Dr Reddy's At One-Month High On Arm Buying British Nicotine Gum Brand
The stock rose as much as 2.75% during the day to Rs 6,237 apiece on the NSE.
Shares of Dr Reddy's Laboratories Ltd. hit the highest level in over a month on Thursday after its subsidiary signed a definitive agreement to acquire British firm Haleon Plc's consumer healthcare brand of nicotine replacement therapy for £500 million.
Dr Reddy's Laboratories SA will acquire Northstar Switzerland SARL, which consists of Nicotinell, a global leader in the NRT category. "The total revenue of the portfolio being acquired had net revenues of approximately £217 million in 2023," the pharma major said in an exchange filing.
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On the NSE, Dr Reddy's stock rose as much as 2.75% during the day to Rs 6,237 apiece, the highest since May 7. It was trading 2.2% higher at Rs 6,202 apiece, compared to a 0.23% advance in the benchmark Nifty at 10:02 a.m.
The share price has risen 7% on a year-to-date basis and 20.28% in the last 12 months. The total traded volume so far in the day stood at 0.08 times its 30-day average. The relative strength index was at 55.35.
Out of 39 analysts tracking the company, 14 have a 'buy' rating on the stock, as many suggest 'sell' and 11 recommend 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 0.3%.
