Tag: generic medicines

Dr. Reddy’s Laboratories Success Story | How Does This Pharma Company Plans to Lead the Indian Market?

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.

To talk about pharma and medicines in today’s times, the industry is considered one of the most booming industries. These industries have offered a prevalence of contributions to the world of medicine. Medicines and drug usage has been there since immemorial, but the process of manufacturing has changed drastically.

These industries have a lengthy process and go through various stages such as design, formulation, fabrication, withdrawal, dispensation, distillation, and a lot of other things needed for the production of chemical substances.

Dr. Reddy’s Laboratories is dedicated to offering innovative, cost-effective medications for healthier living in the most integrated manner possible. It offers a variety of goods and services, such as APIs, specialised pharmaceutical services, generics, biosimilars, and unique formulations, through its three businesses, Pharmaceutical Services and Active Ingredients, Global Generics, and Proprietary Products.

Let’s dig more into Dr. Reddy Laboratories’ founders, business model, revenue, acquisitions, growth, and more in this article.

Dr. Reddy’s Laboratories – Company Highlights

Headquarters	Hyderabad, India
Sector	Pharmaceutical Manufacturing
Founder	Dr. Kallam Anji Reddy
Founded	1984
Website	drreddys.com

Dr. Reddy’s Laboratories – About

This pharma manufacturing company was founded in 1984 by Dr. Kallam Anji Reddy. The company initially started as a supplier for Indian drug manufacturers but shortly diversified its operations to export to other less-regulated markets. The company took advantage to get approval from other drug licensing companies like the U.S Food and Drug Administration (FDA), which resulted in huge profits that led to their formulations and setting up bulk drug manufacturing factories in advanced places.

Dr. Reddy’s main therapeutic interventions are in the areas of dermatology, cancer, diabetology, gastroenterology, oncology, and pain management. It has markets all over the world like in the USA, India, Russia & CIS countries, and Europe. The company has 21 manufacturing facilities spread over 66 countries.

Dr. Reddy’s Laboratories – Industry

India is one of the top 10 exporters of pharmaceuticals. It supplies 50% of vaccines in the global market, 40% of generic demand in the US, and 25% of all medicine in the UK.

As per a Pharmaceuticals industry report, India’s domestic pharmaceutical market was at $42 billion in 2021. It is predicted to reach $65 billion by 2024, and $120-130 billion by 2030.

Dr. Reddy’s Laboratories is known for manufacturing and marketing a wide range of pharmaceuticals in India and overseas

Dr. Reddy’s Laboratories – Founder

Dr. Kallam Anji Reddy is the founder of Dr. Reddy’s Laboratories.

Dr. Kallam Anji Reddy

Dr. K Anji Reddy was born in 1941 to a modest but prosperous farming family in the Andhra Pradesh hamlet of Tadepalli. His inspiration goes to his father as he grew up watching him make herbal pills and distributed them without charging any penny to the needy ones.

Dr. Anji Reddy completed his schooling at Anapothana Zilla Parishath High School Nutakki. He got his degree in B.Sc. (Tech) from the University Department of Chemical Technology, Mumbai. Soon after graduation, he got his PhD in Chemical Engineering from the National Chemical Laboratory, Pune. After that, he spent six years working for the government-owned Indian Drugs and Pharmaceuticals Ltd (IDPL). This exposure to working at the IDPL fueled his desire to start his own business.

Dr. Kallam Anji Reddy quotes, “It was a dream. It was not a plan on the drawing board, no. But it was a dream.”

For his contributions to the Indian pharmaceutical industry, the Indian Government honoured him with the Padma Shri in 2001 and the Padma Bhushan in 2011. He was also a representative on the Trade and Industry Council for the Indian Prime Minister.

Dr. Kallam Anji Reddy suffered from cancer and lost the battle on 15 March 2013. He died at the Apollo Hospital, Hyderabad. At present, the company is run by his son, Satish Reddy and son-in-law, G.V. Prasad.

Dr. Reddy’s Laboratories – Startup Story and Growth

Soon after the construction of its manufacturing plant at Bollaram, the company commenced its business in 1985. In one year, Dr. Reddy’s Laboratories got listed on the Bombay Stock Exchange and entered the international market during this year with the export of the API Methyldopa.

The company started its first manufacturing of Omeprazole in 1991, which is considered to be the best product worldwide soon after, they entered the Russian market, their first-ever international exposure.

In the late 1990s, Dr. Reddy’s Laboratories US generics market established its offices in New Jersey. Besides their international establishment, the company started manufacturing Biologics to give Indian consumers a taste of high–cost medicines at reasonable prices.

The company introduced the first generic medicine, “Ibuprofen” under its brand in the US in 2008 after experiencing significant growth in the Indian market.

In 2005, Dr. Reddy’s Lab developed India’s first drug for the treatment of diabetic foot ulcers.

To touching a revenue of $1 billion in the mid-2000s, the company made several drugs like antibody biosimilar monoclonal antibodies to treat certain autoimmune diseases to entering into Colombia with a portfolio of high-quality and affordable medicines for cancer patients in 2016, the company has come a long way.

In 2020, to combat Covid-19, Dr. Reddy’s Laboratories made several partnerships from all over the world to bring an innovative therapeutic approach to India. They came up with its first generic Otic suspension product in the U.S.

