October 30, 2015 ICICI Securities Ltd | Retail Equity Research Result Update Margin improvement continues despite headwinds • Revenues grew 11.2% YoY to | 3989.0 crore (I-direct estimate: | 3868.2 crore) mainly due to strong growth in developed market sales. US sales grew 29.9% to | 1856.3 crore (I-direct estimate: | 1797.3 crore) due to Habitrol acquisition, new products launches and market share gain • EBITDA margins increased 592 bps YoY to 29.4% (against I-direct estimate: 26.3%) mainly due to lower raw material and SG&A expenses as percentage of sales. EBITDA increased 39.2% to | 1172.4 crore against I-direct estimate of | 1015.4 crore • Net profit increased 25.7% YoY to | 721.9 crore (I-direct estimate: | 650.5 crore). The beat was due to a better operational performance Global generics to piggyback on strong, sustainable US traction Global generics (GG) segment is expected to grow at a CAGR of 15.4% in FY15-18E driven by strong US traction, which is likely to grow at a CAGR of ~21% during the same period. DRL has developed a knack for exclusivity/FTF launches on a fairly continuous basis in the US. We expect this trend to continue further but the focus has now shifted to more unique launches such as OTC, complex generics, controlled releases, etc. The US traction is also likely to nullify the European slowdown. The US pipeline includes 227 filed ANDAs including 76 pending approvals. Russia CIS becomes volatile, India to provide more stability Global generics (ex US, Europe) is likely to grow at a steady CAGR of ~8% in FY15-18E driven by growth in India as the Russian performance remains volatile. These two markets are more or less identical in nature (branded generics and OTC) with similar growth potential and similar kinds of risks. DRL is well versed with the dynamics in Russia by virtue of being an early mover. However, the recent currency volatility and political unrest have caused disturbances in an otherwise safe market for the company. For India, growth is expected to be largely from launches in the oncology and biosimilars space, UCB like acquisitions besides an improvement in productivity. Portfolio realignment eminent We envisage a fall in share of low margin/high risk segments such as PSAI and RoW Generics, going ahead. Thus, growth in FY15-18E is likely to emanate from more productive and sustainable segments such as the US and India. Similarly, in terms of product offering, we envisage more launches in the fields of injectables, OTC, complex/limited competition products and biosimilars, besides legacy generics. US franchisee looks promising; Srikakulam resolution holds key US and India together hold the key for global generics growth and, for that matter, DRL’s overall growth. Among them, US is the main catalyst with a pending product portfolio of 76 ANDAs, which include 50 Para IVs and 18 FTFs. The company is investing heavily in R&D to bring more complex generics and limited competition products mainly from injectable category, which is likely to take care of sustained US growth for the next two or three years. India is also showing promising growth with a recalibrated approach and the recent acquisition (UCB’s India business) bodes well for the future. Russia, RoW and the PSAI segments, however, continue to pose challenges for being lumpy and volatile. However their slowdown can be beneficial from margin improvement point of view. We have ascribed a target of | 5000 based on 22x FY18E EPS of | 227.4. Rating matrix Rating : Buy Target : | 5000 Target Period : 12-15 months Potential Upside : 19% What’s Changed? Target Changed from | 4600 to | 5000 EPS FY16E Changed from | 159.9 to 164.0 EPS FY17E Changing from | 191.6 to | 190.8 EPS FY18E Introducing at | 227.3 Rating Unchanged Quarterly Performance Q2FY16 Q2FY15 YoY (%) Q1FY16 QoQ (%) Revenue 3,989.0 3,587.8 11.2 3,757.8 6.2 EBITDA 1,139.2 842.2 35.3 998.0 14.1 EBITDA (%) 28.6 23.5 508.4 26.6 200.0 Net Profit 721.9 574.1 25.7 625.7 15.4 Key Financials (|crore) FY15 FY16E FY17E FY18E Revenues 14818.9 16311.7 18664.4 21542.4 EBITDA 3482.7 4428.3 5086.1 5937.1 