Hyderabad-based Dr. Reddy’s Laboratories Ltd. has announced a strategic acquisition from Johnson & Johnson’s affiliate, Janssen Pharmaceutica NV, marking its entry into the anti-vertigo therapeutic space. The company will acquire the Stugeron portfolio—including key brands Stugeron FORTE and Stugeron PLUS—for $50.5 million (approximately ₹445 crore), along with related assets spread across 18 international markets in the Asia-Pacific (APAC) and Europe, Middle East, and Africa (EMEA) regions.
The deal highlights Dr. Reddy’s continued push to strengthen its Central Nervous System (CNS) portfolio, with India and Vietnam identified as the two primary markets for the expansion of this franchise.
Details of the Acquisition
- Deal Value: $50.5 million (₹445 crore).
- Acquirer: Dr. Reddy’s Laboratories Ltd.
- Seller: Janssen Pharmaceutica NV, a Johnson & Johnson affiliate.
- Portfolio Acquired: Stugeron brand (including Stugeron FORTE and Stugeron PLUS), along with related brand assets.
- Geographical Coverage: 18 markets across APAC and EMEA, with India and Vietnam as key growth territories.
This acquisition adds a well-established and market-leading product to Dr. Reddy’s branded business portfolio, reinforcing its commitment to scale in high-growth therapeutic categories.
About Stugeron and Market Position
The Stugeron brand is built around Cinnarizine, an antihistamine widely prescribed for:
- Vestibular disturbances,
- Vertigo, and
- Other balance-related disorders.
The product enjoys a dominant position in the Indian market:
- #1 in the Cinnarizine market segment.
- #2 in the broader anti-vertigo drug segment in India.
This strong market standing provides Dr. Reddy’s with a ready platform for growth, both domestically and in other emerging economies.
Strategic Rationale and Benefits
- Entry into Anti-Vertigo Segment: Marks Dr. Reddy’s foray into a new, growing therapeutic category.
- Expansion of CNS Portfolio: Strengthens the company’s presence in neurology-related treatments, complementing its existing CNS drugs.
- Geographic Diversification: Provides access to 18 international markets, enabling broader brand penetration.
- Market Leadership: Acquisition of a proven, leading brand with strong physician recall and patient trust.
Management’s Perspective
MV Ramana, CEO of Branded Markets (India and Emerging Markets), emphasized the strategic importance of this acquisition:
- “Dr. Reddy’s acquisition of the Stugeron brand reflects a steady advancement in our efforts to expand into the anti-vertigo therapeutic segment, contributing to the continued development of our CNS portfolio.”
He further added:
- “Backed by our strong market access, we intend to extend the reach of Stugeron and its associated products across 18 key markets in the APAC and EMEA regions, including India and Vietnam.”
Market and Industry Implications
- Rising Burden of Vestibular Disorders: With increasing lifestyle-related issues and an ageing population, demand for anti-vertigo drugs is expected to rise, creating tailwinds for Dr. Reddy’s.
- Strengthening Brand Equity: By acquiring an established brand from J&J, Dr. Reddy’s gains a product with decades of patient trust, accelerating adoption in new geographies.
- Competitive Positioning: The move positions Dr. Reddy’s to challenge rivals in the broader CNS and ENT (ear, nose, throat) therapeutic markets.
Summary
Dr. Reddy’s Laboratories’ ₹445 crore acquisition of Johnson & Johnson’s Stugeron portfolio represents a strategic milestone:
- Entry into the anti-vertigo drug market.
- Expansion of its CNS therapeutic franchise.
- Strengthening of its branded portfolio across 18 global markets, with India and Vietnam as priority growth drivers.
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