Last year, the company collaborated with Eli Lilly to export Baricitinib to India. They also collaborated with Merck to provide Molnupiravir to COVID-19 patients everywhere.

Dr. Reddy’s Laboratories – Mission and Vision

The vision of Dr. Reddy’s Laboratories is to live by seven core values, which they give a lot of importance to it. The seven values are:

Sustainability
Integrity and transparency
Safety
Quality
Collaboration and teamwork
Productivity
Respect for the individual

Dr. Reddy’s Laboratories – Name, Logo, and Tagline

Dr. Reddy’s Laboratories – Logo and Tagline

Since it was the dream of Dr. K Anji Reddy to create affordable medicine for every class of people, he started the company with his surname, Dr. Reddy’s Laboratories. The company works with the tagline, “Good Health Can’t Wait.”

Dr. Reddy’s Laboratories – Business Model

Dr. Reddy’s Laboratories’ business model is mostly about research and development, end-to-end production, and cutting-edge digital technology to fulfil its commitments to patients all around the world. Their business model is successful as they produce drugs in bulk size and have in-house R&D centres.

They do business by providing the following services:

India Branded Generics – By developing medicines for acute and chronic diseases, and establishing speciality care, institutional/hospital business, OTC, and eCommerce.
North America Generics – By having establishments in New Jersey, and Canada to offer their affordable healthcare to the world.
Emerging Markets Branded Generics – They have their services in Southeast Asian countries. The company provides medicines – the Association of Southeast Asian Nations (ASEAN), Africa, Australia, and New Zealand; CIS and Romania; China; Latin America and Russia.
Europe Generics – The company also offers its services to give access to affordable and innovative medicines in Europe as well. They have a presence in France, Germany, Italy, Netherlands, Spain, Ukraine, and United Kingdom.
Active Pharmaceutical Ingredients (APIs) – They manufacture bulk drugs or active pharmaceutical ingredients (APIs), which remain a cornerstone of the company.
Biologics – The company generates and markets a variety of immunology and oncology-related biosimilar medicines. This is the most integrated part of the company.
Aurigene Pharmaceutical Services – With scale-up and commercial manufacturing facilities in India, the UK, Mexico, and the US, Dr. Reddy’s Aurigene Pharmaceutical services provide discovery and development services at top-notch facilities in India.

Dr. Reddy’s Laboratories – Revenue

The company mostly gets 45% earnings from North America Generics, then 18% from India, 19% from Russia, 12% from Europe, and 6% from the rest of the world.

The company has generated $74.9 billion from NAG, $16.6 billion from Europe, $45.7 billion from emerging markets, and $42 billion from India in FY22.

Dr. Reddy’s Laboratories recorded a revenue of $2.83 billion for FY22 which was an 8.94% increase from $2.59 billion in FY2021.

Dr. Reddy’s Laboratories – Products and Services

Hyperinjection in US

Dr. Reddy’s Laboratories launched Hyperinjection in US. The announcement of the company’s joint launch of Treprostinil injection in the US market with its subsidiaries came in April of 2023.

Gummies

CeleHealth Kidz Immuno Plus Gummies were introduced to the Indian market in July, 2023 by Dr. Reddy’s Laboratories. The product attempts to meet the dietary needs related to the increasing worries about kid immunity in India.

Celevida wellness

Dr. Reddy’s Laboratories Ltd. stated that Svaas Wellness Limited, a wholly-owned subsidiary, has launched “Celevida Wellness,” the company’s first direct-to-consumer (D2C) e-commerce website for diabetic patients on October, 26, 2023.

Dr. Reddy’s Laboratories – Funding

Company has raised $6 million in two funding rounds.

Date	Funding Round	Amount
Oct 3, 2022	Post-IPO Equity	–
Dec 1, 2001	Post-IPO Equity	$6M

Dr.Reddy’s Laboratories – Investments

Dr.Reddy’s Laboratories has Invested in one company to date:

Date	Funding Round	Company Name	Amount
Sep 30, 2005	Series A	Perlecan Pharma	$52.5M

Dr. Reddy’s Laboratories – Challenges Faced

The manufacturing business is the toughest business to operate especially in medicine and drugs. Dr. Reddy’s Laboratories have had faced challenges in its journey. There were a few controversies in which the company was caught up. The company had quality problems in its Mexico unit and a few fatal accidents.

Recently, the company announced a 76% year-over-year (YoY) decline in profit after tax (PAT) to Rs 88 crore in Q4FY22 due to pricing pressure in North America and Europe, decreased export benefits, and a rise in inventory reserves.

Dr.Reddy’s Laboratories – Partnership

Shanghai Junshi Biosciences Co., Ltd

Dr. Reddy’s Laboratories and Shanghai Junshi Biosciences Co., Ltd. has partnershiped on Augut, 5, 2023 to develop and market toripalimab, the anti-PD-1 monoclonal antibody, in South Africa, India, Latin America, and, upon Dr. Reddy’s election, Australia, New Zealand, and other nations.

Amazon Web Services

Amazon Web Services (AWS) has revealed that Dr Reddy’s Laboratories Limited (Dr Reddy’s), has partnershiped with AWS on July, 10, 2023 as its preferred cloud provider in order to facilitate the provision of new and reasonably priced medicines.

Theranica

Theranica, an Israeli digital therapeutics firm, has signed a strategic partnership and supply deal with Dr. Reddy’s Laboratories Ltd. for the exclusive marketing and distribution of its FDA-approved Nerivio in India.

