Dr. Reddy’s Laboratories Limited, one of India’s most prominent pharmaceutical companies, has taken another bold step in its global expansion strategy. On September 10, 2025, the company announced the acquisition of the STUGERON® portfolio from Janssen Pharmaceutica NV, an affiliate of Johnson & Johnson, in a deal valued at USD 50.5 million.

This significant acquisition includes STUGERON®, STUGERON® FORTE, and STUGERON® PLUS, giving Dr. Reddy’s ownership of the well-established brand across 18 international markets in Asia-Pacific (APAC) and Europe, Middle East, and Africa (EMEA). Among these, India and Vietnam stand out as the key focus markets, providing the company with immediate growth opportunities in the anti-vertigo therapeutic segment.

Why STUGERON acquisition is significant

The STUGERON® brand, containing the active ingredient Cinnarizine, is widely prescribed for the treatment of vestibular disturbances and vertigo. In India, the brand already holds a leading position in the Cinnarizine pharmaceutical market and is ranked second in the anti-vertigo extended pharmaceutical market (eRPM) according to IQVIA data (July 2025).

By acquiring this portfolio, Dr. Reddy’s strengthens its Central Nervous System (CNS) portfolio, an area the company has been strategically focusing on. The CNS therapeutic space is considered high-potential given the rising incidence of neurological disorders and balance-related health conditions globally.

Details of the deal

The transaction is structured as a definitive agreement with Janssen Pharmaceutica NV. Dr. Reddy’s has agreed to pay USD 50.5 million for the STUGERON® portfolio. Importantly, this acquisition is not categorized as a related-party transaction since JPNV is independent of Dr. Reddy’s promoter and group companies.

The operations of STUGERON® across 18 markets will be gradually transitioned, ensuring a smooth integration into Dr. Reddy’s existing commercial frameworks. This transition strategy is expected to maintain customer trust, supply continuity, and brand loyalty while aligning the brand with Dr. Reddy’s distribution and marketing strengths.

Strategic rationale and benefits

The acquisition is a strategic opportunity for several reasons:

1. Strengthening CNS portfolio: Dr. Reddy’s has been actively working to enhance its CNS product basket. The acquisition of a high-ranking and widely trusted brand like STUGERON immediately fortifies this portfolio.

2. Expansion into anti-vertigo space: With vertigo cases rising due to stress, lifestyle issues, and ageing populations, the anti-vertigo therapeutic area is expanding. By entering this segment, Dr. Reddy’s ensures long-term growth potential.

3. Access to 18 global markets: The acquisition provides Dr. Reddy’s with a stronger foothold across APAC and EMEA regions, diversifying its revenue streams beyond India and the U.S., which are its two largest markets.

4. Enhancing market leadership: In India, where STUGERON already holds a top market position, Dr. Reddy’s can leverage its marketing expertise, physician engagement, and distribution channels to further strengthen its presence.

5. Financial impact: At USD 50.5 million, the acquisition is seen as fairly priced for a brand that already generates significant sales in multiple countries. The long-term return on investment is expected to be strong due to STUGERON’s market reputation and established demand.

CEO’s perspective

M.V. Ramana, Chief Executive Officer, Branded Markets (India and Emerging Markets), Dr. Reddy’s, commented that the acquisition represents a steady advancement in the company’s strategy to expand in the anti-vertigo therapeutic segment. He also highlighted that the move aligns with the company’s vision of reaching over 1.5 billion patients by 2030 by improving patient access to quality healthcare solutions.

According to him, Dr. Reddy’s strong market access in India and emerging economies will play a pivotal role in expanding the reach of the STUGERON brand. The integration is not only expected to boost revenues but also enhance brand recognition in newer geographies.

About STUGERON and its market potential

STUGERON® has long been recognized as a trusted brand in treating vertigo and related conditions. Its core ingredient, Cinnarizine, is an antihistamine that helps reduce vestibular disturbances. Over the years, the brand has built strong recognition among healthcare providers and patients.

The anti-vertigo drug market is projected to grow steadily in the coming decade due to increasing diagnosis rates, an ageing global population, and higher awareness of treatment options. By acquiring STUGERON, Dr. Reddy’s is positioning itself to benefit from this expanding therapeutic category.

Broader impact on Dr. Reddy’s strategy

This acquisition is part of Dr. Reddy’s broader growth and diversification strategy. The company has been focusing on strengthening its presence in emerging markets and expanding its branded generics portfolio.

Additionally, Dr. Reddy’s has shown commitment to sustainability and ESG (Environmental, Social, and Governance) practices, ensuring that all expansions and acquisitions align with its long-term vision of responsible growth.

The STUGERON acquisition reflects three critical goals for Dr. Reddy’s:

• Therapeutic diversification: Expanding beyond core areas like gastrointestinal, oncology, and cardiovascular.

• Geographic expansion: Building stronger presence outside of traditional markets.

• Brand portfolio strengthening: Adding recognized and market-leading brands to its lineup.

Conclusion

The acquisition of the STUGERON® portfolio by Dr. Reddy’s is more than just a commercial transaction; it is a strategic milestone that will significantly reshape the company’s CNS portfolio and therapeutic presence in multiple international markets.

By entering the anti-vertigo segment, Dr. Reddy’s not only diversifies its portfolio but also ensures that it stays ahead in meeting evolving healthcare demands. This move strengthens the company’s market leadership in India, expands its footprint across APAC and EMEA regions, and aligns perfectly with its long-term vision of improving patient access globally.

With careful integration, strong marketing strategies, and a focus on patient-centric solutions, this acquisition has the potential to deliver sustained growth and value creation for Dr. Reddy’s in the coming years.

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