2009 Amity Global Business School,

Ranbaxy Hyderabad
11/18/2009

Laboratories
Demand Forecasting and Turnaround
Strategies
Company Details, Business Overview, Trading, Acquisitions, Allegations,
Forecasting Demand, Conclusion and Recommendations

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Amity Global Business School, Hyderabad
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CONTENTS

1. INTRODUCTION
i) FORMATION
ii) COMPANY PROFILE
iii)WORKING DETAILS
1. BUSINESS 0VERVIEW
2. BUSINESS AND FINANCIAL METRICS
(1)REVENUE VS PROFIT 2004-2008
(2)PERFORMANCE HIGHLIGHTS
(3)BUSINESS PERFOMANCE
(4)DEVELOPED MARKETS
(5)EMERGING MARKETS
1. DEMAND FORECASTING: FY2010
2. TRADING
3. TURN AROUND STRATEGIES
(1)ACQUISITIONS
(2)SHARE HOLDING PATTERN
1. KEY TRENDS AND FORCES
2. LATEST DEVELOPMENTS: AT A GLANCE
AKSHITA GUPTA (A30601909
3. COMPETITIONS 001)
4. SUGGESTIONS/ M.VENKAT RAJU
RECOMMENDATIONS (A30601909
019)
BIPIN KUMAR (A30601909
SINGH 021)
A.VENKATA (A30601909
SURESH 040)
NANDITA SADANI (A30601909

MBA -2011, 1st SEMESTER

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 Ranbaxy Laboratories Ltd. is a research based International
pharmaceutical company with its headquarters in India. It manufactures a
range of high quality, affordable generic drugs. The company has
manufacturing facilities in around 9 countries. It has strong presence in
around 49 countries, products available in around 125 countries globally.
It has dedicated workforce of about 10,500 employees representing 51
different countries.

Formation:
Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as
a distributor for a Japanese company Shionogi. The name Ranbaxy is a
portmanteau word from the names of its first owners Ranbir and Gurbax.
Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir
Singh and Gurbax Singh. After Bhai Mohan Singh's son Parvinder Singh
joined the company in 1967, the company saw a significant
transformation in its business and scale. His sons Malvinder Mohan Singh
and Shivinder Mohan Singh sold the company to the Japanese company
Daiichi Sankyo in June 2008.

Ranbaxy was established in 1961 and went public in the year 1973.
It has global sales of US $1340 million for the year ended on 31st
December, 2006. It has the largest market in USA (sales appx. US $380
million); then come Europe and BRICS (Brazil, Russia, India, China, South
Africa).

Company Details:
Type - Public
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 Founded - 1961

Headquarters - Gurgaon, Haryana, India

Employees - 1100 in R&D

Website - www.ranbaxy.com

Working Details:
Ranbaxy has a strong R&D competence that provides a sustainable
competitive advantage to the company. It has scholarly pool of about
1100 scientists, engaged in out-of-box researches. Ranbaxy spends over
7% of its sales on R&D. Licensing of once-a-day Ciprofloxacin formulation,
using NDDS (Novel Drug Delivery System) on a worldwide basis, was the
first international success for the company.

Ranbaxy is focused on Discovery and development of drugs on anti-

infectives, urology, respiratory/ inflammatory and metabolic diseases.

✔ Top 20 Molecules:

• Simvastatin • AmoxiClav Potassium • Isotretinoin • Amoxycillin and

Combinations

• Ciprofloxacin and Combinations • Ketorolac Tromethamine •

Omeprazole and Combinations

• Cefuroxime Axetil • Cephalexin • Loratadine and Combinations •

Clarithromycin • Ginseng+Vitamins

• Diclofenac and Combinations • Ranitidine • Cefaclor • Cefpodoxime

Proxetil • Efavirenz

• Atorvastatin and Combinations • Fenofibrate • Ofloxacin and

Combinations

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Business Overview
Ranbaxy Laboratories Limited encompasses the entire
pharmaceutical value chain from manufacturing to marketing generic
pharmaceuticals; value added generic pharmaceuticals, branded
generics, Active Pharmaceuticals Ingredients (API) and intermediates. As
a research driven company, over 6% of it's revenues are invested in R&D,
amongst the pharmaceutical companies in India, Ranbaxy has the largest
R&D budget with an R&D spend of over US $ 100Mn. In 2008 it demerged
its New Drug Discovery Research division into a separate entity, Ranbaxy
Life Science Research Limited (RLSRL).

