Dr Reddys Laboratories Ltd
Dr Reddys Laboratories Ltd (DRREDDY)

Dr Reddys Laboratories Ltd (DRREDDY)

₹4249.18.13%

Key Stats

₹3975
Day's Price Range
₹4299.1
₹3654
52-Week Price Range
₹5614.6
1 Month Return-9.05 %
3 Month Return-9.07 %
1 Year Return-24.96 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 1
25.75
EPS
Rank 1
₹159.34
BVPS
Rank 2
₹1072.02
Dividend Yield
Rank 4
0.55%
ROE
Rank 4
11.5%
Price To Book Ratio
Rank 2
3.82
Debt To Asset
Rank 2
0.33

Company Information

Dr Reddys Laboratories Ltd DRL is an integrated global pharmaceutical company committed to providing affordable and innovative medicines for healthier lives. Through its three businesses Pharmaceutical Services Active Ingredients Global Generics and Proprietary Products Dr. Reddys offers a portfolio of products and services including Active Pharmaceutical Ingredients APIs custom pharmaceutical services generics biosimilars and differentiated formulations. The companys major therapeutic areas of focus are gastrointestinal cardiovascular diabetology oncology pain management and dermatology. Dr. Reddys operates in markets across the globe. Its major markets include USA India Russia CIS countries and Europe.Dr Reddys Laboratories was incorporated in the year 1984 in Hyderabad. The company was established by Dr Anji Reddy with an initial capital outlay of Rs 25 lakh. The company made their beginning with the manufacture of Active Pharmaceutical Ingredients and Intermediates API and commenced operations with a single drug in a 60tonne facility near Hyderabad India. In the year 1986 the company shares were listed on the Bombay Stock Exchange. Also they entered international market with exports of Methyldopa.In the year 1987 the company obtained first USFDA approval for Ibuprofen API. In the year 1988 they acquired Benzex Laboratories Pvt Ltd to expand their Bulk Actives business. In the year 1990 they exported Norfloxacin and Ciprofloxacin to Europe and Far East. In the year 1991 they commenced formulation exports to Russia.In the year 1993 the company established Dr. Reddys Research Foundation and initiated drug discovery programme. In the year 1994 they finished dosages facility established to cater to highly regulated markets such as the US. In the year 1995 the company set up joint venture in Russia. In the year 1997 they filled first ANDA with the United States Food and Drug Administration for Ranitidine. In the year 1999 the company acquired American Remedies Ltd a pharmaceutical company based in India. In the year 2000 Cheminor Drugs Ltd a group company merged with the company and thus the company became Indias third largest pharma company. In the year 2001 the company launched Fluoxetine capsules. They became the first Indian company to win 180day exclusivity for a generic drug in the US. Also they launched their first generic product Ranitidine in the US market.In the year 2002 the company made their first overseas acquisition of BMS Laboratories Limited and Meridian Healthcare in UK. In the year 2003 they launched Ibuprofen first generic product to be marketed under the Dr. Reddys label in the US. In the year 2005 they acquired Roches API Business at its manufacturing site in Mexico. In the year 2006 the company acquired Betapharm the fourth largest generics company in Germany for a total enterprise value of Rs 480 million. In the year 2007 the company launched Reditux the worlds first biosimilar MAb for the treatment of Non Hodgkins Lymphoma. Also they became Indias leading and most profitable pharmaceutical company.During the year 200809 the company acquired DowPharmas small molecules business in UK under Chirotech Technology Ltd BASF Corporations manufacturing facility at Shreveport in Louisiana USA under Dr. Reddys Laboratories Louisiana LLC and Jet Generici SRL a company engaged in the sale of generic finished dosages in Italy. In addition Perlecan Pharma Pvt Ltd Macred India Pvt Ltd and Dr. Reddys Laboratories ILAC Ticaret also became subsidiary of the company.During the year 200910 Dr. Reddys Pharma SEZ Ltd was incorporated as a whollyowned subsidiary of the company for the purpose of formulation manufacturing at Special Economic Zone and Perlecan Pharma Pvt Ltd was amalgamated with the company. Further the company acquired the balance stake of 30 in Dr. Reddys Australia Pty Ltd. The company filed 12 Abbreviated New Drug Applications ANDAs in US including six Para IV filing during the year.During the