Dr. Reddy’s – Growth Story Intact: Nirmal Bang

We attended the Investor Day Conference of Dr. Reddy’s Laboratories Ltd. to understand the company’s future business outlook. The overarching themes at the conference were related to achieving sustainability through renewed focus on environmental, social and governance considerations and striving to achieve double-digit revenue growth while simultaneously maintaining Ebitda margin and return on capital employed of ~25% in the medium term.

The management has emphasised on increasing patient reach with a goal of serving 1.5 billion plus patients globally by 2030 (three times company’s current patient base).

Dr. Reddy’s will follow a two-pronged approach in its journey to achieve profitable growth:

  1. Growth in core businesses, including generics, active pharma ingredient, biosimilars, over-the-counter and branded generics (Horizon 1, short medium term growth drivers).

  2. Building capabilities in areas that can be meaningful in the short to long term. These areas include immuno-oncology new chemical entities, biologics, cell gene therapy, nutraceuticals, contract development and manufacturing organisation, among others. (Horizon 2, short-long term growth drivers).

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