Adjusted PAT 2198.6 2794.3 3250.8 3872.9 EPS (Adjusted) 129.0 164.0 190.8 227.3 Valuation summary FY15 FY16E FY17E FY18E PE (x) 32.4 25.5 22.0 18.4 Target PE (x) 38.8 30.5 26.2 22.0 EV to EBITDA (x) 20.5 15.8 13.4 11.0 Price to book (x) 7.3 5.7 4.5 3.6 RoNW (%) 22.3 22.1 20.5 19.6 RoCE (%) 18.8 21.1 21.5 22.0 Stock data Particular Market Capitalisation Debt (FY15) Cash & cash equivalents (FY15) EV 52 week H/L 4383/3010 Equity capital | 85.2 crore Face value | 5 | 73551 crore Amount | 71807 crore | 3617 crore | 1872 crore Price performance (%) 1M 3M 6M 1Y Dr Reddy's Labs 3.4 13.7 24.8 38.6 Sun Pharma 3.6 5.9 -6.5 5.8 Lupin -4.7 17.1 10.1 41.6 Dr Reddy’s Laboratories (DRREDD) | 4221 Research Analyst Siddhant Khandekar [email protected]Mitesh Shah [email protected]Nandan Kamat [email protected]
| 3868.2 crore) mainly due to strong growth in developed market sales. US sales grew 29.9% to | 1856.3 crore (I-direct estimate: | 1797.3 crore) due to Habitrol acquisition, new products launches and market share gain
• EBITDA margins increased 592 bps YoY to 29.4% (against I-direct estimate: 26.3%) mainly due to lower raw material and SG&A expenses as percentage of sales. EBITDA increased 39.2% to | 1172.4 crore against I-direct estimate of | 1015.4 crore
• Net profit increased 25.7% YoY to | 721.9 crore (I-direct estimate: | 650.5 crore). The beat was due to a better operational performance
Global generics to piggyback on strong, sustainable US traction Global generics (GG) segment is expected to grow at a CAGR of 15.4% in FY15-18E driven by strong US traction, which is likely to grow at a CAGR of ~21% during the same period. DRL has developed a knack for exclusivity/FTF launches on a fairly continuous basis in the US. We expect this trend to continue further but the focus has now shifted to more unique launches such as OTC, complex generics, controlled releases, etc. The US traction is also likely to nullify the European slowdown. The US pipeline includes 227 filed ANDAs including 76 pending approvals. Russia CIS becomes volatile, India to provide more stability Global generics (ex US, Europe) is likely to grow at a steady CAGR of ~8% in FY15-18E driven by growth in India as the Russian performance remains volatile. These two markets are more or less identical in nature (branded generics and OTC) with similar growth potential and similar kinds of risks. DRL is well versed with the dynamics in Russia by virtue of being an early mover. However, the recent currency volatility and political unrest have caused disturbances in an otherwise safe market for the company. For India, growth is expected to be largely from launches in the oncology and biosimilars space, UCB like acquisitions besides an improvement in productivity. Portfolio realignment eminent We envisage a fall in share of low margin/high risk segments such as PSAI and RoW Generics, going ahead. Thus, growth in FY15-18E is likely to emanate from more productive and sustainable segments such as the US and India. Similarly, in terms of product offering, we envisage more launches in the fields of injectables, OTC, complex/limited competition products and biosimilars, besides legacy generics. US franchisee looks promising; Srikakulam resolution holds key US and India together hold the key for global generics growth and, for that matter, DRL’s overall growth. Among them, US is the main catalyst with a pending product portfolio of 76 ANDAs, which include 50 Para IVs and 18 FTFs. The company is investing heavily in R&D to bring more complex generics and limited competition products mainly from injectable category, which is likely to take care of sustained US growth for the next two or three years. India is also showing promising growth with a recalibrated approach and the recent acquisition (UCB’s India business) bodes well for the future. Russia, RoW and the PSAI segments, however, continue to pose challenges for being lumpy and volatile. However their slowdown can be beneficial from margin improvement point of view. We have ascribed a target of | 5000 based on 22x FY18E EPS of | 227.4.
