Founded by scientist, philanthropist and entrepreneur, the late Dr K Anji Reddy, Dr Reddy’s Laboratories (DRL) has emerged as a leading global pharmaceutical company with a 30-year legacy that thrives on research and development (R&D). The company’s best-in-class research capability focuses on complex injectables, particularly long-acting ones. This enables it to commercialise difficult-to-manufacture complex drugs at a fraction of the cost of an innovator’s version.
It is also one of the few Indian promoter-driven companies to be run by a professional management. The new chief operating officer, Erez Israeli, is an accomplished leader and has held several leadership positions in his 23-year career at Teva Pharmaceutical Industries. His focus is on generating incremental shareholder value by delivering robust profitability.
The company has three target areas as it lays the foundation for the coming years: a) prioritise growth areas, that is, US generics, India, China, Russia and active pharmaceutical ingredients (API); b) streamline cost structure and make loss-making businesses self-sustaining; and c) create a leadership structure underpinned by outcomes. The company’s board members also come from diverse fields, thus, bringing a comprehensive outlook to steering the company towards its goals.
Good corporate governance, strong earnings growth and almost zero debt on its books demonstrate that DRL has all the right ingredients to succeed.
DRL focuses on complex generics, specialty and biosimilars. It