About
Dr Reddy's Laboratories Ltd
Dr Reddy's Laboratories Ltd (DRL) is an integrated global pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. Through its three businesses - Pharmaceutical Services &Active Ingredients, Global Generics and Proprietary Products - Dr. Reddy's offers a portfolio of products and services including Active Pharmaceutical Ingredients (APIs), custom pharmaceutical services, generics, biosimilars and differentiated formulations. The company's major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Dr. Reddy's operates in markets across the globe. Its major markets include - USA, India, Russia & CIS countries, and Europe.
Dr Reddy's Laboratories was incorporated in the year 1984 in Hyderabad. The company was established by Dr Anji Reddy with an initial capital outlay of Rs 25 lakh. The company made their beginning with the manufacture of Active Pharmaceutical Ingredients and Intermediates (API) and commenced operations with a single drug in a 60-tonne facility near Hyderabad, India. In the year 1986, the company shares were listed on the Bombay Stock Exchange. Also, they entered international market with exports of Methyldopa.
In the year 1987, the company obtained first USFDA approval for Ibuprofen API. In the year 1988, they acquired Benzex Laboratories Pvt Ltd to expand their Bulk Actives business. In the year 1990, they exported Norfloxacin and Ciprofloxacin to Europe and Far East. In the year 1991, they commenced formulation exports to Russia.
In the year 1993, the company established Dr. Reddy's Research Foundation and initiated drug discovery programme. In the year 1994, they finished dosages facility established to cater to highly regulated markets such as the US. In the year 1995, the company set up joint venture in Russia. In the year 1997, they filled first ANDA with the United States Food and Drug Administration for Ranitidine.
In the year 1999, the company acquired American Remedies Ltd, a pharmaceutical company based in India. In the year 2000, Cheminor Drugs Ltd, a group company merged with the company and thus the company became India's third largest pharma company. In the year 2001, the company launched Fluoxetine capsules. They became the first Indian company to win 180-day exclusivity for a generic drug in the US. Also, they launched their first generic product, Ranitidine, in the US market.
In the year 2002, the company made their first overseas acquisition of BMS Laboratories Limited and Meridian Healthcare in UK. In the year 2003, they launched Ibuprofen, first generic product to be marketed under the 'Dr. Reddy's' label in the US. In the year 2005, they acquired Roche's API Business at its manufacturing site in Mexico.
In the year 2006, the company acquired Betapharm the fourth largest generics company in Germany for a total enterprise value of Rs 480 million. In the year 2007, the company launched Reditux - the world's first biosimilar MAb - for the treatment of Non Hodgkins Lymphoma. Also, they became India's leading and most profitable pharmaceutical company.
During the year 2008-09, the company acquired DowPharma's small molecules business in UK under Chirotech Technology Ltd, BASF Corporation's manufacturing facility at Shreveport in Louisiana, USA under Dr. Reddy's Laboratories Louisiana LLC and Jet Generici SRL, a company engaged in the sale of generic finished dosages in Italy. In addition, Perlecan Pharma Pvt Ltd, Macred India Pvt Ltd and Dr. Reddy's Laboratories ILAC Ticaret also became subsidiary of the company.
During the year 2009-10, Dr. Reddy's Pharma SEZ Ltd was incorporated as a wholly-owned subsidiary of the company for the purpose of formulation manufacturing at Special Economic Zone and Perlecan Pharma Pvt Ltd was amalgamated with the company. Further, the company acquired the balance stake of 30% in Dr. Reddy's (Australia) Pty Ltd. The company filed 12 Abbreviated New Drug Applications (ANDAs) in US including six Para IV filing during the year.
During the year 2010-11, the company acquired GlaxoSmithKline's (GSK) oral penicillin manufacturing facility located in Tennessee, USA. This allows the company to enter theUS penicillin-containing antibacterial market segment through brands such as Augmentin and Amoxil, and serve the needs of customers through manufacturing and other capabilities that did not previously exist within the company. Also, they increased the stake in the South African joint venture company to 100% after acquiring the 40% stake of the partner.
During the year, the company launched Cresp in India, the first biosimilar darbepoetin alfa in the world. In March 2011, they launched Peg-grafeelTM in India in the form of an affordable pegfilgrastim, which is used to stimulate the bone marrow to produce more neutrophils to fight infection in patients undergoing chemotherapy. Peg-grafeelTM
During the year, Idea2Enterprises (India) Pvt Ltd, Dr. Reddy's Laboratories Romania SRL, I-Ven Pharma Capital Ltd, Dr. Reddy's Laboratories Tennessee LLC and Dr. Reddy's Venezuela C.A. became wholly-owned subsidiaries of the company. Further, Dr. Reddy's Laboratories (Proprietary) Ltd also became wholly-owned subsidiary by virtue of purchase of its balance 40% stake by the company. Also, Macred India Pvt Ltd ceased to be a subsidiary of the company.On 27 July 2012, Dr. Reddy's Laboratories announced that the United States Food and Drug Administration (USFDA) had lifted import alert on its chemical manufacturing facility at Cuernavaca, Mexico after inspection of the unit in March 2012. Earlier, Dr. Reddy's Mexico facility was inspected by USFDA in November 2010 and based on observations by the USFDA, a warning letter was issued to the company on 14 June 2011.On 8 October 2012, the Custom Pharmaceutical Services (CPS) business of Dr. Reddy's Laboratories Ltd. announced expansion in the areas of activated mPEG manufacturing and in the development and manufacture of NCE (New Chemical Entities) APIs for use in pre-clinical through to commercial development at its manufacturing facility in Mirfield, UK.On 14 December 2012, Dr. Reddy's Laboratories announced that it had launched the recommended public offer to acquire all the issued and outstanding shares of OctoPlus N.V., a service based specialty pharmaceutical company, at an offer price of EUR 0.52 (cum dividend) per share. Shareholders (including certain members of the Boards) holding in aggregate 63.5% of the issued and outstanding ordinary shares of OctoPlus entered into irrevocable undertakings to tender their shares under the offer. On 28 February 2013, Dr. Reddy's Laboratories announced that it had raised its stake in OctoPlus N.V, to 98.6% following a public offer for all the issued and outstanding ordinary shares in the capital of OctoPlus. OctoPlus is a leading European provider of advanced drug formulation and clinical scale manufacturing services to the pharmaceutical and biotechnology industries, with a focus on difficult-to formulate active pharmaceutical ingredients.On 19 December 2014, Dr. Reddy's Laboratories announced that it had completed the acquisition of Habitrol brand (an over-the-counter nicotine replacement therapy transdermal patch) from Novartis Consumer Health Inc. following issuance of the proposed consent order from the US Federal Trade Commission (FTC) on 26 November 2014. The company had earlier entered into an asset purchase agreement with Novartis Consumer Health Inc. to acquire the title and rights of Habitrol brand and to market the product in the US market.On 22 March 2015, Dr. Reddy's Laboratories (NYSE: RDY) announced that it had settled its claims against Nordion Inc. (formerly MDS Inc.), headquartered in Ottawa, Canada, in a case pending in the United States District Court for the District of New Jersey, for a cash payment of USD 22.5 Million by Nordion to Dr. Reddy's. The case was brought by Dr. Reddy's in April 2009 seeking damages sustained by the company caused by a claimed breach by Nordion of its Laboratory Services Agreement with Dr. Reddy's. Nordion, as a contract research organization, provided laboratory services to Dr. Reddy's, including bio-equivalency studies, to support Dr. Reddy's regulatory applications for approval of generic drugs, including Abbreviated New Drug Applications (ANDAs) filed with the United States Food and Drug Administration (the USFDA) for approval to market generic drugs in the United States. The case arose after the USFDA cited MDS with violations of good laboratory practices which caused the USFDA not to accept, without further substantiation, MDS's laboratory reports performed during the period 2000-2004.
On 23 March 2015, Dr Reddy's Laboratories announced that it has entered into an agreement with Hetero, under which Dr. Reddy's has been licensed to distribute and market Sofosbuvir 400 mg tablets , indicated in the treatment of Chronic Hepatitis C, under the brand name Resof, in India.
On 1 April 2015, Dr. Reddy's Laboratories announced that it has entered into a definitive agreement to acquire a select portfolio of the established products business of UCB, a global biopharmaceutical company, in the territories of India, Nepal, Sri Lanka and Maldives. The revenue of the acquired business stood at approximately Rs 150 crore for calendar year 2014.On 29 May 2015, Dr Reddy's Laboratories Limited and AstraZeneca Pharma India Limited entered into a distribution agreement for saxagliptin and its fixed dose combination with metformin, in Type 2 DiabetesOn 6 August 2015, Dr. Reddy's Laboratories Ltd. announced that it has entered into a strategic collaboration with Amgen, one of the world's leading independent biotechnology companies, to market and distribute three Amgen medicines in India in the areas of oncology and cardiology. On 16 September 2016, Dr. Reddy's announced that it had expanded its strategic collaboration with Amgen to market and distribute three of Amgen's medicines in India in the therapy areas of oncology and osteoporosis.
On 9 September 2015, PanTheryx Inc., a global medical nutrition company based in Boulder, Colorado, and Dr. Reddy's Laboratories Ltd. announced a multi-country supply and licensing agreement whereby Dr. Reddy's Lab got the exclusive right to market and distribute PanTheryx's breakthrough nutritional intervention, DiaResQ, for infectious diarrhea in India and Nepal and in process for Russia, Myanmar, Vietnam, Ukraine, Sri Lanka, Kazakhstan, Belarus, Jamaica, and select LATAM markets. Dr. Reddy's will market the product in India and Nepal under the Reliqua brand.
