Sonali Subhadarshini

He who enjoys good

health is rich..

Mission & Vision

Mission :

To be India's first pharmaceutical that successfully takes its products from discovery to

commercial launch globally.

Vision :

To become a discovery ruled global pharmaceutical company with a core purpose of helping

people lead healthier lives.

• Founded- 1984

• Key people- Anji Reddy (Founder)

G. V. Prasad (CEO)

Kallam Satish Reddy(Chairman)

• Headquarter- Hyderabad, Telangana, India

• Revenue- $2.3 billion (2014)

• Net income- $350 million (2014)

• Number of employees- 20000 (April 2015)

Company Profile

Background

Produces and sells active pharmaceutical ingredients , finished dosages and biologics.

Manufactures ulcer medicines, antibiotics, pain relievers, antidepressants and cardiovascular drugs.

Markets its product in approximately 100 countries , focusing on Europe, India, US and Russia.

On 11 April 2001, Dr. Reddy’s became the first pharmaceutical company from Asia Pacific to be

listed on New York stock exchange.

Research and development in diabetes, cancer, cardiovascular diseases and bacterial infections.

135 new generic products, filing of 107 new product registration, and 56 drug master files

Integrated global pharmaceutical company, committed to providing affordable and

innovative medicines for healthier lives.

Offers a portfolio of products and services including

• Active Pharmaceutical Ingredients (APIs)

• Custom Pharmaceutical Services (CPS)

• Generics

• Biosimilar

• Differentiated formulations

• New Chemical Entities (NCEs).

Background contd.

Old logo

New logo

Expansions & Acquisitions

Out-licensed a molecule for clinical trials to Novo Nordisk, a Danish pharmaceutical company in 1997

Acquisition of Benzex laboratories in 1988

Dr. Reddy’s research foundation (DRF) was established in 1993

Strengthened its Indian manufacturing operations by acquiring American Remedies Ltd. in 1999

Became the third largest pharmaceutical company in India

In December 2000, Reddy’s had undertook its first commercial launch of a generic product in the USA.

Became the first non-Japanese pharmaceutical company from the Asia-Pacific region to obtain a New

York Stock Exchange listing

Merger with Cheminor Drugs in 2000 was a big leap, rose as the third largest

pharmaceutical company.

Acquisition of Betapharm in 2006 (US$ 570 millions)

(2007) Revenues reached US$1.5 billion and recognition as no 1 pharmaceutical company

in India in terms of turnover, rise to $1.7 billions by 2011

Joint venture with Fujifilm

Expansions & Acquisitions contd.

DRL: The rise..

Quick rise in the pharmaceutical sector in the late 80s and early 90s.

Launch of new products ensured continued growth

Focus on R&D acted as a booster in growth and reputation

Acquisition of domestic and foreign companies were a major

milestone

Joint ventures, patents and licensing were contributing factors

Patient litigations in the US market

Quality problems in Mexico unit

Falling revenues in key markets

String of fatal accidents

DRL: The fall..

Australia

China

Germany

New Zealand

Romania

Russia & CIS

South Africa

United Kingdom

United States of America

Presence besides India

There is no diet that will do what eating healthy does…

Supplier Input

Process

Output

Customers

SIPOC model

• National Securities Depository Ltd.

• Central Depository Services (I) Ltd.

• J P Morgan Chase Bank

• Bombay Stock Exchange

• National Stock Exchange

• New York Stock Exchange Inc

Supplier’s of capital…

Some of the investors…• Kedar Upadhye

7-1-27, Ameerpet, Hyderabad - 500016. Telangana (India). Ph: +91 40 6683 4297 Email: kedaru@drreddys.com

• Ashish Girotra Ph: +1 609 375 9805 Email: ashishg@drreddys.com

• Saunak Savla Ph: +91-40-4900 2135 Email: saunaks@drreddys.com

Inputs… (Raw Materials)

Therapeutic areas

• Gastro-Intestinal

• Cardiovascular

• Pain Management

• Anti-Infective

• Dermatology

• Diabetology

• Nutraceuticals

• Oncology

• Respiratory

• Stomatologicals

• Urology

• Gynaecology

• Haematology

• Paediatric

• Central Nervous System

PHARMA

BULK DRUGS (API)

CONTRACT RESEARCH FORMULATIONS

PATENTED GENERICS

GENERIC GENERICS

BRANDED GENERICS

Industry classification

Product mix

GenericsAPIDifferentiated formulations

Biosimilar

NCE

Outputs…

Products

Branded Generics API

CardiovascularValsartan Telmisartan RanolazineRamipril

CelecoxibKetorolacTromethamineNaproxen

RitonavirLopinavirFluconazoleAbacavir Base

AtocorBetaoneCardioprilStamlo

FinridHilinKetoroNise

RelentOxitClampCiprolet

Pain Management

Anti infective

NCE Differentiated products

BiosimilarGrafeelRedituxCresp Peg grafeel

Bacterial InfectionsMetabolic DisordersPain and Inflammation

Promiseb™ Topical CreamScytera Foam Cloderm® Cream

Products contd.

Distributor

Euphoria Healthcare Pvt LtdP D Doshi & CompanyKaivan Distributors

Dr Reddys Laboratories LtdBiodiesel TechnologiesMehta Medicare Pvt Ltd

Bio Square Life SciencesSrs EnterprisesSurya pharmaceuticals

Mumbai

Kolkata

Chennai

ROW; 6; 6%

NORTH AMERICA, 45, 45%

EUROPE; 12; 12%

INDIA; 18; 18%

RUSSIA & CIS; 19; 19%

REVENUE DISTRIBUTION GEOGRAPHICAL MIX

ROW NORTH AMERICA EUROPE INDIA RUSSIA & CIS

Customers…

Financial aspects

FY08 FY09 FY10 FY11 FY12 FY13 FY140

500

1000

1500

2000

2500

1241

1509 1481

1639

2019

2149

2300

FISCAL YEAR

REVE

NU

E IN

$ M

ILLI

ON

Balance sheet

Applied R & D Basic R & D

Local Branding

Global Branding

CIPLA

Torrent

NOVO NORDISK

Glaxo Smithkline

SANOFI-AVENTIS

DR. REDDY’S LAB

RANBAXY

International Formulation

Domestic Formulation

Torrent

Cipla

Generics

Strategic groups in the Indian pharma industry

Partnerships with key players in the market keeps its cost base down

Research Driven & Global

Take a drug all the way to marketTake a molecule from its pipeline all the way to the

market place cost-effectively marketIncrease domestic footprint in generics

Over-reliance on partnershipsLack of resources similar to US and Europe based

competitors to develop a drug to marketing

Needs to gain FDA approval for all sources and products

Products have to pass strict FDA trials before going to market, which can be costly and time consuming

Strength Weakness

Threat Opportunity

SWOT Analysis