Revenue 3,989.0 3,868.2 3,587.8 3,757.8 11.2 6.2 YoY growth was on account of strong US base business growth and consolidationof new acquisitions
Raw Material Expenses 1,542.1 1,508.6 1,489.3 1,463.1 3.5 5.4 Sequential Improvement in gross margin on account of better product mix. Global Generic and PASI segments Gross margin were 67.3% and 25.8% respectively
SG&A 859.2 889.7 871.6 870.5 -1.4 -1.3 Improvement in SG&A expenses due to cost control measuresR&D 447.3 464.2 411.3 438.7 8.8 2.0Other (income)/expenses 1.2 -9.7 -26.6 -12.5 -104.5 -109.5EBITDA 1,139.2 1,015.4 842.2 998.0 35.3 14.1EBITDA (%) 28.6 26.3 23.5 26.6 508 bps 200 bps YoY in margin was mainly due to better product mix and lower SG&AFinance (income)/ expenses -11.6 -41.2 -42.1 -21.6 -72.5 -46.5Depreciation 246.6 227.7 195.7 226.8 26.0 8.7Forex & EO -5.6 -5.0 -5.1 -4.9 10.2 14.4PBT 909.8 833.9 693.8 797.8 31.1 14.0
Tax 187.9 183.5 119.6 172.1 57.0 9.2Net Profit 721.9 650.5 574.1 625.7 25.7 15.4 YoY growth mainly in sync with EBITDA which is partially impacted by higher
taxation and lower financial incomeKey MetricsUS 1,856.3 1,797.3 1,429.3 1,851.5 29.9 0.3 Growth was mainly due to consolidation of Habetrol business and strong base
business growthEurope 212.4 193.6 143.4 191.2 48.1 11.1 Sharp YoY growth was mainly due to incremental product launches. Beat vis-à-vis
our expectation was mainly due to higher than expected constant currency growth
India 546.4 589.4 479.9 475.6 13.9 14.9 Adjusting for loss due to transport strike the normalized growth was ~20% YoY
Russia & Other CIS 390.0 287.9 479.8 307.8 -18.7 26.7 Registered 11% constant currency growth in Russia. Beat vis-à-vis our expectationwas mainly due to higher than expects constant currency growth
RoW 271.7 265.9 354.5 270.0 -23.4 0.6 YoY growth was impacted due to currency depreciation and decline in Venezuela
PSAI 591.8 671.2 639.2 561.4 -7.4 5.4 De-growth on account of higher captive consumption
Source: Company, ICICIdirect.com Research Change in estimates
(| Crore) Old New % Change Old New % Change CommentsRevenue 16,469.2 16,311.7 -1.0 18,827.6 18,664.4 -0.9EBITDA 4,249.1 4,428.3 4.2 4,942.2 5,086.1 2.9EBITDA Margin (%) 25.8 27.1 135 bps 26.3 27.3 95 bps Increase in estimates on account of improvement in product mix and SG&A expenses
PAT 2,628.2 2,814.8 7.1 3,254.4 3,270.8 0.5 Increase mainly in Sync with EBITDAEPS (|) 154.3 165.2 7.1 191.0 191.9 0.5
FY16E FY17E
Source: Company, ICICIdirect.com Research Assumptions
Comments(| crore) FY14 FY15 FY16E FY17E FY16E FY17EUS 5,530.3 6,473.4 7,760.0 9,343.0 7,830.0 9,411.0Europe 877.0 945.2 955.8 974.9 811.0 893.0 Increase in estimates on the back of robust Q2 sales and incremental product
ICICI Securities Ltd | Retail Equity Research Page 3
Company Analysis Established in 1984, Dr Reddy’s Laboratories (DRL) is one of India’s pedigreed players having a firm footing in the US and other export markets with deep rooted product and market knowledge across therapies. Like Cipla, DRL also recognised the importance of having good manufacturing practices (GMP) accreditation in the eighties and eventually got USFDA approval (first of its kind approval for a formulation facility in India) in 1987. The company owns 22 manufacturing facilities and four developing centres across the globe. The facilities have been approved by various agencies like the USFDA, WHO-Geneva, UKMHRA, TGA-Australia, MCC-South Africa, DMA Denmark, Brail ANVISA, among others. Over the years, along with generics, the company also established itself in the field of discovery of new chemical entities (NCEs) but with little success. DRL’s business