Swot Ppt on Dr Reddy's
-
Upload
sanjay-trivedi -
Category
Documents
-
view
603 -
download
15
Transcript of Swot Ppt on Dr Reddy's
-
8/8/2019 Swot Ppt on Dr Reddy's
1/28
PIONEER INSTITUTE OF
PROFESSIONAL STUDIESSWOT ANALYSIS
ON
GUIDED BY PROF. Nihit Jaiswal
PRESENTED BY Deepraj Jain
MBA III R
-
8/8/2019 Swot Ppt on Dr Reddy's
2/28
Vision
Companys vision is to help people lead healthierlives. Company strive to do this by improving the
accessibility and affordability of existing healthcare,and by finding assures to unmet medical needs.
Mission
The Dr. Reddy'smissionistwo-fold:toprovide
patientsaccesstohigh-qualitygenericmedicinesataffordableprices,andtodevelopnewtreatmentsthatsatisfyunmetmedicalneedsthatareimprovementsovercurrentlyexistingtherapies.
-
8/8/2019 Swot Ppt on Dr Reddy's
3/28
-
8/8/2019 Swot Ppt on Dr Reddy's
4/28
Purpose of the Company
AffordabilityThehighcostofmanymedicinesputsthemoutofthereachofmillionsofpeoplewhodesperatelyneedthem. Asaglobalpharmaceuticalcompany,companytakeveryseriouslycompanysresponsibilitytohelpalleviatetheburdenofdiseaseonindividualsandontheworld. Throughcompanys Global Genericsbusiness,
companyprovidehighquality,lousr-costalternativestoinnovatordrugs.Companyswiderangeofgenericmedicinesbringhopeandhealthtopeoplearoundtheglobe.
InnovationDespitethegreatadvancesofmedicalscience,therearestillfartoomanydiseasesforwhichtherearenocuresornosatisfactorytreatments.Companybelievethatinnovation inresearch,processesandtechnologies holdsthekeytofindingsolutionsforunmetorinadequatelymetmedicalneeds.CompanysProprietary Productsbusinessisdedicatedtodiscoveringneworbettertreatmentsthancurrentlyexist. Inaddition,companysCustom Pharmaceutical Servicesbusinessworkswith Innovatorcompaniesandemergingbiotechfirmstoacceleratethedevelopmentofnewmolecules,whilelouringresearchcosts.
-
8/8/2019 Swot Ppt on Dr Reddy's
5/28
Promoters
Dr. K. Anji Reddy
Chairman
G V Prasad
Vice Chairman and
Chief Executive Officer
Satish Reddy
Managing Director & Chief
Operating Officer
-
8/8/2019 Swot Ppt on Dr Reddy's
6/28
Products & Services
1. Active Pharmaceutical Ingredients (API): Dr. Reddy's Laboratories product list span 24 major chemistries including stereo-
selective synthesis, cryogenics, hydrogenations and carnations.
Dr. Reddy's offers an unparalleled portfolio to companys customers, who includeinnovators and generic formulators worldwide. With a strong product portfolio of more
than 140 products, including niches like oncology and hormones,
Companys operations capabilities are among companys core strengths, with six USFDAapproved plants in India, one in Mexico and companys latest addition, a 100USFDAinspected plant in Mirfield, UK, having a total capacity of 3300KL.
Companys API business is supported by companys technologically advanced ProductDevelopment infrastructure, which identifies new products and is engaged every step ofthe way, from the conceptual stage to delivery of drugs to the market place.
US DMF 139
Canadian PMF 54
European DMF 81
CEPs 22
-
8/8/2019 Swot Ppt on Dr Reddy's
7/28
Products & Services
2. Custom Pharmaceutical Services:
Companys Custom Pharmaceutical Services (CPS) business serves severalinnovators, both Big Pharma and emerging biotech, and a large number of
emerging Pharma companies. Within a short span, company have become the
largest CPS player from India and a partner-of-choice to innovators, offeringtop-end technical expertise, tailor-made pharma solutions and a track record of
bringing innovations to the market quickly, efficiently and economically.
3. Global Generic:
Branded Generics
Companys Branded Generics portfolio offers over 200 products in themajor therapeutic areas of gastro-intestinal, cardiovascular, pain
management, oncology, anti-infectives, paediatrics and dermatology.
Brands like Omez, Ciprolet, Nise, Enam, Ketorol, Exifine and Cetrine
enjoy leadership positions in several key markets, including India,
Romania, Venezuela, Russia & the CIS countries.
-
8/8/2019 Swot Ppt on Dr Reddy's
8/28
Products & Services
Unbranded GenericsIn the unbranded generics space, company have capitalized on every
opportunity to bring companys high-quality products to more people around
the world. A synchronized supply chain that leverages companys strong
product development capabilities, state-of-the-art manufacturing and verticalintegration with companys own APIs has created a creditable track record of
successful Day 1 launches, with significant market shares in all companys
key markets. Companys transparent and strong relationships with pharmacy
chains, insurance funds and other distributor networks help company deliver
upon companys promise to customers and patients globally.