year 201011 the company acquired GlaxoSmithKlines GSK oral penicillin manufacturing facility located in Tennessee USA. This allows the company to enter theUS penicillincontaining antibacterial market segment through brands such as Augmentin and Amoxil and serve the needs of customers through manufacturing and other capabilities that did not previously exist within the company. Also they increased the stake in the South African joint venture company to 100 after acquiring the 40 stake of the partner.During the year the company launched Cresp in India the first biosimilar darbepoetin alfa in the world. In March 2011 they launched PeggrafeelTM in India in the form of an affordable pegfilgrastim which is used to stimulate the bone marrow to produce more neutrophils to fight infection in patients undergoing chemotherapy. PeggrafeelTMDuring the year Idea2Enterprises India Pvt Ltd Dr. Reddys Laboratories Romania SRL IVen Pharma Capital Ltd Dr. Reddys Laboratories Tennessee LLC and Dr. Reddys Venezuela C.A. became whollyowned subsidiaries of the company. Further Dr. Reddys Laboratories Proprietary Ltd also became whollyowned subsidiary by virtue of purchase of its balance 40 stake by the company. Also Macred India Pvt Ltd ceased to be a subsidiary of the company.On 27 July 2012 Dr. Reddys Laboratories announced that the United States Food and Drug Administration USFDA had lifted import alert on its chemical manufacturing facility at Cuernavaca Mexico after inspection of the unit in March 2012. Earlier Dr. Reddys Mexico facility was inspected by USFDA in November 2010 and based on observations by the USFDA a warning letter was issued to the company on 14 June 2011.On 8 October 2012 the Custom Pharmaceutical Services CPS business of Dr. Reddys Laboratories Ltd. announced expansion in the areas of activated mPEG manufacturing and in the development and manufacture of NCE New Chemical Entities APIs for use in preclinical through to commercial development at its manufacturing facility in Mirfield UK.On 14 December 2012 Dr. Reddys Laboratories announced that it had launched the recommended public offer to acquire all the issued and outstanding shares of OctoPlus N.V. a service based specialty pharmaceutical company at an offer price of EUR 0.52 cum dividend per share. Shareholders including certain members of the Boards holding in aggregate 63.5 of the issued and outstanding ordinary shares of OctoPlus entered into irrevocable undertakings to tender their shares under the offer. On 28 February 2013 Dr. Reddys Laboratories announced that it had raised its stake in OctoPlus N.V to 98.6 following a public offer for all the issued and outstanding ordinary shares in the capital of OctoPlus. OctoPlus is a leading European provider of advanced drug formulation and clinical scale manufacturing services to the pharmaceutical and biotechnology industries with a focus on difficultto formulate active pharmaceutical ingredients.On 19 December 2014 Dr. Reddys Laboratories announced that it had completed the acquisition of Habitrol brand an overthecounter nicotine replacement therapy transdermal patch from Novartis Consumer Health Inc. following issuance of the proposed consent order from the US Federal Trade Commission FTC on 26 November 2014. The company had earlier entered into an asset purchase agreement with Novartis Consumer Health Inc. to acquire the title and rights of Habitrol brand and to market the product in the US market.On 22 March 2015 Dr. Reddys Laboratories NYSE: RDY announced that it had settled its claims against Nordion Inc. formerly MDS Inc. headquartered in Ottawa Canada in a case pending in the United States District Court for the District of New Jersey for a cash payment of USD 22.5 Million by Nordion to Dr. Reddys. The case was brought by Dr. Reddys in April 2009 seeking damages sustained by the company caused by a claimed breach by Nordion of its Laboratory Services Agreement with Dr. Reddys. Nordion as a contract research organization provided laboratory services to Dr. Reddys including bioequivalency studies to support Dr. Reddys regulatory applications for approval of generic drugs including Abbreviated New Drug Applications ANDAs filed with the United States Food and Drug Administration the USFDA for approval to market generic drugs in the United States. The case arose after the USFDA cited MDS with violations of good laboratory practices which caused the USFDA not to accept without further