Dr. Reddy’s Laboratories (DRREDDY) Investor presentation summary

FY23 performance and capital allocation

• Revenue reached ₹24.6k cr ($3.0bn) in FY23; revenue CAGR was 12.1% and EBITDA CAGR was 16.3%.

• FY23 EBITDA margin was 29.7% and RoCE was 34.6%; net cash surplus reached $614mn.

• North America Generics and branded markets in India and Emerging Markets each exceeded $1bn revenue for the second consecutive year.

• FY23 acquisitions included Cidmus in India, Mayne Pharma’s US generic portfolio and Eton’s US branded and generic injectables; selected non-core India brands were divested.

• Launched lenalidomide capsules in the US under a volume-limited settlement with the innovator; settled impending IP litigation for gSuboxone.

Business strategy and market positions

• Horizon 1 focuses on growing generics, branded generics, APIs, biosimilars and OTC; Horizon 2 develops immuno-oncology, NCES, CDMO, nutraceuticals, biologics and digital services.

• Long-term aspirations include serving 1.5bn+ patients, double-digit revenue growth, 25% EBITDA and 25% ROCE.

• North America had 190+ commercial products and a pipeline of 175+ products, including 81 filed; Europe recorded 21% sales CAGR over four years.

• India branded markets grew 2X in four years; Emerging Markets grew 2X in five years and serve patients in 48 countries.

• API plans target backward integration of 70%+ of core molecules within five years and expansion of API+ offerings from 25+ to 60+ countries.

Innovation and future growth

• Biosimilar Stimufend launched in the US and Europe with a partner; Rituximab global safety and efficacy trials were completed, with regulated-market filing expected by Q1 FY24.

• Biosimilars pipeline includes 12 products across development stages, with one approved and five in clinical phase; two additional products were targeted for scale-up by FY24.

• Aurigene Oncology’s proprietary pipeline has 15 programs: eight clinical-stage, two at IND stage and five in lead optimization; 11 partnered programs were in clinical stages.

• Horizon 2 licensing deals covered CardiaCare’s atrial-fibrillation wearable, Theranica’s migraine wearable, WZTL’s CAR-T asset and Junshi Biosciences’ toripalimab.