Dr. Reddy's Laboratories

Dr. Reddy's Laboratories is an Indian pharmaceutical company that was founded in 1984 by Kallam Anji Reddy. Headquartered in Hyderabad, the company produces over 190 medications and over 60 active pharmaceutical ingredients (APIs).

The market capitalisation of Dr. Reddy's Laboratories Limited was ₹97,400 crore as of January 4, 2024. The share price of Dr. Reddy's has gained over 10% in the last three years

Business Operations

Dr. Reddy's Laboratories has been an active player in the pharmaceutical sector for more than 20 years. Its expertise lies in Active Pharmaceutical Ingredients (API), boasting a diverse portfolio. They specialise in manufacturing generic medicines with operations in India, Russia, US and Germany.

The company also engages in proprietary products, biologics business and unique formulations conducted primarily in the US. It has introduced Grafeel (Filgrastim), a drug used to fight infections after chemotherapy, and Reditux (Rituximab), an ant-cancer drug.

Dr. Reddy's produces a diverse range of intricate APIs and holds over 1,150 drug master files covering key therapy areas like oncology, cardiovascular, central nervous system and anti-diabetes. With 22 manufacturing facilities worldwide, the company ensures top-quality output and timely supply to markets. Its expertise in Active Pharmaceutical Ingredients (API) spans 8 manufacturing units globally.

The company’s largest manufacturing facility is located in Bachupally, Hyderabad. As of FY22, it has filed 1,071 patents and published over 1,000 papers.

Central to its R&D excellence is the Integrated Product Development Organisation (IPDO) situated in Hyderabad. This extensive campus hosts multiple laboratories, including the latest addition, a nutraceutical R&D centre. These cutting-edge labs are powered by a diverse team of scientists recruited from leading institutions worldwide.

The dedicated efforts of Dr. Reddy's in product development support a portfolio exceeding 1,000 products. The pharma giant has an R&D team comprising over 150 doctorates.

The company is focused on research and has a strong team of over 3,000 scientists in 8 R&D facilities. As of March 31, 2023, Dr. Reddy's is powered by a workforce of 25,498 permanent employees and workers in 74 countries.

The business of Dr. Reddy's Laboratories in branded generics thrives not only in India but also in emerging markets globally. Its branded products reach over 30 countries, spanning Asia, Africa, Australia, New Zealand, Russia, Romania, China and Latin America.

The company's growth rate has doubled in the past four years. It has reached a prominent position in crucial therapy areas like oncology, gastroenterology, allergy, diabetes and pain management. Within its Indian operations, it structures its business according to therapies, managing over 300 brands. Its extensive reach to healthcare professionals is facilitated by a field force comprising approximately 7,500 members.

Financial Highlights

The revenue from operations for FY23 stood at ₹24,669.7 crore, up 14.5% from ₹21,545.2 crore in FY22. The company recorded a Profit after Tax (PAT) of ₹4,507.3 crore in FY23 against ₹2,182.5 crore in FY22. In FY23, the earnings before interest, tax, depreciation and amortisation (EBITDA) increased to ₹7,308.1 crore from the previous year's ₹5,140 crore. Dr. Reddy's earnings per share (EPS) stood at ₹271.47 in FY23 compared to ₹131.57 in the previous financial year.