On 14 September 2015, Dr. Reddy's Laboratories announced the signing of a commercialization deal with Hatchtech, an Australian pharmaceutical company developing an innovative prescription head lice product, Xeglyze Lotion. The exclusive rights for this product are applicable for the territories of the United States, Canada, India, Russia and the CIS, Australia, New Zealand and Venezuela.
On 4 November 2015, Dr. Reddy's Laboratories entered into a strategic alliance with Biocodex, a multinational pharmaceutical company, to market and distribute Biocodex products in the Romanian market.
On 5 November 2015, the US Food and Drug Administration (USFDA) issued a warning letter to Dr. Reddy's Laboratories relating to its API manufacturing facilities at Srikakulam, Andhra Pradesh and Miryalaguda, Telangana, as well as Oncology Formulation manufacturing facility at Duvvada, Visakhapatnam, Andhra Pradesh. This action follows the earlier inspections of these sites by the agency in November 2014, January 2015 and February 2015 respectively.
On 18 November 2015, Dr. Reddy's Laboratories announced that it had completed the purchase of worldwide exclusive intellectual property rights for Fondaparinux sodium, its generic anti-coagulant drug from its Australian partner, Alchemia Limited. Earlier, the company had signed a term sheet for this transaction in September 2015. Fondaparinux is a generic version of the anticoagulant drug Arixtra.
On 11 March 2016, Dr. Reddy's Laboratories Ltd. and TR-Pharm announced a strategic collaboration agreement for the manufacture and commercialization of a portfolio of Dr. Reddy's Laboratories' biosimilar drugs in Turkey.
On 28 March 2016, Dr. Reddy's Laboratories and XenoPort, Inc. announced that they have entered into a license agreement pursuant to which Dr. Reddy's Laboratories will be granted exclusive US rights for the development and commercialization of XenoPort's clinical stage oral new chemical entity, XP23829. Dr. Reddy's Laboratories plans to develop XP23829 as a potential treatment for moderate-to-severe chronic plaque psoriasis and may potentially develop XP23829 for relapsing forms of multiple sclerosis (MS).
On 31 March 2016, Dr. Reddy's Laboratories announced that it has entered into a licensing agreement with Eisai Co., Ltd, Japan by which Dr. Reddy's will be granted exclusive worldwide development and commercialization rights (excluding Japan and Asia) for Eisai's investigational anticancer agent E7777. Eisai will be responsible for the development and marketing of E7777 in Japan and Asia, while Dr. Reddy's holds the option for rights to develop and market the agent in India.
On 25 May 2016, Dr. Reddy's Laboratories announced the acquisition of an eminent portfolio of over-the-counter (OTC) brands in the US in the cough-and-cold, pain, and dermatology categories from Ducere Pharma.
On 3 August 2016, Dr. Reddy's Laboratories announced that it successfully completed the previously announced acquisition of a portfolio of complex generic products in the US from Teva Pharmaceutical Industries Ltd. and an affiliate of Allergan plc. On 11 June 2016, Dr. Reddy's Laboratories entered into a definitive agreement with Teva Pharmaceutical Industries Ltd. and an affiliate of Allergan plc to acquire a portfolio of eight Abbreviated New Drug Applications (ANDAs) in the US for $350 million in cash.
On 7 October 2016, Dr. Reddy's Laboratories announced its entry into Colombia with its portfolio of high quality and affordable medicines for Cancer patients.
On 26 October 2016, Dr. Reddy's Laboratories announced that it had entered into a strategic collaboration with Gland Pharma, a globally recognized developer and manufacturer of sterile dosage forms, to market and distribute a diverse portfolio of eight injectable Abbreviated New Drug Applications (ANDAs) in the United States.
On 8 February 2017, Dr. Reddy's Laboratories Ltd announced the expansion of its commercial operations in Europe with the introduction of its portfolio of generics in France.
On 3 March 2017, Dr. Reddy's Laboratories announced that it had completed the acquisition of 100% stake in Imperial Credit Private Limited, a Non-Banking Finance Company (NBFC), based out of Kolkata, for a consideration of Rs 2.05 crore. The company proposes to undertake the group's captive financial activities through this entity.
On 27 March 2017, Dr. Reddy's Laboratories and Integra LifeSciences Holdings Corporation, a leading global medical technology company, announced that they have entered into an exclusive distribution agreement. Under the agreement, Dr. Reddy's will market and distribute DuraGen Plus and Suturable DuraGen Dural Regeneration Matrices for use in patients in India. The DuraGen product line offers Duraplasty Solutions meant for the repair of the dura mater. Dura mater is a thick membrane that surrounds the brain and spinal cord, and contains the cerebrospinal fluid (CSF). DuraGen Plus Dural Regeneration Matrix is indicated as a dural substitute for the repair of dura mater.
On 27 July 2017, Dr Reddy's Laboratories Ltd. and CHD Bioscience Inc., a privately-held biopharmaceutical company, announced a global licensing agreement for the clinical development and commercialization of Dr. Reddy's phase III clinical trial candidate, DFA-02. It is intended to be used for the prevention of surgical site infections, following non-emergency, elective colorectal surgery. Under the terms of the agreement, Dr. Reddy's would receive equity in CHD valued at $30 million upon an IPO of CHD or a minimum of $30 million in cash within 18 months of execution of the agreement. Dr. Reddy's will also receive additional milestone payments of $40 million upon USFDA approval. In addition, CHD will pay Dr. Reddy's double-digit royalties on sales and commercial milestones.
On 22 August 2017, Dr. Reddy's Laboratories Ltd. through its wholly owned subsidiary Promius Pharma, LLC, announced that it has out-licensed the future development, manufacturing, and commercialization rights of DFD-06, a topical high potency steroid, to Encore Dermatology Inc. The drug is intended to be used for treatment of moderate to severe plaque psoriasis. Under the terms of the agreement, Encore will be responsible for the commercialization of DFD-06 in the United States. Promius Pharma is eligible to receive certain pre- and post- commercialization milestone payments of up to USD $32.5 million, followed by fixed royalty payments on net sales.
On 19 December 2017, Dr. Reddy's Laboratories Ltd. announced that its US subsidiary had reached a settlement with the US Government in a case involving packaging for five blister-packed prescription products. In a joint filing by the parties, Dr. Reddy's and the US Department of Justice agreed to the settlement of the action without any adjudication of any issue of fact or law.
In FY2018, the company filed 19 new Abbreviated New Drug Applications (ANDAs) and one New Drug Application (NDA) with the USFDA.
As of 31 March 2018, the company had 110 generic filings pending approval from the USFDA, comprising 107 ANDAs and three NDAs filed under the 505(b)(2) route of the US Federal Food, Drug and Cosmetic Act. Of the 107 ANDAs, 63 are Para IV applications.
The company had 51 subsidiaries and two joint venture companies as on 31 March 2018. During FY2018, Dr. Reddy's Laboratories Chile SpA. (in Chile), Dr. Reddy's (WUXI) Pharmaceutical Co. Limited (in China), Dr. Reddy's Laboratories Malaysia Sdn. Bhd. (in Malaysia) and Dr. Reddy's Laboratories Taiwan Limited (in Taiwan) have become subsidiary companies. DRSS Solar Power Private Limited was closed and ceased to be a joint venture company.
In FY2019, the company filed 20 new Abbreviated New Drug Applications (ANDAs) with the USFDA. As on 31 March 2019, the company had 110 generic filings pending approval from the USFDA - comprising 107 ANDAs and three New Drug Applications (NDAs).
The company had 52 subsidiaries and two joint venture companies as on 31 March 2019. During FY2019, Dr. Reddy's Laboratories (Thailand) Limited and Dr. Reddy's Laboratories Philippines Inc. have become subsidiary companies. Pursuant to sale of all the issued and outstanding membership interests in the antibiotic manufacturing facility at Tennessee, USA, Dr. Reddy's Laboratories Tennessee, LLC ceased to be a subsidiary.
During FY2019, the company launched 15 new brands in India. The company spent towards R&D expenses during FY2019 for the amount of Rs 15,607 million, or 10.1% of revenue, versus 12.9% in FY2018.
The company had 50 subsidiaries and two joint venture companies as on 31 March 2020. During FY2020, Aurigene Pharmaceutical Services Limited was incorporated as a step-down subsidiary company. Dr. Reddy's Singapore Pte. Limited and Reddy Antilles N.V. were closed and ceased to be wholly-owned subsidiaries. Dr. Reddy's Laboratories International SA ceased to be a step-down subsidiary of the company consequent to its merger with Dr. Reddy's Laboratories SA.
During FY2020, the company launched 21 new brands in India. The company also entered the nutrition segment with the launch of our diabetes nutrition drink Celevida'. The company spent towards R&D expenses during FY2020 amounting to Rs 15,410 million, or 8.8% of revenue, versus 10.1% in FY2019.