The company has manufacturing operations in eight countries with

a ground presence in 49 countries, and its products are available in over
125 countries. It has been aggressively entering into joint ventures and
strategically acquiring companies in past few years. Besides concluding
its acquisition of Be-Tabs in South Africa, which makes Ranbaxy the 5th
largest generic pharmaceutical company in South Africa, the Company
acquired 13 Dermatology products from Bristol-Myers Squibb in the USA
in 2007. Ranbaxy made an acquisition of RPG Aventis, France which has
since been renamed as Ranbaxy Pharmacie Generiques SAS. It also has
subsidiaries in Spain, Netherlands, Russia and Australia.

Anti-infectives amoxycillin, ciprofloxacin, and simvastatin are in

Ranbaxy's top selling class of medications. In 2007, the company entered
the specialty and niche therapeutic areas of Bio-generics,
Oncology,Penems, Limuses, Peptides,etc. The company also has a
groundbreaking anti-malarial candidate in late-phase trials.
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Business and Financial Metrics
✔ Revenue versus Profit after tax from 2004-2008

From FY2004 to FY2008, sales revenue grew from Rs. 36,143.4

millions to Rs. 44,814.3 millions. The net profit for the same period
increased from Rs.2,237 millions to Rs.6,177.2 millions. From FY2007 to
FY2008 the sales revenue increased from Rs.41,844.9 millions to
Rs.45857.80 million. However, the company reported a net loss of Rs
(10323.34) million for FY 2008 compared to net profit Rs 6177.20 million
for FY2007.

In Q3'08 Consolidated Revenue was Rs. 18,884 Mn (USD 431 Mn)

against Rs.16,520 Mn in Q3'07, exhibiting a growth of 14.3%. The growth
was due to the weakening in Rupee against US Dollar and sales growth
which was 6% in dollar terms at $428mn. Sales were hindered by an
import ban imposed by the U.S. Food and Drug Administration (FDA) on
30 different generic drugs imported from its Dewas and Batamandi
(Paonta Sahib) Facilities. With the import ban coupled and with a forex
hedging loss worth Rs 900mn, their operating margin fell to 7.8% in Q3'08
from 16.0% in Q3'07. The resultant operating profit stood at Rs 1440mn
as against 2,831 mn in Q3'07, down by 49.1%. The provision for inventory
write offs due to the import alert issued by the US FDA and due to the
forex translation loss have resulted in net loss of Rs 3945mn against a net
profit of Rs 2074mn in Q3'07.

✔ Annual Sales : 5 years at a Glance

Year 2004 2005 2006 2007 2008

Sales 36,143.4 35,366.5 40,587.1 41,844.9 44,814.3

✔ Profit/Loss after Tax

Year 2004 2005 2006 2007 2008

PAT 5,284.7 2,237.0 3,805.4 6,177.2 10,448.0

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 Figure 1

✔ Quarterly Closings in 2009

Quarter Q1’09 Q2’09 Q3’09

Sales 8,022.21 10,099.18 11,937.67

Quarter Q1’09 Q2’09 Q3’09

PAT 7,777.78 6,754.50 1,860.67

Figure 2

✔ Performance Highlights

Net Sales de-grew by 3.7%: For 1QCY2009, Ranbaxy posted Net

Sales of Rs1,554.5cr, a de-growth of 3.7% yoy, which was in line with our
estimates. Net Sales declined on account of USFDA issues in the US and
challenging environment in the EU region. In the EU region and North
America, the company‘s Sales fell by 14% and 7% in Rupee terms to
Rs283.1cr and Rs404.0cr. However, Emerging market Sales fell
marginally by 2% to Rs837.6cr. The company has stated that it is in
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discussion with the USFDA to resolve the issues involving its plants. The
USFDA inspection of Paonta and Dewas facilities is likely to take place
during the year. Also, the company does not expect the current USFDA
issue to impact its FTF settlements.

For CY2009, the company has guided for Top-line Rs7,000cr, a de-
growth of 3% over CY2008. The company’s guidance does not include any
upside from the launch of Valtrex. Ranbaxy is working on various
synergies with Daiichi Sankyo, which includes launching of products from
the parent’s portfolio in India and other Emerging markets. Operating
Margins collapse: Ranbaxy reported Operating Losses of
Rs104cr as against a Net Profit of Rs225cr in the last corresponding
period. Operating Losses can be attributable to realised foreign exchange
losses of Rs84.5cr, shifting of operations to Ohm facility in the US post the
ban of fresh imports from the company’s Paonta Sahib facility and on-
going overheads at Paonta Sahib and Dewas facilities. The company
expects a marginal sequential improvement in Operating Margins by
restructuring costs.

