Dr. Reddy's Reckoner Q1 Fy10

Reckoner Q1FY10

July 21, 2009 Dr. Reddy’s Laboratories Ltd. www.drreddys.com

Q1 FY10

Business Highlights Overall revenues at Rs. 18.2 billion ($381 million) in Q1 FY10 as against Rs. 15.0 billion ($315 million) in Q1 FY09, representing a growth of 21%. The growth was largely driven by sumatriptan.



Excluding revenues from sumatriptan, the YoY growth is at 7%, driven by the key markets of North America and India.

Operating income is at Rs. 3.3 billion ($69 million) in Q1 FY10 as against Rs. 1.1 billion ($23 million) in Q1 FY09. EBITDA at Rs. 4.4 billion ($91 million) in Q1 FY10 as against Rs. 2.3 billion ($48 million) in Q1 FY09, representing a growth of 90%. During the quarter, the company launched 24 new generic products, filed 22 new generic product registrations and filed 4 DMFs globally.

Global Generics Revenues from Global Generics business at Rs. 13.0 bn ($273 mn) in Q1 FY10 as against Rs. 10.3 bn ($215 mn) in Q1 FY09. YoY growth of 27% driven by sumatriptan and key markets of North America and India. Revenues from North America at Rs. 6.0 bn ($126 mn) in Q1 FY10 as against Rs. 2.8 bn ($59 mn) in Q1 FY09. Excluding revenues from Sumatriptan, growth of 42% in North America driven by high volume growth across existing products. Revenues from Europe at Rs. 2.1 bn ($44 mn) in Q1 FY10 as against Rs. 3.0 bn ($63 mn) in Q1 FY09, representing a degrowth of 30%. Revenues from betapharm decrease by 36% to Rs. 1.6 billion ($34 mn) in Q1 FY10 from Rs. 2.5 bn ($53 mn) in Q1FY09. This decrease was on account of the effect of destocking in the market. Supplies for AOK tender have commenced, with AOK products witnessing significant increase in volumes, while the volumes for non-AOK product have fallen. Revenues from Rest of Europe grew by 6% to Rs. 503 mn ($11 mn) in Q1 FY10. The growth is largely contributed by UK with sales of Rs. 362 mn ($8 mn) representing a growth of 23%. Revenues from Russia & Other CIS markets at Rs. 1.9 bn ($39 mn) in Q1 FY10 as against Rs. 1.9 bn ($40 mn) in Q1 FY09, representing a degrowth of 3%. Revenues in Russia remain at Rs. 1.5 bn ($32 mn) in Q1 FY10 as against Rs. 1.5 bn ($31 mn) in Q1 FY09; YoY growth of 2%. However in rouble terms, the growth is at 18% YoY and 5% sequentially. Despite a degrowth in volumes, the secondary sales trend for April & May indicates a rouble growth of 46% vis-à-vis industry’s growth of 34%. Revenues in Other CIS markets decrease to Rs. 342 mn ($7 mn) in Q1 FY10 as against Rs. 429 mn ($9 mn) in Q1 FY09. YoY degrowth of 20%. Revenues in India increase to Rs. 2.4 bn ($50 mn) in Q1 FY10 from Rs. 2.2 bn ($46 mn), representing a growth of 9% largely on account of key brands of Omez, Nise, Omez-DSR and Razo. Sequential growth of 15% largely contributed by volume growth of 14%. 14 new products launched during the quarter.

Pharmaceutical Services & Active Ingredients (PSAI) Revenues from PSAI increase by 6% to Rs. 4.9 bn ($102 mn) in Q1 FY10 as against Rs. 4.6 bn ($97 mn) in Q1 FY09; YoY growth of 6% driven by the regions of Europe and RoW as well as the benefit of rupee depreciation against the dollar. Growth was driven by products of Gemcitabine, Montelukast, Sumatriptan and Levetiracetam. The order book status of active ingredients as of June 2009 is up by 27% from March 2009. During the quarter, 4 DMFs were filed globally, with 3 in Canada and 1 in RoW. The cumulative DMF filings till date are 355.