On 10 June 2020, the company completed the acquisition of select divisions of Wockhardt Limited's branded generics business in India and the territories of Nepal, Sri Lanka, Bhutan and Maldives. The business comprises a portfolio of 62 brands in multiple therapy areas, such as respiratory, neurology, venous malformations, dennatology, gastroenterology, pain, and vaccines. This entire portfolio has been transferred to the Company, along with related sales and marketing teams, the manufacturing plant located in Baddi, Himachal Pradesh, and employees. During the quarter ended 30 September 2020, the company completed the purchase price allocation. The fair value of consideration transferred is Rs 16,115 million. The company recognised Rs 373 million, Rs 14,888 million and Rs 530 million towards property, plant and equipment, intangible assets, and goodwill, respectively. The acquisition pertains to Company's Global Generics segment.
On 22 October 2020, the Company experienced a cybersecurity incident related to ransomware. The Company could contain the incident in a timely fashion and has also ensured that all traces of the infection are completely cleaned from the network. All affected systems were restored and brought back to normalcy in the order of priority. Based on the forensic investigation, no evidence was found of any data breaches leading to personally identifiable information. Since then, the Company has also been focused on implementing significant improvements to its cyber and data security systems to safeguard from such risks in the future.
The Company continues to consider the impact of COVID-19 pandemic in assessing the recoverability of receivables, goodwill, intangible assets, and certain investments.
During December 2020, the company entered into a definitive agreement with Glenmark Phannaceuticals Ltd. to acquire, certain brands in various Emerging Market countries for a total consideration of Rs 1,516 million. The said transaction was accounted for as an acquisition of product related intangibles.
In FY 2020, Company filed 8 new Abbreviated New Drug Applications (ANDAs) with the USFDA. As on 31 March 2020, there were 99
generic filings pending approval from the USFDA, comprising 97 ANDAs and 2 New Drug Applications (NDAs).
During the year, the Company filed 20 abbreviated new drug applications (ANDAs) and 1 new drug application (NDA) in the USA. As of March 31, 2021, there were 95 generic filings awaiting approval with the US Food and Drug Administration (USFDA), comprising 92 ANDAs and 3 NDAs.
The company had 52 subsidiaries and 1 joint venture company as on March 31, 2021.
During FY 2021, Dr. Reddy's (Beijing) Pharmaceutical Company Limited in China and Dr. Reddy's Formulations Limited in India were incorporated as a step-down subsidiary company and a wholly-owned subsidiary, respectively. Pursuant to sale of the membership interests in DRANU, LLC, it ceased to be a joint venture during the year. Further, the company sold its Contract Development and Manufacturing Organization (CDMO) division of Custom Pharmaceutical Services (CPS) business to Aurigene Pharmaceutical Services Limited (APSL), a wholly-owned subsidiary, on slump sale basis, for a consideration of Rs. 5,434.5 million.
During year 2022, Company filed 7 Abbreviated New Drug Applications (ANDAs) in the USA. As of March 31, 2022, there were 90 generic filings awaiting approval with the US Food and Drug Administration (USFDA), comprising 87 ANDAs and 3 NDAs.
The Hon'ble National Company Law Tribunal (NCLT), Hyderabad Bench, vide order dated April 5, 2022, has approved the Scheme of Amalgamation and Arrangement for the merger of Dr. Reddy's Holdings Limited (the DRHL/ Amalgamating Company) with the Company, filed by both companies with the Registrar of Companies, Hyderabad, on April 8, 2022. Therefore, the merger became effective on April 8, 2022 with Appointed date of the Scheme, April 1, 2019.
The Company has 42 overseas subsidiary companies (including step-down subsidiaries), 9 subsidiary companies in India and 1 joint venture Company as on March 31, 2022.
Dr. Reddy's (WUXI) Pharmaceutical Co. Limited in China ceased to be a step-down subsidiary of the Company with effect from December 13, 2021, consequent to its liquidation. Aurigene Discovery Technologies Inc. in USA, ceased to be a step-down subsidiary of the Company with effect from March 23, 2022, consequent to its liquidation. Further, the Company acquired Nimbus Health GmbH (Nimbus) as a step-down subsidiary, on February 24, 2022.
Dr Reddy's Laboratories Ltd
Company History
Dr Reddy's Laboratories Ltd (DRL) is an integrated global pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. Through its three businesses - Pharmaceutical Services &Active Ingredients, Global Generics and Proprietary Products - Dr. Reddy's offers a portfolio of products and services including Active Pharmaceutical Ingredients (APIs), custom pharmaceutical services, generics, biosimilars and differentiated formulations. The company's major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Dr. Reddy's operates in markets across the globe. Its major markets include - USA, India, Russia & CIS countries, and Europe.
Dr Reddy's Laboratories was incorporated in the year 1984 in Hyderabad. The company was established by Dr Anji Reddy with an initial capital outlay of Rs 25 lakh. The company made their beginning with the manufacture of Active Pharmaceutical Ingredients and Intermediates (API) and commenced operations with a single drug in a 60-tonne facility near Hyderabad, India. In the year 1986, the company shares were listed on the Bombay Stock Exchange. Also, they entered international market with exports of Methyldopa.
In the year 1987, the company obtained first USFDA approval for Ibuprofen API. In the year 1988, they acquired Benzex Laboratories Pvt Ltd to expand their Bulk Actives business. In the year 1990, they exported Norfloxacin and Ciprofloxacin to Europe and Far East. In the year 1991, they commenced formulation exports to Russia.
In the year 1993, the company established Dr. Reddy's Research Foundation and initiated drug discovery programme. In the year 1994, they finished dosages facility established to cater to highly regulated markets such as the US. In the year 1995, the company set up joint venture in Russia. In the year 1997, they filled first ANDA with the United States Food and Drug Administration for Ranitidine.
In the year 1999, the company acquired American Remedies Ltd, a pharmaceutical company based in India. In the year 2000, Cheminor Drugs Ltd, a group company merged with the company and thus the company became India's third largest pharma company. In the year 2001, the company launched Fluoxetine capsules. They became the first Indian company to win 180-day exclusivity for a generic drug in the US. Also, they launched their first generic product, Ranitidine, in the US market.
In the year 2002, the company made their first overseas acquisition of BMS Laboratories Limited and Meridian Healthcare in UK. In the year 2003, they launched Ibuprofen, first generic product to be marketed under the 'Dr. Reddy's' label in the US. In the year 2005, they acquired Roche's API Business at its manufacturing site in Mexico.
In the year 2006, the company acquired Betapharm the fourth largest generics company in Germany for a total enterprise value of Rs 480 million. In the year 2007, the company launched Reditux - the world's first biosimilar MAb - for the treatment of Non Hodgkins Lymphoma. Also, they became India's leading and most profitable pharmaceutical company.
During the year 2008-09, the company acquired DowPharma's small molecules business in UK under Chirotech Technology Ltd, BASF Corporation's manufacturing facility at Shreveport in Louisiana, USA under Dr. Reddy's Laboratories Louisiana LLC and Jet Generici SRL, a company engaged in the sale of generic finished dosages in Italy. In addition, Perlecan Pharma Pvt Ltd, Macred India Pvt Ltd and Dr. Reddy's Laboratories ILAC Ticaret also became subsidiary of the company.
During the year 2009-10, Dr. Reddy's Pharma SEZ Ltd was incorporated as a wholly-owned subsidiary of the company for the purpose of formulation manufacturing at Special Economic Zone and Perlecan Pharma Pvt Ltd was amalgamated with the company. Further, the company acquired the balance stake of 30% in Dr. Reddy's (Australia) Pty Ltd. The company filed 12 Abbreviated New Drug Applications (ANDAs) in US including six Para IV filing during the year.
During the year 2010-11, the company acquired GlaxoSmithKline's (GSK) oral penicillin manufacturing facility located in Tennessee, USA. This allows the company to enter theUS penicillin-containing antibacterial market segment through brands such as Augmentin and Amoxil, and serve the needs of customers through manufacturing and other capabilities that did not previously exist within the company. Also, they increased the stake in the South African joint venture company to 100% after acquiring the 40% stake of the partner.
