Dr Reddy's seeks recovery this fiscal year

After facing a “perfect storm” of adverse developments, Dr Reddy’s Laboratories expects a better performance this fiscal year, with cost reductions and new product launches.

The Hyderabad-based firm saw consolidated revenue dip nine per cent in the last fiscal year to Rs 14,367.6 crore. It faced a multitude of issues, including US Food and Drug Administration (FDA) warning letters to three of its units.

It also faced intensive growth of competition in the US from other global generic players, delays in approval from the FDA and pricing pressure in various markets, including India.

The firm also witnesses economic crisis taking a toll on its once extremely profitable emerging market — Venezuela. Besides, its Active Pharmaceutical Ingredients, business was impacted due to lower offtake.

“The company went through a ‘perfect storm’ when several negative factors simultaneously came into play,” Chairman K Satish Reddy and Co-Chairman G V Prasad said.