Dr. Reddy's Laboratories Ltd : History, Latest Updates, Milestones, Subsidiaries and Share Price

INTRODUCTION

Dr. Reddy's Laboratories Ltd. (DRL) is a global pharmaceutical company dedicated to delivering affordable and innovative medicines for better health. With expertise in Pharmaceutical Services & Active Ingredients, Global Generics, and Proprietary Products, DRL offers a wide range of products and services, such as Active Pharmaceutical Ingredients (APIs), custom pharmaceutical solutions, generics, biosimilars, and specialized formulations. The company focuses on key therapeutic areas like gastrointestinal, cardiovascular, diabetology, oncology, pain management, and dermatology. Operating worldwide, DRL serves major markets, including the USA, India, Russia, CIS countries, and Europe.

Dr. Reddy's Laboratories Ltd. Moves in 2024:

• Dr. Reddy's Laboratories declared a final dividend of Rs.40 (800%) per equity share for FY23, alongside unveiling Q4 results. The dividend will be paid after approval at the annual general meeting. Net profit surged to Rs. 959.2 crore for the quarter, with revenue rising by 15.81% YoY to Rs. 6296.8 crore. Strong sales from generics and domestic formulations drove growth.

• In December 2023, Dr. Reddy's Laboratories reported consolidated net sales of Rs. 7,236.80 crore, marking a 6.58% increase year-on-year (YoY). Quarterly net profit rose by 11.01% to Rs. 1,380.90 crore, while EBITDA increased by 12.12% to Rs. 2,239.30 crore compared to December 2022.

• In the second quarter, Dr. Reddy’s Laboratories Ltd. experienced a remarkable 33% surge in profits, surpassing analysts' expectations. The company's net profit reached Rs 1,482 crore from July to September, outperforming the consensus estimate of Rs 1,281 crore. Sequentially, the profit increased by 5%.

• Revenue rose by 9% to Rs 6,903 crore.

• Ebitda increased by 6% to Rs 2,014 crore,, and Ebitda margin stood at 29.2% compared to 30%.

• Revenue from India's market showed a 3% increase, contributing 17% to the overall revenue, driven by pricing, new launches, and partly offset by NLEM (National List of Essential Medicines) impact and the subdued demand can be attributed to a sluggish acute season.

• Emerging-market sales slightly declined by 1%, making up 18% of the total revenue, with Russia reporting a year-on-year sales decline of 3% due to currency devaluation.

• The segment of pharmaceutical services and active ingredients experienced a growth of 9%, accounting for 10% of the total revenue.

• The company maintains its margin guidance of 25% for the long term, despite fluctuations between quarters. Dr. Reddy's is actively pursuing innovative initiatives in India, focusing on acquisitions in the chronic space and seeking opportunities to add value through innovative assets. In China, the company is on track with drug filings and approvals and is set to participate in the new GPO (Group Purchasing Organization) programme, a volume-based drug procurement scheme

Evolution of Dr. Reddy's Laboratories Ltd : From Past to Present:

• 1984: Dr. Reddy's Laboratories was founded in Hyderabad, India, by Dr. Anji Reddy.

• 1986: The company's shares were listed on the Bombay Stock Exchange, and exports of Methyldopa marked their entry into the international market.

• 1987: Dr.Reddy's received its initial USFDA approval for Ibuprofen API.

• 1990: The company exported Norfloxacin and Ciprofloxacin to Europe and Far East.

• 1993: Dr. Reddy's established the Dr. Reddy's Research Foundation and initiated a drug discovery program.

• 1999: Acquisition of American Remedies Ltd, a pharmaceutical company based in India.

• 2000: Merger with Cheminor Drugs Ltd, becoming India's third-largest pharma company.

• 2007: Launch of Reditux, the world's first biosimilar MAb for Non-Hodgkin's Lymphoma, making Dr. Reddy's India's leading and most profitable pharmaceutical company.

