Shares of Dr. Reddy’s Laboratories ended 0.92% higher at Rs. 3,052.95 on BSE after the company announced that it has acquired six OTC brands.
The company announced the acquisition of an eminent portfolio of over-the-counter (OTC) brands in the cough-and-cold, pain, and dermatology categories. The company acquired six OTC brands from Ducere Pharma, including DOAN’S, BUFFERIN, NUPERCAINAL Ointment, CRUEX Nail Gel, COMTREX, and MYOFLEX.
“These legacy products enjoy strong brand equity built over several decades,” explains Alok Sonig, Executive Vice President and Head of Dr. Raddy’s in the US. “We are extremely excited to be entering the branded consumer health arena through these brands and embarking upon the next avenue of growth for our OTC business in the US, ” he said.
According to Sonig, Dr. Reddy’s will build upon the sales and marketing efforts for these brands and continue to focus on their expansion into existing and new market channels. Sonig commends the marketing and brand-building efforts of Ducere Pharma, recognizing the organization’s role in successfully revitalizing the brands through improved distribution and promotional efforts.
“We think Dr. Reddy’s is well-positioned to continue the successful growth of these brands,” says Samuel F. Hines of Casla Capital Management LLC. “We feel confident that our brand-loyal consumers will be well served by the deal,” he said.
The scrip opened at Rs. 3030 and touched a high and low of Rs. 3075 and Rs. 3019.5 respectively. A total of 236208(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 51613.08 crore.
The BSE group ‘A’ stock of face value Rs. 5 touched a 52 week high of Rs. 4382.95 on 20-Oct-2015 and a 52 week low of Rs. 2750 on 21-Jan-2016. Last one week high and low of the scrip stood at Rs. 3048.95 and Rs. 3000.05 respectively.
The promoters holding in the company stood at 25.58 % while Institutions and Non-Institutions held 42.02 % and 32.4 % respectively.