Swot-Pest DR Reddy's Lab

SWOT
&
PEST ANALYSIS
GROUP 9
COMPANY PROFILE
Dr. Reddy’s Laboratories Ltd
 Established in 1984, Dr. Reddy’s Laboratories is
an emerging global pharmaceutical company.
core businesses:
 Pharmaceutical Services and Active Ingredients.

 Global Generics, which includes branded and
unbranded generics.
 Proprietary Products, which includes New
Chemical Entities (NCEs), Differentiated
Formulations, and Generic Biopharmaceuticals.
 Headquartered in India, Dr. Reddy’s Laboratories Ltd. is a
global company
represented in more than 100 countries. They have
subsidiaries in the U.S., United Kingdom, Russia,
Germany and Brazil; as well as joint ventures in China,
South Africa and Australia; representative offices in 16
countries; and third-party distribution set ups in 23
countries.
 1 Billion in revenue
Dr. Reddy’s is the first pharmaceutical

company in Asia outside Japan to be listed on the NYSE.
Strengths
Manufacturing
API Facilities
 Capabilities in Major Chemistries-24
 Six FDA-Inspected plants in India
 One FDA-Inspected plant in Mexico
 One FDA-Inspected plant in Mirfield
 More than 2.3 million litres reaction volume

Finished Dosage Units
 Six in India, With ISO 14001 and ISO 9001
certifications, Approved by USFDA, MHRA

(UK), MCC (South Africa), TGA (Australia),
ANVISA (Brazil), TPP (Canada) One FDA-
Inspected plant in USA
Biologics Facility
 One in India, audited by multiple regulatory
agencies
Partnership/Acquisition
 Dowpharma/Chirotech acquisition in UK
provides proprietary chiral and biocatalysis
technology
 Betapharm acquisition in Germany could help
to introduce a variety of generic products and

build a presence in the European markets
Research & Development
 PSAI
3 Technology development centers
(2 in Hyderabad, INDIA; 1 in Cambridge, UK)
 Product development
Integrated Product development Capabilities
that includes API, Formulations and analytical
development skills.
 NCE
Conducts research in the areas of metabolic
disorders, cardiovascular indications
and Cancer.
 Biologics development center

Opputunity
 Niche Therapeutic Area-Global Oncology
Strong Biologics & Cytotoxic Manufacturing
Infrastructure to address the need of Oncology Market
 Need to find products, which will
be less competitive in the market, like niche products

or ones that have IP and
technology barriers.
 Partnerships to accelerate the discovery and
development of new therapies focussing on Biosimilar

development.
 Betapharm (Germany) acquisition will help penetrate
other European markets

Weakness
 Drug discovery is unpredictable business.
 Cost of innovation is very high and for Dr Reddy’s it
has to be funded from a Generic business where
the margins are low.
 Need to build downstream skills for Drug discovery
in development, clinical trials, global registration
and marketing.
 Challenge is to find the right collaborator to achieve
strategic vision of becoming a discovery led global
pharmaceutical company and at the same time
building generic business to a critical mass.
Treats
 Being in Generic business achieving critical mass is
challenge.
 Considerable investments in USA & Europe and
neither of these markets has reach singnificant

volumes.
 USA market is getting overcrowded by Indian players
.
 Additionally, the price pressure and the presence of
international giants like Sandoz and Teva are

considerably slowing down the performance of the
Indian generic pharmaceutical companies in this
market.
PEST
Political
 With amendment of patent laws ,products under patent

cannot be launched in India.
 Innovator companies are lobbying for making more
stringent patent laws which could make selling of

patented products more difficult
 e.g-Seizure of drug consignments in transist belonging to
some of reputed Indian manufacturer meant for African

countries at Neitherland port by Exice
 Developed countries are constantly making stringent
regulatory systems (GMP) resulting in increased in

manufacturing cost.
Social
 Cost effective generic drugs are needed by
developing and under developed countries
for healthcare therefore demand should rise.
 As disposable income of people is rising and
are becoming more health concious, demand

for products such as nutraceuticals ,multi
vitamins are rising.
 Eg Success of Rivital by Ranbaxy lab
Economical
 As cost of healthcare is shooting up in
developed countries there will be want for
quality generic drugs in USA,UK,Europe.
Dr reddy’s with its brand name can penetrate
these markets.
Technological
 Initial investment for Drug discovery is very
high and about 15-20 years are required for
developing one drug molecule.
 New molecule has to go through clinical trials.
If clinical trials fails whole investment is lost.
 High end technology is required for selecting
desired molecule.
 Thus Dr Reddys has to continuously upgrade
technology and synchronize all the areas of
drug discovery for minimizing failure risk.

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SWOT

 Pharmaceutical Services and Active Ingredients.

Dr. Reddy’s is the first pharmaceutical

 Six FDA-Inspected plants in India

 One FDA-Inspected plant in Mexico

 One FDA-Inspected plant in Mirfield

 More than 2.3 million litres reaction volume

certifications, Approved by USFDA, MHRA

to introduce a variety of generic products and

 Biologics development center

be less competitive in the market, like niche products

development of new therapies focussing on Biosimilar

other European markets

neither of these markets has reach singnificant

international giants like Sandoz and Teva are

 With amendment of patent laws ,products under patent

stringent patent laws which could make selling of

some of reputed Indian manufacturer meant for African

regulatory systems (GMP) resulting in increased in

are becoming more health concious, demand

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