can be classified into three broad segments- 1) Global Generics (GG), 2) Pharmaceutical Services and Active Ingredients (PSAI) and 3) proprietary products (PP). Global Generics (81% of revenues) includes branded and unbranded prescription and over-the-counter (OTC) products business. It also includes operations of the biologics business. This segment comprises formulation sales to regulated markets of the US, Europe and emerging markets such as Russia/CIS, India and RoW. Pharmaceutical services and active ingredients (17% of the revenues) consist of the active pharmaceutical ingredients (API) business and custom pharmaceutical services (CPS) business. Proprietary Products (PP, 2% of revenues) consists of NCEs, differentiated formulations and dermatology focused specialty business operated through Promius Pharma. DRL is one of the few Indian companies to foray into new drug discovery & development (NDDS) and new chemical entity (NCE) research. The company started research operations in 1992 through a non profit organisation, Dr Reddy’s Research Foundation, which was later merged into the company. Despite being an early entrant, the company is yet to taste success in it. DRL is also the first Indian company to out-license molecules to big pharma companies.
DRL has spent around 8-9% of the turnover on R&D in the last four years but this figure is likely to touch ~12%, going ahead. Beside ANDAs it has also filed 10 new drug applications (NDAs) in the 505 b (2) route that are awaiting approval. We expect revenues to grow at a CAGR of 13.3% to | 21542.4 crore in FY15-18E, on the back of growth in the GG segment, which, in turn, will be driven by the US. The GG is likely to grow at a CAGR of 15.4% to | 18550.8 crore during the same period. On the other hand, the PSAI segment is likely to slow down, mainly on the back of 1) higher internal consumption and 2) pricing pressure/order uncertainty in the API and CPS segments, respectively. The PSAI segment is likely to register a CAGR of 1.2% to | 2635.3 crore in FY15-18E.
ICICI Securities Ltd | Retail Equity Research Page 4
Exhibit 1: Revenues to grow at CAGR of ~13% in FY15-18E
US remains in sweet spot; banking on capabilities and capacities US contributes more than 98% of North American sales while remaining sales are from Canada. DRL has four USFDA approved formulations facilities including two in the US. The company operates in the prescriptions (Rx) and OTC segments in the US market. Sales are channelled through drug stores, drug wholesalers, health maintenance organisations and pharmacy chains. DRL is also an authorised supplier to the US government. After establishing itself in the US generics space, the focus was shifted to the first to file (FTFs) and AG space. From FY08 onwards DRL started filing limited competitions/niche products like injections, controlled releases and complex generics in the US market in order to reduce the dependence on plain generics. DRL also owns one of the largest over the counter (OTC) product portfolios in the US. DRL has a strong product pipeline of 227 ANDAs with 76 pending approvals. Of these, 50 are Para IVs while 18 have first to file (FTF) status. Beside ANDAs, DRL has also filed 10 NDAs through the 505 b (2) route, which are awaiting approval. We expect the company to file 18-20 ANDAs every year, going ahead. Going by the future pipeline, we expect DRL to launch eight to 10 products per annum, which include at least two or three complex products every year besides plain vanilla generic and FTF opportunities. We expect sales from North America to grow at a CAGR of 20.8% in FY15-18E.