• 2010: Acquisition of GlaxoSmithKline's oral penicillin manufacturing facility in Tennessee, USA

• 2015: Exclusive distribution agreement with Hetero for Sofosbuvir 400 mg tablets in India Also, commercialization deals with Hatchtech for Xeglyze Lotion in various countries.

• 2016: License agreement with XenoPort for the development of XP23829 for chronic plaque psoriasis and potentially for relapsing forms of multiple sclerosis.

• 2020: Acquisition of select divisions of Wockhardt Limited's branded generics business in India and several territories. Cybersecurity incident related to ransomware occurred in October.

• 2022: Merger with Dr. Reddy's Holdings Limited became effective on April 8, 2022. Launch of Lenalidomide Capsules, Sorafenib tablets, and Timolol gel in the United States.

Dr. Reddy's Laboratories has continuously expanded its presence in the pharmaceutical industry, embracing innovation and global partnerships to enhance its product offerings and market reach.

Timeline of Dr. Reddy's Laboratories Ltd:

Inside Dr. Reddy's Laboratories Ltd: Exploring Subsidiary Ventures 

Dr. Reddy's Laboratories Ltd

Corporate actions: Dr. Reddy's Laboratories Ltd. has announced a corporate action involving a dividend distribution of Rs. 40.0000 per share. The ex-date for this dividend is July 11, 2023, indicating that shares traded on or after this date will not qualify for the dividend. The book closure/record date period is from July 12, 2023, to July 14, 2023. Shareholders recorded during this period will receive the declared dividend, emphasizing the importance of timely actions for investors in Dr. Reddy's Laboratories Ltd.

Main News: Dr. Reddy's reported a 9% increase in revenue, reaching Rs 6,903 crore, which exceeded the Bloomberg estimate of Rs 6,844 crore.

In a recent financial report, Dr. Reddy's Laboratories posted impressive second-quarter results, surpassing market estimates. The company's profit has seen a significant rise, outperforming expectations.

Main News: Dr. Reddy's Laboratories Leads as Golden Crossover Signals Market Momentum Shift

Trendlyne's recent Golden Crossover pattern in 40+ Nifty stocks highlights a significant market shift. Dr. Reddy's Laboratories stands out among key players like Coal India and Divi's Laboratories, signaling strong investor confidence. This development reinforces Dr. Reddy's position as a leading player in the evolving stock market landscape. Stay tuned for updates on this market-changing trend.

Main News: Dr. Reddy's Laboratories Advances Weight Loss Drug Study

Dr. Reddy's Laboratories has obtained approval from India's regulatory body for a bioequivalence study on the weight loss drug Semaglutide. While the company initially sought a waiver and a Phase III trial, the SEC recommended the study's conduct. Successful results could lead to the drug's launch within a year, showcasing Dr. Reddy's commitment to pharmaceutical innovation.

Main News: Dr. Reddy’s Focuses on Strategic Expansion in India, Bolstered by Consistent Quarterly Performance in Advanced Markets

Main News: Dr. Reddy's Hyderabad Facility Receives 10 Observations from US FDA

During a standard cGMP inspection at our formulations manufacturing facility (FTO-3) in Hyderabad, Dr. Reddy's Laboratories was issued 10 observations by the US FDA.

Major Subsidiaries

Aurigene Discovery Technologies Ltd.

Aurigene Discovery Technologies, operating in India and Malaysia, spearheads Dr. Reddy’s innovative research efforts, focusing on groundbreaking therapies. As a vital subsidiary, it enhances global healthcare initiatives, contributing significantly to pharmaceutical innovation and medical progress.

Promius Pharma LLC

Promius Pharma LLC, based in the U.S., specializes in dermatology, developing and commercializing proprietary prescription brands. By providing effective dermatological solutions, it strengthens Dr. Reddy’s global presence, ensuring accessible and impactful skincare treatments and reinforcing the company's standing in the international healthcare sector.

Imperial Credit Private Ltd.

