Dr Reddy's Labs gains as drug maker settles 6-year old case in US

NEW DELHI: Shares of Dr Reddy's Laboratories jumped over 1 per cent after the company told stock exchanges that the US subsidiary of the drug maker has reached a settlement with the US government over a six-year-old case that involved packaging for five blister-packed prescription products.

The stock closed Tuesday's session 0.21 per cent up at Rs 2,399.55.

In a joint filling by the parties, Dr Reddy's and the US Department of Justice agreed to the settlement of the action without any adjudication of any issue of fact or law.


The pharma company has settled the matter for $5 million.

The company said that while it disagreed with the allegations, it chose to settle the matter to avoid any unnecessary costs and the distractions of prolonged litigations.

The products have not been distributed in the packaging at issue price since June 2012.