Dr. Reddy’s Laboratories Ltd. www.drreddys.com

Q1 FY10

Financial Updates All figures in millions, except EPS All dollar figures based on convenience translation rate of 1USD = Rs 47.74

Dr. Reddy’s Laboratories Ltd. and Subsidiaries Unaudited Condensed Consolitated Income Statement Q1 FY10 Particulars Revenue Cost of Revenues Gross Profit Operating Expenses Selling, general & administrative expenses(a) Reserach and development expenses, net Write down of intangible assets Write down of goodwill Other (income)/expenses, net Total Operating Expenses Results from operating activities Finance income(b) Finance expenses(c) Finance expenses, net Share of profit/ (loss) of equity accounted investees Profit before income tax Income tax expense Profit for the period Attributable to: Equity holders of the company Minority interest Profit for the period

Weighted average no. of shares o/s Diluted EPS

Q1 FY09

($)

(Rs.)

%

($)

(Rs.)

%

381 168 213

18,189 8,017 10,172

100 44 56

315 158 157

15,039 7,543 7,496

100 50 50

21 6 36

124 21 (1) 144 69 (2) 5 3 0

5,927 985 (35) 6,877 3,295 (88) 223 135 11

33 5 (0) 38 18 (0) 1 1 0

107 22 5 134 23 (7) 5 (2) -

5,086 1,050 242 6,378 1,118 (320) 243 (77) -

34 7 2 42 7 (2) 2 (1) -

17 (6) 8 195 (73) (8) (275) -

66 (15) 51

3,171 (726) 2,445

17 (4) 13

25 (2) 23

1,195 (84) 1,111

8 (1) 7

165 764 120

51 51

2,445 2,445

13 13

23 23

1,111 1,111

7 7

120 120

0.3

168.9 14.5

0.1

168.9 6.6

(a) Includes amortization charges of Rs. 507 million in Q1 FY10 and Rs. 377 million in Q1 FY09. (b) Includes forex gain of Rs. 176 million in Q1 FY09. (c) Includes forex loss of Rs. 84 million in Q1 FY10.

Dr. Reddy’s Laboratories Ltd. www.drreddys.com

Growth%

Q1 FY10

Financial Updates Key Balance Sheet Items

(in millions)

As on 31st Mar 09

As on 30th June 09

Particulars Cash and cash equivalents Trade and other receivables Inventories Property, plant and equipment Goodwill and Other intangible assets Loans and borrowings (current & non-current) Trade accounts payable Equity (including reserves)

($)

(Rs.)

($)

(Rs.)

130 280 292 439 456 337 144 939

6,184 13,374 13,933 20,970 21,768 16,108 6,873 44,832

117 306 277 437 465 413 125 881

5,596 14,592 13,226 20,882 22,179 19,701 5,987 42,045

Income Statement Highlights Gross profit increase by 36% to Rs. 10.2 bn ($213 mn) in Q1 FY10 as against Rs. 7.5 bn ($157 mn) in Q1 FY09. Gross profit margins on total revenues at 56% as against 50% in Q1 FY09, largely driven by higher margins on sumatriptan and currency benefit. Selling, General & Administration (SG&A) expenses increase to Rs. 5.9 bn ($124 mn) in Q1 FY10 from Rs. 5.1 bn ($107 mn) in Q1 FY09; YoY growth of 17%. However excluding the exit costs of sales force at betapharm amounting to Euros 7.2 mn and the costs related to closure of the Atlanta research facility amounting to $1.5 million, the SG&A expenses grew by 6%. Other operating income of Rs. 35 million in Q1 FY10 as against other operating expenses of Rs. 242 mn in Q1 FY09. The change is on account of : Provision for damages of Rs. 515 mn in Q1 FY09 on account of the German court upholding the validity of the olanzapine patent in Germany. Benefit of negative goodwill of Rs. 150 mn in Q1 FY09, relating to the acquisition of facilities from Dow Pharma. R&D expenses are at Rs. 985 mn in Q1 FY10. Finance costs (net) are at Rs. 135 mn in Q1 FY10 as against Finance income (net) at Rs. 77 mn in Q1 FY09. The change is mainly on account of : Net forex loss of Rs. 84 mn in Q1 FY10 as against net forex gain of Rs. 176 mn in Q1 FY09. Net interest expense of Rs. 59 mn in Q1 FY10 as against net interest expense of Rs. 174 mn in Q1 FY09. PAT at Rs. 2.5 billion ($51 mn) in Q1 FY10 as against Rs. 1.1 bn ($23 mn), representing a growth of 120%. PAT adjusted for exceptions is at Rs. 2.8 bn ($60 mn) as against Rs. 1.3 bn ($28 mn) in Q1 FY09, representing a growth of 116%. EPS of Rs. 14.4 ($0.3) in Q1 FY10 as against Rs. 6.6 ($0.1) in Q1 FY09. Capital expenditure for Q1 FY10 is at Rs. 692 mn ($14 mn).

