NSE: DRREDDY

BSE: 500124
NYSE: RDY

Group #4
Hemant Pandey – WMP13017
Himanshu Jaiswal – WMP13018
Himanshu Sawhney – WMP13019
Hirdesh Kumar – WMP13020
Ina Thakral – WMP13021
Jagrit Sharma – WMP13022
Vision and Mission Statements

Vision
To become one of the leading global generics companies providing tough-
to-make and truly differentiated products that address unmet needs of
patients globally

Mission

The mission is to improve the quality of life and life expectancy itself. This
requires good science. But for science to be good, it has to result in
affordable medicine.
Does the firm have competitive
advantage?
• Company has been outperforming industry average on profitability Sources of Competitiveness
• R&D capabilities within
Generics
• State-of-the-art technology in
• Company is making economic profit
cell line and process
development
• Research capabilities within
Biologics
Is the firm Diversified?
Internal Assessment
Technology Strategy
• Generics - Generic Drugs are low cost
reinforced versions of actual patented drugs.
Here, the core concept, basic mix and linkages
are not changed.

• BioSimilars - High Quality and bio equivalent

alternative of the innovative drugs. Here the
core concept is not changed but the
architecture is changed to bio equivalents.

• Differentiated Formulations / NCEs - These

are new drug innovations of the company to
cure the diseases.
International Strategy
• Dr. Reddy’s has followed Global international
strategy.

• It produced standardized drugs mostly

through its plants in India, and marketed and
sold in different international markets.

• It has achieved economies of scale through

centralized manufacturing in six FDA
approved plants in India.

• It also benefited from low labor and

manufacturing costs in India.
Challenges
• Gene Therapy: Currently low adoption. High potential to disrupt the ways of patient
treatment altogether.
• Regulatory Challenges:
• USFDA – warning letters issues to 3 plants (2 API’s and 1 oncology formulation
facility).
• Federal Institute for Drugs and Medical Devices (BfArM), Germany : Four month
delay in production for non-compliance in GMP audit.
• Decline in revenue for North America market due to price erosion and channel
consolidation in US.
• Price control under Drug Price Control Order (DPCO) affected the sales performance
of selected products.
• Effects of the Goods and Services Tax (GST) implementation in India for National list
of Essential Medicines.
Recommendations
1. Focus on Safety, Quality and 2. Leverage on megatrend for
Innovation : Biologics and biosimilar
Enter into more new markets in LatAm, Africa and Asia.
Why?
Why?

• Basic necessity to survive

• Industry outlook for Cancer : General Environment Analysis.

• Cost of error can be huge and can not be reversed (few times) • Increasing industry growth of Biologics: 14 times higher than Chemical drugs

• Open - Innovation : Change management • Reditux: A competitive Dr. Reddy’s Product

• Alignment with Mission Statement: Affordable medicine, Increasing quality of life and
life expectancy

• Good Market Share in EMs : Systems in place already

Few Facts:

• Successful launches of Oncology products in EM and EU, Colombia, Brazil, Algeria,

Spain, Italy

• Biosimilars and small molecule Oncology assets fueling global expansion

• Reditux™ paving the way for the entry of upcoming Biosimilar assets in new markets
• Currently approved in 17 countries and available in 14
Innovation • Launched five products in India through strategic collaboration with Amgen
 References
• https://money.rediff.com/companies/Dr-Reddy-s-Laboratories-Ltd/12540015/ratio?src=comp_research
• http://www.drreddys.com/media/904038/corporate-presentation-2017.pdf
Questions?