Dr. Reddy’s Laboratories – Shareholders

The company has several shareholders. The following are the shareholders who hold 1% or more of the equity shares as of March 2022:

Name	Number of Shares	%
Dr. Reddy’s Holdings Limited	41,325,300	24.83
Life Insurance Corporation of India	8,769,499	5.27
SBI-ETF Sensex	4,245,926	2.55
Aditya Birla SunLife Trustee Private Limited	3,631,279	2.17
First Sentier Investors ICVC-Stewart Investors	3,500,511	2.1
ICICI Prudential Value Discovery Fund	3,224,070	1.92
Government of Singapore	3,004,517	1.81
ICICI Prudential Life Insurance Company Limited	2,743,177	1.64
NPS Trust and their associates	2,488,266	1.48
UTI-Mastershare Unit	1,991,477	1.19
HDFC Trustee Company	1,700,213	1.02
Government Pension Fund Global	1,677,349	1.01
Mirae Asset Tax Saver Fund and their associates	1,668,396	1

Dr. Reddy’s Laboratories – Mergers and Acquisitions

The company has made 6 acquisitions till now and is also open for M&A and is waiting for the right opportunity. The acquisitions are:

Acquiree Name	Date	Amount
Nimbus Health	February 4,2022	Undisclosed
Betapharm Arzneimittel GmbH	March 3, 2006	$570 million
American Remedies	November 26, 1999	$90 million
BMS Laboratories Limited	March 12, 2002	Undisclosed
Imperial Credit Pvt. Ltd.	March 3, 2017	$20 million
Trigenesis Therapeutics	May 7, 2004	$11 million

Dr. Reddy’s Laboratories – Awards and Achievements

The company has got several awards for its performance in the pharmaceutical industry. Below is the list of awards won by Dr. Reddy’s Laboratories:

Top Employers Institute – recognised as Top Employer in South Africa
Sustainability 4.0 Awards 2022 – Sustainable Corporate of the Year award
Dow Jones Sustainability Index 2021 – Among top 10 leaders globally; featured for 6th year in a row in the Emerging Markets category
Member of the Sustainability Yearbook 2022
Bloomberg Gender-Equality Index 2022 – the only Indian pharma company in the index
CII SCALE Award 2021 – for excellence in logistics and supply chain for the 7th consecutive year
CII Industrial Innovation Awards 2021
Global Generics & Biosimilars Awards 2021
United Nations Women’s Empowerment Principles Awards – 2nd runner-up in the Gender Inclusive Workplace category in Asia-Pacific
Indo-American Chamber of Commerce 2021
Economic Times – Futurescape 8th Sustainability Index Report 2021
Dr. Reddy’s Columbia – Great Place to Work in 2021

Dr. Reddy’s Laboratories – Future Plans

The company is aiming to be among the top 5 drug maker companies in the domestic market by planning mergers and acquisitions to up its game.

The co-chairman and managing director of Dr. Reddy’s Laboratories, GV Prasad said in an interview, “Getting into the top 5 is our aspiration. On an organic curve, you can’t reach there (top five). We are open for M&A but for the right price and buttressed by organic execution. We have to pull all the levers”.

FAQs

When was Dr. Reddy’s Laboratories founded?

Dr. Reddy’s Laboratories was founded in the year 1984 and is headquartered in Hyderabad.

Who is the founder of Dr. Reddy’s Laboratories?

Dr. Kallam Anji Reddy is the founder of Dr. Reddy’s Laboratories.

What was Dr. Reddy’s revenue in 2022?

Dr. Reddy’s Laboratories recorded revenue of 2.8 billion USD in FY2022.

What was Dr. Reddy’s Laboratories’ recent acquisition?

Dr. Reddy’s Laboratories’ most recently acquired Germany-based Nimbus Health GmbH. The company announced the agreement of acquisition in February 2022.

Which pharma company is at the top in India?

Top pharma companies in India are:

Dr. Reddy’s Laboratories
Divi’s Laboratories
Sun Pharmaceutical Industries
Biocon
Torrent Pharmaceuticals
Alkem Laboratories
Glenmark Pharmaceuticals.
Piramal Enterprises Ltd.
Emcure Pharmaceuticals
Zydus Lifesciences Limited (formerly Cadila Healthcare)

October 27, 2023

Aurobindo Pharma Limited – Success Story of the Leading Generics Maker in India

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Aurobindo Pharma Limited.

It is hard to imagine if there were no pharmaceutical manufacturing companies. Then how would we have got the basic drugs like painkillers, antibiotics, anti-allergic tablets, or any other form of medication?

They say, health is wealth, and it is a fundamental need of every society. Thanks to these pharmaceutical manufacturing companies, they ensure that effective drugs can help enhance a person’s health and improve the overall quality of life.

Pharma company like Aurobindo Pharma Limited founded in 1986, is aiding society with their high-quality generic pharmaceuticals and APIs. Hyderabad’s HITEC City serves as the corporate headquarters for this worldwide pharmaceutical manufacturing company.

Know more about Aurobindo Pharma like its history and evolution, business model, revenue model, competitors, and much more mentioned in this article further.