ICICI Securities Ltd | Retail Equity Research Page 5
Exhibit 3: North America sales to be driven by robust pipeline
1681.7 1899.6
3188.93784.6
5530.36473.4
7760.0
9343.0
11398.5
0100020003000400050006000700080009000
100001100012000
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E(|
cro
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US Sales
Source: Company, ICICIdirect.com Research
India: Field force expansion, niche forays to drive growth DRL ranks seventeenth (in terms of market share, AIOCD, September, 2015) with a market share of 2.29%. The acute: chronic ratio is currently at 70:30. Gastrointestinal (GI) is the largest therapeutic group for and the company ranks fifth in this therapeutic group. In many other therapies however it remains a marginal player. The only therapeutic category, where it holds No. 1 position is anti-neoplastics (oncology), which as a therapy remains an important but untapped opportunity. To bolster the domestic franchise, DRL has almost doubled the MR strength from 2250 in FY09 to ~4300 as of today. In order to push domestic growth, DRL has forayed into the complex biosimilars space, which till date has not witnessed much crowding. At the same time, these products have not witnessed the expected traction either. It launched the first biosimilar oncology product Filgrastim under the brand name Grafeel in 2001. Again in 2007, it launched another oncology product Rituximab a biosimilar of Roche’s blockbuster Mabthera under the brand name Reditux. Overall, it has launched four biosimilars till date including these two. The company acquired select portfolio of UCB with revenues of ~| 150 crore in Domestic market for | 800 crore. Exhibit 4: New launches, improved MR productivity to drive domestic growth
1015.81169.0
1293.11456.0
1571.31787.0
2140.3
2498.8
2873.6
0
500
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FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
(| c
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India
Source: Company, ICICIdirect.com Research
Another interesting high growth/low penetration space for DRL is oncology. It owns the branded portfolio of products such as Capibine (Capecitabine), Docetere (Docetaxel) and Cytogem (Gemcitabine).We expect Indian formulations to grow at a CAGR of 17.2% in 2015-18E. As
ICICI Securities Ltd | Retail Equity Research Page 6
per the management, the NLEM 2011 impact is confined to just ~3-5% of domestic sales.
Russia & CIS- banking on experience; the region off-late has become volatile
DRL was the first Indian entrant in Russia and CIS, dating back to 1992. Early entry into these markets has helped the company to get hold of the changing dynamics of these high potential but notoriously volatile territories. The CIS segment includes countries such as Ukraine, Belarus, Kazakhstan and Uzbekistan. Russia comprises ~83% of the overall Russia & CIS (RCIS) segment. DRL has consolidated its position in the Russian market by focusing on select therapies such as pain management, anti-infectives, gastro-intestinal, respiratory, oncology and cardiovascular encompassing prescription, OTC and hospital sales. The top four brands: Nise, Omez, Ketorol and Cetrine constituted ~60% of overall Russian sales. DRL has also struck in-licensing deals with other Indian companies such as Cipla and Torrent. However, due to political unrest and sanctions due to the Ukrainian invasion, the region has lost its safe haven status for DRL besides Rouble volatility. We expect sales from Russia CIS to de-grow at a CAGR of 1.7% in FY15-18E. Exhibit 5: Russia, CIS to witness tempered growth due to regional issues
911.91085.8
1326.0
1690.8
1981.91771.4
1390.71529.8
1682.8
0
500
1000
1500
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2500
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
(| c
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Russia & Other CIS
Source: Company, ICICIdirect.com Research
R&D cost to increase further Dr Reddy’s is one of the few Indian companies to foray into new drug discovery & development (NDDS) and new chemical entity (NCE) research with a focus to therapies like dermatology, anti-inflammatory and anti-infectives from CVS and diabetics. DRL is also the first Indian company to launch biosimilars in the domestic market. The R&D cost is expected to be ~12% of turnover in FY16 mainly due to higher spend in (i) complex generic including injectables and (ii) biosimilars and novel drug discovery
