Business Model of Dr.

Reddys Laboratories
Integrated Business Model

Strategic Value Across The Value Chain

Ability To Secure Long Term Cost Competitiveness

Leverage R&D (Scale & Infrastructure Across Business)

Dr. Reddys Laboratories is a Vertically Integrated Global Pharmaceutical Company with the Value Proposition Statement of Providing Affordable and Innovative Medicines for Healthier Lives. The company has a dual impact approach: 1. Improve Accessibility through Generic Pharmaceuticals 2. Satisfy Unmet Medical Needs through new and improved pharmaceuticals There are three core businesses of Dr. Reddys Laboratories:

29%

69%
Share of Revenue

2%

1. Pharmaceutical Services and Active Ingredients (PSAI): A two-pronged business: a) Supplier for Dr. Reddys Laboratories Global Generics Business- providing high degree of vertical integration and cost advantage b) Partnering with Innovator Companies with service offerings spanning the entire value chain 2. Global Generics (Finished Dosage): Final drug product business forming the major chunk of revenue source for the company. It has strong presence in key markets with extensive generics portfolio. The company relies on continuous internationalization with a focus on emerging markets 3. Proprietary Products: This again is a two-pronged business: a) Specialty Chemicals: Discovery and development of new and improved therapies for select diseases b) Biologic Drugs