FINLATICS

RESEARCH INSIGHT:-3
DR REDDY’S LABORATORIES LTD

GENERAL OVERVIEW

Dr. Reddy’s laboratories commenced its generic

business in india 1986 and is today a trusted name in
the healthcare industry consistently serving the needs
of millions of patients with high quality, affordable and
innovative medicines across therapy areas. Dr.reddy’s
laboratories is an Indian multinational pharmaceuticals
company located in Hyderabad, Telangana, india. The
company was founded by KALLAM ANJI REDDY, who
previously worked in the mentor institute Indian Drugs
And Pharmaceuticals Limited. dr. reddy’s manufactures
and markets a wide range of pharmaceuticals in india
and overseas. The company has over 190 medications,
60 active pharmaceuticals ingredients for drug
manufacture, diagnostic kits, critical care, and
biotechnology products. In 2014, dr. reddy’s
laboratories was listed among 1200 of india’s most
trusted brands according to the Brand Trust Reports
2014, a study conducted by Trust Research Advisory, a
brand analytics company.
  SHAREHOLDING PATTERN OF THE COMPANY
 HOLDER’S NAME SHAREHOLDING %
 Promoters 26.71%
 Foreign Institutions. 25.87%
 Retails and Others 22.47%
 Mutual Funds. 14.21%
 Institutions. 10.74%

SHAREHOLDING %

Promoters Foreign Intitutions Retail and Others

Mutual Funds Others Domestic Institutions

 MANAGEMENT OF THE COMPANY

NAME DESIGNATION
Allan Oberman Independent Director
Archana Bhaskar Chief Human Resource
Officer
Bruce L A Carter Independent Carter
Deepak Sapra CEO API & Services
Erez Israeli Chief Executive Officer
G V Prasad Co-Chairman & Manag
Director
K Satish Reddy Chairman
Kalpana Morpania Independent Director
Leo Puri Independent Director
M V Ramana CEO- Branded Markets
Marc Kikuchi CEO- North America
Genetrics
Mukesh Rathi Chief Digital Officer
Parag Agarwal Chief Financial Officer
Patrick Aghanian CEO- European Generics
Prasad R Menon Independent Director
Sandeep Poddar Co. Secretary & Compl.
Officer
Sanjay Sharma Global Head
Sauri Gudlavalleti Global Head
Shikha Sharma Independent Director
Sridar Iyegar Independent Director
Yugandhar Puvvala Global Head

 BACKGROUND AND STABILITY OF DR.REDDY:

By 2007, Dr. Reddy's had seven FDA plants producing
active pharmaceutical ingredients in India and seven
FDA-inspected and ISO 9001 (quality) and ISO
14001 (environmental management) certified plants
making patient-ready medications – five of them in
India and two in the UK.

In 2010, the family-controlled Dr Reddy's denied that it

was in talks to sell its generics business in India to US
pharmaceutical giant Pfizer, which had been suing the
company for alleged patent infringement after Dr
Reddy's announced that it intended to produce a
generic version of atorvastatin, marketed by Pfizer
as Lipitor, an anti-cholesterol medication. Reddy's was
already linked to UK pharmaceuticals
multinational Glaxo Smithkline.

 SWOT ANALYSIS:

 STRENGHTS:

Company launched Peg-grafeelTM, an inexpensive

variety of pegfilgrastim, used to fight infection in
chemotherapy where company has sold some 1.5
million units of it.
Dowpharma/Chirotech acquisition provided
proprietary chiral and biocatalysis technology
The acquisition of Beta pharma helped to introduce
an array of generic products and show its presence
in the European markets.
Has a strong workforce of over 15,000 employees.

 WEAKNESS:

The weaknesses of a brand are certain aspects of its

business which are it can improve to increase its
position further. Certain weaknesses can be defined
as attributes which the company is lacking or in
which the competitors are better. Here are the
weaknesses in the Dr.Reddy's SWOT Analysis:

1. Discovery of drugs is a highly unpredictable

business.
2. 2. Strict govt regulations and policies affects
operational efficiency.