substantiation MDSs laboratory reports performed during the period 20002004. On 23 March 2015 Dr Reddys Laboratories announced that it has entered into an agreement with Hetero under which Dr. Reddys has been licensed to distribute and market Sofosbuvir 400 mg tablets indicated in the treatment of Chronic Hepatitis C under the brand name Resof in India. On 1 April 2015 Dr. Reddys Laboratories announced that it has entered into a definitive agreement to acquire a select portfolio of the established products business of UCB a global biopharmaceutical company in the territories of India Nepal Sri Lanka and Maldives. The revenue of the acquired business stood at approximately Rs 150 crore for calendar year 2014.On 29 May 2015 Dr Reddys Laboratories Limited and AstraZeneca Pharma India Limited entered into a distribution agreement for saxagliptin and its fixed dose combination with metformin in Type 2 DiabetesOn 6 August 2015 Dr. Reddys Laboratories Ltd. announced that it has entered into a strategic collaboration with Amgen one of the worlds leading independent biotechnology companies to market and distribute three Amgen medicines in India in the areas of oncology and cardiology. On 16 September 2016 Dr. Reddys announced that it had expanded its strategic collaboration with Amgen to market and distribute three of Amgens medicines in India in the therapy areas of oncology and osteoporosis. On 9 September 2015 PanTheryx Inc. a global medical nutrition company based in Boulder Colorado and Dr. Reddys Laboratories Ltd. announced a multicountry supply and licensing agreement whereby Dr. Reddys Lab got the exclusive right to market and distribute PanTheryxs breakthrough nutritional intervention DiaResQ for infectious diarrhea in India and Nepal and in process for Russia Myanmar Vietnam Ukraine Sri Lanka Kazakhstan Belarus Jamaica and select LATAM markets. Dr. Reddys will market the product in India and Nepal under the Reliqua brand.On 14 September 2015 Dr. Reddys Laboratories announced the signing of a commercialization deal with Hatchtech an Australian pharmaceutical company developing an innovative prescription head lice product Xeglyze Lotion. The exclusive rights for this product are applicable for the territories of the United States Canada India Russia and the CIS Australia New Zealand and Venezuela. On 4 November 2015 Dr. Reddys Laboratories entered into a strategic alliance with Biocodex a multinational pharmaceutical company to market and distribute Biocodex products in the Romanian market.On 5 November 2015 the US Food and Drug Administration USFDA issued a warning letter to Dr. Reddys Laboratories relating to its API manufacturing facilities at Srikakulam Andhra Pradesh and Miryalaguda Telangana as well as Oncology Formulation manufacturing facility at Duvvada Visakhapatnam Andhra Pradesh. This action follows the earlier inspections of these sites by the agency in November 2014 January 2015 and February 2015 respectively.On 18 November 2015 Dr. Reddys Laboratories announced that it had completed the purchase of worldwide exclusive intellectual property rights for Fondaparinux sodium its generic anticoagulant drug from its Australian partner Alchemia Limited. Earlier the company had signed a term sheet for this transaction in September 2015. Fondaparinux is a generic version of the anticoagulant drug Arixtra.On 11 March 2016 Dr. Reddys Laboratories Ltd. and TRPharm announced a strategic collaboration agreement for the manufacture and commercialization of a portfolio of Dr. Reddys Laboratories biosimilar drugs in Turkey.On 28 March 2016 Dr. Reddys Laboratories and XenoPort Inc. announced that they have entered into a license agreement pursuant to which Dr. Reddys Laboratories will be granted exclusive US rights for the development and commercialization of XenoPorts clinical stage oral new chemical entity XP23829. Dr. Reddys Laboratories plans to develop XP23829 as a potential treatment for moderatetosevere chronic plaque psoriasis and may potentially develop XP23829 for relapsing forms of multiple sclerosis MS.On 31 March 2016 Dr. Reddys Laboratories announced that it has entered into a licensing agreement with Eisai Co. Ltd Japan by which Dr. Reddys will be granted exclusive worldwide development and commercialization rights excluding Japan and Asia for Eisais investigational anticancer agent E7777. Eisai will be responsible for the development and marketing of E7777 in Japan and Asia