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‘Dr Reddy’s will clock 25% growth this year’
Pharma major Dr Reddy’s Laboratories is upbeat on its performance this year in view of the revenues from upsides and possible higher profits from its German arm, Betapharm. In the third quarter of 2008-09, the Hyderabad-based company would exclusively distribute Sumatriptan, used for the treatment of acute migraine, in the US.
Pharma major Dr Reddy's Laboratories is upbeat on its performance this year in view of the revenues from upsides and possible higher profits from its German arm, Betapharm. In the third quarter of 2008-09, the Hyderabad-based company would exclusively distribute Sumatriptan, used for the treatment of acute migraine, in the US.
"Sumatriptan enjoys widespread market acceptability and I see other upsides as well. My belief is that the worst in Germany is probably over in terms of further margin pressures," Dr K. Anji Reddy, Chairman of Dr Reddy's told investors in the annual report of the company for the year 2007-08.
By migrating production of an increasing number of formulations to facilities in India, Dr Reddy's, which posted a 23-per cent dip in its turnover at Rs 5,001 crore in 2007-08, should generate higher profits from Betapharm in the current financial year, the Chairman said.
Conceding that 2007-08 was a "worse year financially" compared to the previous year, Dr Reddy said he was expecting a topline growth of 25 per cent in rupee terms in the current year.
"This is a do-able target and I expect it to be achieved because of the changes that have been brought about, across the company, that are now primed to deliver superior financial results," he claimed.
During 2007-08, Rs 629.5 crore was invested in manufacturing, R&D facilities and other capital expenditure making it the highest investment in a single financial year. It would create the capacity to support Dr Reddy's Lab's strategic growth agenda, he added.
