Dr Reddys to spend upto USD 300 million on R&D in FY 20


HYDERABAD, May 20: Dr Reddys Laboratories is

planning to spend upto USD 300 million on research and

development (R&D) during this financial year, a senior

official of the company has said.

President, CFO and global head (HR) of Dr Reddy’s

Saumen Chakraborty, during an ‘earnings call’, said the drug-

maker spent USD 226 million during the last fiscal against USD

264 million in FY 18.

The R&D spend for the quarter (January-March FY 19) is

Rs 366 crore, that is USD 53 million and EBIT 9.19 per cent of

the sales for the quarter, he said.

The spend is lowered by 16 per cent year-on-year and

is flat on a sequential quarter basis. The spend for FY 19 is

Rs 1,551 crore. That is USD 226 million as against USD 264

million in FY 18, Chakraborty said.

“We expect the overall R&D for FY 20 would be in the

range of USD 250 million to USD 300 million,” he said replying

to a query.

The company would continue to focus on R&D for some

interesting pipeline of proprietary products. But, on an

overall basis, the R&D spend would be lower in proprietary

products when compared to previous year, he further said.

Speaking at the meeting, chief operating officer of

the company Erez Israeli said, “Now that we made the R&D

organisation more efficient andcould handle more products

with less cost, we want to continue with this plan of

productivity to increase the R&D in order to ensure no

fallbacks and no differentiated products.”

Replying to a query, Israeli said the company during

FY 20 expects to launch more than 30 products in the US

market. (PTI)


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