Aurobindo Pharma – Company Highlights

Startup Name	Aurobindo Pharma Limited
Headquarters	Hyderabad, Telangana, India
Sector	Pharmaceutical Manufacturing
Type	Public
Founder	P. V. Ramprasad Reddy, K. Nityananda Reddy
Founded	1986
Revenue	$2.9 billion (FY22)
Net Worth	$3.08 billion (FY22)
Website	aurobindo.com

Aurobindo Pharma – About
Aurobindo Pharma – Industry
Aurobindo Pharma – Founders
Aurobindo Pharma – Startup Story
Aurobindo Pharma – Mission and Vision
Aurobindo Pharma – Name, Tagline, and Logo
Aurobindo Pharma – Business Model
Aurobindo Pharma – Revenue Model
Aurobindo Pharma – Challenges/ Controversies
Aurobindo Pharma – Mergers and Acquisitions
Aurobindo Pharma – Awards and Achievements
Aurobindo Pharma – Competitors
Aurobindo Pharma – Future Plans

Aurobindo Pharma – About

The company mainly produces generic medications and active pharmaceutical ingredients (APIs). In 1992, Aurobindo Pharma went public, and in 1995, it listed its shares on the Indian stock exchanges. Aurobindo Pharma is the industry leader in semi-synthetic penicillins and also has a foothold in important therapeutic areas including gastroenterology, neurosciences, cardiovascular disease (CVS), antiretrovirals, and antibiotics. All of these products are marketed in over 150 countries. It is R&D-focused, which offers a variety of products, and has manufacturing sites spread across numerous nations.

The company also entered the lucrative speciality generic formulations area because of its affordable production capabilities and a few devoted clients. Presently, Aurobindo Pharma is ranked among the top ten pharmaceutical firms in India based on consolidated sales.

The company operates in-house R&D for the quick filing of patents, Drug Master Files (DMFs), Abbreviated New Drug Applications (ANDAs), and Formulation Dossiers across the globe. Multiple facilities are approved by leading regulatory agencies, including USFDA, EU GMP, UK MHRA, South Africa-MCC, Health Canada, WHO, and Brazil ANVISA. In addition, one of the top DMFs and ANDAs filers from India is Aurobindo Pharma.

Aurobindo Pharma – Industry

The Indian pharma industry has been seeing a tremendous growth rate in the last five years. As per reports, the Indian pharmaceutical market has been growing at a compound annual growth rate (CAGR) of more than 15% over the last five years. According to the Indian Economic Survey 2021, the growth is expected to be three times faster in the coming decade. The current market size for pharmaceuticals in India is $41 billion, which is expected to reach $65 billion by 2024 and $130 billion by 2030.

Aurobindo Pharma – Founders

Aurobindo Pharma was founded by P.V. Ramprasad Reddy and K. Nityananda Reddy in 1986.

P.V. Ramprasad Reddy

P.V. Ramprasad Reddy is an Indian businessman and one of the founders of Aurobindo Pharma. He holds a degree in Commerce. Mr Ramprasad Reddy is responsible for taking care of strategic planning for the company. He held senior positions in several pharmaceutical firms before founding Aurobindo Pharma in 1986.

Mr Ramprasad Reddy was placed No. 27 in India and No. 688 globally in the 2016 Forbes list of Indian billionaires, with a net worth of $2.5 billion. Besides this, he was also listed as one of the top 35 figures in the pharmaceutical sector by World Pharmaceutical Frontiers in 2008.

K. Nityananda Reddy

Along with being the founder of Aurobindo Pharma, K. Nityananda Reddy serves as the Vice Chairman and Managing Director of Aurobindo Pharma. He has a Master’s degree in Science specialising in Chemistry. K. Nityananda oversees the overall operations of the Company and knows manufacturing technologies.

Aurobindo Pharma – Startup Story

The company was first started on 26th December 1896 as a private limited company. Its business took off in Puducherry in 1988–1989 with a single unit producing semi-synthetic penicillin (SSP).

Within a few years, Aurobindo established another facility at Pashmylaram, close to Hyderabad, to produce CMIC Chloride, a bulk drug intermediate.

In 1992, Aurobindo Pharma went public, and in 1995, it floated its shares on the Indian stock market. Later on, the company made an alliance with a UK-based company, Glaxo (India) to expand its business operations across UK boundaries. In 2001, it launched an exclusive anti-viral branch called Immune with the goal of educating and treating HIV/AIDS patients in the nation using preventative medications.

In 2005, Aurobindo strategically entered the high-end markets of the USA and Europe with generic formulations by taking part in the PEPFAR program, which was started by the US government. After five years, the company signed licencing and supply contracts with AstraZeneca, one of the top biopharmaceutical firms in the world, to provide many solid dosage and sterile products for developing countries.

It was in 2019, that Aurobindo started the establishment of a production plant for oral solids in Taizhou, China. In recent years, the company has made many establishments across other countries.

Aurobindo Pharma – Mission and Vision

The mission of Aurobindo Pharma is, “To become the most valued Pharma partner to the World Pharma fraternity by continuously researching, developing and manufacturing a wide range of pharmaceutical products that comply with the highest regulatory standards.”

Aurobindo’s vision reads, “To become a leading and an admired global pharma company, ranked in the top 25 by 2030”

Aurobindo Pharma – Name, Tagline, and Logo

Aurobindo Pharma – Logo and Tagline

The tagline of Aurobindo Pharma is, “Committed to healthier life!”

