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8/4/2019 Business Studies Project Nw 1
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BUSINESS STUDIES
PROJECTON
DR.REDDY’S By
WANDAP
GOKUL
VINAYAK
HUSAIFA
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4.0 COMPANY PROFILE
TYPE PUBLIC
TRADED AS NSE:DRREDDY
BSE:500124
NYSE:RDY
NASDAQ:RDY
INDUSTRY PHARMACEUTICALS
FOUNDED 1984
HEADQUARTERS HYDERABAD,ANDHRA PRADESH
KEY PEOPLE ANJI REDDY,CHAIRMAN
GV PRASAD,CEO
REVENUE $1.565 BILLION(2010)
NET INCOME $23 MILLION(2010)
EMPLOYEES 13,455 (2010)
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4.1 NATURE OF BUSINESS
As a fully integrated pharmaceutical company, our purpose is to provide affordable andinnovative medicines through our three core businesses:
Pharmaceutical Services and Active Ingredients, comprising our Active Pharmaceuticalsand Custom Pharmaceuticals businesses;
Global Generics, which includes branded and unbranded generics; and
Proprietary Products, which includes New Chemical Entities (NCEs), DifferentiatedFormulations, and Generic Biopharmaceuticals.
Our products are marketed globally, with a focus on India, US, Europe and Russia. Dr.Reddy’s conducts NCE research in the areas of metabolic disorders, cardiovascular indications, anti-infectives and inflammation.
Their strong portfolio of businesses, geographies and products gives them an edge in anincreasingly competitive global market and allows them to provide affordable medication topeople across the world, regardless of geographic and socio-economic barriers.
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4.2 OBJECTIVES
DR.REDDY’S is aimed at providing affordable and innovative medicines for healthier
life.The high cost of medicines puts them out of the reach of millions of people who
desperately need them. As a global pharmaceutical company, dr.reddys take the responsibility
to help alleviate the burden of disease on individuals and on the world. Through their globalgenerics business, they provide high quality, lower cost alternatives to innovator drugas.
Their wide range of products bring hope and health to people around the globe
Despite the great advances of medicine science, there are still far more diseases for which
there are no cures or no satisfactory treatments. At Dr. Reddy’s they believe in innovation
and research processes. This helps in finding solutions for unmet or inadequately met medical
needs. In addition, custom pharmaceutical services business works with innovator companies
and emerging biotech firms to accelerate the development of new molecules, while lowering
research costs.
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4.3 OPERATIONS
In 1986, Reddy's started operations on branded formulations. Within a year Reddy's had
launched Norilet, Reddy's first recognized brand in India. But, thanks to its superior processtechnology, Reddy's scored a big success with Omez, its branded omeprazole – ulcer and
reflux oesophagitis medication – launched at half the price of other brands on the Indian
market at that time.
Within a year, Reddy's became the first Indian company to export the active ingredients for
pharmaceuticals to Europe. In 1987, Reddy's started to transform itself from a supplier of
pharmaceutical ingredients to other manufacturers into a manufacturer of pharmaceutical
products.
THE PASSAGE FROM INDIA:
1. First it moved into Russia, forming a joint venture with the country's biggest
pharmaceuticals producer Biomed in 1992,
2. In 1993, Reddy's entered into a joint venture in the Middle East and created two
formulation units there and in Russia..
3. Dr. Reddy's Research Foundation was established in 1992 and dedicated to research
in area of new drug discovery.
4. Reddy's international marketing successes were built on a strong manufacturing base
which itself was a result of inorganic growth through acquisition of international and
national facilities.
5. By 1997 Reddy's out-licensed a molecule for clinical trials to Novo Nordisk,
a Danish pharmaceutical company.
6. In December 2000, Reddy’s had undertaken its first commercial launch of a generic
product in the USA, and its first product with market exclusivity was launched therein August 2001.
7. In 2001 Reddy’s completed its US initial public offering of $132.8 million American
Depositary Receipts issue and also listed on the New York Stock exchange.
8. In 2002, Reddy’s started its European operations by acquiring two pharmaceutical
firms in the UK. BMS & MERIDIAN
9. In 2003 Reddy’s also invested US$. 5.25 million in equity capital of Bio Sciences ltd.
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10. In 2004, Reddy’s acquired Trigenesis Therapeutics Inc; the US based private
dermatology company. This acquisition gave Reddy’s access to certain products and
proprietary technologies in dermatology segment
11. In March 2006, Dr. Reddy’s acquired Betapharm Arzneimittel GmbH from 3i for EUR 480 million. This is one of the largest-ever foreign acquisitions by an Indian
pharmaceutical company. Betapharm isGermany’s fourth-largest generics
pharmaceuticals.
12. As on 2006, Dr. Reddy’s Labs crossed US $500 M in revenues flowing from
segments such as APIs, Branded Formulations and Generics with the former two
segments accounting for almost 75% of revenues. It deals in and manages all the
processes, from the development of the API to the submission of finished dosage
dossiers to the regulatory agencies.
PHARMA SERVICES & ACTIVE INGREDIENTS
6 FDA-inspected plants in INDIA
1 Cytotoxic facility
REVENUE BREAK UP OF DR.REDDY'S
GEORAPHY WISE
Rest of the World
India
North America
Russia & CIS
Europe
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1 FDA-inspected plant in Mexico
1 FDA-inspected plant in Mirfield, UK
3Technology development centres(2 in Hyderabad, INDIA; 1 in Cambridge, UK)
PRODUCT DEVELOPMENT
Integrated Product development Capabilitiesthat includes API development,Formulations development and analytical
development skills.
One Integrated Product developmentfacility in Hyderbad, INDIA.
GLOBAL GENERICS
6 Formulation plants in INDIA(1 USFDA inspected)
1 USFDA inspected plant in USA
NEW CHEMICAL ENTITIES
Conducts research in the areas of metabolicdisorders, cardiovascular indicationsand Cancer.
BIOLOGICS
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Biologics development center
GMP production & E coli and mammalian cell platforms
MARKETING STRATEGY
1. Optimal operating system in which operations, product development and marketing &
sales are fully integrated.
2. Operations and the supply chain are aligned to ensure high availability, pull based
replenishment of products at the retail level and superior inventory turns to the
customers.
3. This advantage is combined with a highly effective prescription generation detailing
effort.
4. Globally synchronized supply chain and a comprehensive Information technology
platform help assure customers of timely delivery and superior inventory turns.
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4.4 TARGET MARKET EQUATION
Targets mainly cancer,cardiovascular,gastro-intestinal patients
They also focus on class of people i.e. lower,middle & high income groups.
ASIA,EUROPE,USA,MIDDLE EAST
COMPANY STORES
HOSPITAL,CLINICS,PHARMACIES
ALL INCOME GROUPS
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FUTURE PLANS
LEVERAGING THE BETAPHARM ADVANTAGE
Having acquired Betapharm, one of the fastestgrowing generic companies in Germany overthe past five years, Dr. Reddy’s aims at leveraging this strategic investment to evolve into amid-sized global pharmaceutical company and command a significant presence in all themajor pharmaceutical markets. It hopes to work in synergy with Betapharm, so that the twocompanies augment their market shares in the German generics market.Through thisacquisition,
Dr. Reddy’s aims to increase its revenues substantially and improve its operating margins.
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