During the year, the company launched Cresp in India, the first biosimilar darbepoetin alfa in the world. In March 2011, they launched Peg-grafeelTM in India in the form of an affordable pegfilgrastim, which is used to stimulate the bone marrow to produce more neutrophils to fight infection in patients undergoing chemotherapy. Peg-grafeelTM
During the year, Idea2Enterprises (India) Pvt Ltd, Dr. Reddy's Laboratories Romania SRL, I-Ven Pharma Capital Ltd, Dr. Reddy's Laboratories Tennessee LLC and Dr. Reddy's Venezuela C.A. became wholly-owned subsidiaries of the company. Further, Dr. Reddy's Laboratories (Proprietary) Ltd also became wholly-owned subsidiary by virtue of purchase of its balance 40% stake by the company. Also, Macred India Pvt Ltd ceased to be a subsidiary of the company.On 27 July 2012, Dr. Reddy's Laboratories announced that the United States Food and Drug Administration (USFDA) had lifted import alert on its chemical manufacturing facility at Cuernavaca, Mexico after inspection of the unit in March 2012. Earlier, Dr. Reddy's Mexico facility was inspected by USFDA in November 2010 and based on observations by the USFDA, a warning letter was issued to the company on 14 June 2011.On 8 October 2012, the Custom Pharmaceutical Services (CPS) business of Dr. Reddy's Laboratories Ltd. announced expansion in the areas of activated mPEG manufacturing and in the development and manufacture of NCE (New Chemical Entities) APIs for use in pre-clinical through to commercial development at its manufacturing facility in Mirfield, UK.On 14 December 2012, Dr. Reddy's Laboratories announced that it had launched the recommended public offer to acquire all the issued and outstanding shares of OctoPlus N.V., a service based specialty pharmaceutical company, at an offer price of EUR 0.52 (cum dividend) per share. Shareholders (including certain members of the Boards) holding in aggregate 63.5% of the issued and outstanding ordinary shares of OctoPlus entered into irrevocable undertakings to tender their shares under the offer. On 28 February 2013, Dr. Reddy's Laboratories announced that it had raised its stake in OctoPlus N.V, to 98.6% following a public offer for all the issued and outstanding ordinary shares in the capital of OctoPlus. OctoPlus is a leading European provider of advanced drug formulation and clinical scale manufacturing services to the pharmaceutical and biotechnology industries, with a focus on difficult-to formulate active pharmaceutical ingredients.On 19 December 2014, Dr. Reddy's Laboratories announced that it had completed the acquisition of Habitrol brand (an over-the-counter nicotine replacement therapy transdermal patch) from Novartis Consumer Health Inc. following issuance of the proposed consent order from the US Federal Trade Commission (FTC) on 26 November 2014. The company had earlier entered into an asset purchase agreement with Novartis Consumer Health Inc. to acquire the title and rights of Habitrol brand and to market the product in the US market.On 22 March 2015, Dr. Reddy's Laboratories (NYSE: RDY) announced that it had settled its claims against Nordion Inc. (formerly MDS Inc.), headquartered in Ottawa, Canada, in a case pending in the United States District Court for the District of New Jersey, for a cash payment of USD 22.5 Million by Nordion to Dr. Reddy's. The case was brought by Dr. Reddy's in April 2009 seeking damages sustained by the company caused by a claimed breach by Nordion of its Laboratory Services Agreement with Dr. Reddy's. Nordion, as a contract research organization, provided laboratory services to Dr. Reddy's, including bio-equivalency studies, to support Dr. Reddy's regulatory applications for approval of generic drugs, including Abbreviated New Drug Applications (ANDAs) filed with the United States Food and Drug Administration (the USFDA) for approval to market generic drugs in the United States. The case arose after the USFDA cited MDS with violations of good laboratory practices which caused the USFDA not to accept, without further substantiation, MDS's laboratory reports performed during the period 2000-2004.
On 23 March 2015, Dr Reddy's Laboratories announced that it has entered into an agreement with Hetero, under which Dr. Reddy's has been licensed to distribute and market Sofosbuvir 400 mg tablets , indicated in the treatment of Chronic Hepatitis C, under the brand name Resof, in India.
On 1 April 2015, Dr. Reddy's Laboratories announced that it has entered into a definitive agreement to acquire a select portfolio of the established products business of UCB, a global biopharmaceutical company, in the territories of India, Nepal, Sri Lanka and Maldives. The revenue of the acquired business stood at approximately Rs 150 crore for calendar year 2014.On 29 May 2015, Dr Reddy's Laboratories Limited and AstraZeneca Pharma India Limited entered into a distribution agreement for saxagliptin and its fixed dose combination with metformin, in Type 2 DiabetesOn 6 August 2015, Dr. Reddy's Laboratories Ltd. announced that it has entered into a strategic collaboration with Amgen, one of the world's leading independent biotechnology companies, to market and distribute three Amgen medicines in India in the areas of oncology and cardiology. On 16 September 2016, Dr. Reddy's announced that it had expanded its strategic collaboration with Amgen to market and distribute three of Amgen's medicines in India in the therapy areas of oncology and osteoporosis.
On 9 September 2015, PanTheryx Inc., a global medical nutrition company based in Boulder, Colorado, and Dr. Reddy's Laboratories Ltd. announced a multi-country supply and licensing agreement whereby Dr. Reddy's Lab got the exclusive right to market and distribute PanTheryx's breakthrough nutritional intervention, DiaResQ, for infectious diarrhea in India and Nepal and in process for Russia, Myanmar, Vietnam, Ukraine, Sri Lanka, Kazakhstan, Belarus, Jamaica, and select LATAM markets. Dr. Reddy's will market the product in India and Nepal under the Reliqua brand.
On 14 September 2015, Dr. Reddy's Laboratories announced the signing of a commercialization deal with Hatchtech, an Australian pharmaceutical company developing an innovative prescription head lice product, Xeglyze Lotion. The exclusive rights for this product are applicable for the territories of the United States, Canada, India, Russia and the CIS, Australia, New Zealand and Venezuela.
On 4 November 2015, Dr. Reddy's Laboratories entered into a strategic alliance with Biocodex, a multinational pharmaceutical company, to market and distribute Biocodex products in the Romanian market.
On 5 November 2015, the US Food and Drug Administration (USFDA) issued a warning letter to Dr. Reddy's Laboratories relating to its API manufacturing facilities at Srikakulam, Andhra Pradesh and Miryalaguda, Telangana, as well as Oncology Formulation manufacturing facility at Duvvada, Visakhapatnam, Andhra Pradesh. This action follows the earlier inspections of these sites by the agency in November 2014, January 2015 and February 2015 respectively.
On 18 November 2015, Dr. Reddy's Laboratories announced that it had completed the purchase of worldwide exclusive intellectual property rights for Fondaparinux sodium, its generic anti-coagulant drug from its Australian partner, Alchemia Limited. Earlier, the company had signed a term sheet for this transaction in September 2015. Fondaparinux is a generic version of the anticoagulant drug Arixtra.
On 11 March 2016, Dr. Reddy's Laboratories Ltd. and TR-Pharm announced a strategic collaboration agreement for the manufacture and commercialization of a portfolio of Dr. Reddy's Laboratories' biosimilar drugs in Turkey.
On 28 March 2016, Dr. Reddy's Laboratories and XenoPort, Inc. announced that they have entered into a license agreement pursuant to which Dr. Reddy's Laboratories will be granted exclusive US rights for the development and commercialization of XenoPort's clinical stage oral new chemical entity, XP23829. Dr. Reddy's Laboratories plans to develop XP23829 as a potential treatment for moderate-to-severe chronic plaque psoriasis and may potentially develop XP23829 for relapsing forms of multiple sclerosis (MS).
On 31 March 2016, Dr. Reddy's Laboratories announced that it has entered into a licensing agreement with Eisai Co., Ltd, Japan by which Dr. Reddy's will be granted exclusive worldwide development and commercialization rights (excluding Japan and Asia) for Eisai's investigational anticancer agent E7777. Eisai will be responsible for the development and marketing of E7777 in Japan and Asia, while Dr. Reddy's holds the option for rights to develop and market the agent in India.
On 25 May 2016, Dr. Reddy's Laboratories announced the acquisition of an eminent portfolio of over-the-counter (OTC) brands in the US in the cough-and-cold, pain, and dermatology categories from Ducere Pharma.
On 3 August 2016, Dr. Reddy's Laboratories announced that it successfully completed the previously announced acquisition of a portfolio of complex generic products in the US from Teva Pharmaceutical Industries Ltd. and an affiliate of Allergan plc. On 11 June 2016, Dr. Reddy's Laboratories entered into a definitive agreement with Teva Pharmaceutical Industries Ltd. and an affiliate of Allergan plc to acquire a portfolio of eight Abbreviated New Drug Applications (ANDAs) in the US for $350 million in cash.
On 7 October 2016, Dr. Reddy's Laboratories announced its entry into Colombia with its portfolio of high quality and affordable medicines for Cancer patients.
On 26 October 2016, Dr. Reddy's Laboratories announced that it had entered into a strategic collaboration with Gland Pharma, a globally recognized developer and manufacturer of sterile dosage forms, to market and distribute a diverse portfolio of eight injectable Abbreviated New Drug Applications (ANDAs) in the United States.
On 8 February 2017, Dr. Reddy's Laboratories Ltd announced the expansion of its commercial operations in Europe with the introduction of its portfolio of generics in France.
On 3 March 2017, Dr. Reddy's Laboratories announced that it had completed the acquisition of 100% stake in Imperial Credit Private Limited, a Non-Banking Finance Company (NBFC), based out of Kolkata, for a consideration of Rs 2.05 crore. The company proposes to undertake the group's captive financial activities through this entity.
On 27 March 2017, Dr. Reddy's Laboratories and Integra LifeSciences Holdings Corporation, a leading global medical technology company, announced that they have entered into an exclusive distribution agreement. Under the agreement, Dr. Reddy's will market and distribute DuraGen Plus and Suturable DuraGen Dural Regeneration Matrices for use in patients in India. The DuraGen product line offers Duraplasty Solutions meant for the repair of the dura mater. Dura mater is a thick membrane that surrounds the brain and spinal cord, and contains the cerebrospinal fluid (CSF). DuraGen Plus Dural Regeneration Matrix is indicated as a dural substitute for the repair of dura mater.
On 27 July 2017, Dr Reddy's Laboratories Ltd. and CHD Bioscience Inc., a privately-held biopharmaceutical company, announced a global licensing agreement for the clinical development and commercialization of Dr. Reddy's phase III clinical trial candidate, DFA-02. It is intended to be used for the prevention of surgical site infections, following non-emergency, elective colorectal surgery. Under the terms of the agreement, Dr. Reddy's would receive equity in CHD valued at $30 million upon an IPO of CHD or a minimum of $30 million in cash within 18 months of execution of the agreement. Dr. Reddy's will also receive additional milestone payments of $40 million upon USFDA approval. In addition, CHD will pay Dr. Reddy's double-digit royalties on sales and commercial milestones.
