Dr. Reddy's Laboratories is in sharp focus today following a major regulatory breakthrough in the United States. The U.S. Securities and Exchange Commission has officially concluded its long-standing investigation into the company regarding allegations of improper payments to healthcare professionals in Ukraine and other markets. The SEC issued a formal letter on February 23, 2026, confirming it does not intend to recommend any enforcement action against the pharmaceutical giant. This decision marks the end of a high-stakes probe that began in November 2020 after an anonymous complaint suggested potential violations of the U.S. Foreign Corrupt Practices Act. Market performance for Dr. Reddy's remains steady as the regulatory overhang clears. The stock is currently trading around 1,304.40 on the National Stock Exchange. Despite a marginal intraday dip of 0.23% in recent sessions, the stock has maintained a positive trajectory with a one-month return of approximately 5.45% and a one-year gain of 15.25%. The company’s financial health provides a strong foundation for this recovery. In its most recent quarterly report for the period ending December 2025, Dr. Reddy's posted a consolidated revenue of 8,727 crore. While net profit for the quarter stood at 1,190 crore—a 15.3% year-on-year decline due to higher R&D and operating costs—the results exceeded several analyst expectations. Key financial metrics highlight the company's significant scale: - Market Capitalization: Over 1.08 lakh crore - Price-to-Earnings Ratio: Approximately 19.81 - Q3 Revenue Growth (India): 19% year-on-year - Q3 Revenue Growth (Europe): 20% year-on-year The broader Indian pharmaceutical sector continues to show resilience, growing by 7.5% in early 2025. Dr. Reddy's has outpaced many peers with a month-on-month value growth of 9.4%, driven by strong demand in the cardiac and gastrointestinal segments. Strategic advancements are also keeping the firm in the headlines. The U.S. FDA recently accepted a review for the company's biosimilar Abatacept, further strengthening its pipeline. Additionally, the firm secured manufacturing licenses for semaglutide injections in India, positioning itself in the high-growth weight loss and diabetes treatment market. The closure of the SEC probe removes a significant legal risk that has persisted for over five years. While the SEC noted that the notice is not a formal "exoneration," the decision to skip enforcement action allows Dr. Reddy's to focus entirely on its global expansion and its target of reaching a 120-130 billion dollar market valuation for the Indian pharma industry by 2030.