HYDERABAD, India--(BUSINESS WIRE)--Dr. Reddy’s Laboratories (NYSE: RDY - News) today announced that it has crossed the milestone of $150 million of revenues in the Russia/CIS region for the fiscal year 2009. This milestone is a result of the efforts in building a branded franchise, cementing strong customer relationships and partnering with trade channels over the last several years.
Dr. Reddy’s entered the Russia market in 1992 and consolidated its position during the turbulent currency crisis of the late 1990s. Today Dr. Reddy’s is the largest Indian Pharmaceutical company in Russia and is also the fastest growing international branded generic company by volume.
Commenting on the growth story, M V Ramana, Head-Russia & CIS Operations, Dr. Reddy’s, said, “The company has been growing rapidly over the last several years with revenues of $80 mn, $110 mn and $138 mn in the fiscal years 2006, 2007 and 2008 respectively in the Russia/CIS region. During the 11 months ended February 2009, the year-on-year revenue growth rate in Russia/CIS was a healthy ~24% in USD terms and we hope to maintain this growth and manage receivables pro-actively. The company has further reduced the receivable days (DSO) in Russia since December 2008. With almost 80%+ of the revenues generated from the top 4 distributors, the product portfolio is well penetrated geographically and enjoys good availability in the pharmacies.”
“With our strong presence in Russia over the past 15 years backed by leading branded generic products, we are deeply committed to this market. We are confident of tackling the challenges posed by the macroeconomic factors in the country as the branded generic and generic segments in Russia & CIS are relatively defensive to these factors. With strong brands, sustained growth in the OTC segment and our association with top tier distribution partners, we are confident on meeting the growth expectations in Russia and CIS,” said Satish Reddy, MD & COO, Dr. Reddy’s.
Disclaimer
This press release includes forward-looking statements, as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such factors include, but are not limited to, changes in local and global economic conditions, our ability to successfully implement our strategy, the market acceptance of and demand for our products, our growth and expansion, technological change and our exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future.
About Dr. Reddy’s Established in 1984, Dr. Reddy’s Laboratories (NYSE: RDY - News) is an emerging global pharmaceutical company whose purpose is providing affordable and innovative medicines for healthier lives. Dr. Reddy’s is vertically integrated with a presence across the pharmaceutical value chain through its core businesses of Global Generics, Pharmaceutical Services & Active Ingredients (PSAI), and Proprietary Products, which includes New Chemical Entities, Biosimilars, Specialty and Differentiated formulations. The company’s products are marketed globally, with a focus on India, US, Europe and Russia. For further information please see: www.drreddys.com
Contact:
Dr. Reddy’s Laboratories Investors and Financial Analysts: Kedar Upadhye, +91-40-66834297 kedaru@drreddys.com Raghavender R, +91-40-66511529 raghavenderr@drreddys.com Milan Kalawadia (North America), 001-908-203-4931 mkalawadia@drreddys.com Media: Mythili M, +91-40-66511620 mythilim@drreddys.com Rajan S, +91-40-66511725 rajans@drreddys.com