ICICI Securities Ltd | Retail Equity Research Page 7
Exhibit 6: R&D cost to go up due to complex generics and biosimilars
379.3506.0 591.1
767.4
1240.2
1744.81913.8
2239.7
2585.1
5.4
6.86.1 6.6
9.4
11.8 11.7 12.0 12.0
0
500
1000
1500
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3000
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E(|
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0.0
2.0
4.0
6.0
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12.0
14.0
(%)
R&D R&D as % of Sales
Source: Company, ICICIdirect.com Research
Exhibit 7: Higher R&D cost likely to restrict improvement in EBITDA margins
1477.1 1677.7
2450.52734.9
3312.7 3482.7
4428.35086.1
5937.1
21.022.5
25.323.5
25.123.5
27.1 27.3 27.6
0
1000
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3000
4000
5000
6000
7000
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
(| c
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0
5
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15
20
25
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(%)
EBITDA EBITDA Margins (%)
Source: Company, ICICIdirect.com Research
Exhibit 8: Net profit to grow at CAGR of 20.8% in FY15-18E on high base
962.3 1103.71420.8
2133.8 2198.6
2794.3
3250.8
3872.9
1667.2
0
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1000
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2500
3000
3500
4000
4500
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
(| c
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Net Profit
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research Page 8
SWOT Analysis Strengths - Seasoned player in the US generic space with proven track record. Strong US pipeline with many FTF/limited competition products. Largest Indian player in Russia/CIS Weakness - PSAI and European businesses remain a drag on margins and growth. Higher R&D spends for the future to put pressure on the current margins. The Russian region has also become volatile and unpredictable due to political unrest
ICICI Securities Ltd | Retail Equity Research Page 9
Opportunities - The US generics space with scope for complex/limited competition products. Biosimilars space across the globe. Indian franchise is still pretty small for a player of DRL’s calibre. Threats - Increased USFDA scrutiny across the globe regarding cGMP issues and consolidation in the US pharmacy space. Its Srikakulam API plant has recently received Form 483 from the USFDA with 9 observations. Currency depreciation in ROW markets and Russia Conference call highlights
• Forex cash-flow hedges- for the next 18 months in the form of derivatives and loans for ~US$300 million at | 61-65.4/US$ and balance sheet hedges of US$135 million. Ruble hedges of RUB 960 million at | 1.16/RUB and €6 million at | 75.47-77.19/€ maturing over next nine months.
• Apart from Srikakulam API facility, DRL also has pending USFDA form 483 observations in some other plants.
• The company expects normalisation of Russian business from Q4FY16
• The company has signed a deal with government of Venezuela for critical care products. This deal is expected to add new line of business to DRL.
• Tax Rate expected to be around 21% for FY16. • The company expects to launch gGleevec (oncology) in the US
few quarters after Sun Pharma. • DRL was the fourth player to launch gNexium (GI) in US markets.
Annual sales of gNexium for the company are ~US$ 50 million. The company expects to sustain the market share.
• The company entered into Brazil and Columbia markets targeting the Institution sector.
• The company is planning biosimilars in emerging markets. However, it does not expect meaningful contribution from biosimilars in near the term except for Russian market.
• The company plans to file 30% more products than last year with the USFDA.
• The company expects 20% growth in Indian markets ex-one offs in FY16.
• There are three to four niche products yet to receive approval from Srikakulam facility. The company expects one or two products to receive approval in the near term
• Two mega brands of DRL in Russia and CIS went through a price hike. Though, most of the 11% constant currency growth in Q2FY16 was on account of volume growth.
• The company plans site transfers from Srikakulam facility on priority basis
• R&D expenditure on Biosimilar pipelines is ~15% of total R&D expenditure.