Aurobindo Pharma – Business Model

The business model of Aurobindo Pharma consists of three segments:

Generics/ Branded Generics
Product Out Licensing
Contract Manufacturing

The business of Aurobindo is present in over 150 countries. It has eight key formulation facilities in India and one each in US and Brazil.

Some of the different formulations offered by Aurobindo are:

Anti-bacterial like Penams, SSPS & Combinations, Quinolones
Central Nervous System (CNS) products like Anti-Alzheimers, Anti-Depressants
Cardiovascular (CVS) Products like Anti-Platelets, Beta Blockers, ACE Inhibitors
Other products like Anti Viral, Anti-Diabetics, Anti-Fungals, etc.

Aurobindo’s business includes a vertical integration that offers cutting-edge solutions. Its cost-effective medication development and significant manufacturing support help in the expansion from discovery to development and commercialization.

As mentioned, Aurobindo’s R&D Center has created goods and submitted over 200 ANDAs, around 124 product dossiers in the EU, and several dossiers in other nations, including Brazil, South Africa, Australia, and China. A multidisciplinary team of over 700 scientists working for excellence is housed in over 13,000 square metres at its R&D Center in Hyderabad.

Another key business unit of Aurobindo is AuroZymes. It is a biocatalysts division of Aurobindo Pharma Ltd. The biocatalysts are created and produced by AuroZymes for usage in the chemical and pharmaceutical industry. These biocatalysts were first created for internal usage, however, they are now accessible to Aurobindo’s clients. Through AuroZymes, Aurobindo helps develops a range of services to increase their client’s production as per their requirement.

AuroSource is also a crucial aspect of Aurobindo Pharma. It is the custom research and manufacturing division of Aurobindo. Through AuroSource, the company offers customer-centric project-based chemistry services.

Aurobindo Pharma’s business operations also include the subsidiary division of Aurobindo Pharma, Auro Peptides Ltd. It offers cutting-edge solutions from research to development and commercialization and cost-effective drug manufacturing.

Aurobindo Pharma is also known for its great CSR activities. The company has established an agency, Aurobindo Pharma Foundation in order to implement its welfare activities. Its welfare activities have proved to be beneficial for lakhs of individuals.

Aurobindo’s CSR Activities

Many areas of sustainable assistance are covered by Aurobindo’s sustainability charter in favour of preventive healthcare like making safe drinking water available, encouraging education, eradicating hunger, poverty, and malnutrition, environmental sustainability, setting up old-ages homes for elderly people, maintaining ecological balance, conversing natural resources, and many more.

Aurobindo Pharma Foundation

Through its foundation, the company has set up 70 Reverse Osmosis (RO) Water Purification Plant in many locations. It has also constructed hundreds of modern toilets in various government schools, colleges, stadiums, etc in Hyderabad and Telangana states. To create Open Defecation Free communities (ODF), the Aurobindo Pharma Foundation has backed the Integrated Household Latrine (IHHL) initiative in some states’ villages.

Aurobindo Pharma – Revenue Model

Aurobindo Pharma Limited Revenue from FY18 to FY22

It is reported that Aurobindo Pharma generates revenue by exporting its products to over 155 countries across the globe. Through this, around 90% of the company’s revenues are derived from international operations. As per the company’s annual report 2021-22, 85% of total revenue comes from formulations and the other 15% is from APIs. Aurobindo Pharma Limited reported revenue of 23,455.5 crore INR ($2.9 billion) for FY22.

Generic Aadhaar – India’s Fastest Growing Pharmaceutical Company

Generic Aadhaar, founded by India’s youngest entrepreneur, is the fastest-growing pharmaceutical company that aims to make affordable generic medicines.

StartupTalkyAvantika Bhardwaj

Aurobindo Pharma – Challenges/ Controversies

One of the biggest challenges for Aurobindo was in the year 2019. The issue was when the US Food and Medicine Administration sent Aurobindo a warning notice, following an inspection of Aurobindo Pharma Limited’s Pydibhimavaram, Ranasthalam (Mandal), Srikakulam District, Andhra Pradesh drug manufacturing plant. The warning letter stated that its API’s manufacturing process was faulted and had significant deviations from current good manufacturing practices (CGMP).

In 2018, another challenge for Aurobindo was when the Dutch documentary television show ‘Zembla’ featured their manufacturing plant in Hyderabad. The show described charges brought against the business for allegedly harming the environment and providing inadequate working conditions for its employees in Hyderabad, India.

Aurobindo Pharma – Mergers and Acquisitions

Seven businesses have been acquired by Aurobindo Pharma. Veritaz was their most recent purchase, made on March 28, 2022. They paid 171 crore INR ($22.4 million) to purchase Veritaz. Veritaz is a Hyderabad-based company that offers products in anti-infective and pain-management therapeutic areas.

Recently, in August 2022, the company announced that it has completed the acquisition of 51% equity shares in GLS Pharma Limited for 28.05 crore INR. GLS Pharma operates in the oncology business and has become a subsidiary of Aurobindo Pharma. Aurobindo Pharma has an open call to buy the rest of the 49% stake in the company after three years but before five years from the current acquisition.

