Dr Reddy's buys Novartis cardio brand in India

News: Dr. Reddy's has entered into an agreement with Novartis to acquire the cardiovascular brand Cidmus in India for US$61 million. The drug is indicated for heart failure patients with reduced ejection fraction and posted sales of Rs 136.4 core (IQVIA, MAT Feb 2022)

View: Dr. Reddy's will look to leverage its wide base and enhance the reach of the product in and beyond metros into tier-I and tier-II markets in India. According to IQVIA, Cardiac therapy contributed Rs 515.7 crore (MAT Feb 2022) . Cidmus will be a strong addition to the company’s existing portfolio in the cardiovascular segment alongside its leading brands such as Stamlo, Stamlo Beta, Reclide-XR and Reclimet-XR. We estimate Dr. Reddy’s India business to grow at CAGR of 14.1% over FY21-FY24E to Rs 4967 crore.

Impact: Positive