills, RICHA PERIWAL USHA IYER
Hyderabad - 500034. Telangana, India. RICHAPERIWAL@DRREDDYS.COM ushaiyer@drreddys.com
Dr. Reddy's divests certain non-core brands
in dermatology in India to Eris Lifesciences to focus on strengthening core
Hyderabad India; March 16, 2023 - Dr.
Reddy's Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY, along with its subsidiaries together referred to as
"Dr. Reddy's"), today announced the signing of a deal to divest certain non-core brands of the company in the dermatology segments
to Eris Lifesciences Limited (BSE: 540596, NSE: ERIS).
Under the agreement, Eris Lifesciences will be assigned
the trademark of these brands by Dr. Reddy's for a consideration of Rs. 275 cr. As per IQVIA MAT December 2022, the divested portfolio
saw sales of Rs. 60 cr in India.
M.V. Ramana, CEO - Branded Markets (India
& Emerging Markets), said: "India is a focus market for us. We aspire to break into the top 5 in India. Today's
announcement is in line with our stated intention of pursuing a strategy that involves growing brands organically combined with acquisitions
that are a strategic fit and divestment of non-core brands. This deal is a further step towards consolidating our core and helping us
deliver focused play in India in keeping with our purpose of Good Health Can't Wait'."
About Dr. Reddy's: Dr. Reddy's
Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is a global pharmaceutical company headquartered in Hyderabad,
India. Established in 1984, we are committed to providing access to affordable and innovative medicines. Driven by our purpose of Good
Health Can't Wait', we offer a portfolio of products and services including APIs, generics, branded generics, biosimilars
and OTC. Our major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology.
Our major markets include - USA, India, Russia & CIS countries, China, Brazil and Europe. As a company with a history of deep
science that has led to several industry firsts, we continue to plan ahead and invest in businesses of the future. As an early adopter
of sustainability and ESG actions, we released our first Sustainability Report in 2004. Our current ESG goals aim to set the bar high
in environmental stewardship; access and affordability for patients; diversity; and governance. For more information, log on to: www.drreddys.com.
Disclaimer: This press release may include statements
of future expectations and other forward-looking statements that are based on the management's current views and assumptions and
involve known or unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those
expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may",
"will", "should", "expects", "plans", "intends", "anticipates", "believes",
"estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking
statements. Actual results, performance or events may differ materially from those in such statements due to without limitation, (i) general
economic conditions such as performance of financial markets, credit defaults , currency exchange rates, interest rates, persistency levels
and frequency / severity of insured loss events, (ii) mortality and morbidity levels and trends, (iii) changing levels of competition
and general competitive factors, (iv) changes in laws and regulations and in the policies of central banks and/or governments, (v) the
impact of acquisitions or reorganization, including related integration issues, and (vi) the susceptibility of our industry and the markets
addressed by our, and our customers', products and services to economic downturns as a result of natural disasters, epidemics, pandemics
or other widespread illness, including coronavirus (or COVID-19), and (vii) other risks and uncertainties identified in our public filings
with the Securities and Exchange Commission, including those listed under the "Risk Factors" and "Forward-Looking Statements"
sections of our Annual Report on Form 20-F for the year ended March 31, 2022. The company assumes no obligation to update any information

Frequently Asked Questions

What brands did Dr. Reddy's divest?

Dr. Reddy's divested certain non-core dermatology brands in India.

Who acquired the non-core brands from Dr. Reddy's?

Eris Lifesciences Limited acquired the non-core brands.

What was the value of the divestment deal?

The divestment deal was valued at Rs. 275 crore.

What is Dr. Reddy's core focus after the divestment?

The company aims to strengthen its core operations in India.

When was the divestment deal announced?

The deal was announced on March 16, 2023.

Last updated: Mar 16, 2023