DRIVIN G ROWTH - Dr. Reddy's

46
management discussion
and analysis
CREATING A GLOBAL COMPANY
2
001-02 HAS BEEN A
watershed year for Dr. Reddy’s. A
young, 18-year old Company came
of age in the global arena.
On April 11, 2001, we became the first
Indian — in fact, the first non-Japanese
Asian — pharmaceutical company to list on
the New York Stock Exchange. One of our
discovery molecules, DRF-2725 now called
Ragaglitazar, a dual acting insulin sensitiser
for treatment of Type II diabetes, entered
global Phase III clinical trials. Another
— DRF-4158, a second generation dual
activator for Type II diabetes, hypertension
and obesity, was licensed to Novartis in a
US$55 million deal, which includes
milestone and up-front payments. On
August 2, 2001, with fluoxetine capsules
40 mg, Dr. Reddy’s became the first Indian
Company to launch a generic drug with
180-day marketing exclusivity in the US.
We filed our first NDA under section 505
(b) (2) of the Federal Food, Drug &
cosmetic Act for Amlodipine Maleate. And
we renewed afresh our commitment to
cutting edge research and drug discovery by
promoting Aurigene Discovery Technologies
— a post-genomics discovery services
company that will focus on automated
medicinal chemistry, structural biology and
structure based drug design.
These developments were buttressed by
sound financial performance — the best
since inception. Some of the numbers are:
■ TURNOVER INCREASED by 58% to
Rs. 15,578 million, or US$ 319 million led by
sales of fluoxetine and international branded
formulations. Without fluoxetine, sales grew
by 25 per cent.
■ EBITDA doubled to Rs. 5,314 million, or
US$ 109 million, and EBITDA margin
increased from 26 per cent in 2000-01 to 34
per cent in 2001-02.
■ PAT more than trebled to Rs. 4,597 million,
or US$ 94 million, with PAT margin at 30 per
cent of total turnover.
■ ROCE increased from 19 per cent in
2000-01 to 31 per cent in 2001-02.
■ RONW increased from 26 per cent in
2000-01 to 32 per cent in 2001-02.
■ EPS grew from Rs. 22.83 in 2000-01 to
Rs. 60.41 in 2001-02.
2001-02 ALSO SAW the Company
unveiling its new corporate identity and
philosophy — “Life. Research. Hope” — and
thus reinforcing its commitment of bringing
hope to life through research. The new
identity also highlights the Company’s ethos
of being a caring organisation that leverages
its expertise in research for a healthier life.
Equally important was Dr. Reddy’s clear
DR. REDDY’S LABORATORIES LTD. | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2001-2002