Dr.Reddy's Laboratories - Invest

Dr Reddy's Lab - producer of generic drutgs

Dr Reddy's Lab - producer of generic drutgs
Dr Reddy's Lab - producer of generic drutgs | Source
Dr Reddy's Lab - share price movement
Dr Reddy's Lab - share price movement | Source

Dr Reddy's Lab - share price movement

Weekly H/L
1,791.90
1,736.05
Monthly H/L
1,818.00
1,690.00
52 Weeks H/L
1,818.00
1,387.00
 
( 20 Apr 12 )
( 22 Aug 11 )
Dr Reddy's Lab - share price movement

Dr Reddy's Lab - Latest Financial Results

(in Cr.)
11-Dec
11-Sep
FY10-11
Revenue
1,607.69
1,646.98
5,304.41
Net Profit
108.03
138.5
893.31
EPS
6.37
8.17
52.82
Cash EPS
10.79
12.5
67.43
OPM %
14.39
16.38
24.6
NPM %
6.72
8.41
16.84
Dr Reddy's Lab - Latest Financial Results

Dr.Reddy's Laboratories - Invest

A markerIndia -
India
[get directions]

Dr.Reddy's Laboratories - Invest

Phase 2 trials of cardio drug

Exceptional Growth in US Market

Dr Reddy’s Laboratories (DRL) has produced below average results for the quarter ended 31.12.11 as compared to the previous quarter. Both revenue and net profit have gone down. Margins have also come down. DRL is engaged in the manufacture of drugs. In the US, DRL was able to post an exceptional growth because of the launching of generic business for a limited period of time. This helped the company to boost its overall growth in the Q3. The depreciation of Indian rupee against the US dollar also helped the company a great deal. The company’s domestic business is also doing well. Its
Russian business has temporary problems which the company is trying to sort it out.

Generic Drug Business Booming

DRL launched exclusively its generic drug Olanzapine 20 mg which is a copy of the drug Zyprexa which is used to treat schizophrenia. It is generating good business inUSA. Revenue fromUSAincreased by 125% compared to the corresponding period of the previous year. Over the next three quarters, DRL plans to launch several generic drugs inUSA. Indian pharmaceutical industry posts an average growth of around 15%. DRL’s growth is below the industrial average but it is catching up. DRL is banking upon biosimilars and new products for its future growth inIndia.

European market flat

In the Russian and European markets, DRL is maintaining its growth. The delayed onset of winter in Russiaupset the company’s plans. European business is sluggish for the company. In the near future, USbusiness may contribute one third of the company’s total business. DRL is expecting another one third of the business from emerging markets like
Russia,India and CIS countries.

Succession issue settled

DRL’s patriarch and mentor Dr Anji Reddy is not well. But he has initiated a succession plan and the future of DRL is safe. It is pertinent to note that Dr Anji Reddy is no longer a shareholder in DRL, the company he founded decades back. But indirectly he controls the company through a family owned firm Dr Reddy’s Holdings which controls 24% of DRL. After Ranbaxy, DRL isIndia’s largest pharmaceutical company in terms of revenue. DRL is listed in New York Stock Exchange. Dr Anji Reddy is no longer looking into the day to day matters of the company. His son-in-law G V Prasad is now looking into the management of the company. K Satish Reddy, Dr Anji Reddy’s son, is the Managing Director and CEO of the company. Satish Reddy and G V Prasad have clearly demarcated roles between them.

Great philanthropist

Prasad looks after research, new products, corporate functions and new businesses.
Satish Reddy looks after operations and revenue of the company and also its international business. Recently DRL earned the wrath of theUS health authorities when it failed to provide sufficient information in a promotional website about an injectable drug it launched. Dr Anji Reddy set up the company in 1984 with a capital of Rs.25 lakh which was a big amount at that time. Today the company’s market capitalization is around Rs.28000 crore. Dr Anji Reddy always dreamt of launching a big drug through own research but his dream has not been fulfilled yet. Today, DRL is focusing on its research to produce generic drugs that will give it value added money in theUS market, which is the biggest pharmaceutical market in the World. Dr Anji Reddy is a great philanthropist and is sponsoring many good schemes like midday meals for children and drinking water scheme across many parts ofIndia.

Phase 2 trials of cardio drug

DRL has an international agreement with GSK and FujiFilm to market around hundred drugs it makes in markets likeMexicoandTurkeyamong others where DRL has no direct presence. The company is shifting its focus on drugs related to pain management, dermatology and anti-infectives for good growth. Recently there were labour problems in the company’s Srikakulam plant but now the issue has been settled. DRL has terminated its deal with JB Chemicals for drugs in Russian market. DRL has commenced Phase II trials of its cardio drug. DRL launched last year its OTC Fexofenadine HCl and Pseudoephedrine extended release HCl tablets 180/240 mg.

Good investment

The shares of DRL are traded in the stock markets at Rs.1750 now (BSE 02.05.12). The highest and the lowest prices recorded by the shares of DRL in the last one year are Rs.1818 and Rs.1387 respectively. At the present price level, one can buy the shares of Dr Reddy’s Laboratories for medium and long term for decent returns. Many brokerages and financial institutions like HSBC are recommending to buy the company’s scrip.

Comments 1 comment

Galin nabi 4 years ago

Hi iam galin nabi from kolkata.i need some medicine.of whole sell.all company. My no 8001652663.if you know .all to help to me

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working