Net Loss of Rs761cr: Ranbaxy reported a Net Loss of Rs761.3cr for

1QCY2009 primarily on the back of Rs1,046.1cr MTM losses on foreign
hedges and FCCBs. The company has stated it has around US $1.4bn
hedges, which are long term in nature. For CY2009, the company has
guided for a loss of around Rs800cr provided that there is no further
Rupee depreciation and no adverse impact from the USFDA front.

Y/E Dec (Rs

CY2007 CY2008 CY2009E CY2010E
cr)
6,64 7,22 6,45 7,51
Net Sales
1 2 0 7
-
% chg 10.5 8.7 16.5
10.7
Reported 774. - - 408.
Profit 0 914.6 813.9 7
% chg 51.5 0 0 0
440. 334.
Adj Net Profit 554 -62
6 2

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 ✔ Business Performance

For the quarter, the company posted Net Sales of Rs1,554.5cr

registering 3.7% yoy de-growth. Emerging markets, which accounted for
54% of the company’s Total Sales, de-grew by 2.0% to Rs837.6cr.
Meanwhile, the Developed Markets de-grew by 6% to Rs608cr. For
CY2009, Ranbaxy has guided for Sales of around Rs7,000cr and Net Loss
of Rs800cr. The company expects to break-even in 9MCY2009 provided
there is no further Rupee depreciation and adverse impact on account of
USFDA. The guidance does not include any upside from the launch of
Valtrex. Ranbaxy is working with on various synergies with Daiichi
Sankyo, which includes launching products from the parent’s portfolio in
India and other Emerging markets.

✔ Developed Markets

For 1QCY2009, the North American region comprising the US and

Canada posted 7% de-growth to Rs404.0cr. The US market de-grew by
14% yoy to Rs340.1cr despite of rupee depreciation primarily on account
of the US ban on products from the Paonta Sahib facility. During the
quarter, the company received four ANDA approvals from the USFDA.
Imitrex was launched during the quarter in the US. The company is
investing towards increasing its manufacturing capacity at its Ohm
facility. The company expects to begin supplying Nexium API to Astra
Zeneca by 4QCY2009.

Ranbaxy stated that it is in discussion with the USFDA to resolve issues

at its plants. The USFDA inspection of Paonta and Dewas facilities is likely
to take place during the year. Ranbaxy believes that supply from its
Dewas facilities could start again if the USFDA finds the plants GMP
compliant post the inspection. The Canada market grew at a faster pace
of 57% yoy to Rs63.9cr and the company currently ranks seventh with a
4% share in the Generic market.

In the EU region, the company recorded Sales of Rs283.1cr, a de-

growth of 14% yoy primarily on account of currency devaluation and
channel de-stocking. Ranbaxy has adopted a cautious view on the EU
region with focus shifting to Profitability replacing its earlier Volume-
based approach. Further, it is reducing its fixed costs in the UK and
Germany market.

✔ Emerging Markets

During 1QCY2009, the CIS region de-grew by 8% yoy to Rs86.5cr

primarily on account of currency devaluation and stringent credit
management adopted by the company. The Asia-Pacific region recorded
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Sales of Rs109.2cr growing at 9% yoy. In India, the company’s Sales
during the quarter stood at Rs325.8cr, a yoy growth of 9% as the
company continues to maintain its second rank in the domestic market
with 4.8% marketshare. The company also launched the first product
Olvance from Daiichi’s product portfolio. The company also plans to scale
up Daiichi’s products in India and other Emerging markets.

Business Segments
There are three basic business divisions: pharmaceutical dosage
forms, active pharmaceuticals ingredients (API) and allied business which
comprises of animal healthcare, diagnostics and a range of other
products. Of these, the pharmaceutical dosage forms division is the
largest sector, accounting for two thirds of annual sales.

Dosage Form Sales (94% of total revenue) the dosage form sales
grew from 91% of global sales in 2006 to 94% of global sales in 2007. It
comprises the majority of Ranbaxy’s sales, including sales of generic
pharmaceuticals, value added generic pharmaceuticals and branded
generics.