Revenue Mix by Geography North America Europe India Russia & other CIS Others TOTAL





(in millions)

Q1 FY10 Q1 FY10 as a Q1 FY09 Q1 FY09 $ INR % $ INR

150 76 63 39 52 381

7,182 3,619 3,021 1,871 2,496 18,189

39 20 17 10 14 100

83 87 61 40 44 315

as a %

3,957 26 4,147 28 2,924 19 1,928 13 2,082 14 15,038 100

Dr. Reddy’s Laboratories Ltd. www.drreddys.com

Growth %

82 (13) 3 (3) 20 21

Q1 FY10

Financial Update Revenue Mix by Segment





Russia & CIS 187 India 239

Rs. Crs

273 126 44 50 39 13 102 21 29 13 39 6 0 381

215 59 63 46 40 7 97 23 23 15 36 3 0 315

10,287 2,808 2,994 2,202 1,928 355 4,613 1,085 1,080 722 1,726 138 0 15,038

68 27 29 21 19 3 31 24 23 16 37 1 0 100

Others Rs. 30 Crs.

Row=188 g=9% India=63 Europe=137

g=27%

g=-8%

Global Generics

North America=100

PSAI Key P&L Items for FY10 Revenue

Gross Margins

Rs. 1,819 Crs YoY growth --> 21%

Rs. 1,017 Crs 56% to sales YoY growth--> 36%

Rs. 436 Crs 24% to sales YoY growth --> 90%

27 115 (30) 9 (3) 75 6 (8) 27 (13) 9 118 (100) 21

g=Growth

g=-13%

PSAI Rs. 487 Crs. g-->6%

EBITDA

Growth %

Rs. Crs

Global Generics Rs. 1,302 Crs. g-->27%

g=9%

g=115%

72 46 16 18 14 5 27 20 28 13 39 2 0 100

Rs. 1,819 Crs. g --> 21%

g=-3%

g=-30%

13,020 6,026 2,109 2,393 1,871 621 4,870 995 1,371 629 1,875 300 0 18,189

Consolidated Revenue

g=75%

Europe 211 North America 603

(in millions)

Q1 FY10 Q1 FY10 as a Q1 FY09 Q1 FY09 as a $ INR % $ INR %

Global Generics North America Europe India Russia & other CIS Others PSAI (Pharmaceutical Services & Active Ingredients) North America Europe India Others Proprietary Products Others Total

RoW 62



PAT Rs. 245 Crs 13% to sales YoY growth --> 120%

Dr. Reddy’s Laboratories Ltd. www.drreddys.com

Q1 FY10

Driving Sustainable Long-term growth Outlook and Strategic Initiatives FY10 Guidance on track - Risks to Guidance --> “Headwinds” in Russia & Germany - H2 Sales higher than H1 Rollout of excellence in supply chain model across our businesses and geographies --> Good progress SEZs investment; Land acquisition completed Launch of two biosimilars in India and one specialty product in Promius

The Last Decade: Consistent Growth momentum Achieved scale & Global presence 1,510

Revenue USD Million

1,250 1,365

546 447 463 380 338

%

> 25

R -CAG

234 183

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

Global Launches & Filings in Q1 FY10 ANDAs ANDS Dossiers Dossiers DMFs Filings = 0 + 0 + (Europe) + (RoW) + 4 26 20 2

North New India RoW Specialty Europe Launches = America + + + 14 7 + 0 3 0 24

Dr. Reddy’s Laboratories Ltd. www.drreddys.com

Q1 FY10

Quick Facts - FY09 Global Generics - Key Markets North America

603

Rs. Cr

205 Sumatriptan

115%

397 Base Business

281

Q1 FY09

$ growth of 21% excluding Sumatriptan Volume growth of 14% across existing products Sumatriptan --> continue to hold ~ 50% market share Received USFDA approval for Omeprazole Mg OTC. Expected launch by mid Q2 FY10 ANDAs: Total Filed: 139 Pending approvals --> 67 addressing innovator sales of $68 bn out of which 28 are Para IVs and 16 FTFs

