dr. reddy's lab - business model
TRANSCRIPT
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Sonali Subhadarshini
He who enjoys good
health is rich..
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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.
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• 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
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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.
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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.
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Old logo
New logo
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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
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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.
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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
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Patient litigations in the US market
Quality problems in Mexico unit
Falling revenues in key markets
String of fatal accidents
DRL: The fall..
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Australia
China
Germany
New Zealand
Romania
Russia & CIS
South Africa
United Kingdom
United States of America
Presence besides India
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There is no diet that will do what eating healthy does…
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Supplier Input
Process
Output
Customers
SIPOC model
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• 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…
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Some of the investors…• Kedar Upadhye
7-1-27, Ameerpet, Hyderabad - 500016. Telangana (India). Ph: +91 40 6683 4297 Email: [email protected]
• Ashish Girotra Ph: +1 609 375 9805 Email: [email protected]
• Saunak Savla Ph: +91-40-4900 2135 Email: [email protected]
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Inputs… (Raw Materials)
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Therapeutic areas
• Gastro-Intestinal
• Cardiovascular
• Pain Management
• Anti-Infective
• Dermatology
• Diabetology
• Nutraceuticals
• Oncology
• Respiratory
• Stomatologicals
• Urology
• Gynaecology
• Haematology
• Paediatric
• Central Nervous System
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PHARMA
BULK DRUGS (API)
CONTRACT RESEARCH FORMULATIONS
PATENTED GENERICS
GENERIC GENERICS
BRANDED GENERICS
Industry classification
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Product mix
GenericsAPIDifferentiated formulations
Biosimilar
NCE
Outputs…
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Products
Branded Generics API
CardiovascularValsartan Telmisartan RanolazineRamipril
CelecoxibKetorolacTromethamineNaproxen
RitonavirLopinavirFluconazoleAbacavir Base
AtocorBetaoneCardioprilStamlo
FinridHilinKetoroNise
RelentOxitClampCiprolet
Pain Management
Anti infective
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NCE Differentiated products
BiosimilarGrafeelRedituxCresp Peg grafeel
Bacterial InfectionsMetabolic DisordersPain and Inflammation
Promiseb™ Topical CreamScytera Foam Cloderm® Cream
Products contd.
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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
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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…
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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
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Balance sheet
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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
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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
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