API (Active Pharmaceutical Ingredients & Others) (6%) Ranbaxy

supplies API to leading generic companies in more than 50 countries. The
API division has in its portfolio over 50 products covering a wide
therapeutic range such as Cardio-vasculars, Anti-infectives, Anti-
ulcerants, Anti-diabetics, Anti-depressants, Anti-virals and others. In 2001
Ranbaxy identified Consumer Healthcare as its new business area with
the launch of 4 brands: Revital, Pepfiz, Gesdyp & Garlic Pearls. During
2006, the business registered sales of US $ 19 Mn registering a growth of
19%.

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Demand Forecasting: FY 2009-2010
✔ Ranbaxy’s total sales year wise is:

Year Sales in Crores

2004-05 36,143.40

2005-06 35,366.50

2006-07 40,587.10

2007-08 41,844.90

2008-09 44,814.30

✔ Graphical representation is given below:

✔ Ranbaxy’s Profit/Loss Year wise:

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 Year Profit in Crores
2004 5,284.70
2005 2,237.00
2006 3,805.40
2007 6,177.20
2008 10,448.00

✔ Graphical Representation is given below:

✔ Comparison between years:

Financial Comparison(in
Year Crores)
2004-05 Nil
2005-06 3,047.70
2006-07 -1,568.40
2007-08 -2,371.80
2008-09 -4,270.80

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Trend analysis:
The equation for the straight line trend is Y = a + bx ,
Where ‘a’ is an intercept, and ‘b’ shows impact of independent variable;
the Y intercept and the slope of the line are found by making substitutions
in the following normal equations:

∑Y = a + b ∑ x

∑XY = a ∑x + b ∑x2

To calculate the demand forecasting, last 5years’ Sales (in Crores) are to
be taken.

Sales in
Years Rs.crores X X2 XY
(Y)
2004-
36,143.40 1 1 36,143.40
05
2005-
35,366.50 2 4 70,733.00
06
2006-
40,587.10 3 9 1,21,761.30
07
2007-
41,844.90 4 16 1,67,379.60
08
2008-
44,814.30 5 25 2,24,071.50
09
∑Y = ∑ X2 = ∑XY =
N=5 ∑X = 15
198756.20 55 620088.80

Substituting the above values in the normal equations:

198756.20 = 5a+15b…… (eq1)

620088.80 = 15a+55b…. (eq2)

Solving the two equations:

a = 32,605.18 and b = 2,382.02.

THE EQUATION FOR STRAIGHT LINE TREND IS: Y = 32,605.18 +

2,382.02X
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TREND VALUES AND ESTIMATE FOR THE YEAR 2010 IS
AS FOLLOWS:

Y2005 32,605.18 +
= 2,382.02(1) 34,933.20

Y2006 32,605.18 +
= 2,382.02(2) 37,369.22

Y2007 32,605.18 +
= 2,382.02(3) 39,751.24

Y2008 32,605.18 +
= 2,382.02(4) 42,133.26

Y2009 32,605.18 +
= 2,382.02(5) 44,515.28

Y2010 32,605.18 +
= 2,382.02(6) 46,897.30

The Demand Forecast for the Year 2010 is Rs.

46,897.30 Crores.

TRADING
In 1998, Ranbaxy entered the United States, the world's largest
pharmaceuticals market and now the biggest market for Ranbaxy,
accounting for 28% of Ranbaxy's sales in 2005.

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 For the twelve months ending on 31 December 2005, the
company's global sales were at US $1,178 million with overseas markets
accounting for 75% of global sales (USA: 28%, Europe: 17%, Brazil,
Russia, and China: 29%). For the twelve months ending on December 31,
2006, the company's global sales were at US $1,300 million.

Most of Ranbaxy's products are manufactured by license from

foreign pharmaceutical developers, though a significant percentage of
their products are off-patent drugs that are manufactured and distributed
without licensing from the original manufacturer because the patents on
such drugs have expired.

In December 2005, Ranbaxy's shares were hit hard by a patent

ruling disallowing production of its own version of Pfizer's cholesterol-
cutting drug Lipitor, which has annual sales of more than $10 billion. In
June 2008, Ranbaxy settled the patent dispute with Pfizer allowing them
to sell Atorvastatin Calcium, the generic version of Lipitor(R) and
Atorvastatin Calcium-Amylodipine Besylate, the generic version of Pfizer's
Caduet(R) in the US starting November 30, 2011. The settlement also
resolved several other disputes in other countries.