On 22 August 2017, Dr. Reddy's Laboratories Ltd. through its wholly owned subsidiary Promius Pharma, LLC, announced that it has out-licensed the future development, manufacturing, and commercialization rights of DFD-06, a topical high potency steroid, to Encore Dermatology Inc. The drug is intended to be used for treatment of moderate to severe plaque psoriasis. Under the terms of the agreement, Encore will be responsible for the commercialization of DFD-06 in the United States. Promius Pharma is eligible to receive certain pre- and post- commercialization milestone payments of up to USD $32.5 million, followed by fixed royalty payments on net sales.
On 19 December 2017, Dr. Reddy's Laboratories Ltd. announced that its US subsidiary had reached a settlement with the US Government in a case involving packaging for five blister-packed prescription products. In a joint filing by the parties, Dr. Reddy's and the US Department of Justice agreed to the settlement of the action without any adjudication of any issue of fact or law.
In FY2018, the company filed 19 new Abbreviated New Drug Applications (ANDAs) and one New Drug Application (NDA) with the USFDA.
As of 31 March 2018, the company had 110 generic filings pending approval from the USFDA, comprising 107 ANDAs and three NDAs filed under the 505(b)(2) route of the US Federal Food, Drug and Cosmetic Act. Of the 107 ANDAs, 63 are Para IV applications.
The company had 51 subsidiaries and two joint venture companies as on 31 March 2018. During FY2018, Dr. Reddy's Laboratories Chile SpA. (in Chile), Dr. Reddy's (WUXI) Pharmaceutical Co. Limited (in China), Dr. Reddy's Laboratories Malaysia Sdn. Bhd. (in Malaysia) and Dr. Reddy's Laboratories Taiwan Limited (in Taiwan) have become subsidiary companies. DRSS Solar Power Private Limited was closed and ceased to be a joint venture company.
In FY2019, the company filed 20 new Abbreviated New Drug Applications (ANDAs) with the USFDA. As on 31 March 2019, the company had 110 generic filings pending approval from the USFDA - comprising 107 ANDAs and three New Drug Applications (NDAs).
The company had 52 subsidiaries and two joint venture companies as on 31 March 2019. During FY2019, Dr. Reddy's Laboratories (Thailand) Limited and Dr. Reddy's Laboratories Philippines Inc. have become subsidiary companies. Pursuant to sale of all the issued and outstanding membership interests in the antibiotic manufacturing facility at Tennessee, USA, Dr. Reddy's Laboratories Tennessee, LLC ceased to be a subsidiary.
During FY2019, the company launched 15 new brands in India. The company spent towards R&D expenses during FY2019 for the amount of Rs 15,607 million, or 10.1% of revenue, versus 12.9% in FY2018.
The company had 50 subsidiaries and two joint venture companies as on 31 March 2020. During FY2020, Aurigene Pharmaceutical Services Limited was incorporated as a step-down subsidiary company. Dr. Reddy's Singapore Pte. Limited and Reddy Antilles N.V. were closed and ceased to be wholly-owned subsidiaries. Dr. Reddy's Laboratories International SA ceased to be a step-down subsidiary of the company consequent to its merger with Dr. Reddy's Laboratories SA.
During FY2020, the company launched 21 new brands in India. The company also entered the nutrition segment with the launch of our diabetes nutrition drink Celevida'. The company spent towards R&D expenses during FY2020 amounting to Rs 15,410 million, or 8.8% of revenue, versus 10.1% in FY2019.
On 10 June 2020, the company completed the acquisition of select divisions of Wockhardt Limited's branded generics business in India and the territories of Nepal, Sri Lanka, Bhutan and Maldives. The business comprises a portfolio of 62 brands in multiple therapy areas, such as respiratory, neurology, venous malformations, dennatology, gastroenterology, pain, and vaccines. This entire portfolio has been transferred to the Company, along with related sales and marketing teams, the manufacturing plant located in Baddi, Himachal Pradesh, and employees. During the quarter ended 30 September 2020, the company completed the purchase price allocation. The fair value of consideration transferred is Rs 16,115 million. The company recognised Rs 373 million, Rs 14,888 million and Rs 530 million towards property, plant and equipment, intangible assets, and goodwill, respectively. The acquisition pertains to Company's Global Generics segment.
On 22 October 2020, the Company experienced a cybersecurity incident related to ransomware. The Company could contain the incident in a timely fashion and has also ensured that all traces of the infection are completely cleaned from the network. All affected systems were restored and brought back to normalcy in the order of priority. Based on the forensic investigation, no evidence was found of any data breaches leading to personally identifiable information. Since then, the Company has also been focused on implementing significant improvements to its cyber and data security systems to safeguard from such risks in the future.
The Company continues to consider the impact of COVID-19 pandemic in assessing the recoverability of receivables, goodwill, intangible assets, and certain investments.
During December 2020, the company entered into a definitive agreement with Glenmark Phannaceuticals Ltd. to acquire, certain brands in various Emerging Market countries for a total consideration of Rs 1,516 million. The said transaction was accounted for as an acquisition of product related intangibles.
In FY 2020, Company filed 8 new Abbreviated New Drug Applications (ANDAs) with the USFDA. As on 31 March 2020, there were 99
generic filings pending approval from the USFDA, comprising 97 ANDAs and 2 New Drug Applications (NDAs).
During the year, the Company filed 20 abbreviated new drug applications (ANDAs) and 1 new drug application (NDA) in the USA. As of March 31, 2021, there were 95 generic filings awaiting approval with the US Food and Drug Administration (USFDA), comprising 92 ANDAs and 3 NDAs.
The company had 52 subsidiaries and 1 joint venture company as on March 31, 2021.
During FY 2021, Dr. Reddy's (Beijing) Pharmaceutical Company Limited in China and Dr. Reddy's Formulations Limited in India were incorporated as a step-down subsidiary company and a wholly-owned subsidiary, respectively. Pursuant to sale of the membership interests in DRANU, LLC, it ceased to be a joint venture during the year. Further, the company sold its Contract Development and Manufacturing Organization (CDMO) division of Custom Pharmaceutical Services (CPS) business to Aurigene Pharmaceutical Services Limited (APSL), a wholly-owned subsidiary, on slump sale basis, for a consideration of Rs. 5,434.5 million.
During year 2022, Company filed 7 Abbreviated New Drug Applications (ANDAs) in the USA. As of March 31, 2022, there were 90 generic filings awaiting approval with the US Food and Drug Administration (USFDA), comprising 87 ANDAs and 3 NDAs.
The Hon'ble National Company Law Tribunal (NCLT), Hyderabad Bench, vide order dated April 5, 2022, has approved the Scheme of Amalgamation and Arrangement for the merger of Dr. Reddy's Holdings Limited (the DRHL/ Amalgamating Company) with the Company, filed by both companies with the Registrar of Companies, Hyderabad, on April 8, 2022. Therefore, the merger became effective on April 8, 2022 with Appointed date of the Scheme, April 1, 2019.
The Company has 42 overseas subsidiary companies (including step-down subsidiaries), 9 subsidiary companies in India and 1 joint venture Company as on March 31, 2022.
Dr. Reddy's (WUXI) Pharmaceutical Co. Limited in China ceased to be a step-down subsidiary of the Company with effect from December 13, 2021, consequent to its liquidation. Aurigene Discovery Technologies Inc. in USA, ceased to be a step-down subsidiary of the Company with effect from March 23, 2022, consequent to its liquidation. Further, the Company acquired Nimbus Health GmbH (Nimbus) as a step-down subsidiary, on February 24, 2022.
Dr Reddy's Laboratories Ltd
Directors Reports
Dear Member,
Your directors are pleased to present the 38th Annual Report of the
Company for the year ended March 31,2022.
The FY2022 saw several challenges with respect to multiple COVID-19
waves, heightened geo-political tensions and increase in commodity prices. These factors
have impacted almost every organization and your Company was no exception. However, our
teams stood up to these challenges and ended the year on a winning note with growth across
most of our businesses and higher profits, while continuing to serve our patients across
the globe.
FINANCIAL HIGHLIGHTS AND COMPANY AFFAIRS
Table 1 gives the consolidated and standalone financial highlights
of the Company based on Indian Accounting Standards (Ind AS) for FY2022 (i.e. from April
1, 2021 to March 31, 2022) compared to the previous financial year.
The Company's consolidated total income for the year was Rs 220.3
billion, which was up by 14% over the previous year. Profit before tax (PBT) was Rs 30.6
billion, representing an increase of 6% over the previous year.
The Company's standalone total income for the year was Rs 1 48.9
billion, which was up by 5% over the previous year.
PBT was Rs 22.2 billion, which was lower by 27% over the previous year.
Revenues from lines of business and geographies given below are from
the company's IFRS results.
Revenues from Global Generics were up by 16% and stood at Rs 1 79.2
billion. There was growth across North America Generics and Europe, with strong growth in
Emerging Markets and India.
Revenues from North America stood at Rs 74.9 billion, registering a
year-on-year growth of 6%. This was largely on account of revenue contribution from new
products launched and increase in volumes for some of our base products, partly offset by
high price erosions in some of our products.
During the year, the Company filed seven Abbreviated New Drug
Applications (ANDAs) in the USA. As of March 31, 2022, there were 90 generic filings
awaiting approval with the US Food and Drug Administration (USFDA), comprising 87 ANDAs
and three NDAs filed under Section 505(b)(2) of the Federal Food, Drug and Cosmetic Act.
