Meanwhile, the BSE Sensex was up 133.23 points, or 0.79%, to 16939.89.
On BSE, 46,995 shares were traded in the counter as against an average daily volume of 95,813 shares in the past one quarter.
The stock hit a high of Rs 967.50 and a low of Rs 931.50 so far during the day. The stock had hit a 52-week high of Rs 1018.50 on 29 September 2009 and a 52-week low of Rs 357 on 5 March 2009.
The stock had outperformed the market over the past one month till 7 October 2009, rising 19.53% as compared to the Sensex 4.93% rise. It outperformed the market in past one quarter, soaring 20.65% as against 18.60% rise in the Sensex.
The company's equity capital is Rs 84.37 crore. Face value per share is Rs 5.
The current price of Rs 965 discounts the company's Q1 June 2009 annualized EPS of Rs 53.94, by a PE multiple of 17.89.
Reports suggest that while nothing is finalized, one possibility is that GlaxoSmithKline Plc (GSK) will take a 20% stake in Dr Reddy's Holdings, a family vehicle which owns 23.2% of Dr Reddy's Laboratories (DRL).
It is believed that this would give GSK a stake of just under 5%, worth around US$165 million. But the British company could also get right of first refusal on the family's remaining holding.
According to recent reports, GSK's strategy to consolidate its presence in India is similar to that of its global rivals such as Pfizer Inc., Sanofi Aventis SA, and Daiichi Sankyo Co. Foreign drug makers want to ensure sustained supply of cheap off-patent drugs or generics from India to cater to the global market. At least $70 billion worth of patented drugs will go off patent by 2012.
India's Rs 35,000 crore drug market, which is expanding by 14-15% a year, is another reason for multinationals to look seriously at the country.
DRL had on 15 June 2009 entered into a strategic alliance with GlaxoSmithKline Plc (GSK) to develop and market select products across emerging markets outside India. Under the terms of the agreement, GSK will gain access to DRL's diverse portfolio and future pipeline of more than 100 branded pharmaceuticals in fast growing therapeutic segments such as cardiovascular, diabetes, oncology, gastroenterology and pain management.
Shares of DRL closed higher 1.19% at Rs 948.25 on the BSE on Wednesday, 7 October 2009, after the company launched two products used for treating skin related problems. The products have been licenced from Vermont Italia and are used in the treatment of wrinkles, age spots, hyperpigmentation.
Last month, a leading foreign broker raised its rating on shares of Dr Reddy's Lab to 'overweight' from 'equal-weight', by saying investors may have 'underappreciated' the company's upcoming products for the US market.
Late last month, Dr Reddy's Laboratories (DRL) voluntarily recalled four products from its key US market as they had been observed to contain some oversized tablets. DRL said it saw no material financial impact from the recall and the recall of the drugs was being conducted with the knowledge of the US Food and Drug Administration (US FDA).
DRL had on 22 September 2009 received final approval from UK Medicine & Healthcare Products Regulatory Agency to market Losartan Potassium tablets in multiple strengths. The drug is the generic version of Merck Research Laboratories' Cozaar tablets. The drug is used alone or in combination with other medicines to treat high blood pressure.
DRL's net profit rose 8.3% to Rs 227.44 crore on 10% rise in net sales to Rs 1197.82 crore in Q1 June 2009 over Q1 June 2008.
Dr Reddy's Lab is engaged in manufacturing and marketing pharmaceutical products. The group operates in seven segments: generics, active pharmaceutical ingredients (API) and intermediates, formulations, critical care and biotechnology, custom pharmaceutical services, drug discovery and others.
Dr Reddys Holdings, promoter group entity pledged more than 1.12 crore shares representing 6.65% of the equity capital of the company (as on 30 June 2009). Dr Reddys Holdings held 23.20% stake in the company, while the total promoter shareholding is 25.80% (as on 30 June 2009).