while Dr. Reddys holds the option for rights to develop and market the agent in India.On 25 May 2016 Dr. Reddys Laboratories announced the acquisition of an eminent portfolio of overthecounter OTC brands in the US in the coughandcold pain and dermatology categories from Ducere Pharma.On 3 August 2016 Dr. Reddys Laboratories announced that it successfully completed the previously announced acquisition of a portfolio of complex generic products in the US from Teva Pharmaceutical Industries Ltd. and an affiliate of Allergan plc. On 11 June 2016 Dr. Reddys Laboratories entered into a definitive agreement with Teva Pharmaceutical Industries Ltd. and an affiliate of Allergan plc to acquire a portfolio of eight Abbreviated New Drug Applications ANDAs in the US for 350 million in cash.On 7 October 2016 Dr. Reddys Laboratories announced its entry into Colombia with its portfolio of high quality and affordable medicines for Cancer patients.On 26 October 2016 Dr. Reddys Laboratories announced that it had entered into a strategic collaboration with Gland Pharma a globally recognized developer and manufacturer of sterile dosage forms to market and distribute a diverse portfolio of eight injectable Abbreviated New Drug Applications ANDAs in the United States.On 8 February 2017 Dr. Reddys Laboratories Ltd announced the expansion of its commercial operations in Europe with the introduction of its portfolio of generics in France. On 3 March 2017 Dr. Reddys Laboratories announced that it had completed the acquisition of 100 stake in Imperial Credit Private Limited a NonBanking Finance Company NBFC based out of Kolkata for a consideration of Rs 2.05 crore. The company proposes to undertake the groups captive financial activities through this entity.On 27 March 2017 Dr. Reddys Laboratories and Integra LifeSciences Holdings Corporation a leading global medical technology company announced that they have entered into an exclusive distribution agreement. Under the agreement Dr. Reddys will market and distribute DuraGen Plus and Suturable DuraGen Dural Regeneration Matrices for use in patients in India. The DuraGen product line offers Duraplasty Solutions meant for the repair of the dura mater. Dura mater is a thick membrane that surrounds the brain and spinal cord and contains the cerebrospinal fluid CSF. DuraGen Plus Dural Regeneration Matrix is indicated as a dural substitute for the repair of dura mater. On 27 July 2017 Dr Reddys Laboratories Ltd. and CHD Bioscience Inc. a privatelyheld biopharmaceutical company announced a global licensing agreement for the clinical development and commercialization of Dr. Reddys phase III clinical trial candidate DFA02. It is intended to be used for the prevention of surgical site infections following nonemergency elective colorectal surgery. Under the terms of the agreement Dr. Reddys would receive equity in CHD valued at 30 million upon an IPO of CHD or a minimum of 30 million in cash within 18 months of execution of the agreement. Dr. Reddys will also receive additional milestone payments of 40 million upon USFDA approval. In addition CHD will pay Dr. Reddys doubledigit royalties on sales and commercial milestones.On 22 August 2017 Dr. Reddys Laboratories Ltd. through its wholly owned subsidiary Promius Pharma LLC announced that it has outlicensed the future development manufacturing and commercialization rights of DFD06 a topical high potency steroid to Encore Dermatology Inc. The drug is intended to be used for treatment of moderate to severe plaque psoriasis. Under the terms of the agreement Encore will be responsible for the commercialization of DFD06 in the United States. Promius Pharma is eligible to receive certain pre and post commercialization milestone payments of up to USD 32.5 million followed by fixed royalty payments on net sales.On 19 December 2017 Dr. Reddys Laboratories Ltd. announced that its US subsidiary had reached a settlement with the US Government in a case involving packaging for five blisterpacked prescription products. In a joint filing by the parties Dr. Reddys and the US Department of Justice agreed to the settlement of the action without any adjudication of any issue of fact or law.In FY2018 the company filed 19 new Abbreviated New Drug Applications ANDAs and one New Drug Application NDA with the USFDA. As of 31 March 2018 the company had 110 generic filings pending approval from the USFDA comprising 107 ANDAs and three NDAs filed under