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THE BOUNCE BACK

(Business Today-July 2,2017 edition)

Presentation by:
• Ashish Joy
• Athira Ajaykumar
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CONTENTS
1. INTRODUCTION
2. CHALLENGES
3. OPTIONS
4. PLANS ON DEVELOPING AND ACQUIRING
PRODUCTS.
5. NEW MARKETS
6. CONCLUSIONS
7. REFERENCE
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INTRODUCTION
 Founded in 1983 by Anji Reddy .
 This company has over 190 medications and 60 Active
Pharmaceutical Ingredients (APIs) .
 Net revenue is US$2.4 billion (2016-2017).
 Reduction in profit margins and revenues.
 Run in with the U.S.F.D.A(United States Food and Drug
Administration).
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CHALLENGES
Regulatory:
 Stringent manufacturing plant evaluation.
 Delay in new product approvals.
 Goods and Services Tax.
 Generic drug prescription.
 Price caps.
Non-regulatory:
 Trade channel consolidation.
 Increased competition.
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OPTIONS
 Looking beyond generics to biosimilars.
 Partnering with other companies.
 Focusing on emerging markets.
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PLANS ON DEVELOPING AND

ACQUIRING PRODUCTS
 The company aims to fill its fifty percentage of future
products via partner site .
 Analysts predict that if all the products in the pipeline is
launched then, business revenues in U.S.A will increase
from 950 million USD to 1.6 billion USD.
 The company acquired 8 Abbreviated New Drug Application
portfolio (A.N.D.A) from Teva (A mix of approved A.N.D.A and
A.N.D.As pending approval.),a company acquired by Dr.
Reddy’s Laboratories in June 2017.
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NEW MARKETS
 The company has expanded its foothold in Colombia and
Brazil and plans to do so in Chile and North Africa, led by
Algeria.
 In Europe, it is moving beyond Germany and the UK into
France, Italy and Spain.
 The focus is on oncology products.
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CONCLUSIONS
 A growth driver, in spite of the challenges, can be the
biosimilar business, but the key market for biosimilars is the
developed world where, analysts say, the company has been
late.Hence, they should focus on the biosimilar business in
emerging markets.
 The company expects a business increase from $40 million
today to between $150 million and $200 million in the next
three to four years with respect to the biosimilar drugs
business.
 If that happens, and other plans fall into place, there is a
chance for Dr. Reddy’s Laboratories to bounce back.
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REFERENCE
 Business today(July 2,2017)
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