On 23 June 2006, Ranbaxy received from the United States Food &
Drug Administration a 180-day exclusivity period to sell simvastatin
(Zocor) in the U.S. as a generic drug at 80 mg strength. Ranbaxy
presently competes with the maker of brand-name Zocor, Merck & Co.;
IVAX Corporation (which was acquired by and merged into Teva
Pharmaceutical Industries Ltd.), which has 180-day exclusivity at
strengths other than 80 mg; and Dr. Reddy's Laboratories, also from
India, whose authorized generic version (licensed by Merck) is exempt
from exclusivity.

On 16 September 2008, the Food and Drug Administration issued

two Warning Letters to Ranbaxy Laboratories Ltd. and an Import Alert for
generic drugs produced by two manufacturing plants in India.

On 10 June 2008, Japan's Daiichi Sankyo Co. agreed to take a

majority (50.1%) stake in Ranbaxy, with a deal valued at about $4.6
billion. Ranbaxy's Malvinder Singh will remain CEO after the transaction.
Malvinder Singh also said that this was a strategical deal and not a sell
out.

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 On February 25, 2009 the U.S. Food and Drug Administration said it
has halted reviews of all drug applications including data developed at
Ranbaxy's Paonta Sahib Plant in India because of a practice of falsified
data and test results in approved and pending drug applications.
"Investigations revealed a pattern of questionable data," the FDA said.

Turn Around Strategies

Acquisition
On June 11 2008, Daiichi-Sankyo acquired a 34.8% stake in
Ranbaxy, for a value $2.4 billion. In November 2008, Daiichi-Sankyo
completed the takeover of the company from the founding Singh family in
a deal worth $4.6 billion by acquiring a 63.92% stake in Ranbaxy.

The addition of Ranbaxy Laboratories extends Daiichi-Sankyo's

operations - already comprising businesses in 21 countries. For Ranbaxy,
the deal frees up its debt and imparts more flexibility into its growth
plans. The combined company is worth about $30 billion.

✔ Shareholding Pattern

In November 2008, Japanese Pharma Daiichi Sankyo Company

(4568-TO) completed the takeover of the company from the founding
Singh family in a deal worth $4.6 billion by acquiring 63.92% stake in
Ranbaxy.

Limited share holding pattern

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 Entity Percentage
Daiichi Sankyo Company (4568-
TO) 63.92%

General Public
13.18%

Banks Fin. Inst. and Insurance

9.57%

Private Corporate Bodies

5.30%

4.16%
FII's

Others 1.72%
NRI's/OCB's/Foreign Others 0.14%

Key Trends and Forces

✔ Gaining First-to-File exclusive rights to a generic through patent
challenges

Generic drug companies can challenge a patent's validity or argue

that their version doesn't infringe on the existing drug's patent even
before patent expiration. The first company to apply for FDA Approval for
a generic, in spite of an existing patent, receives a 180-day period of
exclusivity to produce and sell the generic version.

Ranbaxy has been filing more than 20 ANDAs to the U.S.Food and
Drug Administration (FDA) each year. The cumulative abbreviated new
drug applications (ANDA) filings stood at 239 with 141 approvals as on
December 31, 2007. The company has entered into 3 independent
litigation settlements with innovator companies, GlaxoSmithKline (GSK)

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for Valacyclovir (Valtrex) and Sumatriptan (Imitrex) and with Boehringer
Ingelheim / Astellas Pharma for Tamsulosin (Flomax). It has one of the
largest product pipeline in the US that includes 18 potential First-To-File
opportunities with a market size of around US $ 27 Bn, at innovator
prices.

✔ Pricing Pressures in US & European generic markets affect

Ranbaxy's revenue

Due to an increase in number of pharma companies forging into the

generics market, there has been downward pricing pressure on generics
in the U.S. The generics market in Europe, which had become a safe
haven for Indian pharmaceutical companies after competition pulled
down margins in the US, has come under pricing pressure too, especially
in countries like Germany, UK and France, the top three generics markets
in the continent. These countries have seen margins in the generics
segment erode as much as 80-90%. The pricing pressure has been
adversely affecting revenue as both US & Europe occupy Ranbaxy's
majority market share. Due to continuing competitive and pricing
pressures, Ranbaxy's revenues dropped 6% to Rs 149.5 crore from the
UK, France, Germany in the quarter ended September 30, 2008.

✔ Regulatory issues raised by regulators in various countries where

Ranbaxy operates pose a risk to it's markets:

On September 16, 2008 the U.S.Food and Drug Administration

(FDA) issued warning letters to Ranbaxy Laboratories Ltd., and an Import
Alert for Drugs from Two Ranbaxy Plants in India affecting over 30
different generic drugs and citing serious manufacturing deficiencies.
Following this the World Health Organisation (WHO) observed that several
inspections of Ranbaxy's Paonta Sahib site - in June 2008 - revealed
noncompliance with WHO good manufacturing practices standards.