Revenues from Emerging Markets were Rs 45.7 billion, registering a
year-on-year growth of 30%. Revenues from India stood at Rs 42.0 billion, showing a
year-on-year growth of 26%. Revenues from Europe were Rs 1 6.6 billion, a year-on-year
growth of 8%.
Revenues from Pharmaceutical Services and Active Ingredients (PSAI)
stood at Rs 30.7 billion, which was lower by
4% compared to previous year. During the year, the Company filed 139
Drug Master Files (DMFs) worldwide, including 10 filings in the US.
SCHEME OF AMALGAMATION
The Hon'ble National Company Law Tribunal (the"NCLT"),
Hyderabad Bench, vide order dated April 5, 2022, has approved the Scheme of Amalgamation
and Arrangement (the "Scheme") for the merger of Dr. Reddy's Holdings
Limited (the "DRHL/ Amalgamating Company") with the Company (the
"Amalgamated Company"). The order of the Hon'ble NCLT was filed by both the
companies with the Registrar of Companies, Hyderabad, on April 8, 2022. Therefore, the
merger becomes effective on April 8, 2022. The appointed date of the Scheme was April 1,
2019.
Pursuant to the Scheme, 41,325,300 equity shares held by the
Amalgamating Company in the Company stands cancelled and the equal number of shares were
issued and allotted by the Company, on April 22, 2022, to the shareholders of Amalgamating
Company, in aggregate, in proportion to their shareholding in the Amalgamating Company.
Effectively, there is no change in the total issued and paid-up share capital of the
Company pursuant to the said Scheme, as equal number of shares were cancelled, as well as
issued and allotted by the Company.
TABLE 1: FINANCIAL HIGHLIGHTS (' MILLION)
| PARTICULARS |
CONSOLIDATED |
STANDALONE |
|
FY2022 |
FY2021 |
FY2022 |
FY2021 |
| Total income |
220,296 |
193,389 |
148,872 |
141,502 |
| Profit before depreciation, amortization,
impairment and tax |
50,867 |
47,411 |
30,479 |
39,062 |
| Depreciation and amortization |
11,652 |
12,288 |
8,143 |
8,350 |
| Impairment of non-current assets |
9,304 |
6,768 |
98 |
150 |
| Profit before tax and before share of equity
accounted investees |
29,911 |
28,355 |
22,238 |
30,562 |
| Share of profit of equity accounted investees,
net of tax |
703 |
480 |
- |
- |
| Profit before tax |
30,614 |
28,835 |
22,238 |
30,562 |
| Tax expense |
8,789 |
9,319 |
6,006 |
8,698 |
| Net profit for the year |
21,825 |
19,516 |
16,232 |
21,864 |
| Opening balance of retained earnings |
142,395 |
128,349 |
141,373 |
124,979 |
| Net profit for the year |
21,825 |
19,516 |
16,232 |
21,864 |
| Other comprehensive income/ (loss) |
- |
3 |
- |
3 |
| Dividend paid during the year |
(4,146) |
(4,147) |
(4,146) |
(4,147) |
| Transfer to SEZ re-investment Reserve, net |
571 |
(1,326) |
571 |
(1,326) |
| Transfer to Debenture Redemption Reserve |
(304) |
- |
- |
- |
| Closing balance of retained earnings |
160,341 |
142,395 |
154,030 |
141,373 |
Note: FY2022 represents fiscal year 2021-22, from April 1, 2021 to
March 31, 2022, and analogously for FY2021 and other such labelled years
DIVIDEND
Your directors are pleased to recommend a dividend of Rs 30 (600%) for
FY2022, per equity share of Rs 5/- each. The recommended dividend is in line with the
Dividend Distribution Policy of the Company,
The dividend, if approved at the 38th Annual General Meeting (the
"AGM") will be paid to those members whose names appear on the register of
members of the Company as of end of the day on July 12, 2022. In terms of the provisions
of the Income Tax Act, 1961, such dividend will be taxable in the hands of the members,
In terms of Regulation 43A of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (the "Listing Regulations"), the
Dividend Distribution Policy, is available on the Company's website on
https://www.drreddys.com/ investors/governance/policies-and-
documents/#governance#policies-and- documents
TRANSFER TO RESERVES
The Company has not proposed to transfer any amount to the general
reserve for the year ended March 31, 2022.
SHARE CAPITAL
The paid-up share capital of your Company increased by Rs 0,62 million
to Rs 832,13 million in FY2022 due to allotment of 124,618 equity shares, on exercise of
stock options by eligible employees through the ‘Dr, Reddy's Employees Stock
Option Scheme, 2002' and ‘Dr, Reddy's Employees ADR Stock Option Scheme,
2007',
PUBLIC DEPOSITS
The Company has not accepted any deposits covered under Chapter V of
the Companies Act, 2013 ("Act"), Accordingly, there is no disclosure or
reporting required in respect of details relating to deposits,
CHANGE IN THE NATURE OF BUSINESS, IF ANY
During the year, there was no change in the nature of business of the
Company, Further, there was no significant change in the nature of business carried on by
its subsidiaries,
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF
THE COMPANY
There have been no such changes during the year,
SUBSIDIARIES AND ASSOCIATES
The Company has 42 overseas subsidiary companies (including step-down
subsidiaries), nine subsidiary companies in India and one joint venture Company as on
March 31,2022,
Dr, Reddy's (WUXI) Pharmaceutical Co, Limited in China ceased to
be a step-down subsidiary of the Company with effect from December 13, 2021, consequent to
its liquidation,
Aurigene Discovery Technologies Inc, in USA, ceased to be a step-down
subsidiary of the Company with effect from March 23, 2022, consequent to its liquidation,
Further, the Company acquired Nimbus Health GmbH (Nimbus) as a
step-down subsidiary, on February 24, 2022, Nimbus is a German Company, founded in 2018,
specialized wholesaler of medical cannabis,
Section 129(3) of the Act, states that where the Company has one or
more subsidiaries or associate companies, it shall, in addition to its financial
statements, prepare a consolidated financial statements of the Company and of all
subsidiaries and associate companies in the same form and manner as that of its own and
also attach along with its financial statements, a separate statement containing the
salient features of the financial statements of its subsidiaries and associates,
Hence, the consolidated financial statements of the Company and all its
subsidiaries and associates, prepared in accordance with Ind AS 110 and Ill as specified
in the Companies (Indian Accounting Standards) Rules, 2015, form part of the Annual
Report, Moreover, a statement containing the salient features of the financial statements
of the Company's subsidiaries and joint venture: in the prescribed Form AOC-1, is
attachec as Annexure I to this Board's Report,
This statement also provides details of the performance and financial
position of each subsidiary and joint venture,
In accordance with Section 136 of the Act, the audited financial
statements and related information of the Company and its subsidiaries, wherever
applicable, are available on the Company's website: www.drreddys.com, These are also
available for inspection during regular business hours at our registered office in
Hyderabad, India and/or in electronic mode,
Any member desirous of inspecting such documents are requested to write
to the Company by sending an email to shares@drreddys.com,
MATERIAL SUBSIDIARIES
In terms of Regulation 16(1)(c) of the Listing Regulations, Material
Subsidiary shall mean a subsidiary, whose income or net worth exceeds ten percent of the
consolidated income or net worth, respectively, of the Company and its subsidiaries in the
immediately preceding accounting year, Accordingly, the Company has four material overseas
subsidiary companies as on March 31, 2022, namely, Dr, Reddy's Laboratories Inc,
(USA), Dr, Reddy's Laboratories SA (Switzerland),
Dr, Reddy's Laboratories LLC (Russia) and Reddy Holding GmbH
(Germany),
Further, in terms of Regulation 24(1) of the Listing Regulations, at
least one Independent Director on the Board of the Company shall be a Director on the
Board of an unlisted material subsidiary, i,e, a subsidiary, whose income or net worth
exceeds twenty percent of the consolidated income or net worth respectively, of the
Company and its subsidiaries in the immediately preceding accounting year, In compliance
with the said provisions, Dr, Bruce L A Carter, Independent Director of the Company, is a
Director on the Board of Dr, Reddy's Laboratories Inc, (USA), Mr, Sridar Iyengar,
Independent Director of the Company, is a Director on the Board of Dr, Reddy's
Laboratories SA (Switzerland),
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company makes investments or extends loans/guarantees to its
wholly-owned subsidiaries for their business purposes,
Details of loans, guarantees and investments covered under Section
186 of the Act, along with the purpose for which such loan or guarantee
was proposed to be utilized by the recipient, form part of the notes to the financial
statements provided in this Annual Report,
CORPORATE GOVERNANCE AND ADDITIONAL SHAREHOLDERS' INFORMATION
A detailed report on the Corporate Governance systems and practices of
the Company is given in a separate chapter of this Annual Report, Similarly, other
information for shareholders is provided in the chapter on Additional Shareholders'
Information, The Company has also formulated a Policy on Group Governance to monitor
governance of its unlisted subsidiaries across the globe,
A certificate from the statutory auditors of the Company confirming
compliance with the conditions of corporate governance is attached to the chapter on
Corporate Governance,
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed report on the Management Discussion and Analysis in terms of
Regulation 34 of the Listing Regulations is provided as a separate chapter in the Annual
Report,
BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL CHANGES IN DIRECTORS
Mr, Bharat N Doshi completed his term as an Independent Director on May
10, 2021 and did not seek reappointment, The Board placed on record its sense of
appreciation for the services rendered by Mr, Doshi to the Company,
During the year, Members of the Company approved the appointment of Dr,
K P Krishnan and Ms, Penny Wan as Independent Directors through postal ballot, with effect
from January 7, 2022 and January 28, 2022, respectively, The Board is of the opinion that
the above Independent Directors possess requisite integrity, experience and expertise
(including the proficiency),
Mr, K Satish Reddy, Chairman, is liable to retire by rotation at the
forthcoming 38th AGM and being eligible, seeks reappointment, The Board of Directors of