 OPPORTUNITIES:
The opportunities for any brand can include areas of
improvement to increase its business. A brand's
opportunities can lie in geographic expansion,
product improvements, better communication etc.
Following are the opportunities in Dr.Reddy's SWOT
Analysis:
1. Leverage Biologics & Cytotoxic Infrastructure to
deal with the need of Oncology Market.
2.New partnerships to develop Biosimilar business.
3. Develop cost effective ways of new drug
development to improve business in emerging
markets.

 THREATS:

The threats for any business can be factors which

can negatively impact its business. Some factors like
increased competitor activity, changing government
policies, alternate products or services etc. can be
threats. The threats in the SWOT Analysis of
Dr.Reddy's are as mentioned:
1.Preliminary investment for Drug discovery is very
high.
2. long gestational period for new drug
development.
3. increasingly stringent regulations for new drug
development.

 COMPETITORS:

There are several brands in the market which are

competing for the same set of customers. Below are
the top 2 competitors of Dr.Reddy's:

 SUN PHARMA:

Sun Pharmaceutical Industries Limited (Sun

Pharma) is an
Indian multinational pharmaceutical company
headquartered in Mumbai, Maharashtra, that
manufactures and sells pharmaceutical
formulations and active pharmaceutical
ingredients (APIs) in more than 100 countries across
the globe. It is the largest pharmaceutical company
in India and the fourth largest specialty generic
pharmaceutical company in the world, with a total
revenue of over US$4.5 billion as of June 2021. The
products cater to a vast range of therapeutic
segments covering psychiatry, anti-infectives,
neurology, cardiology, orthopaedic, diabetology,
gastroenterology, ophthalmology, nephrology,
urology, dermatology, gynaecology, respiratory,
oncology, dental and nutritional’s.[4] Its API products
include Absorica, Acamprosate Calcium, Alendronate
Sodium, Amifostine trihydrate, Budensonide and
Carvedilol.

 LUPIN:

Lupin Limited is an
Indian multinational pharmaceutical company based
in Mumbai, Maharashtra, India. It is one of the
largest generic pharmaceutical companies by
revenue globally.[8] The company's key focus areas
include paediatrics, cardiovascular, anti-infectives,
diabetology, asthma and anti-tuberculosis.

Lupin was founded in 1968 by Desh Bandhu Gupta,

who was a professor of chemistry at BITS-
Pilani, Rajasthan. Gupta moved to Mumbai in the 60s
to work on his business enterprise for which initially
he had initially borrowed Rs 5000 from his wife to
fund his venture. Subsequent funding from Central
Bank Of India, the company was able to start their
manufacturing facility for producing folic acid and
iron tablets for Government of India mother and
child health program. Later Lupin started
manufacturing anti TB drugs which at one point
formed 36% of the company sales and was
considered as the largest TB drugs manufacturer in
the world.

 CONCLUSION:
The detailed study of Dr Reddy’s Lab clearly reveals
the fact that the company has been growing
exponentially and that it has been true to the vision
of its founder, Dr Anji Reddy, ‘to create and deliver
innovative pharmaceutical healthcare solutions at an
affordable cost’ and to have a global presence in
healthcare industry. At the same time, DRL has also
shown an unwavering commitment to ethical
business, corporate social responsibility and
corporate governance. However, the three cases
mentioned above bring out certain grey areas that
lie scattered between what is ethical business and
what is not in such a life-saving and sometimes life-
threatening industry like pharmaceutical industry.
Only time will tell whether what Dr Reddy’s Lab did
under these circumstances were ethical or not.
Moreover, in such matters as the justification of
clinical trials of some drugs on humans when found
to be harmful in mice and rats, the final word may lie
interred deeply in the womb of time, for want of
credible evidence one way or the other.