Dr. Reddy’s beginning was in 1984, when The Company was established by Dr Anji Reddy with an initial capital of Rs 25 lakhs. Their maiden production was high quality Active Pharmaceutical Ingredients, mainly catering to the Indian Market. Today it has expanded their activity to Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, and biosimilars, The company employs over 2700 representatives and one of the biggest Indian Pharmaceutical Company. It has turned itself into a 200 million worth of Pharma venture. It started manufacturing finished products in the 1986 when it launched Norilet. Since then the company has regularly updated its presence in the market by launching more medicines addressing major areas like gastro-intestinal, oncology, pain management, cardiovascular, dermatology, diabetes, anti-infective, paediatrics and so on. The company’s international operations started around 1991.Ttheir major markets include, USA, Russia and CIS, Germany, UK, Venezuela, S. Africa, Romania, and New Zealand.
Acquisitions
In the year 1988, they acquired Benzex Laboratories Pvt Ltd to expand their business
In the year 1999, the company acquired American Remedies Ltd, an Indian pharmaceutical company. Cheminor Drugs Ltd, was merged with the company in the year 2000. The first overseas acquisition was in the year 2002 when it acquired BMS Laboratories Limited and Meridian Healthcare in UK.
In the year 2006, the company acquired a German company called Betapharmthis company was one of the largest generic drug company in Germany.
During the year 2008-09 many acquisitions were done. The company acquired DowPharma's small molecules business in UK under Chirotech Technology Ltd, BASF Corporation's manufacturing facility at Shreveport in Louisiana, USA- Dr. Reddy's Laboratories Louisiana LLC and Jet Generici SRL,in Italy.
In the year 2003 they launched their first generic product, Ranitidine, in the US market. Also , they launched Ibuprofen, first generic product to be marketed under the 'Dr. Reddy's' label in the US. Exports commenced with the drug Methyldopa. In the year 1987, the company obtained first US Food and Drug Administration, approval for Ibuprofen.. In the year 1990, they exported Norfloxacin and Ciprofloxacin to Europe and Far East. In the year 1991, they started exports to Russia, Later joint ventures were in established in Russia
Subsidiaries.
In the year 2005, they acquired Roche's API Business at its manufacturing site in Mexico. Perlecan Pharma Pvt Ltd and Macred India Pvt Ltd became the company’s subsidiaries. Another company - Dr. Reddy's Laboratories ILAC Ticaret also brought under the arm of the company. In the year 2009-10, Dr. Reddy's Pharma SEZ Ltd became a wholly-owned subsidiary of the company. This unit was put into use for manufacturing at Special Economic Zones. Perlecan Pharma Pvt Ltd was another company which was merged with the company. In the overseas, the company completed the acquisition of its balance stake of 30% in Dr. Reddy's (Australia) Pty Ltd. In the USA the company acquired GlaxoSmithKline's (GSK) oral penicillin manufacturing facility, in Tennessee.
Dr. Reddy's Laboratories Romania SRL, I-Ven Pharma Capital Ltd, Dr. Reddy's Laboratories Tennessee LLC and Dr. Reddy's Venezuela C.A., Dr. Reddy's Laboratories (Proprietary) Ltd also became wholly-owned subsidiaries of the company.
These arrangements could be seen as strengthening of the existing business or forging new strategies for marketing its own formulations.
The Dividend history of the company is also impressive. In the last two years of 2011 and 2012, it has paid 225%, 275% respectively. The EPS has been 53.81(Rs).At the time of writing this notes the companies share were trading at all time high ahead of Jan- March earnings reports. (Rs. 2085)
The background of the company and its past performance makes this reliable Indian Pharmaceutical Company, a must have in portfolio stock. Shares can be accumulated on dips and held for a longer time frame.
Disclaimer: I do not hold any shares or any interest in the company.
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