Imperial Credit Private Ltd., operating in India, serves as a crucial financial backbone for Dr. Reddy’s diverse projects and expansions. Its robust financial support ensures seamless operations and facilitates global growth, playing a pivotal role in the company's expansion initiatives.

Major Acquisitions and Joint Ventures:

Acquisition of Betapharm (2006)

Dr. Reddy’s acquisition of Betapharm, a leading German generic pharmaceutical company, expanded its European market presence significantly. Integrating Betapharm’s capabilities allowed Dr. Reddy’s to offer innovative healthcare solutions across Europe, strengthening its role as a provider of affordable and diverse healthcare products.

Joint Venture with Merck Serono (2012)

The collaboration with Merck Serono focused on co-developing a comprehensive portfolio of biosimilar compounds, particularly in oncology. By combining Dr. Reddy’s expertise in drug development with Merck Serono’s global commercial reach, this partnership emphasized the commitment to delivering advanced healthcare solutions globally.

Joint Venture with Fujifilm Corporation (2011)

Dr. Reddy’s partnership with FUJIFILM Corporation aimed to create a wide range of diagnostic and therapeutic products. Leveraging each entity’s strengths, this collaboration bolstered their ability to provide advanced and affordable healthcare solutions to a diverse and extensive population.

Dr. Reddy's Laboratories Ltd NSE/BSE: Current Share Prices 

Achievements & milestones:

2017: 

• Dr. Reddy's was recognized as one of the 'Best Places to Work' in New Jersey by NJBIZ.

2018: 

• The organization received the India Pharma Corporate Social Responsibility (CSR) Programme of the Year Award from the Department of Pharmaceuticals, Government of India.

• Dr. Reddy's was honored with the Global Generics & Biosimilar Award for CSR Initiative of the Year.

• Studies Conducted in 2018: Dr. Reddy's was acknowledged for having one of India's Best Managed Boards in studies conducted by Mint, Aon Hewitt, Economic Times, and Hays.

2019:

• Dr. Reddy's won the Golden Peacock International Award for Sustainability.

• It was named API Supplier of the Year at the 6th Annual Global Generics & Biosimilars Awards.

• The company earned a spot on the Bloomberg Gender-Equality Index.

• Dr. Reddy's was recognized as one of the top 10 Indian companies in China by Forbes in 2018.

• The organization was recognized as one of India’s Best Companies to Work For in the Biotechnology and Pharmaceuticals Sector by Great Place To Work® Institute.

CONCLUSION

Since its establishment in 1984, Dr. Reddy’s Laboratories Ltd. has maintained steady growth. The company has played a vital role in global healthcare, offering essential medications and innovative solutions. Its dedication to enhancing lives worldwide remains unwavering. Dr. Reddy’s Laboratories Ltd. is poised to persist in its impactful healthcare contributions, ensuring universal access to effective and affordable medications.

Frequently Asked Questions:

1. What is the current Dr. reddy share price nse today?

Check out the current Dr Reddy stock price today and real-time updates on Enrich Money's stock analysis page.

2. Who owns Dr. Reddy’s?

• Promoter holding decreased from 26.7% (31 December 2022) to 26.66% (30 September 2023).

• Domestic Institutional Investors' holdings decreased from 23.35% on December 31, 2022, to 21.03% on September 30, 2023.

• Foreign Institutional Investors' holdings increased from 27.29% on December 31, 2022) to 28.19% on September 30, 2023.

• Other investor holdings rose from 22.66% (31 December 2022) to 24.12% (30 September 2023).

3. What has been the highest Dr. Reddy share price in the last 52 weeks?

Dr. Reddy's stock price reached a 52-week high of Rs 5,989.70 and a low of Rs 4,175.10.

4. What are the key metrics to analyze Dr. Reddy's share price?

PE Ratio: 17.88

Earnings per Share: 305.26

Price/Sales Ratio: 3.12

Price to Book Ratio: 4.16

5. What is the market capitalization of Dr. Reddy's?

Dr. Reddys' stock has a Market Capitalization of Rs 91,030.29 crore.

 

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