drl - presentation

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Dr. Reddy’s Laboratories is leading pharmaceutical company with presence in over 100 countries. It manufactures a range of products such as Active pharmaceutical ingredients, Generic and Branded Finished Dosages, Specialty pharmaceuticals, and Biopharmaceuticals. The company is situated at Ameerpet, Hyderabad. : Dr. Reddy’s Laboratories is leading pharmaceutical company with presence in over 100 countries. It manufactures a range of products such as Active pharmaceutical ingredients, Generic and Branded Finished Dosages, Specialty pharmaceuticals, and Biopharmaceuticals. The company is situated at Ameerpet, Hyderabad. History: The company was incorporated on November 2, 1984, by Dr. Anji Reddy and his associates who were also the promoters of Standard Organics Limited. It was based on a bulk activities business he had founded in the 1970’s, in order to extend into the production of drug formulation. It was established with an initial capital outlay of $40,000 of his own backed by a bank loan for $120,000. Two years later, in 1986, it got listed in the Bombay Stock Exchange. : History: The company was incorporated on November 2, 1984, by Dr. Anji Reddy and his associates who were also the promoters of Standard Organics Limited. It was based on a bulk activities business he had founded in the 1970’s, in order to extend into the production of drug formulation. It was established with an initial capital outlay of $40,000 of his own backed by a bank loan for $120,000. Two years later, in 1986, it got listed in the Bombay Stock Exchange.

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Case analysis of DRL

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Page 1: DRL - Presentation

Dr. Reddy’s Laboratories is leading pharmaceutical company with presence in over 100 countries. It manufactures a range of products such as Active pharmaceutical ingredients, Generic and Branded Finished Dosages, Specialty pharmaceuticals, and Biopharmaceuticals. The company is situated at Ameerpet, Hyderabad. :

Dr. Reddy’s Laboratories is leading pharmaceutical company with presence in over 100 countries. It manufactures a range of products such as Active pharmaceutical ingredients, Generic and Branded Finished Dosages, Specialty pharmaceuticals, and Biopharmaceuticals. The company is situated at Ameerpet, Hyderabad.

History: The company was incorporated on November 2, 1984, by Dr. Anji Reddy and his associates who were also the promoters of Standard Organics Limited. It was based on a bulk activities business he had founded in the 1970’s, in order to extend into the production of drug formulation. It was established with an initial capital outlay of $40,000 of his own backed by a bank loan for $120,000. Two years later, in 1986, it got listed in the Bombay Stock Exchange. :

History: The company was incorporated on November 2, 1984, by Dr. Anji Reddy and his associates who were also the promoters of Standard Organics Limited. It was based on a bulk activities business he had founded in the 1970’s, in order to extend into the production of drug formulation. It was established with an initial capital outlay of $40,000 of his own backed by a bank loan for $120,000. Two years later, in 1986, it got listed in the Bombay Stock Exchange.

In 1987 obtained its 1st USFDA approval for Ibuprofen API and started its formulation operations. In 1997, it became the 1st Indian pharmaceutical company to out- license an original molecule when it licensed anti-diabetic molecule DRF 2593 to Novo Nordisk. In 2000, became the 1st Asia Pacific pharmaceutical company outside Japan, to be listed on the NEW YORK STOCK EXCHANGE. :

In 1987 obtained its 1st USFDA approval for Ibuprofen API and started its formulation operations. In 1997, it became the 1st Indian pharmaceutical company to out- license an original molecule when it licensed anti-diabetic molecule DRF 2593 to Novo Nordisk. In 2000, became the 1st Asia Pacific pharmaceutical company outside Japan, to be listed on the NEW YORK STOCK EXCHANGE.

Page 2: DRL - Presentation

Vision and MissionVision: To become a discovery ruled global pharmaceutical company with a core purpose of helping people lead healthier lives.Mission: To be first Indian Pharmaceutical company that successfully takes its products from discovery to commercial launch globally. :

Vision and MissionVision: To become a discovery ruled global pharmaceutical company with a core purpose of helping people lead healthier lives.Mission: To be first Indian Pharmaceutical company that successfully takes its products from discovery to commercial launch globally.

SWOT Analysis:Strength: - Wholly owned subsidiaries in US and Europe. Joint ventures in China and South Africa. -Market pharmaceuticals products in 115 countries. :

SWOT Analysis:Strength: - Wholly owned subsidiaries in US and Europe. Joint ventures in China and South Africa. -Market pharmaceuticals products in 115 countries.

