Dr Reddy’s Laboratories shares fall 2% on potential antitrust lawsuit in US

Shares of pharma firm Dr Reddy’s Laboratories Ltd slipped over 2% today after Dr Reddy's Laboratories, Inc, wholly owned step down subsidiary of the company, and Dr. Reddy's Laboratories Limited were named as defendants in a complaint that was made public on February 29, 2024, in the United States District Court for the District of New Jersey. The stock declined 2.15% to Rs 6259.35 on BSE.

Total 6051 shares of the firm changed hands amounting to a turnover of Rs 3.87 crore on BSE today. The market cap of the firm fell to Rs 1.05 lakh crore on BSE.    

The complaint, filed by Walgreen Co., Kroger Specialty Pharmacy, Inc. and CVS Pharmacy, Inc., asserts claims under federal antitrust law alleging that Dr Reddy's, acting in connection with Celgene Corporation, Bristol-Myers Squibb Co, Natco Pharma Ltd, and Teva Pharmaceuticals USA, Inc, improperly restrained competition and maintained a shared monopoly in the sale of brand and generic Revlimid through their respective settlements of patent litigation.

Dr Reddy's said that the allegations against it lack merit and will vigorously defend the litigation.

The complaint alleges that the challenged agreements improperly delayed generic entry entirely until 2022 and then improperly limited generic competition through 2026. The complaint seeks damages for purported overpayments and equitable relief. This lawsuit has been consolidated by the court with several other lawsuits making similar allegations against Dr Reddy's and several other pharmaceutical companies.