Dr Reddys Laboratories , a leading Indian pharmaceutical company, has announced a significant change in its shareholding structure as part of a succession planning initiative. On September 17, 2025, the company's promoters, Satish Reddy Kallam and G V Prasad, transferred a combined 20.58% stake to their respective family trusts through off-market transactions.

Details of the Transfer

The transfer involved a total of 17,17,26,540 equity shares, each with a face value of Rs. 1. The specifics of the transaction are as follows:

• Satish Reddy Kallam transferred 7,56,30,620 shares (9.06% stake) to the VSD Family Trust.
• G V Prasad transferred 9,60,95,920 shares (11.51% stake) to the GVP Family Trust.

Shareholding Impact

This transfer has resulted in significant changes to the individual holdings of the promoters:

It's important to note that despite these changes, the aggregate promoter group holding remains unchanged at 26.64%.

Regulatory Compliance

The transfer was conducted under an exemption provided by the Securities and Exchange Board of India (SEBI) through an order dated December 31, 2024 (reference number WTM/ASB/CFD/16/2024-25). This exemption was granted specifically for the purpose of succession planning and streamlining family assets.

Purpose and Implications

According to the company's disclosure, this transfer is part of a private family arrangement aimed at ensuring smooth succession planning and more efficient management of family assets and businesses. The move is seen as a strategic step to secure the long-term interests of the company and its founding families.

Market Response

As of the announcement, there were no immediate significant changes reported in the company's stock price or market capitalization. The transfer is largely viewed as an internal restructuring that does not affect the overall promoter stake or company operations.

Conclusion

This development at Dr Reddys Laboratories highlights the growing trend among Indian corporates to use trust structures for succession planning. While the day-to-day operations of the company are unlikely to be affected, this move ensures a clear line of succession and potentially more streamlined decision-making processes within the promoter group in the future.

Investors and market watchers will likely keep a close eye on any further developments or changes in the company's management structure following this significant shareholding transfer.

Dr Reddys Laboratories is making waves in the pharmaceutical industry with two significant developments: preparation for generic weight-loss drug ingredients and the launch of a novel molecule for gastrointestinal diseases.

Generic Weight-Loss Drug Ingredients

Dr. Reddy's, along with other Indian pharmaceutical companies, is gearing up to supply key ingredients for generic versions of Novo Nordisk's popular weight-loss medications. These preparations come as the drugs are set to lose patent protection in major markets, opening up opportunities for generic manufacturers to enter this lucrative segment.

The move highlights the Indian pharmaceutical industry's readiness to capitalize on emerging opportunities in the global healthcare market, particularly in the rapidly growing field of weight management medications.

Launch of Novel Molecule Tegoprazan

In a parallel development, Dr. Reddy's has announced the launch of Tegoprazan, a novel patented molecule for the treatment of acid-related gastrointestinal diseases in India. The company is introducing Tegoprazan (50 mg) under the brand name PCAB®.

Tegoprazan is a next-generation potassium-competitive acid blocker, indicated for the treatment of various acid peptic diseases (APD) including:

• Erosive Gastroesophageal Reflux Disease (GERD)
• Non-Erosive Gastroesophageal Reflux Disease (NERD)
• Gastric Ulcer

The launch follows Dr. Reddy's exclusive partnership formed in 2022 with South Korea-based HK inno.N Corporation to commercialize Tegoprazan in India and select emerging markets.

Clinical Efficacy and Market Potential

In a multinational clinical trial conducted by Dr. Reddy's across India, South Africa, and Russia, 99.00% of GERD patients in the Tegoprazan treatment arm achieved endoscopic healing by Week 8. This high efficacy rate underscores the potential of Tegoprazan to address the significant need in APD management, especially considering that APD affects approximately 38.00% of the Indian population.

M.V. Ramana, Chief Executive Officer of Branded Markets (India and Emerging Markets) at Dr. Reddy's, commented on the launch: "We are happy to launch Tegoprazan (PCAB®) in India, reinforcing our commitment to innovation in gastrointestinal diseases treatment – a key focus area for us."

Global Presence and Future Outlook

Tegoprazan is already approved in 21 countries, including South Korea and China, and is currently under registration in several other countries. It has also successfully completed Phase-III trials in the United States, indicating potential for further global expansion.

As Dr. Reddy's continues to strengthen its position in the gastrointestinal therapeutics market with established brands like Omez®, Razo®, and Vono™, the addition of Tegoprazan to its portfolio is expected to enhance patient access to innovative treatments for acid peptic diseases.

The dual focus on preparing for generic weight-loss drug ingredients and launching innovative molecules like Tegoprazan demonstrates Dr. Reddy's commitment to addressing diverse healthcare needs and maintaining its competitive edge in the global pharmaceutical landscape.