the Company at its meeting held on May 19, 2022, on recommendation
of the Nomination, Governance and Compensation Committee, has approved
the re-appointment of Mr, K Satish Reddy as a Whole-time Director of the Company,
designated as the Chairman, with effect from October 1, 2022, subject to the approval of
shareholders at the forthcoming 38th AGM, For reference of the members, a brief profile of
Mr, K Satish Reddy is given in the chapter on Corporate Governance and in the Notice
convening the 38th AGM,
None of the directors is disqualified under Section 164(2) of the Act,
They are not debarred from holding the office of Director pursuant to order of SEBI or any
other authority, Further details are provided in the chapter on Corporate Governance,
CHANGES IN KEY MANAGERIAL PERSONNEL
Mr, Sandeep Poddar resigned as the Company Secretary and Compliance
Officer of the Company, from close of business hours on November 18,
2021, The Board placed on record its appreciation for the work done by
Mr, Poddar during his tenure, The Board of Directors, at its meeting held on March 17,
2022, appointed Mr, K Randhir Singh as the Company Secretary and Compliance Officer of the
Company,
DECLARATION BY INDEPENDENT DIRECTORS
In accordance with Section 149(7) of the Act, each Independent Director
has confirmed to the Company that he or she meets the criteria of independence laid down
in Section 149(6) of the Act, and is in compliance with Rule 6(3) of the Companies
(Appointment and Qualifications of Directors) Rules, 2014 and Regulation 16(1 )(b) of the
Listing Regulations, Further, each Independent Director has affirmed compliance to the
Code of Conduct for Independent Directors as prescribed in Schedule IV of the Act, The
Board has taken on record such declarations after due assessment of veracity,
BOARD EVALUATION
Pursuant to the provisions of the Companies Act, 2013 and the Listing
Regulations, the Board has carried out performance evaluation of its own performance, the
Directors (including the Chairman) individually, as well
as the evaluation of the working of the Committees, The performance
evaluation process has been designed in such a manner which helps to measure effectiveness
of the entire Board, its Committees and Directors, Such processes help in ensuring overall
performance of the Board and demonstrates a high level of corporate governance standards,
There are various key performance areas and evaluation criteria which are measured and
analysed during the performance evaluation process,
The Board performance was reviewed on various parameters, including
composition & role of the Board, communication and relationships, Board Committees,
compensation, strategic planning, governance, legal and financial duties, overall ratings,
qualitative feedback, managing conflicts, diversity in the knowledge and related industry
expertise, roles and responsibilities of Board members, appropriate utilization of talents
and skills of Board members, etc, The evaluation of performance of the Directors including
the Chairperson of the Company was conducted on various parameters, such as, attendance,
participation, deliberation of various agenda items, understanding of the
organization's strategy and risk environment, representing interests of shareholders
and focuses on enhancing shareholder value, proactive feedback and guidance to top
management on areas of business strategy, governance and risk, to set and achieve stretch
goals, functional relationships with fellow Board members and senior management,
participation in Board discussions based on Director's personal knowledge and
expertise, etc,
Further details of performance evaluation are given in the chapter on
Corporate Governance,
APPOINTMENT OF DIRECTORS AND REMUNERATION POLICY
Assessment and appointment of members to the Board are based on a
combination of criterion that includes ethics, personal and professional stature, domain
expertise, gender diversity and specific qualifications required for the position, For
appointment of an Independent Director, the independence criteria defined in Section
149(6) of the
Act, and Regulation 16(1 )(b) of the Listing Regulations is also
considered.
In accordance with Section 178(3) of the Act, Regulation 19(4) of the
Listing Regulations and on recommendation of the Company's Nomination, Governance and
Compensation Committee, the Board adopted a Remuneration Policy for Directors, KMP, senior
management and other employees. The policy forms part of the chapter on Corporate
Governance.
Our executive compensation program supports attracting, motivating, and
encouraging continuity of experienced and well-qualified executive officers who advance
our critical business objectives and promote the creation of shareholders' value over
the long-term. The key tenets of our philosophy are designed to:
a) Attract highly talented individuals from within and across
industries drawing from a diverse pool of global talent.
b) Provide long term and short-term incentives that advance the
interests of shareholders and deliver levels of pay commensurate with performance.
The three principal components of the compensation package include,
base salary, annual cash-based variable pay, and equity-based long-term incentives.
In making decisions with respect to each element of compensation, the
competitive market for executives and compensation levels provided by comparable companies
are considered.
Executive compensation is reviewed annually. In general executive
increment, percentages are lesser than the average with the frontline receiving the
highest increase. A higher increase may be made in the event of a role change, promotion,
or in exceptional circumstances. The Company's performance, affordability and
individual performance are other considerations, while deciding on compensation.
NUMBER OF BOARD MEETINGS
The Board of Directors met seven times during the year. In addition, an
annual Board retreat was held to discuss strategic matters. The intervening gap between
the meetings was within the period prescribed under the Act and Listing Regulations.
Details of Board
meetings and the Board retreat are given in the chapter on Corporate
Governance.
SEPARATE MEETING OF INDEPENDENT DIRECTORS
In terms of requirements under Schedule IV of the Act and Regulation
25(3) of the Listing Regulations, four separate meetings of the Independent Directors were
held during FY2022. Further details are mentioned in the chapter on Corporate Governance.
AUDIT COMMITTEE
As on March 31,2022, the Audit Committee of the Board of Directors
consisted entirely of Independent Directors comprising of Mr. Sridar Iyengar (Chairman),
Ms. Kalpana Morparia, Ms. Shikha Sharma and Dr. K P Krishnan. Further details are given in
the chapter on Corporate Governance. The Board has accepted all recommendations made by
the Audit Committee during the year.
The details of the Corporate Social Responsibility Committee;
Nomination, Governance and Compensation Committee; Risk Management Committee;
Stakeholders' Relationship Committee; Science, Technology and Operations Committee
and Banking and Authorisations Committee, are given in the Chapter on Corporate Governance
DIRECTORS' RESPONSIBILITY STATEMENT
In terms of Section 134(5) of the Act, your Directors state that:
1. Applicable accounting standards have been followed in the
preparation of the annual accounts;
2. Accounting policies have been selected and applied consistently.
Judgments and estimates made are reasonable and prudent, so as to give a true and fair
view of the state of affairs of the Company at the end of FY2022 and of the profit of the
Company for that period;
3. Proper and sufficient care has been taken to maintain adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
4. Annual accounts have been prepared on a going concern basis;
5. Adequate internal financial controls for the Company to follow have
been laid down and these are operating effectively; and
6. Proper and adequate systems have been devised to ensure compliance
with the provisions of all applicable laws and these systems are operating effectively.
ADEQUACY OF INTERNAL FINANCIAL CONTROL SYSTEMS
The Company has in place adequate internal financial controls with
reference to its financial statements. These controls ensure the accuracy and completeness
of the accounting records and the preparation of reliable financial statements.
ENTERPRISE RISK MANAGEMENT (ERM)
The Company has a Risk Management Committee of the Board, consisting
entirely of Independent Directors, and chaired by Ms. Shikha Sharma. Details of the
Committee and its terms of reference are set out in the chapter on Corporate Governance.
The Audit and Risk Management Committees review key risk elements of
the Company's business, finance, operations and compliance, and their respective
mitigation strategies. The Risk Management Committee reviews strategic, business,
compliance and operational risks whereas the Audit Committee reviews issues around ethics
and fraud, internal control over financial reporting (ICOFR), as well as process risks and
their mitigation.
The Company's Executive Risk Management Committee operates under
the Company's Risk Management Policy and focuses on risks associated with the
Company's business and compliance matters. This Committee periodically reviews
matters pertaining to risk management. Additionally, the Enterprise wide Risk Management
(ERM) function helps the Board and the Management to prioritize, review and measure
business risks against a pre-determined risk appetite, and their suitable response,
depending on whether such risks are internal, strategic or external.
During FY2022, focus areas of Risk Management Committee included review
of risks and mitigations related to cyber security, quality, talent and capability,
compliance and ethics programs across the Company, supply chain and other operating risk
exposures and risk transfer through insurance.
RELATED PARTY TRANSACTIONS
In accordance with Section 134(3)(h) of the Act, and Rule 8(2) of the
Companies (Accounts) Rules, 2014, the particulars of the contracts or arrangements with
related parties referred to in Section 188(1) of the Act, in Form AOC-2, is attached as Annexure
II to this Board's Report. All contracts and arrangements with related parties
were at arm's length and in the ordinary course of business of the Company. Details
of related party disclosures form part of the notes to the financial statements provided
in the Annual Report.
