Big Cost Cuts At Dr Reddy’s, US Big Ticket Launch Progress Is Key
Massive reorganization efforts are underway at Dr Reddy’s as it recalibrates costs; an antibiotics site is expected to be sold soon as part of these efforts and more may be in store. Management commentary was, however, upbeat around the growth outlook for the US business, with visibility of 15-20 launches in FY 2019.
You may also be interested in...
Leading Indian pharma firms are rationalizing operations and work forces to rein in costs and improve efficiency and profitability in a tough overall operating environment. Sun Pharma, which has declared an 'unwavering focus' on cost control, recently ended operations at two Indian clinical pharmacology units.
The rumor mill has it that Cipla has effected significant staff cuts at its Pithampur facility in India, as it keeps a sharp eye on costs and drives efficiencies at its manufacturing operations. But the company isn’t saying much except that it routinely conducts "performance-based reviews."
Dr Reddy’s had a generally positive Q4 but a slow ramp in some products in the US and potential delays in anticipated launches there are among the challenges that appear to have jaded investor outlook. Management commentary, though, was optimistic, with around 30 launches lined up for the US, a China/India thrust and M&A staying an important cog for growth.