Dr. Reddy's Laboratories has completed a strategic acquisition of Johnson & Johnson's STUGERON brand for $50.5 million (approximately ₹445 crore), marking a significant expansion of the Indian pharmaceutical company's central nervous system (CNS) portfolio. The deal, finalized through a definitive agreement with Johnson & Johnson affiliate Janssen Pharmaceutica NV, encompasses the STUGERON portfolio across 18 markets in the Asia-Pacific and Europe, Middle East, and Africa regions.
Strategic Portfolio Expansion
The acquisition includes the complete STUGERON portfolio, featuring the flagship STUGERON brand alongside STUGERON FORTE and STUGERON PLUS, as well as related assets. The portfolio centers around cinnarizine, an antihistamine indicated for treating vestibular disturbances and vertigo, conditions that affect millions of patients worldwide.
STUGERON holds a commanding market position in India, ranking first in the cinnarizine represented pharmaceutical market and second in the anti-vertigo extended represented pharmaceutical market. India and Vietnam represent the key markets within the 18-country acquisition scope, providing Dr. Reddy's with immediate access to established patient bases and distribution networks.
Market Impact and Financial Performance
The acquisition announcement triggered a market response, with Dr. Reddy's shares falling nearly 2% to trade at ₹1,295 per equity share at 11:19 am on September 11, 2025. The stock movement reflects investor assessment of the deal's immediate financial impact on the company, which maintains a total market capitalization of ₹1.08 lakh crore.
Dr. Reddy's stock has experienced significant volatility over the past year, reaching a 52-week high of ₹1,405.90 on January 8, 2025, and touching a yearly low of ₹1,020 on April 7, 2025.
Leadership Perspective on Growth Strategy
M.V. Ramana, Chief Executive Officer of Branded Markets (India and Emerging Markets) at Dr. Reddy's, emphasized the strategic importance of the 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," Ramana stated.
The executive outlined the company's expansion plans, noting, "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. This strategic step is in line with our broader commitment to improving patient access and advancing toward our goal of reaching over 1.5 billion patients by 2030."
Therapeutic Focus and Market Opportunity
The STUGERON brand addresses critical unmet medical needs in the treatment of vertigo and motion sickness, conditions that significantly impact patient quality of life. Cinnarizine's established efficacy profile and market recognition provide Dr. Reddy's with a proven therapeutic platform for immediate market entry and future development opportunities.
This acquisition represents Dr. Reddy's continued focus on addressing unmet medical needs within the CNS therapeutic category, leveraging the company's established distribution capabilities and market access to expand patient reach across multiple geographic regions.