The acquisition details of Aurobindo Pharma are listed below:

Date	Acquiree Name	Amount
March 28, 2022	Veritaz	$22.4 million
September 6, 2018	Sandoz International	$900 million
January 9, 2017	Generis Farmacêutica	$142.9 million
November 12, 2014	Natrol	$133 million
September 13, 2013	Silicon Life Sciences	—
September 13, 2013	Hyacinths Pharma	—
August 17, 2009	Trident Life Sciences	$27.9 million

Aurobindo Pharma – Awards and Achievements

The awards and achievements of Aurobindo Pharma are:

At the Global Generics & Biosimilars Awards 2019, which were held in Frankfurt, Germany, Aurobindo won two prizes; Company of the Year and Acquisition of the Year.
Aurobindo Pharma received the “Outstanding Export Performance Award” from the Pharmaceuticals Export Promotion Council of India for the year 2008-09.
The State Labour Department of the Government of Andhra Pradesh awarded Aurobindo the ‘Best Management Award’ in 2005.

Aurobindo Pharma – Competitors

The top competitors of Aurobindo are:

Dr. Reddy’s Laboratories
Sun Pharmaceutical Industries
Divi’s Laboratories
Cipla Limited
Torrent Pharma
Lupin Ltd.
Gland Pharma Ltd.
Abbott India
Alkem Lab
Zydus Lifesciences Ltd.
Ajanta Pharma
Pfizer
Glenmark Pharma Ltd.

Aurobindo Pharma – Future Plans

The company announced through its annual report 2021-22 that it intends to broaden its product line with high-value cancer, hormone, biosimilar, and innovative drug delivery methods including depot injections, inhalers, patches, and films. Given that the generic medication industry in these nations is very tiny, it has also set its sights on geographic development in new areas including Poland, Italy, Spain, the Czech Republic, Portugal, and France.

To increase its position in the hospital sector, the pharmaceutical company is also constructing an injectable plant specifically for Europe and emerging countries. It will soon begin submitting novel injectable drugs in FY23, with commercialization beginning as soon as in FY24.

Here’s what the Vice Chairman and Managing Director, K. Nithyananda Reddy say about global expansion, “We also intend to transfer a few products from Europe to the China facility. With a total target of reaching 40 products in China, if we are successful in realising our plans then there should be significant accretion to both our topline and bottom-line spreads”

FAQs

Who founded Aurobindo Pharma?

Aurobindo Pharma was founded by P. V. Ramprasad Reddy and K. Nityananda Reddy in the year 1986.

Where is the company Aurobindo located?

Aurobindo Pharma has its headquarters in Hyderabad, Telangana, India.

What is Aurobindo Pharma’s revenue 2022?

Aurobindo Pharma Limited reported revenue of $2.9 billion for FY22.

Is Aurobindo a generic?

Aurobindo Pharma is an Indian multinational pharmaceutical manufacturing company which is one of the largest producers of generic medicines in the world.

Which pharma company is at the top in India?

Top pharma companies in India are:

Aurobindo Pharma Limited
Dr. Reddy’s Laboratories
Sun Pharmaceutical Industries
Divi’s Laboratories
Torrent Pharma
Abbott India Ltd.
Cipla Limited

September 9, 2022

Generic Aadhaar – India’s Fastest Growing Pharmaceutical Company

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Generic Aadhaar.

As per statistics, about 60% of Indians cannot afford to buy their daily medicines. The reason behind this inability is the high cost of medicines which are absolutely unnecessary in the Indian pharmaceutical market. About 85-90% of the medicines in the market are generic variants which ideally should be available at pocket-friendly prices. However, people end up paying enormous amounts for these drugs as the manufacturer has made it a wholesale business. The irony of the matter is that generic medicines are supposed to be dirt cheap.

Realizing the gravity of the situation, Generic Aadhaar has embarked on a mission to make generic medicines available to all Indians at an affordable price. It has disrupted the conventional pharma industry and is determined to empower single-store owners and pass on the benefit to the end customers.

Generic Aadhaar – Company Highlights

Company Name	Generic Aadhaar
Headquarters	Mumbai
Founder	Arjun Deshpande
Founded	2018
Sector	Pharmaceuticals
Registered Entity Name	Swasthya Lifescience Pvt Ltd.
Website	genericaadhaar.com

Generic Aadhaar – About and How it Works

The venture provides high-quality generic medicines from pharmaceutical manufacturers at cheap prices and increases the accessibility to these medicines all over India. Generic Aadhaar follows a unique pharmacy-aggregator, profit-sharing business model to source generic drugs directly from the manufacturers. The items are then given to the retail pharmacies, thereby eliminating the 16-20 percent wholesaler margin along with other layers of margins such as C&F agents in the trade.

The most important differentiator in the case of Generic Aadhaar is the fact that the inventory-carrying cost is very low when compared to stores that stock branded drugs. Since the stores are minimally designed, the overall cost of maintaining the business for franchises is also low. In addition, Generic Aadhaar helps small pharmacies earn double the profits and allows them to stay relevant in the market through the affordable medicines it provides.

An Interview with Arjun Deshpande | Founder of Generic Aadhaar

Generic Aadhaar ensures that the franchise is taken by an FDA licensed retailer. The retailer should be a pharmacist; if not, he or she should appoint one before the franchisee is taken. The Generic Aadhaar team helps with branding and provides IT support and medicines to the outlet.

Generic Aadhaar – Founder

Arjun Deshpande founded Generic Aadhaar.

