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RDY Negative Sentiment Score: 30/100

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 is facing several lawsuits related to its drug product Revlimid in New Jersey federal court. The lawsuits allege violations of federal and state antitrust laws due to a patent settlement agreement that allegedly delayed generic entry of Revlimid. Recently, the court dismissed some claims but allowed plaintiffs to file amended complaints that include Dr. Reddy's as a defendant. Currently, motions to dismiss the lawsuits are pending, and discovery is stayed, adding uncertainty to the situation.

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CONCERNS & RISKS

  • Numerous lawsuits filed against Dr. Reddy's Laboratories regarding Revlimid.
  • Allegations of violating antitrust laws through patent settlement agreements.
  • Pending motions to dismiss lawsuits create uncertainty for the company.
  • Amended complaints seek to add DRL as a defendant in several actions.

Full Press Release Details

National Stock Exchange of India Ltd. (Scrip Code: DRREDDY)
BSE Limited (Scrip Code: 500124)
New York Stock Exchange Inc. (Stock Code: RDY)
NSE IFSC Ltd (Stock Code: DRREDDY)
pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
This is in furtherance of our intimation dated
October 14, 2024, we hereby inform that in 2023 and 2024, several lawsuits were filed against Dr. Reddy's
Laboratories, Inc. ("DRL Inc.") and/or Dr. Reddy's Laboratories Ltd. ("DRL Ltd." and together with DRL Inc.,
"DRL"), in federal court in New Jersey concerning the drug product Revlimid and generic equivalents. The lawsuits allege
that the patent settlement agreement among DRL, Celgene and BMS concerning Revlimid violated federal and state antitrust laws and
state consumer protection laws by improperly delaying generic entry of Revlimid through 2022 and then limiting generic competition
of Revlimid through 2026. The Plaintiffs' claims against DRL are substantially similar to the claims these plaintiffs have
brought against defendants Celgene, BMS, Natco, and Teva.
On June 6, 2024, the court issued
an order on the pending motions to dismiss filed by other defendants, in which the court dismissed all claims at issue in that motion,
including claims challenging the patent settlement agreements. The order allowed plaintiffs to file amended complaints. On
August 5, 2024, all Plaintiffs filed amended complaints against all the defendants, including several complaints in which some of the
plaintiffs for the first time sought to add DRL as a defendant in those actions. On October 7, 2024, DRL and all other defendants
in this action filed motions to dismiss each of Plaintiffs' lawsuits in their entirety. Those motions are pending, and discovery
currently is stayed.
On December 16, 2024, several
of the same plaintiffs also filed substantially similar complaints in sealed cover to those already pending against DRL, Natco, Teva,
and AbbVie Inc. (the "Standalone Actions"). On January 13, 2025, DRL and all other defendants to the Standalone Actions filed
a letter requesting the court that they be allowed to brief a motion to dismiss the Standalone Actions, including for substantially the
same reasons already briefed in the motion to dismiss the claims raised in the In re Revlimid action. This disclosure is being filed pursuant
to the public filing of redacted versions of the complaint on January 17, 2025
This is for your information and records.
For Dr. Reddy's Laboratories Limited
Company Secretary, Compliance Officer and Head-CSR

Frequently Asked Questions

What is the stock code for Dr. Reddy's Laboratories on NYSE?

The stock code for Dr. Reddy's Laboratories on NYSE is RDY.

What lawsuits have been filed against Dr. Reddy's Laboratories?

Lawsuits allege that DRL's patent settlement on Revlimid violated antitrust laws.

When did the court dismiss motions related to the lawsuits?

The court dismissed motions related to the lawsuits on June 6, 2024.

What happened on August 5, 2024, in the lawsuits?

On August 5, 2024, plaintiffs filed amended complaints adding DRL as a defendant.

What are Standalone Actions in relation to DRL?

Standalone Actions are similar complaints filed against DRL and other defendants.

Last updated: Jan 22, 2025