Dr Reddy's crossed Rs.4000 mark on BSE with 86% income from exports, new launches

Dr Reddy's Laboratories (DRL), the second largest pharmaceutical company in India after Sun Pharmaceutical Industries, is surging ahead with strong domestic sales as well as exports to overseas markets with clear focus on research and development, expansion, alliances and new products. After good financial performance in the first quarter ended June 2015 as well as for full year 2014-15, DRL scrip moved up strongly and touched its yearly high level at Rs.4084.95 with full market capitalization of over Rs.68,550 crore on the BSE. With 25.5 per cent equity holding with promoters and 37.8 per cent by foreign institutional investors, DRL share of Rs.5 each is crossed milestone of Rs.4000 on July 31, 2015.

Considering the changing healthcare scenario, DRL has changed its corporate brand identity recently with new logo which is an expression of empathy and dynamism. The new logo keeps patients at the center of everything that DRL does. The objective of the re-branding exercise is to derive a unifying, patient-centric approach, to meet new and daunting challenges that patients are facing.

DRL has posted satisfactory financial performance during the first quarter ended June 2015. Its consolidated net profit went up by 13.7 per cent to Rs.626 crore from Rs.550 crore in the corresponding period of last year. EBITDA improved by 12 per cent to Rs.990 crore. Its consolidated net sales increased by 6.8 per cent to Rs.3,758 crore from Rs.3,518 crore. EPS improved to Rs.36.71 from Rs.32.34 in the last period.

Syngene gets FIPB approval with foreign investment limit to 44%

Syngene International, one of the leading India-based Contract Research Organisation (CRO) and a subsidiary of Biocon Ltd, has received the Foreign Investment Promotion Board (FIPB) approval for raising the foreign investment to 44 per cent from the earlier approved 10 per cent by way of its Initial Public Offering (IPO).

Commenting on the development, Peter Bains, chief executive officer, Syngene International, said, “We are happy to receive the FIPB approval to increase the foreign investment limit in our company. Syngene supports the global pharmaceutical, biotech and life science industries; this approval will enable us to look to broaden our global investor base.”

The IPO is an offer for sale (OFS) by Biocon of a part of its shareholding in Syngene. The Biocon Group presently holds 83.6 per cent equity stake in Syngene.

Syngene reported revenues of Rs. 7,077 million for FY 2013-14 and Rs. 6,175 million for 9 month ended December 31, 2014. For the three fiscal years ended March 31, 2014, its total revenue, restated profit and EBITDA grew at compounded annual growth rates (CAGR) of 29.9 per cent, 70.5 per cent and 30.6 per cent, respectively. Its flexible business models, expertise in managing large integrated collaborations and world-class infrastructure has not only helped it renew and expand its existing client collaborations but also in attracting new clients. Syngene’s client base increased 90 per cent from 103 in FY 2012 to 195 as on December 31, 2014.