Ops strength adds to Dr. Reddy's momentum

Dr. Reddy's is suddenly back on the radar screens of financial analysts. Recent press coverage has focused on the Indian generic-maker's business strategy, emphasizing the U.S. and Russian markets and its balance of branded, in-licensed and OTC products. And it's planning a push into biosimilars, parlaying its manufacturing expertise in much the same way it did in the 1990s to create its successful formulations business.

On the operations side, the company has scrutinized its supply chain and costs, reports Forbes. One target was its struggling generics arm in Germany, Betapharm, a 2006 acquisition. Execs cut the workforce there to 80 from 400, with a corresponding drop in ops costs to $1.5 million, a savings of $3.5 million.

The company also trimmed its geographical footprint, abandoning 30 markets in which it was still trying to get established. It put renewed emphasis on its domestic presence.

In India, the drugmaker's backward-integrated manufacturing facility allows for "very competitive" pricing in products like ulcer and reflux treatment Omeprazole and the antibiotic Ciprofloxacin, according to the article. Its distribution and manufacturing skills are expected to give it an edge over multinational drugmakers making a play for the Indian market.

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