• In October 2015, two of DRL’s API customers received ANDA approval rescission letters from USFDA. These ANDAs of customers were approved in January and February 2015, post USFDA inspection of the company’s API facilities. Each rescission letter cites that its API facility was classified as potential OAI (official action indicated) on the date of approval
ICICI Securities Ltd | Retail Equity Research Page 10
Valuation US and India together hold the key for the global generics growth and, for that matter, DRL’s overall growth. Among them, US is the main catalyst with a pending product portfolio of 76 ANDAs, which include 50 Para IVs and 18 FTFs. The company is investing heavily in the R&D to bring more and complex generics and limited competition products mainly from injectable category, which is likely to take care of sustained US growth for the next two or three years. India is showing promising growth as well with a recalibrated approach and the recent acquisition (UCB’s India business) bodes well for the future. Russia, RoW and PSAI segments, however, continue to pose challenges for being lumpy and volatile. However, their slowdown can be beneficial from a margin improvement point of view. We have ascribed a target price of | 5000 based on 22x FY18E EPS of | 227.4. Exhibit 11: One year forward PE
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(|)
Price 19.2x 18.5x 16.5x 12.4x 9.7x [
Source: Company, ICICIdirect.com Research
Exhibit 12: One year forward PE of company vs. CNX Pharma
ICICI Securities Ltd | Retail Equity Research Page 11
Company snapshot
Target Price:| 5000
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Source: Bloomberg, Company, ICICIdirect.com Research Key events Date EventJun-09 Announces a partnership with GSK to develop and market select products across emerging markets outside India. Under the tie-up, GSK will have access to more than
100 branded products of DRLNov-10 Acquires GSK’s US oral penicillin facility and product portfolio. Under the agreement, GSK will transfer rights for Augmentin and Amoxil brands in the US market
Dec-10 Enters into licensing of technology transfer, manufacturing and marketing agreement with R-Pharm of Russia. The collaboration is in the area of high-technology and will work on a profit sharing model
Jun-12 Dr Reddy’s and Merck Serono sign an agreement to co-develop and commercialise a portfolio of biosimilars compounds in oncology
Jul-12 USFDA lifts import alert for chemical manufacturing facility at Cuernavaca, Mexico
Oct-12 Acquires Netherland based specialty injectable company OctoPlus NV
Jun-13 Dr Reddy’s and Fujifilm Corporation call off their joint venture. The JV was started in July 2011 for developing and launching generic drugs in the Japanese market
Dec-14 Dr. Reddy's Labs closed the acquisition of Habitrol brand, an over-the-counter nicotine replacement therapy transdermal patch, from Novartis for a consideration of US$ 80 million
Apr-15 Enters a €118 million (| 800 crore) definitive agreement to acquire a select portfolio of established products from UCB in India
Source: Company, ICICIdirect.com Research Top 10 Shareholders Shareholding Pattern Rank Name Latest Filing Date % O/S Position (m)n Change (m)1 Dr Reddys Holdings Pvt. Ltd. 22-Sep-15 23.35 39.8 0.12 Stewart Investors 30-Jun-15 8.21 14.0 -0.43 OppenheimerFunds, Inc. 30-Jun-15 4.16 7.1 -0.24 BlackRock Institutional Trust Company, N.A. 30-Jun-15 3.07 5.2 0.05 Abu Dhabi Investment Authority 30-Jun-15 1.94 3.3 -0.36 LIC Nomura Mutual Fund Asset Management Company L 30-Jun-15 1.72 2.9 2.97 Capital Research Global Investors 30-Jun-15 1.68 2.9 0.08 Franklin Templeton Asset Management (India) Pvt. Ltd. 30-Jun-15 1.66 2.8 0.19 Khazanah Nasional Berhad 30-Jun-15 1.37 2.3 0.010 Franklin Advisers, Inc. 31-Jul-15 1.32 2.2 0.0
Source: Reuters, ICICIdirect.com Research Recent Activity
Investor name Value Shares Investor name Value SharesLIC Nomura Mutual Fund Asset Management Company Ltd. 162.66m 2.91m Capital World Investors -90.99m -1.43m BNP Paribas Investment Partners Asia Ltd. 26.61m 0.48m Investec Asset Management Ltd. -56.00m -1.28m BlackRock Asset Management North Asia Limited 14.59m 0.23m Norges Bank Investment Management (NBIM) -34.58m -0.67m Russell Investments Limited 8.32m 0.15m ICICI Prudential Asset Management Co. Ltd. -30.42m -0.47m The Vanguard Group, Inc. 6.76m 0.11m Stewart Investors -21.69m -0.39m
Buys Sells
Source: Reuters, ICICIdirect.com Research
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RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;
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