-
8/8/2019 Swot Ppt on Dr Reddy's
9/28
Products & Services
4. Generic Biopharmaceuticals
Grafeel (Filgrastim) was the first biologics product by Dr. Reddy's to enter themarket. The company's second product Reditux (Rituximab) is the first biosimilarmonoclonal antibody to be developed and launched anywhere in the world.Biologics, or biopharmaceuticals, are protein therapeutics drugs that are producedcompanying recombinant DNA technology.
REDITUX
Reditux is the Dr. Reddys brand of rituximab, a chimeric murine/human anti-CD20 monoclonal antibody (MAb), and is the world's first biosimilar monoclonalantibody. Reditux is companyed in the treatment of Non-Hodgkins Lymphoma,which is a group of cancers arising from lymphocytes, a type of white blood cell.
GRAFEELGRAFEEL is one of the hemopoietic growth factors that stimulate the proliferationof neutrophils. Grafeel is produced by a strain of Escherichia coli bearing agenetically engineered plasmid that contains a human G-CSF gene. GRAFEELregulates the production, maturation, and function of cells of the neutrophillineage. GRAFEEL is companyed to treat cancer patients suffering from
chemotherapy induced neutropenia.
-
8/8/2019 Swot Ppt on Dr Reddy's
10/28
Year/
Particular
2006 2007 2008 2009 2010
Operating
Margin(%)
15.82 35.08 17.42 18.95 24.76
Gross Profit
mar.(%)
10.26 31.55 12.58 14.11 19.70
Net Profit
Mar.(%)
10.08 29.01 13.57 13.20 18.48
Returnonnet
worth(%)
9.33 26.90 9.87 10.66 14.30
EarningperShare(Rs.)
13.79 74.23 28.27 33.32 50.11
Dividendpay
Out Ratio
0.4 0.05 0.13 0.18 0.22
COMPARISON TABLE OF
DIFFERENTRATIOS IN LAST 5 YEARS
-
8/8/2019 Swot Ppt on Dr Reddy's
11/28
Years /
particulars
(millions)
2006 2007 2008 2009
PBDIT 3750 4993 7462 9231
DEPRECIATION 1113 1335 1620 1936
PBIT 2637 3658 5842 7295
PBT 2637 3658 5842 7295
PAT 2111 2176 4753 5609
NET PROFIT 2111 2176 4753 5609
-
8/8/2019 Swot Ppt on Dr Reddy's
12/28
Bench Marking
PROCESS BENCHMARKING
Dr. Reddyfollowsthe Internationalstandardforbenchmarkingitsprocessbutitcanfollowthe
Pfizerprocesstodealintheotherdrugsandmedicines.
Pfizerfollowsleanmanufacturingandtotalqualitymanagementapproaches.
PERFORMANCE BENCHMARKING
Canadoptthe R&D performancebenchmarkingof GSK.
As GSK arethepioneerfornewmoleculedevelopment.
STRATEGIC BENCHMARKING
Canadoptthestrategiesof Elli-lilly. Inc.toincreaseitsglobalmarketshare
Elli-lillydoestheirmarketingonscientificdata.
-
8/8/2019 Swot Ppt on Dr Reddy's
13/28
SWOTANALYSIS OFDRREDDYS
BUSINESS LEVEL STRATEGIES
To get the competitive advantage on its competitors Dr
Reddys follow the low price strategy and Differentiation
through innovation and affordable price.
CORPORATELEVEL STRATEGIES
Dr Reddys focus on Expansion strategy through Merger
and Acquisition, Diversification and also from VerticalIntegration.
-
8/8/2019 Swot Ppt on Dr Reddy's
14/28
Product Lifecycle
Introduction and growth: Ruffy (Nalbofine HCL) injection
Maturity stage: Omez, Omez-D, Nise, Stamlo-T, Leon.
Decline: Clobutinol
-
8/8/2019 Swot Ppt on Dr Reddy's
15/28
Porters Five Forces Model
-
8/8/2019 Swot Ppt on Dr Reddy's
16/28
Potential Entrants: Mankind
Substitutes: Genericmolecules
Buyer: patients,hospitalpharmacy,chemistshop.
Industry Rivalry:Cipla, Ranbaxy,zuventus,ipca.
