DRL Arm Defendant In Antitrust Lawsuit In US Over Revlimid Monopoly

Pharma giant Dr Reddy's Laboratories on October 9 released a statement saying that its wholly-owned step-down subsidiary Dr. Reddy's Laboratories, Inc. along with several other pharma companies have been named as defendants in a lawsuit filed on October 6, 2023, in the United States District Court for the Northern District of California.

The complaint was filed by Mayo Clinic and Lifepoint Corporate Services alleging 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.

The complaint states that the challenged agreements in question improperly delayed the entry of the generic versions entirely until 2022 and then continued to improperly limit generic competition through 2026. The complainant seeks damages for purported overpayments and equitable relief.

In response to the lawsuit, Dr Reddy's has given a statement saying, the company maintains that the allegations lack merit and it will vigorously defend the litigation.

The stock has opened with cits of nearly 1% after rallying for two consecutive trading sessions. Dr Reddy's stock surged nearly 1.5% in yesterday's overall subdued session. The shares of the pharma major are currently trading at Rs 5,452.10 per share.

The company is expected to report its second-quarter earnings on October 27, 2023.