VIGIL MECHANISM/ WHISTLEBLOWER/ OMBUDSPERSON POLICY
The Company has an Ombudsperson Policy (Whistle-Blower/ Vigil
mechanism) to report concerns. Reporting channels under the vigil mechanism include an
independent hotline, a web based reporting site (drreddys.ethicspoint. com) and a
dedicated e-mail to Chief Compliance Officer. The Ombudsperson Policy also safeguards
against retaliation of those who use this mechanism. The Audit Committee Chairperson is
the Chief Ombudsperson. The Policy also provides for raising concerns directly to the
Chief Ombudsperson. Details of the policy are available on the Company's website:
https://www.drreddys.com/ investors/governance/policies-and- documents/#governance.
STATUTORY AUDITORS
M/s. S.R. Batliboi & Associates LLP, Chartered Accountants (Firm
Registration No. 101049W/E300004) were re-appointed as Statutory Auditors by the members
of the Company at the 37th AGM held on July 28, 2021, for a period of five years till the
conclusion of the 42nd AGM.
SECRETARIAL AUDITOR
Pursuant to Section 204 of the Act, and the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, M/s. Makarand M. Joshi &
Co., Practicing Company Secretaries (Certificate of Practice No. 3662),
Mumbai, India, were appointed as Secretarial Auditors of the Company for FY2022. The
Secretarial Audit Report for FY2022 is annexed as Annexure III to this Report.
Based on the consent received from M/s. Makarand M. Joshi & Co.,
Practicing Company Secretaries, Mumbai, India and on the recommendation of the Audit
Committee, the Board has approved their appointment as the Secretarial Auditor of the
Company for FY2023.
COST AUDITOR
Pursuant to Section 148(1) of the Act, read with the relevant Rules
made thereunder, the Company maintains the cost records in respect of its
‘pharmaceuticals' business.
On the recommendation of the Audit Committee, the Board has appointed
M/s. Sagar & Associates, Cost Accountants (Firm Registration No. 000118) as Cost
Auditor of the Company for the FY2023 at a remuneration of Rs 700,000/- plus reimbursement
of out-of-pocket expenses at actuals and applicable taxes. The provisions also require
that the remuneration of the Cost Auditors be ratified by the members and therefore, the
same is recommended for approval of the members at the forthcoming 38th AGM.
As a matter of record, relevant Cost Audit Reports for FY2021 were
filed with the Central Government on August 19, 2021, within the stipulated timeline. The
Cost Audit Report for FY2022 will also be filed within the timeline.
AUDITORS' QUALIFICATIONS, RESERVATIONS, ADVERSE REMARKS OR
DISCLAIMERS
There are no qualifications, reservations, adverse remarks or
disclaimers by the Statutory Auditors in their report, or by the Practicing Company
Secretaries in the Secretarial Audit Report. During the year, there were no instances of
frauds reported by Auditors under Section 143(12) of the Act.
SECRETARIAL STANDARDS
In terms of Section 118(10) of the Act, the Company complies with
Secretarial Standards 1 and 2, relating to the ‘Meetings of the Board of
Directors' and ‘General Meetings', respectively as issued by the Institute
of Company Secretaries of India and approved by the Central Government. The Company has
also voluntarily adopted the recommendatory Secretarial Standards 3 on
‘Dividend' and Secretarial Standards 4 on ‘Report of the Board of
Directors' issued by the Institute of Company Secretaries of India.
SIGNIFICANT/ MATERIAL ORDERS PASSED BY COURTS/ REGULATORS/ TRIBUNALS
Disputes with Hatchtech Pty Limited ("Hatchtech") and related
parties: On
January 21, 2022, the Company entered into a Settlement and Transfer
Agreement with Hatchtech Pty Limited (an Australian Company) for, among other things, the
Company to transfer and assign the product Xeglyze? (including all patents, intellectual
property, regulatory approvals, marketing and commercialization rights) to Hatchtech.
In 2015, the Company acquired the Xeglyze? Product (including certain
patent, intellectual property, regulatory, marketing and commercialization rights) from
Hatchtech, pursuant to an Asset Purchase Agreement dated December 7, 2015. On July 24,
2020, the Company successfully obtained approval from the U.S. Food and Drug
Administrations for its New Drug Application (NDA) for Xeglyze?. Since the NDA approval
in July 2020, the Company and Hatchtech have been engaged in court cases and an
arbitration in the United States and Australia, in which both parties have asserted claims
against the other and resulting in one arbitration award. The Settlement Agreement settles
and resolves all pending and remaining claims between the Parties relating to the
Xeglyze? Product and the 2015 Asset Purchase Agreement, which is terminated by the
Settlement Agreement, and the parties agreed to the transfer of the Xeglyze? product back
to Hatchtech.
INFORMATION REQUIRED UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has a policy to ensure prevention, prohibition and
redressal of sexual harassment at the workplace. It has an apex Committee and an Internal
Complaints Committee which operate under a defined framework for complaints pertaining to
sexual harassment at workplace. The details are available in the principle 5 of the
Business Responsibility
and Sustainability Report forming part of this Annual Report.
CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES
As per Section 135 of the Act, the Company has a Board-level CSR
Committee consisting of Mr. Prasad R Menon (Chairman), Mr. G V Prasad and Mr. K Satish
Reddy. Based on the recommendation of the CSR Committee, the Board has adopted a CSR
policy that provides guiding principles for selection, implementation and monitoring of
CSR activities and formulation of the annual action plan. During the year, the Committee
monitored the CSR activities undertaken by the Company including the expenditure incurred
thereon as well as implementation and adherence to the CSR policy. An impact assessment of
the eligible projects has been carried by an independent agency and the report of such
impact assessment was noted by the Board. Details of the CSR Policy and initiatives taken
by the Company during the year are available on the Company's website:
www.drreddys.com. The report on CSR activities as well as executive summary of the impact
assessment report are attached as Annexure IV to this Board's Report.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
The Company has opted to submit the Business Responsibility and
Sustainability Report for FY2022 on a voluntary basis. A detailed Business Responsibility
and Sustainability Report as mentioned under Regulation 34 of the Listing Regulations, is
given as a separate chapter in this Annual Report.
TRANSFER OF UNPAID AND UNCLAIMED AMOUNTS TO THE INVESTOR EDUCATION AND
PROTECTION FUND (IEPF)
Pursuant to the provisions of the Act, read with IEPF Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016, as amended, declared dividends which
remained unpaid or unclaimed for a period of seven years have been transferred by the
Company to the IEPF, which has been established by the Central Government.
The above Rules also mandate transfer of shares on which dividends are
lying unpaid and unclaimed for a period of seven consecutive years to IEPF. The Company
has issued individual notices to the members whose equity shares are liable to be
transferred to IEPF, with respect to unclaimed and unpaid dividend for FY2015 advising
them to claim their dividend on or before August 30, 2022. The details of transfer of
unpaid and unclaimed amounts to IEPF are given in the chapter on Additional Shareholders
Information.
EMPLOYEES STOCK OPTION SCHEMES
The Company has three stock option schemes namely, ‘Dr.
Reddy's Employees Stock Option Scheme, 2002', ‘Dr. Reddy's Employees
ADR Stock Option Scheme, 2007', and ‘Dr. Reddy's Employees Stock Option
Scheme, 2018' (the "Schemes"). The term of Dr. Reddy's Employees Stock
Option Scheme, 2002, ended on January 28, 2022. However the options already granted under
the 2002 Scheme are eligible for exercise, in terms of the Scheme. There are no other
changes in the said schemes during the year. The Schemes are in compliance with the SEBI
(Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
The details of Company's stock option Schemes as required under
Regulation 14 of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations,
2021, are available on the Company's website: https://www.drreddys.com/
investors/governance/policies-anddo cuments/#governance#policies-and- documents
The details also form part of note 2.25 of the notes to accounts of the
standalone financial statements.
PARTICULARS OF EMPLOYEES
The disclosures pertaining to remuneration and other details as
required under Section 197(12) of the Act, read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, are attached as Annexure
V to this Board's Report.
In terms of Section 197(12) of the Act, reac with Rule 5(2) and 5(3) of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a
statement showing the names and other particulars of the employees drawing remuneration in
excess of limits set out in the said rules forms part of the Annual Report.
Considering the provisions of Section 136 of the Act, the Annual
Report, excluding the aforesaid information, is being sent to the members of the Company
and others entitled thereto. The said information is available for inspection at the
registered office of the Company or through electronic mode, during business hours on
working days up to the date of the forthcoming 38th AGM, by members. Any member interested
in obtaining a copy thereof may write to the Company Secretary in this regard.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars as prescribed under Section 134(3)(m) of the Act, read with
Rule 8(3) of the Companies (Accounts) Rules, 2014, are attached as Annexure VI to
this Board's Report.
ANNUAL RETURN
The Annual Return of the Company as on March 31, 2022, in terms of the
provisions of Section 134(3)(a) of the Act, is available on the Company's website:
https://www.drreddys.com/investors/ reports-and-filings/annual-reports/
ACKNOWLEDGMENT
Your directors place on record their sincere appreciation for the
significant contribution made by your Company's employees through their dedication,
hard work and commitment, as also for the trust reposed in your Company by the medical
fraternity and patients. The Board of Directors also acknowledges the support extended by
the analysts, bankers, government agencies, media, customers, business partners, members
and investors at large.
The Board looks forward to your continued support in the Company's
endeavor to accelerate access to innovative and affordable medicines, because Good Health
Can't Wait.
| For and on behalf of the Board of Directors |
| K Satish Reddy |
| Chairman |
| DIN: 00129701 |
| Place: Hyderabad |
| Date: May 19, 2022 |
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