-
8/8/2019 Swot Ppt on Dr Reddy's
17/28
BCG Matrix
-
8/8/2019 Swot Ppt on Dr Reddy's
18/28
BCG Matrix
Star Omez
Omez-D
Nise
Stamlo-T
Leon
Mintop
Question mark Dermatology
Cash Cows Levodropropizine
Gastrointestinal (Rank #2) Cardiovascular
Pain
Oncology (Rank #2)
Diabetology
Dog Clobutinol
-
8/8/2019 Swot Ppt on Dr Reddy's
19/28
Opportunities forIndian pharmaceutical
companies
The Indian pharmaceutical industry has a lot of strengths and hence ample ofopportunities. A few important strengths are mentioned below.
Competent workforce
India has a pool of personnel with high managerial and technical competence asskilled workforce. It has the largest English speaking population in the world.Professional services are easily available.
Cost-effective Chemical Synthesis
Its track record of development, particularly in the area of improved cost-beneficialchemical synthesis for various drug molecules is excellent. It provides a widevariety of bulk drugs and exports sophisticated bulk drugs.
Legal & Financial Framework
Corporate Catalyst India Indias Pharmaceutical Industry India has a 53 year olddemocracy and hence has a solid legal framework and strong financial markets.There is already an established international industry and business community.
Information & Technology
It has a good network of world-class educational institutions and establishedstrengths in Information Technology.
-
8/8/2019 Swot Ppt on Dr Reddy's
20/28
Globalization
The country is committed to a free market economy and globalization. It has a 70 millionmiddle class market, which is continuously growing.
Low priced products
The industry has thrived so far on reverse engineering skills exploiting the lack of processpatent in the country. This has resulted in the Indian pharmaceutical players offering theirproducts at some of the lowest prices in the world.
Quality assurance
The quality of the products is reflected in the fact that India has the highest number ofmanufacturing plants approved by US FDA (61 plants), which is next only to that in the US.
Dominance in the market
Multinational companies have traditionally dominated the industry, which is another trendseeing a reversal. Currently, it is the Indian companies which are dominating themarketplace with the local players dominating a number of key therapeutic segments.
Self-reliance
Displayed by the production of 70 per cent of bulk drugs and almost the entire requirementof formulations within the country.
-
8/8/2019 Swot Ppt on Dr Reddy's
21/28
Other Strengths
Low cost of production, Low R&D costs, Innovative Scientific manpower andIncreasing balance of trade in Pharma sector are also significant strengths of the
Indian pharmaceutical industry. R&D
Corporate Catalyst India Indias Pharmaceutical Industry Both the Indian centraland state governments have recognized R&D as an important driver in the growthof their pharma businesses and conferred tax deductions for expenses related toresearch and development.
ClinicalResearch- India, Most Significant EmergingGeography
Indian clinical research industry is estimated at overUS$ 100 million. It complieswith ICHGCP protocols. It is a growing body of trained and experiencedinvestigators. India is expected to capture about 10 per cent of the global clinical
research market by 2010.
Labor force
With one of the largest and most genetically diverse populations in any singlecountry, India can recruit for clinical trials more quickly and perform them morecheaply than countries in the West.
-
8/8/2019 Swot Ppt on Dr Reddy's
22/28
The IndianGenerics market
The Indian generics market is witnessing rapid growth opening up immense opportunities
for firms. This is further triggered by the fact that generics worth over$40 billion are goingoff patent in the coming few years which is close to 15 per cent of the total prescription
market of the US. The Indian pharmaceutical companies have been doing extremely well indeveloped markets such as US and Europe, notable among these being Ranbaxy, Dr.Reddy's Labs, Wockhardt, Cipla, Nicholas Piramal and Lupin.
Smaller bio tech firms
With pharmaceutical companies struggling to maintain R&D productivity, biotechnologycompanies present opportunities to enhance product pipelines. Increasing convergence of
the pharmaceutical and biotechnology sectors was observed during 2004. The demand for
biopharmaceuticals is encouraging pharmaceutical companies to invest in smaller biotech
firms.
Ageing and obese population
Healthcare needs will increase and drugs will be used for longer. For instance, an ageing
global population is poised to drive pharmaceutical drugs for indications such as
Alzheimers disease. Drugs that address rising multifactorial disorders such as cancer as
well as lifestyle disorders such as obesity are also likely to experience strong revenue
growth.
