Dr. Reddy’s Laboratories Ltd. witnessed a sharp rise in its stock price, climbing 4% to reach ₹1,301.70 on the BSE, marking its highest level since January 2025. The surge follows the announcement of a strategic collaboration with Alvotech, a global biotech firm, to co-develop and commercialize a biosimilar version of Keytruda (pembrolizumab) for international markets.
Keytruda, a top-selling cancer immunotherapy drug, recorded global sales of $29.5 billion in 2024. The biosimilar partnership is expected to expedite development timelines and expand market reach. Under the agreement, Dr. Reddy’s and Alvotech will share development, manufacturing, and commercialization responsibilities.
At 09:24 AM, Dr. Reddy’s stock was trading 3.8% higher at ₹1,300.10, significantly outperforming the BSE Sensex, which was up by just 0.17%. Trading volumes were also robust, with over 700,000 shares exchanged across BSE and NSE.
In the past month, Dr. Reddy’s has outpaced the broader market, gaining 11%, compared to 0.6% on the Sensex and 1.6% on the BSE Healthcare index.
Brokerage firm JM Financial maintains a ‘BUY’ rating on the stock with a revised target of ₹1,418. Analysts anticipate a 23% topline growth in FY26, with strong contributions from Revlimid, Semaglutide, and biosimilars such as Abatacept. The firm also expects increased earnings from global markets losing exclusivity on Semaglutide in 2026.
Despite forecasting a moderated growth phase for Indian pharma post-FY26, JM Financial notes that at 21x PE on FY27 EPS, Dr. Reddy’s remains attractively valued against its peers.
About Dr. Reddy’s:
Based in Hyderabad, Dr. Reddy’s is a global pharma player offering a wide portfolio including APIs, generics, biosimilars, and OTC products. Its key markets include the US, India, Europe, Russia & CIS, China, and Brazil.
