Mayo Clinic alleged Dr Reddy’s improperly restrained competition and maintained a shared monopoly in the sale of brand and generic Revlimid
Shares of Dr Reddy’s Laboratories traded 1.2 percent lower on October 10 after the pharma major and a host of drug makers were named as defendants in an antitrust complaint regarding cancer drug Revlimid filed in the US.
As of 11.20am, the shares of Dr Reddy’s were trading at Rs 5,449.15, down 0.83 percent on the NSE.
The complaint, filed by Mayo Clinic, asserted claims under America’s federal and state antitrust laws and other state laws. Mayo Clinic alleged that the defendants improperly restrained competition and maintained a shared monopoly in the sale of brand and generic Revlimid through their respective settlements of patent litigation.
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“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,” Dr Reddy’s said in a statement.
The company reiterated that the allegations lacked merit and it would vigorously defend the litigation.
Shareholding patterns, technical indicators
Shares of the firm gained 14.49 percent in the past six months, but surged 24.5 percent over the past year. Compared to Dr Reddy's, the benchmark Nifty 50 climbed 12.7 percent in this period. The pharma major boasted of a market capitalisation of Rs 90,854.4 crore.
The scrip sees very low volatility, indicated by its one-year beta of 0.49. The RSI is mid-range, at 46.1, as the stock is neither overbought nor oversold.
According to the June quarter shareholding data, the promoters have a 26.7 percent stake in the company, while FIIs held 27 percent, DIIs 34.5 percent, and the public owned 11.6 percent in Dr Reddy's.
