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Dr Reddy's Laboratories Ltd ADR - Stock Quote RDY

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Morningstar's Dr Reddy's Laboratories Ltd ADR Stock Analysis

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Is it the right time to buy or sell?

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We Like Dr. Reddy's Narrow Moat Supported by Intangible Assets in Select Geographies

Dylan Finley, CFA Equity Analyst

Business Strategy and Outlook

| Debbie S. Wang |

Dr. Reddy’s Laboratories is a global pharmaceutical company based in Hyderabad, India. It manufactures and markets generic drugs and active pharmaceutical ingredients in markets across the world, but predominantly in the United States, India, and Eastern Europe. Indian pharmaceutical manufacturers have seen success over the past decade in penetrating the U.S. market, where regulatory hurdles are lower than in Western Europe. With competition on price in a commodified space, the entry of low-cost manufacturers has facilitated a deflationary price environment for generic drugs since 2015, putting substantial pressure on the margins of established manufacturers. Conversely, in India and other countries with lower generics adoption, so-called “branded” generics have seen notable success. Brand generally supports customer loyalty and more-stable prices in these markets. Given the lack of public and private prescription drug insurance and a heavily fragmented supply chain in India, there are fewer catalysts driving the switch to unbranded generics.

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Dr Reddy's Laboratories Ltd ADR's Company Profile

Business Description

Headquartered in India, Dr. Reddy’s Laboratories develops and manufactures generic pharmaceutical products sold across the world. The company specializes in low-cost, easy-to-produce small-molecule generic drugs and active pharmaceutical ingredients. Its drug portfolio in recent years has included biosimilar drug launches in select emerging markets and has shifted toward injectables and more complex generic products. Geographically, the company’s sales are well dispersed across North America, India, and other emerging markets.

8-2-337, Road No. 3, Banjara Hills
Hyderabad, TG, 500 034, India
T +91 4049002900
Sector Healthcare
Industry Drug Manufacturers - Specialty & Generic
Most Recent Earnings Dec 31, 2021
Fiscal Year End Mar 31, 2022
Stock Type
Employees 22,739