Q1 FY10

Germany YoY degrowth of 38% in Euro terms on account of destocking in the market Commencement of supplies to AOK tender Reduction of sales force from 110 in March 09 to 50 in June 09 One time severance costs --> Euros 7.2 mn Market trend --> Increasing tender activities by other insurance companies

Rs. Cr (36%)

252

161

Q1 FY09

Q1 FY10

India 9%

Rs. Cr 220

239

Q1 FY09 Q1 FY10

Growth driven by major brands --> Omez, Nise, Omez DSR & Razo Sequential growth -->15%, Volume growth -->14% Secondary sales trend --> April & May Dr. Reddy’s growth --> 11.4%, Industry growth --> 10.4% 14 new product launches Rollout of excellence in supply chain model progressing well

Russia Growth driven by Nise brand Rouble growth : YoY --> 18%, QoQ --> 5% Volumes have degrown Secondary sales trend --> April & May (in Rouble terms) Dr. Reddy’s growth --> 46%, Industry’s growth --> 34% Ongoing financial crisis has impacted liquidity in the market

Rs. Cr

2%

150

153

Q1 FY09 Q1 FY10

Pharmaceutical Services & Active Ingredients Rs. Cr

6%

461

487

Q1 FY09 Q1 FY10

Growth driven by products of Gemcitabine, Montelukast, Sumatriptan & Levetiracetam Improvement in order books --> 27% Cumulative DMFs: 355 US --> 148 Europe --> 83 Canada --> 57 RoW --> 67

Dr. Reddy’s Laboratories Ltd. www.drreddys.com

Q1 FY10

Key Company Updates Dr. Reddy’s announced strategic alliance with GSK for Emerging Markets We entered into a partnership with GlaxoSmithKline (GSK) to develop and market select products across emerging markets outside India. Under the agreement, GSK will gain access to our portfolio and future pipeline of over 100 branded pharmaceuticals in fast growing therapeutic segments such as cardiovascular, diabetes, oncology, gastroenterology and pain management. The products will be manufactured by Dr. Reddy’s and will be licensed and supplied to GSK in various emerging markets such as Africa, the Middle East, Latin America and Asia Pacific excluding India. Revenues will be reported by GSK and will be shared with Dr. Reddy’s as per agreed terms. In certain markets products will be co-marketed by Dr. Reddy’s and GSK. GV Prasad, Vice-Chairman & CEO, Dr. Reddy’s and Abbas Hussain, President Emerging Markets, GSK during the signing of the deal. Dr. Reddy’s realigned its Global Generics geography portfolio We realigned our Global Generics finished dosages strategy to focus on certain key geographies and gradually exit some of the very small distributor driven markets. This move represents an important new focus to consolidate and grow the Company’s presence in the key geographies where it already had a considerable presence. The exercise would result in reduction of complexity of operations on one hand and help in significantly enhanced customer service and market share on the other. The markets being exited had an overall contribution of less than 1% to the topline. In addition to the US, India, Russia & CIS and Germany where the operations are already very large, the company will continue operations in 10-15 markets where sales are growing significantly. Dr. Reddy’s announced reorganization of its Drug Discovery Operations Effective July 1, 2009 the company’s Drug Discovery operations at Hyderabad have been absorbed into Aurigene, a wholly owned independent subsidiary of the company. Aurigene is a partnership based Drug Discovery biotech headquartered in Bangalore. The Discovery Research resources - employees, facility and infrastructure are now resources of Aurigene, which will operate out of two sites - Bangalore and Hyderabad. A new group has been created to focus on Proprietary Products development, which will be responsible for building the proprietary, branded R&D portfolio in collaboration with various partners and service providers. This organization will work with Aurigene and other Discovery Biotech’s to ensure effective management of the ongoing and future drug discovery programs. All the existing Intellectual Property will be owned and managed by this new unit. This group also has responsibility for the development portfolio and the company’s differentiated formulations efforts. As part of the reorganization, the company closed the Atlanta Research facility in the US. Announced ANDA approval of Omeprazole Mg OTC Dr. Reddy’s announced the USFDA approval of the company’s Abbreviated New Drug Application (ANDA) for Omeprazole Mg OTC. Shipment of the product will be phased over the remainder of the fiscal year 2010 with the first shipment likely to commence in the middle of Q2 FY10. Omeprazole Mg is indicated for the treatment of heartburn. Dr. Reddy’s formulation contains 20.6mg Omeprazole Mg and is available in a capsule form.

