Speaking at the annual general meeting (AGM) of its shareholders, Dr K Anji Reddy, chairman, Dr Reddys Laboratories, said, We have decided to grow by intensifying our discovery effort in the specialty and generic business. An increase in investments towards the R&D front may not be proportional to the increase in revenues and profits in the short term but will pay-off handsomely in the years to come.
While the short and medium growth will come from the companys business of active pharmaceutical ingredients (APIs) and branded formulations, the generics pipeline will drive growth for the medium term, he said.
We are working on 50 new projects and continue to focus on patent challenges to build base business in the US. In the long term, sustained earnings growth will be from investments in specialty and discovery business, Dr Reddy said.
...To Come Out With Sustainability Report
Adopting the principles of sustainable development in all its businesses, Dr Reddys Laboratories is in the process of preparing the first sustainability report in accordance with the guidelines issued by Global Reporting Initiative, an institute affiliated with the United Nations Environment Program.
We are using the profits from our core businesses of bulk and branded formulations to build several exciting growth drivers. Specialty and drug discovery are the most investment-intensive areas and have longer gestation times but with sustained sales and profitability, he said.
In the specialty sector, the company has changed its strategy for the US segment by focussing on specialty segments with low-entry thresholds such as the dermatology segment instead of concentrating on primary care segments like the cardio-vascular segment where there is huge competition, Mr Prasad added.