Dr Reddy’s Laboratories (DRL), one of India’s top medicine companies, is exiting all but 15 of the 40 markets globally where it was selling low-cost, generic medicines.
This makes DRL the first Indian pharmaceutical company to go for a reorganisation. Worldwide, pharmaceuticals and healthcare is considered to be a sector relatively immune to slowdown.
The move comes as DRL attempts to rationalise costs and operations, as well as volatility in global currency markets, industry sources said.
“The exercise would lead to redeployment of resources within the organisation,” said Satish Reddy, chief operations officer and son of DRL founder K Anji Reddy.
DRL has been plagued by financial difficulties due to problems in turning around major acquired companies such as betapharm, Germany.