Dr. Reddy’s Laboratories Ltd. www.drreddys.com

Q1 FY10

Recognitions

Dr. Reddy’s was for the second consecutive year ranked the “Best Workplace” in the biotech/ pharmaceutical industry in India in a survey conducted by The Economic Times and the Great Place to Work Institute. The industry-wise best employers list was drawn from the Top 50 in the Best Workplaces list.

Chairman Dr. K Anji Reddy receiving the award from Victor Menezes, Co-Chair AIF

The American India Foundation (AIF) honored our Chairman, Dr. K Anji Reddy with the prestigious AIF – Annual Spring award. This award was conferred on Dr. Reddy as a Salute to his visionary leadership in business and philanthropy through Dr. Reddy’s Foundation and Naandi Foundation.

Elixir, the house magazine of Dr. Reddy’s won the award for ‘Best Imperative Content’ at the inaugural edition of In-house Communications Excellence (ICE) Awards instituted by the Shailaja Nair Foundation. Dr. Reddy’s won five awards at the annual Public Relations Council of India (PRCI) Corporate Collateral Awards competition along with the Overall Excellence Award for Communications Collaterals.

Dr. Reddy’s Laboratories Ltd. www.drreddys.com

Q1 FY10

Social Initiatives Dr. Reddy’s Foundation for Health Education

Graduating to better patient care Dr. Reddy’s Foundation for Health Education (DRFHE) was created with a vision to develop professionally qualified Patient Educators. The programs offered by the foundation are aimed towards creating professionals (health educators) who would work with the medical fraternity to offer an integrated, multi-disciplinary approach to good health. The programs also aim at building necessary soft skills capabilities among the existing nurses, doctor’s assistants and doctors with the objective of strengthening the healthcare delivery system for better patient care.

The activities of DRFHE are classified under three broad categories: Education Initiatives

Training Initiatives

PGCHM (Post Graduate Certificate in Healthcare Management) CPCC (Certificate Program in Cancer Counseling)

Sarathi - Assistants Abhilasha - Nurses Inner Circle - Doctors Sanjeevani - Chemists

Patient Initiatives Life at Your Doorstep Living Well

DRFHE endeavors to go beyond the traditional ‘charity-centric’ definition of CSR by adding value to both the healthcare system and society as a whole.

Education Initiatives PGCHM (Post Graduate Certificate in Healthcare Management) The one year Post Graduate Certificate in Healthcare Management (PGCHM) was launched in 2003 with an endeavor to bridge the requirement of Patient Education in the healthcare services sector. The Program is targeted towards dieticians, graduates in nutrition, pharmacy and biosciences. A PGCHM-certified patient educator would be a combination of Physician’s Assistant, Patient Counselor and Health Educator. CPCC (Certificate Program in Cancer Counseling) CPCC is a month long training program which enables participants from Bioscience background to emerge as a knowledgeable, skilled and competent individuals specialized in cancer counseling. Candidates are trained in various areas like Medicine, Nutrition, Psychology, Sociology, Physiotherapy and Soft Skills. They also undergo training from doctors at cancer hospitals besides the opportunity to counsel patients directly. The program started in Dec 2007. FHREDDY - The DRFHE Mascot

Dr. Reddy’s Laboratories Ltd. www.drreddys.com

Q1 FY10

Social Initiatives Training Initiatives Sarathi Introduced in year 2006, ‘Sarathi’ is a two day comprehensive training program that enables a doctor’s assistant to emerge as a sharper, smarter and a motivated individual. Abhilasha ‘Abhilasha’ is a two-day contact program aimed at helping nurses understand the true importance of their work, showing them how they can perform their work more effectively while boosting their self-confidence and motivation.

Inner Circle Initiated in the year 2007, ‘Inner Circle’ is a program aimed at young doctors who are in the early stages of their careers. The main objective of this program is to give these young doctors the skills necessary for a successful career. While these doctors, having completed their medical studies fairly recently, have a good grasp of the medical knowledge required, ‘The Inner Circle’ aims to augment this medical knowledge with soft skills that will enable them to plan and build their careers appropriately. Sanjeevani ‘Sanjeevani’ is a one day training program for the pharmacists to make them realize the importance of their job and understand how they can add more value responsibly. The objective of the program is to ensure that the pharmacists develop self-confidence and empathy towards their customers and improve various skills required in effective prescription dispensation.