Started with a sole mission of making medicines available to every Indian, a 16-year-old set his eyes on the pharma industry in 2018. At this novel age, Mr. Arjun Deshpande, one of India’s youngest and most dynamic entrepreneurs founded this innovative venture, Generic Aadhaar.

Generic Aadhaar – How It All Started?

Arjun’s mother work in the pharma space. When he was around 14 years old, he had visited various pharmaceuticals companies and plants along with his mother and that’s when he understood that generic medicines are sold in the market at the same price as the branded ones. He noticed that the various countries he visited, import generic medicines from India and make them available to the masses at affordable rates. He wondered, “Why is this not the case in India when we are the manufacturing hub for pharmaceuticals?”

It stroked him and gave rise to the vision of creating a brand identity through ‘Generic Aadhaar’ outlets. He found that the extra cost for generic medicines could be reduced. What does he do then? He tied up with WHO and GMP-certified pharmaceuticals and directly started providing his franchise’s pharmacist with the medicines that are produced in WHO GMP-certified pharmaceuticals companies. This helped to reduce the cost of medicines by nearly 80%. Arjun, inspired by Ratan Tata, wanted to serve the nation through his generic medicines initiative.

Generic Aadhaar – Name, Tagline, and Logo

Generic Aadhaar, the name says it all; it will give aadhaar to the customers on their medical bills on every purchase of Generic medicines. As a pharmaceutical company, Generic Aadhaar went for a white and green color combination. This combination is symbolic of the healthcare segment.

Generic Aadhaar Logo

The tagline of Generic Aadhaar is “Dawaiyan Kifaiti Daarome Lejayiye Aapne Gharome” which means that their company revolves around access to affordable medicines.

Generic Aadhaar – Vision and Mission

Vision: Generic Aadhaar is a pharmaceutical company with an aim to bring all small medical stores under one roof and help them to earn huge profit margins. It will support you to compete with big retail medical outlets giants and online pharmacies and help the citizens to avail good discounts on all medicines through generic aadhaar stores.

Generic Aadhaar holds a long-term vision of assisting the underprivileged sections for the betterment of India.

Mission: To serve customers by giving affordable quality healthcare medicines. To pull out all the stops to ensure no Indian is barred from the availability of generic medicines. The company is determined to empower single-store owners and pass on the benefit to the end customer.

Generic Aadhaar – Target Market Size

India is a massive hub for medicinal drug intake and consumption. To cater to the underprivileged people who cannot afford high branded medicines, the Mumbai- based Generic Aadhaar is planning to expand its pan-India reach by opening more than 800 plus retail outlets across India. The company is currently operating 45 outlets in cities like Mumbai and Pune.

The pharmaceutical entity wants to touch every corner of India in the next five to seven years. It is getting calls from all parts of India for extending its franchise outlets. Generic Aadhaar is also working on an initiative called “Entrepreneurs Under One Umbrella.” Under the Generic Aadhaar umbrella, they provide quality medicines from reputed pharma companies by offering up to 80% lesser prices. It provides the biggest portfolio of Generic medicines from government-approved quality manufacturing facilities.

Generic Aadhaar – Products and Services

Generic Aadhaar provides affordable generic medicines (particularly for the underprivileged class of India) through its outlets that are present across the nation. The medicines sold by the company cover all types of ailments like minor diseases or life-threatening illnesses. The USP of the company is the pharmacy-aggregator business model wherein it sources generic drugs directly from the manufacturer and hands them over to the drug retailer who delivers medicines to the masses at cheap rates.

Generic Aadhar supports single-retail drug stores all over India. It provides medication directly from the WHO-GMP pharmaceuticals and has tied up with drug retailers from Mumbai, Pune, Bangalore, and Odisha in a profit-sharing model.

Generic Aadhaar – Business and Revenue Model

Generic Aadhaar follows a B2B2C model. It is appointing franchisees across India by aggregating single medical stores that are in bad shape due to the intense competition in the pharmaceutical segment. The company is passing on various benefits to the franchise owners.

Generic Aadhaar has introduced a business model that can support multi-disciplinary medications. The stores are equipped to sell all types of allopathy medicines. The company is actually complementing the Indian government’s effort of making affordable medicines available to everyone.

Generic Aadhaar’s franchising model helps in generating employment for the youth in India and also promotes entrepreneurship. While taking stock of the customer’s advantage, Generic Aadhaar ensures that small chemists and retailers earn the benefits of the business too. The medicines are given to the pharmacies at their manufacturing cost which is then sold to customers, thereby reducing the retail price up to 80 percent. The organization also collaborates with the manufacturers by increasing their supply as demand increases, thus manufacturing facilities, in turn, double their profits. Generic Aadhaar protects the interests of customers, retailers, and manufacturers alike.

Generic Aadhaar – Startup Launch

Generic Aadhaar started this venture for helping and benefiting the people of India. Earlier there were very few targeted people but now, by word of mouth they are able to expand Generic Aadhaar outlets across India. Due to affordable medicines, they are growing and getting demands for their brand “Generic Aadhaar” as an identity in India.

They are not only aiming in their business growth but also, to be the best in providing Generic Medicines to every Indian through their venture. Most of the senior citizens who purchase generic medicines have cut their medical bills up to 50% with the same effect of Branded Medicines.

Generic Aadhaar – Challenges

The biggest challenge for Arjun Deshpande, the founder of Generic Aadhaar, was to make people aware of generic medicines and build their trust in such medicines. Buyers were more inclined towards branded medicines that were quite expensive when compared to their generic counterparts.

