Dr Reddy's upbeat on investment plans

To leverage on commercialisation of specialty brands

Hyderabad-based Dr Reddy's Laboratories Ltd, has indicated that it would in the current fiscal continue to step up investments in its pipeline and market developmental activities and stress on the momentum for building its future growth path.

Terming the current fiscal as a year of opportunities as well as challenges, the company said that the early benefit of these strategic investments will be seen in some new product launches in the US and Europe, both in the generics and the API segment.

It is also slated to leverage new market opportunities in the near and mid term future through commercialisation of its specialty brands, while continuing to develop NCE (new chemical entities) assets for the long-term.

The company feels that its branded formulation is now gearing up for growth. The branded formulations business of the company grew nine per cent from Rs 686 crore in 2002-03 to Rs 750.7 crore in 2003-04.

Dr Reddy's spent close to Rs 200 crore in research and development investments in the last fiscal and has also seen its legal and professional charges go up by a whopping Rs 35.7 crore last year. Research and development related investments increased to 10 per cent of total revenues, up from eight per cent in the previous year.

Of the total increase in research and development investments, 37 per cent was spent on drug discovery and the balance in business segments, During the year the company filed 13 ANDAs (abbreviated new drug applications) including eight Para IVs and 16 DMFs (drug master files).

According to the details available from the annual report of the company, the failed amlodipine maleate project cost the company a total of Rs 11.5 crore in one time exceptional charges as well as inventory related costs.

This apart, Dr Reddy's also had to make a provision of Rs 18.4 crore following the dismissal of the writ petitions filed by the company against the Government of India in the Andhra Pradesh High Court in connection with the price control order.

The company which has been involved in a slew of legal battles mostly involving patent challenges has seen legal costs increase by Rs 35.7 crore apart from seeing manpower costs go up by Rs 34.6 crore as compared to the previous fiscal.

Anji Reddy gets Rs 3.13 crore as commission

K Anji Reddy, executive chairman of Dr Reddy's was paid a commission of Rs 3.139 crore for the year 2003-04.

G V Prasad, executive vice-chairman and chief executive officer, and K Satish Reddy, managing director and chief operating officer, were paid a commission of Rs 1.569 crore each.

The gross remuneration that was paid to Anji Reddy for the year touched Rs 4.596 crore while G V Prasad and Satish Reddy were paid a gross remuneration of Rs 2.316 crore each.