Patient Initiatives Life At Your Doorstep DRFHE launched ‘Life At Your Doorstep’ in January 2008. Based on the principle of ‘Home Care’ aspect of palliative care, it attempts to improve the quality of life of terminally ill patients with provision of access to physical, psychological, emotional, social and spiritual support in a culturally appropriate manner. A well-equipped medical van with a team consisting of a doctor, nurse and patient counselor reach the patient’s doorstep to provide home care service. Living Well ‘Living Well’ attempts to help the patients ensure compliance with therapy, addresses social and psychological challenges faced by them while providing hope. DRFHE conducts this program in partnership with ‘Art Of Living’ with an aim for helping people reduce risk factors, increase their protective factors through awareness and lifestyle modification, and to manage their chronic condition through a self management support system. Dr. Reddy’s Foundation for Health Education 6-3-864/5, RPAS Chambers, Opp. Green Park Hotel, Ameerpet, Hyderabad 500 016. Phone: 040 66511584/88; e-mail: [email protected], website: www.drfhe.com.

Dr. Reddy’s Laboratories Ltd. www.drreddys.com

Pharmaceutical Services & Active Ingredients

Product Development



Integrated Product development Capabilities that includes API development, Formulations development and analytical development skills. One Integrated Product development facility in Hyderbad, INDIA.

6 FDA-approved plants in INDIA 1 Cytotoxic facility 1 FDA-approved plant in Mexico 1 FDA-approved plant in Mirfield, UK 3 Technology development centers (2 in Hyderabad, INDIA; 1 in Cambridge, UK)

Global Generics

New Chemical Entities (NCEs)

6 Formulation plants in INDIA (1 USFDA inspected) 1 USFDA inspected plant in USA

Research in the areas of metabolic, cardiovascular, anti-bacterials, and pain & inflammation.

Biologics Biologics development center GMP production E coli and mammalian cell platforms

Dr. Reddy’s Laboratories Ltd. www.drreddys.com

R&D Capabilities

Manufacturing Bandwidth

Q1 FY10

Manufacturing Bandwidth and R&D Capabilities

Q1 FY10

General Information About Dr. Reddy’s Established in 1984, Dr. Reddy’s Laboratories (NYSE: RDY) is an emerging global pharmaceutical company. As a fully integrated pharmaceutical company, our purpose is to provide affordable and innovative medicines through our three core businesses of: - Pharmaceutical Services and Active Ingredients: comprising of Active Pharmaceutical Ingredients and Custom Pharmaceutical Services - Global Generics, which includes branded and unbranded generics - Proprietary Products, which includes New Chemical Entities (NCEs), Differentiated Formulations, and Generic Biopharmaceuticals. Our products are marketed globally, with a focus on India, US, Europe and Russia. Dr. Reddy’s conducts NCE research in the areas of metabolic disorders, cardiovascular indications, anti-infectives and inflammation.

Safe Harbor This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forwardlooking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical fact, including, but not limited to, those that are identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects” and similar expressions. Risks and uncertainties that could affect us include, without limitation: General economic and business conditions in India The ability to successfully implement our strategy, our research and development efforts, growth and expansion plans and techn logical changes Changes in the value of the Rupee and other currency changes Changes in the Indian and international interest rates Allocations of funds by the Government Changes in laws and regulations that apply to our customers, suppliers, and the pharmaceutical industry Increasing competition in and the conditions of our customers, suppliers and the pharmaceutical industry Changes in political conditions in India Should one or more of such risks and uncertainties materialize, or should any underlying assumption prove incorrect, actual outcomes may vary materially from those indicated in the applicable forward-looking statements. Any forward-looking statement or information contained in this presentation speaks only as of the date of the statement. We are not required to update any such statement or information to either reflect events or circumstances that occur after the date the statement or information is made or to account for unanticipated events.

Contact Information Media Relations

Investor Relations

Mythili Mamidanna

Ph: +91-40-66511620 Fax: +91-40-23731955 Email: [email protected]

Kedar Upadhyay Ph: +91-40-66834297 Fax: +91-40-23731955 Email: [email protected]

Rajan S

Raghavender R

Ph: +91-40-66511725

Ph: +91-40-66511529

Email: [email protected]

Email: [email protected] Milan Kalawadia

Ph: +1 - 9082034931 Email: [email protected]

Dr. Reddy’s Laboratories Ltd. www.drreddys.com