-
8/8/2019 Swot Ppt on Dr Reddy's
23/28
SWOTANALYSIS
STRENGTHS
Itisoneofthebiggestlaboratoriesintermsofthenumberofscientists
Whollyownedsubsidiariesin US and Europe
JointventuresinChinaand South Africa
Marketspharmaceuticalproductsin 115 countries
Partnershipswithglobalpharmaceuticalcompanieslike Novartis, NOVO Nordisk,etc. Strongproductportfolio
Manufactureandmarketover 250 medicinestargetingawiderangeoftherapies
Widerangeofanti-cancerdrugsdeveloped
Over 100 APIsdeveloped
Six NewChemical Entities(NCE)
Lowcostbase
Contributestocompanyshighprofitmarginofaround 34% ofsales
A partnershipwithkeyplayersinthemarketkeepsitscostbasedown
Research Driven & Global Talent
Expertiseindevelopinginnovativeproductformulations
6120 employeesworldwideincluding 951 scientistsinwhich 323 arededicatedtowardsnewdrugdiscoveryresearch
-
8/8/2019 Swot Ppt on Dr Reddy's
24/28
Strengths
Dr. Reddyshasthreeestablished R&D centers thatfocusonthedevelopmentofgenerics,
noveldrugdeliverysystems(NDDS) andnewdrugdiscoveryresearch(NDDR) inarangeofresearchfields.
Dr. Reddyshasfurtherexpandeditscapabilitiesthroughorganicgrowth,thecompanyhas
alsotakenanactivepartinexpandingitsgeographicpresencethrough M&A.
Dr. Reddyssellsandmarketsitsproductsinmorethan 100 countries,withanestablished
presenceinthe US, Germanyand Russia.
Dr ReddysalsolaunchedasocialinitiativecalledSparsh, anassistanceprogramforcancer
patients whocannotaffordatreatment. Patientsidentifiedbythedoctorsthrough Sparsh are
provided Reditux, theanticancerbiologicdrugfrom Dr Reddys Labsfreeofcost.
Internationalpresencewithanactivepresenceacrossthepharmaceuticalvaluechaininthedevelopmentandmanufacturingofgenericandbrandedpharmaceuticalsandbulk
pharmaceuticalingredients.
Highbrandvaluee.g. NICE tablet.
-
8/8/2019 Swot Ppt on Dr Reddy's
25/28
Weakness
Highamountofrevenuesfromoverseas
India- arichsourceof Active Pharmaceutical Ingredients(APIs),hencemajorsourceofrevenue
isexportsof APIs. Maylooseouttowesternworld,especially Europe,wherecurrencyismuch
morestablethanthe Indian Rupee
Over-relianceonpartnerships
Inordertocompeteeffectivelyinglobalmarkets,strategicpartnershipsrequiredtodevelop
products.
Lackofresourcessimilarto US and Europebasedcompetitorstodevelopadrugtomarketing
stage
Genericdrugssmallestfocus.
Smallestportionofrevenuesfromgenericsataround 20%
Lackofpatentlegislationin Indiaharmssalesofitsproducts
Political Risk
Itsmarketingisnotbasedonscientificdatalike Elli-lilly .
-
8/8/2019 Swot Ppt on Dr Reddy's
26/28
Opportunities
Takeadrugallthewaytomarket
Takeamoleculefromitspipelineallthewaytothemarketplacecost-effectivelymarket
Buybackoftheintegrateddrugdevelopmentcompanyfrom ICICI VenturesandCitigroup
Domestic Genericdrugsmarket
Inanother 4-6years,manyproductpatentsobtainedafterthe 2004 legislationwillgooffprovidinganopportunitytothecompanyincreaseitsdomesticfootprintin Generics.
RDY beingamuchsmallergenericcompany($3 billionestimatedinfiscal 2012) comparedtoa
companylikeTeva (TEVA) ($14 billion sales), itcaneasilygrowat 20% rateformanymore
years
Basedonfiscal 2012 earningsof $414 million($2.48 pershare) RDY'ssharevaluewouldbe
$50.
Increasedfreecashflowwouldleadtoincreasedinvestment/acquisitioninmorespecialone
timegenericopportunities
Dr. Reddy'shighvalue US genericopportunitiesinthenext 3 yearshasthepotentialtobringin
asmuchas $1 billion.
-
8/8/2019 Swot Ppt on Dr Reddy's
27/28
Threats
Needstogain FDA approvalforallsourcesandproducts
Productshavetopassstrict FDA trialsbeforegoingtomarket,whichcanbecostlyandtime
consuming
Thismaydelaythecompanyentrytoparticularmarketswhichaffectsrevenue
Competitionfrom US and EuropeanCompanies Basedinlucrativemarketse.g. Novartis, Merck & Co
Revenuesrunningintobillionswhichdwarfs Reddysannualturnover Litigationcharges
Reddyslostthecaseagainst Pfizerfortheuseofgenericformof Norvasc drug. Legalcost
$10mandalsolossofmarketopportunity.
Heightenedconcernsaboutprofitabilityof Germangenericsbusinessof Betapharm GrowingcompetitionfromChina
Competitionfrom Indiancompanieswithinthedomesticmarket
Morepotentialnewdrugsandmoreefficienttherapies.
Rapidlychangingstandardsofqualityandmanufacturingattheinternationallevel.
-
8/8/2019 Swot Ppt on Dr Reddy's
28/28
Thank You
A Prayer Of Two Words