Dr Reddy’s Laboratories Ltd has invested INR 565.4 crore in its Russian arm, Dr Reddy’s Laboratories LLC (DRL Russia), acquiring a 45.19 percent equity stake in the step-down wholly-owned subsidiary.

The capital infusion, completed on July 25, 2025, follows board approval granted on November 5, 2024, to invest up to INR 600 crore in the entity.

The Hyderabad-based pharmaceutical major stated in a stock exchange filing that the investment was made in cash and will be used to support DRL Russia’s working capital requirements.

DRL Russia, a pharmaceutical distribution company operating in the Russian Federation since its incorporation on April 5, 2003, reported a turnover of INR 2,347 crore in FY25—up from INR2,084 crore in FY24 and INR 1,915 crore in FY23.

Dr. Reddy’s clarified that the deal is a related-party transaction since DRL Russia is a step-down subsidiary, but noted that the promoter group and its affiliates have no interest in the Russian entity.

The investment comes on the heels of Dr. Reddy’s reporting strong performance for the first quarter of FY26, with consolidated revenue rising to INR 8,542 crore from INR 7,672.7 crore in the same period last year.

Co-Chairman and Managing Director G V Prasad attributed the growth to the company’s strength in branded markets and positive momentum in its Nicotine Replacement Therapy portfolio.

 “We remain focused on strengthening our base business by delivery of our pipeline assets, improving overall productivity and business development,” Prasad said.

In June 2025, the company entered into a collaboration and license agreement with Alvotech to co-develop, manufacture, and commercialise a biosimilar candidate to Keytruda (pembrolizumab) for global markets. The partnership aims to leverage the biosimilar expertise of both companies to accelerate development and expand international reach.  

Dr. Reddy’s offers a comprehensive portfolio including APIs, generics, branded generics, biosimilars, and over-the-counter products. Its key therapeutic areas are gastrointestinal, cardiovascular, diabetology, oncology, pain management, and dermatology, with major markets across the USA, India, Russia and CIS countries, China, Brazil, and Europe.