-Contributes to company’s high profit margin of around 34% of sales. -6120 employees worldwide including 323 are dedicated towards new drug discovery research.- Manufactures and market over 250 medicines targeting a wide range of therapies. :

-Contributes to company’s high profit margin of around 34% of sales. -6120 employees worldwide including 323 are dedicated towards new drug discovery research.- Manufactures and market over 250 medicines targeting a wide range of therapies.

Weakness: -High amount of revenues from overseas. -Over reliance on partnerships.- Lack of resources similar to US and Europe based competitors to develop a drug to marketing stage. -Lack of patent legislation in India horns sales in its products. :

Weakness: -High amount of revenues from overseas. -Over reliance on partnerships.- Lack of resources similar to US and Europe based competitors to develop a drug to marketing stage. -Lack of patent legislation in India horns sales in its products.

Opportunities: -Takes a molecule from its pipeline all the market place cost- effectively.- Domestic Genetic drugs market. -Buy back of the integrated drug development company from ICICI ventures and Citigroup. :

Page 3: DRL - Presentation

Opportunities: -Takes a molecule from its pipeline all the market place cost- effectively.- Domestic Genetic drugs market. -Buy back of the integrated drug development company from ICICI ventures and Citigroup.

Page 4: DRL - Presentation

Threats: -Needs to give FDA approval for all sources and products.- Products have to pass strictly FDA trials before going to market, which can be costly and time consuming.- Competitors from US and European countries. -Lost the case against Pfizer for the use of generic form of Norvasc drug, legal cost of $10 million and loss of market opportunities. :

Threats: -Needs to give FDA approval for all sources and products.- Products have to pass strictly FDA trials before going to market, which can be costly and time consuming.- Competitors from US and European countries. -Lost the case against Pfizer for the use of generic form of Norvasc drug, legal cost of $10 million and loss of market opportunities.

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Products: Active Pharmaceutical Ingredients (API)Custom Pharmaceuticals ServicesGeneric DosagesBranded Dosages (such as- Omez, Nise, Stamlo, Ciprolet, Enam, Ketorol).

Branches:It has limited branches in Hyderabad.- DBR Diagnostic Centre, Kapra.-Dr. Reddy’s Laboratories Ltd, Kapra.-Pragathi Diagnostic , Kapra.- SL Diagnostic and Speciality Clinic, Kapra. :

Branches:It has limited branches in Hyderabad.- DBR Diagnostic Centre, Kapra.-Dr. Reddy’s Laboratories Ltd, Kapra.-Pragathi Diagnostic , Kapra.- SL Diagnostic and Speciality Clinic, Kapra.

Turnover:About 6900 crores from single manufacturing units in Hyderabad. 39% rise in its 1st quarter 2009-2010, revenues at Rs. 1,818 crores, against Rs. 1,500 crores in the same previous year. :

Turnover:About 6900 crores from single manufacturing units in Hyderabad. 39% rise in its 1st quarter 2009-2010, revenues at Rs. 1,818 crores, against Rs. 1,500 crores in the same previous year.

Growth over 20 yearsThe company is growing by 39% and improving EBITA by 50%. The profitability has rose by 44%. :

Growth over 20 yearsThe company is growing by 39% and improving EBITA by 50%. The profitability has rose by 44%.

Page 5: DRL - Presentation

Dr.Reddy’s Laboratories was founded in 1984, with a capital of US $40,000 in cash and US $120,000 in bank loan

In fact, it is this spirit of entrepreneurship that has shaped the company to become what it is today

Today, the company with revenues of US $446 m, in fiscal year 2005, is India’s second largest pharmaceutical company and the youngest among its peer group

Dr. Reddy’s started its drug discovery programme in 1993 and within three years it achieved its first breakthrough by out licensing an anti-diabetes molecule to Novo Nordisk in March 1997

With this very small but significant step, the Indian industry went through a paradigm shift in its image from being known as just ‘copycats’ to ‘innovators’!

Through its success, Dr. Reddy’s pioneered drug discovery in India

Today, the company manufactures and markets API (Bulk Actives), Finished Dosages and Biologics in over 100 countries worldwide, in addition to having a very promising Drug Discovery Pipeline