the 505b2 route of the US Federal Food Drug and Cosmetic Act. Of the 107 ANDAs 63 are Para IV applications.The company had 51 subsidiaries and two joint venture companies as on 31 March 2018. During FY2018 Dr. Reddys Laboratories Chile SpA. in Chile Dr. Reddys WUXI Pharmaceutical Co. Limited in China Dr. Reddys Laboratories Malaysia Sdn. Bhd. in Malaysia and Dr. Reddys Laboratories Taiwan Limited in Taiwan have become subsidiary companies. DRSS Solar Power Private Limited was closed and ceased to be a joint venture company.In FY2019 the company filed 20 new Abbreviated New Drug Applications ANDAs with the USFDA. As on 31 March 2019 the company had 110 generic filings pending approval from the USFDA comprising 107 ANDAs and three New Drug Applications NDAs.The company had 52 subsidiaries and two joint venture companies as on 31 March 2019. During FY2019 Dr. Reddys Laboratories Thailand Limited and Dr. Reddys Laboratories Philippines Inc. have become subsidiary companies. Pursuant to sale of all the issued and outstanding membership interests in the antibiotic manufacturing facility at Tennessee USA Dr. Reddys Laboratories Tennessee LLC ceased to be a subsidiary.During FY2019 the company launched 15 new brands in India. The company spent towards RD expenses during FY2019 for the amount of Rs 15607 million or 10.1 of revenue versus 12.9 in FY2018.In FY2020 the company filed eight new Abbreviated New Drug Applications ANDAs with the US Food and Drug Administration USFDA. As on 31 March 2020 the company had 99 generic filings pending approval from the USFDA consisting of 97 ANDAs and two New Drug Applications NDAs.The company had 50 subsidiaries and two joint venture companies as on 31 March 2020. During FY2020 Aurigene Pharmaceutical Services Limited was incorporated as a stepdown subsidiary company. Dr. Reddys Singapore Pte. Limited and Reddy Antilles N.V. were closed and ceased to be whollyowned subsidiaries. Dr. Reddys Laboratories International SA ceased to be a stepdown subsidiary of the company consequent to its merger with Dr. Reddys Laboratories SA.During FY2020 the company launched 21 new brands in India. The company also entered the nutrition segment with the launch of our diabetes nutrition drink Celevida. The company spent towards RD expenses during FY2020 amounting to Rs 15410 million or 8.8 of revenue versus 10.1 in FY2019.On 10 June 2020 the company completed the acquisition of select divisions of Wockhardt Limiteds branded generics business in India and the territories of Nepal Sri Lanka Bhutan and Maldives. The business comprises a portfolio of 62 brands in multiple therapy areas such as respiratory neurology venous malformations dennatology gastroenterology pain and vaccines. This entire portfolio has been transferred to the Company along with related sales and marketing teams the manufacturing plant located in Baddi Himachal Pradesh and employees. During the quarter ended 30 September 2020 the company completed the purchase price allocation. The fair value of consideration transferred is Rs 16115 million. The company recognised Rs 373 million Rs 14888 million and Rs 530 million towards property plant and equipment intangible assets and goodwill respectively. The acquisition pertains to Companys Global Generics segment.On 22 October 2020 the Company experienced a cybersecurity incident related to ransomware. The Company could contain the incident in a timely fashion and has also ensured that all traces of the infection are completely cleaned from the network. All affected systems were restored and brought back to normalcy in the order of priority. Based on the forensic investigation no evidence was found of any data breaches leading to personally identifiable information. Since then the Company has also been focused on implementing significant improvements to its cyber and data security systems to safeguard from such risks in the future.The Company continues to consider the impact of COVID19 pandemic in assessing the recoverability of receivables goodwill intangible assets and certain investments.During December 2020 the company entered into a definitive agreement with Glenmark Phannaceuticals Ltd. to acquire certain brands in various Emerging Market countries for a total consideration of Rs 1516 million. The said transaction was accounted for as an acquisition of product related intangibles.
OrganisationDr Reddys Laboratories Ltd
HeadquartersHyderabad
IndustryPharmaceuticals