Dr. Reddy's Laboratories has disclosed receiving three separate tax demand orders from the GST Authority for the financial years 2019-20 to 2021-22. The pharmaceutical company made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 on March 17, 2026.

GST Authority Orders Details

The orders were issued by the Commercial Taxes Department – Office of the Joint Commissioner (ST), Chennai Intelligence -II. The company received these orders dated March 16, 2026, on the same day. The authority has passed the orders under section 74 of the TNGST Act, 2017, seeking demand including interest and penalty.

The GST Authority has primarily based these orders on the ground that certain supplies are taxable in nature, according to the company's disclosure.

Financial Impact and Penalty Breakdown

The orders levy penalties across three financial years with varying amounts:

The total penalty amount across all three financial years sums to ₹2,20,03,734, with the FY 2019-20 penalty constituting the overwhelming majority of the demand.

Company's Response and Assessment

Dr. Reddy's Laboratories has stated that based on its evaluation, there is no material impact on the financials, operations, or other activities of the company. The pharmaceutical major indicated that it will evaluate filing necessary appeals with the appellate authority regarding these orders.

The disclosure was signed by K Randhir Singh, Company Secretary, Compliance Officer & Head-CSR, ensuring compliance with regulatory requirements for material disclosures to stock exchanges.

Dr. Reddy's Laboratories has informed stock exchanges about a significant development regarding its strategic collaboration with Immunet for the development of Eftilagimod Alfa, a potential cancer treatment. The pharmaceutical company disclosed that its licensing partner has announced the discontinuation of a critical Phase III clinical trial following safety and efficacy concerns.

Trial Discontinuation Details

Immunet announced on March 13, 2026, that the Independent Data Monitoring Committee (IDMC) for the TACTI-004 Phase III study has recommended discontinuing the trial. The study was evaluating Eftilagimod alfa in patients with first-line non-small cell lung cancer. This recommendation followed a planned interim futility analysis conducted in accordance with the established study protocol.

Strategic Partnership Background

The collaboration stems from a strategic licensing agreement between Dr. Reddy's Laboratories SA, a wholly-owned subsidiary, and Immunet SAS. Under this agreement announced on December 8, 2025, Dr. Reddy's obtained exclusive rights to develop and commercialize Eftilagimod Alfa in all countries outside North America, Europe, Japan, and Greater China. Immunet Limited trades on both ASX (IMM) and NASDAQ (IMMP) exchanges.

Study Wind-Down Process

Following the IDMC's recommendation, Immunet will halt enrollment in the study immediately. The company has committed to implementing an orderly wind-down process that includes:

• Appropriate patient follow-up procedures
• Systematic site close-out activities
• Compliance with regulatory and ethical obligations
• Comprehensive review of available data

Immunet has indicated it will undertake a thorough analysis of the trial results to better understand the findings and determine appropriate next steps for the Eftilagimod Alpha program.

Financial Impact Assessment

Dr. Reddy's SA has confirmed that it has made only the upfront payment to Immunet to date and continues to engage with the partner regarding the appropriate way forward. The company noted that Immunet remains focused on advancing its pipeline of innovative therapies, including Eftilagimod Alpha, despite this setback.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders about material developments affecting the company's strategic partnerships and drug development pipeline.