Further, India's business daily Mint quoted the Canadian health

ministry as saying a "regulatory letter" was sent to Ranbaxy
Pharmaceuticals Canada requesting an action plan and a response to the
FDA's move. Impending healthcare reforms in Romania, Ranbaxy's largest
market in EU, is leading to a delay in the government's product and price
approval list, and adding to uncertainty amongst customers and
suppliers. The outcome of these regulatory issues pose a risk to the
company's image as global generic player as well a risk to its markets
worldwide

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Latest Developments in Ranbaxy: At a Glance
Ranbaxy's sales in the key U.S. market fell 53% to $44 million in the
third quarter ended Sept. 30. Overall, its revenue from developed
markets, including the U.S., dropped 30% to $109 million, primarily due to
lower business from the U.S. Its consolidated net sales were $356 million
for the period.

Ranbaxy Laboratories has exited from Japan-based joint venture

company—Nihon
Pharmaceutical Industry.

Ranbaxy entered into an agreement with Nippon Chemiphar to form

a joint venture company — Nihon Pharmaceutical Industry, in September,
2002. Now it has sold its stake to Nippon Chemiphar for an undisclosed
amount after an agreement that allowed Nippon Chemiphar (NC) to buy
Ranbaxy’s entire stake in Nihon Pharmaceutical Industry (NPI), Ranbaxy
Labs said in a filing to the Bombay Stock Exchange.

Both companies — Nippon Chemiphar and Ranbaxy Laboratories —

held equal shares in the joint venture. Following the transaction, NPI
would become a wholly-owned subsidiary of Nippon Chemiphar.

Nippon Chemiphar is a Japanese pharmaceutical company, involved

in developing, manufacturing and selling generics, in addition to
proprietary products.

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 Ranbaxy Laboratories, has posted a net profit of Rs 116.6 crore for
its third quarter ended September, against a net loss of Rs 394.5 crore in
the same period last year.

Ranbaxy Laboratories, India's top drugmaker by sales, will start

supplying in December or January a key ingredient to AstraZeneca for
anti-ulcer drug Nexium.

Competition
The pharmaceutical industry is characterized by rapid advances in
scientific knowledge and ability to discover new drugs. The industry is
therefore led by large manufacturers and marketers of drugs investing
heavily in research & development, having clinical testing, marketing and
distributing capabilities. Some of the main competitors of Ranbaxy are:

• Sun Pharamceuticals Industires - It is No. 1 in India in speciality

therapy areas like psychiatry, neurology, cardiology,
gastroenterology, diabetology and respiratory.It has brands in 30
markets worldwide and also has a generic presence in the U.S. with
Caraco Pharm Labs, Sun Pharmaceutical Industries Inc (subsidiary).
• Cipla - Cipla is a leader in the domestic retail pharmaceutical
market. It also exports raw materials, intermediates, prescription
drugs, over-the-counter products, and veterinary products to some
180 countries around the world.

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 • GlaxoSmithKline - It is one of the oldest pharma companies in India
and with a turnover of Rs. 1500 crore is one of the market
leaders(market share) in India with a share of 6.2 per cent. Its main
portfolios consist of anti- infectives, dermatologicals and pain
management drugs.

Dr. Reddy's Laboratories - It is a global pharmaceutical company with it's

headquarters in India and a presence in more than 100 countries.

RECOMMENDATIONS/SUGGESTIONS
• Marketing Strategies : Increase sales
• Reduce R&D costs.
• Opening own exclusive Retail Outlets.
• Any Time Medicines (ATM).
• Outsourcing by forming alliance with companies like Pfizer, which is
the market leader in drug manufacturing globally.
• Outsourcing saves a lot of money when done in countries like India
as it has many scientists and thus very cost effective.

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• Forming local mergers with companies like Alkem laboratories
which meet the requirements for forming an alliance with this
company in terms of the drugs that they manufacture.
• Tie ups with multimedia companies as they play a huge role in the
marketing of the products which involves advertising, signboards
etc.
• Come out with exclusive drugs to tackle epidemic diseases, like
H1N1, Chikungunia.
• Developing drugs for Cancer, Brain Tumor and AIDS.
• Development of Hospitals: Fortis and expanding its centers.
• Tie-ups with Government: Government Hospitals.
• Exclusive Medical Representatives.

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