Dr. Reddy's Laboratories Ltd. announced on Friday that it has completed a $620-million investment in its Switzerland-based subsidiary, Dr. Reddy's Laboratories SA.
The investment, approved by the company's board, was made by purchasing preference shares in the subsidiary, according to an exchange filing.
As part of the investment, DRL SA issued 6.2 million non-convertible preference shares, each with a nominal value of $100, to the parent company on Sept. 27.
The fund infused by the company into Dr. Reddy's SA will be used for the acquisition of Nicotinell and related brands by way of acquisition of all of the quotas of Northstar Switzerland SARL incorporated in Switzerland owned by the Haleon Group, the filing added.
Earlier on Sept. 26, Dr. Reddy's Laboratories had received a penalty of approximately Rs 28 lakh (MXN 6,51,420) from the Mexican drug regulatory authority.
Shares of Dr. Reddy's closed over 0.17% higher to Rs 6,754.80 apiece, compared to a 0.31% decline in BSE Sensex.
It has risen 22.80% in the last 12 months and 16.42% on a year-to-date basis. The total traded volume so far in the day stood at 0.56 times its 30-day average. The relative strength index was at 70.68.
Thirteen out of the 40 analysts tracking the company have a 'buy' rating on the stock, nine recommend a 'hold' and 18 suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 0.1%.
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