AUTHOR : Daanya katerwala .

INTRODUCTION : Dr. Reddy’s Laboratories is an Indian multinational pharmaceutical company based in Hyderabad. The company was founded by Kallam Anji Reddy, who previously worked in the mentor institute Indian Drugs and Pharmaceuticals Limited. Dr. Reddy manufactures and markets a wide range of pharmaceuticals in India and overseas. The company produces over 190 medications, 60 active pharmaceutical ingredients (APIs) for drug manufacture, diagnostic kits, critical care, and biotechnology.

Dr. Reddy’s began as a supplier to Indian drug manufacturers, but it soon started exporting to other less-regulated markets that had the advantage of not having to spend time and money on a manufacturing plant that would gain approval from a drug licensing body such as the U.S. Food and Drug Administration (FDA). By the early 1990s, the expanded scale and profitability from these unregulated markets enabled the company to begin focusing on getting approval from drug regulators for their formulations and bulk drug manufacturing plants – in more-developed economies. This allowed their movement into regulated markets such as the US and Europe.

By 2007, Dr. Reddy’s had seven FDA plants producing active pharmaceutical ingredients in India and seven FDA-inspected and ISO 9001 (quality) and ISO 14001 (environmental management) certified plants making patient-ready medications – five of them in India and two in the UK.

 

1 . TITLE : “ Dr Reddy’s Laboratories launches Difluprednate Ophthalmic Emulsion in the US market .”

Free press journal ; Mumbai .

The equivalent Durezol brand and generic had U.S. sales of approximately $40 million MAT for the most recent twelve months ending in November 2022 according to IQVIADr. Reddy’s Laboratories Ltd, today announced the launch of Dr. Reddy’s Difluprednate Ophthalmic Emulsion 0.05%, a therapeutic generic equivalent to Durezol (Difluprednate Ophthalmic Emulsion 0.05%) in the U.S. market, via an exchange filing.The announcement is following the approval by the U.S. Food and Drug Administration (USFDA).The Durezol brand and generic had U.S. sales of approximately $40 million MAT for the most recent twelve months ending in November 2022 according to IQVIA.Dr. Reddy’s Difluprednate Ophthalmic Emulsion 0.05% is available in 5 ml bottles in case packs of 24.

2 . TITLE : “LIC Reduces Stake In Dr Reddy’s Laboratories From 9.68% To 7.63%”.

Life Insurance Corporation of India on Tuesday informed through an exchange filing that the Corporation’s shareholding in Dr Reddy’s Laboratories Limited has diluted from 1,61,44,983 to 1,27,20,873 Equity Shares, decreasing its shareholding from 9.681 percent to 7.628 percent of the paid-up capital of the said Company.

The company in the regulatory filing said that the holding decreased from 9.681 percent to 7.628 percent, a decrease of 2.053 percent during the period from March 10, 2023 to September 11, 2023 at an average cost of Rs 5705.43

Dr. Reddy’s Laboratories Ltd is a pharmaceutical company which offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APls), Custom Pharmaceutical services (CPS), generics, biosimilars and differentiated formulations.

DATA COLLECTION : The data for Nifty and Equity for Dr. Reddy’s Laboratories Ltd has been downloaded from Nse.com and Yahoo.finance.com for the period 1^st Nov 2022 – 31^st Oct 2023 . The data was manipulated for closing price of Nifty and Equity . The weekly returns of Nifty and Equity were found . 

DATA ANALYSIS :

Equation	Dr. Reddy’s Laboratories = 8676.25+(-0.817)nifty
n	48
R Square	0.673
f	97.06

 

 

The above equation shows the relationship of Dr. Reddy’s Laboratories with nifty. If Nifty rises by 1 unit . Dr. Reddy’s Laboratories will rise by -0.817units .

 

If Nifty rises with 1 unit , Dr. Reddy’s Laboratories will rise by 0.817 units
t-stat for b is -9.8519 and the p value is 5.17 which is more than 0.05 , so b = 0 meaning nifty does not impact Dr. Reddy’s Laboratories Ltd.
R Square is 0.673 , meaning 1% Dr. Reddy’s Laboratories Ltd is explained by Nifty, meaning 96% depends on other things like fundamentals
f= 97.06 and p value is more than 0.5 , so the model is not statistically significant at 5% level.

 

CONCLUSION : As beta (-0.817) is less than 1 , so good for long term investment.

 

REFERENCES :

1. Dr reddy’s laboratories launches difluprednate ophthalmic emulsion in the US market. (2023, Jan 27). Free Press Journal, Retrieved from https://www.proquest.com/magazines/dr-reddys-laboratories-launches-difluprednate/docview/2770037934/se-2
2. LIC reduces stake in dr reddy’s laboratories from 9.68% to 7.63%. (2023, Sep 12). Free Press Journal, Retrieved from https://www.proquest.com/magazines/lic-reduces-stake-dr-reddys-laboratories-9-68-7/docview/2863733464/se-2