Financial Daily from THE HINDU group of publications
Thursday, Jun 01, 2006
Financial Daily from THE HINDU group of publications Thursday, Jun 01, 2006 |
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Corporate
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Outlook Dr Reddy's bullish on growth prospects Our Bureau
MR G.V. PRASAD (right), CEO, and Vice-Chairman, Dr Reddy's Laboratories, and Mr K. Satish Reddy, COO and Managing Director, at a news conference in Hyderabad on Wednesday. — Satish.H
Hyderabad , May 31
Having crossed the $500-million milestone in revenues for the fiscal ended March 2006, Dr Reddy's Labs is bullish on growth prospects in the coming years. "We are confident and optimistic of a robust performance from the current fiscal," Dr Reddy's Executive Vice-Chairman and CEO, Mr G.V. Prasad, told newspersons here on Wednesday. According to him, the company that executed two major overseas acquisitions during the fiscal under review is still open to similar inorganic growth opportunities. "It was a complete turnaround for the company last year in the form of major investments on overseas acquisitions and also in the product pipeline. The real impact of these measures could be witnessed from the current fiscal," he said. Major challenges The two major challenges before the company now are building dominant position in global generics business and building innovation business. Efforts on both the areas were already on and the company expects to successfully address them during the current fiscal leading to broadening product pipeline and deepening global market presence, Mr Prasad said. Mr K. Satish Reddy, Managing Director and COO, said the company is likely to go in for a major capital expenditure programme during the current fiscal. "As against a total capex of around $42 million in last fiscal, we are expecting at least $100-million during the current fiscal for adding capacities of finished dosages, active pharmaceutical ingredients and custom pharmaceutical services (CPS)." According to Mr V.S. Vasudevan, Chief Financial Officer, during the current fiscal, the company expects to earn revenues of around $200 million from CPS segment and close to $100-million from betapharm, the German pharma company acquired in March this year. Riding high on the acquisition and smooth integration of betapharm, the company is further looking at European expansion. According to Mr Prasad, the company plans to begin operations in Spain in a few weeks and has plans to foray into Italy and France going forward. Bullish on the R&D and new chemical entities, Mr Prasad said the company's molecule Balaglitazone (DRF-2593) has recently completed carcinogenic studies and expected to enter phase-III clinical soon during the current fiscal. The company had entered into a co-development deal with Rheoscience for this molecule. Upbeat on the emerging opportunities in the authorised generics space, he said the company had its first authorised generics deal from India with Merck & Co for Proscar and Zocor.
More Stories on : Outlook | Pharmaceuticals | Dr. Reddy's Laboratories Ltd
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