With passing time, misinformation on generic medicines gradually dispelled and Indians started to realize the benefits of purchasing them. During the COVID-19 pandemic, the Prime Minister also encouraged Indians through the ‘MAKE IN INDIA’ and ‘Aatmanirbhar Bharat’ campaigns to purchase generic medicines and support Indian pharmaceutical brands on both national and international levels.

Nothing seems to stop Generic Aadhaar at the moment! Indians are now building reliance on the company’s outlets for the purchase of medicines.

Generic Aadhaar – Advisors and Mentors

Shri Ratan Tata is Generic Aadhaar’s sole mentor and guru. He also invested an undisclosed amount in the innovative venture.

Generic Aadhaar- Achievements and Recognitions

Arjun Deshpande, the brain behind Generic Aadhaar, has several recognitions bestowed upon him.

At Asia’s Biggest Entrepreneurship Awards 2020, Arjun Deshpande was awarded “Young Entrepreneur of the Year” by Mrs. Madhuri Dixit Nene.
Young Achievers Award 2020 by Indian Achievers Forum India (IAFI).
Dynamic Entrepreneur of the Year 2020.
Indian Pharmaceutical Manufacturing Association felicitated him in the presence of the Chief Minister of Gujarat in 2019.

Being a young entrepreneur doesn’t mean he lacks experience; Arjun has always demonstrated his presence and abilities by sharing his journey infamous talk shows as a key-note speaker.

Generic Vs. Branded Medicine | Arjun Deshpande | TEDxDSCE

TEDx Bangalore – 2019
CPHI China – 2019
IIT Mumbai – 2019
Dayanand Sagar, Bangalore – 2019
KIIT University, Bhubaneswar – 2019
IIT RGPV Bhopal – 2019

Generic Aadhaar – Future Plans

Generic Aadhaar is rapidly expanding the presence of its franchise outlets in India. The company wants to reach every corner and every Indian in the future coming years. Today they have extended to 130+cities across India, but later they are planning to reach every corner it may be not only tier-1 cities but also tier-3 cities and rural towns of India, where there is more requirement. They want to be the only brand that never fails to provide Medicines of Different segments in India.

Generic Aadhaar – FAQs

What are Generic Medicines?

A generic drug is a non-branded medicine that is cheaper as compared to the original branded drug. It has the same active pharmaceutical ingredient (API) but it costs 30-80% less compared to the original ones. It is a pharmaceutical drug that contains the same chemical substance as a drug that was originally protected by patents. Generic drugs are allowed for sale after the patents on the original drugs expire.

Who is Arjun Deshpande?

Arjun Deshpande, a teenager and a founder of “Generic Aadhaar – the fastest growing pharma company”, managed to convince Ratan Tata to invest in his startup. He is the youngest entrepreneur of India in the pharmaceutical sector.

Why you should buy from Generic Aadhaar outlets?

The team at Generic Aadhaar works aggressively towards making the largest portfolio of quality generic and branded medicines available at its outlets, at prices up to 80% lower than their branded counterparts in Generic Medicines.

Why are Generic medicines cheap?

Generic medicines are cheaper because it doesn’t have to face the brand name and manufacturing cost. The drugmaker doesn’t have to undergo the invention or marketing cost as the chemical formula.

Are the medicines prescribed by doctors are Generic medicines?

In India, 80-85% of prescribed medicines are Generics. However, due to immense marketing by the pharma companies, the price benefit does not reach the patients and even the generic medicines are costing much higher.

Who introduced generic medicines in India?

The Government of India launched the Pradhan Mantri Bhartiya Janaushadhi Pariyojana in 2008, under which it would provide good-quality generic drugs at affordable prices. So far, it has opened 7,290 distribution centers around the country; there should be more.

August 3, 2021

Why E-pharmacy firms saw huge order surge in second wave of pandemic

The second wave of the Covid-19 pandemic in India has led to the significant growth of online pharmacies. The lockdown being implemented in various states and the strict restrictions have led to the surge in for medical devices and PPE kits by the consumers through e-pharmacies. Let’s look at the growth of e-pharmacies in India.

Growth of E-pharmacy market
Growth of 1mg
Wellness Forever Medicare
Other E-pharmacy companies
Reason for the order surge
Demand for Covid-19 related products
FAQ

Growth of E-pharmacy market

The growth of the e-pharmacy sector has increased by up to 35 % compared to last year according to Industry trackers which is almost 3 times the expansion in the number of consumers ordering medicines and the essential substances for Covid-19 online. They claim that the sector is expected to witness much more growth in the current year as well.

Ankur Pahwa who is the Partner and National leader for the E-commerce and Consumer Internet sector of EY India had said that since the base is much more larger, they expect the growth to slow down. He added that the sector will not be able to see a growth of 40-45 % this year, but is still expected to remain high because of the increase of digitalization in the country.

EY has an estimation that the online pharmacy sector in India will grow to around USD 2.7 billion by the year 2023 from USD 360 million in 2019.

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Growth of 1mg

1mg is one of the top 3 e-pharmacy firm in the country. The company has said that there has been an increase in the medicines such as Fabiflu and Doxzee which is said to treat the mild cases of Covid-19. The company said that there was an increase of around 40x to 50x in the month of April 2021 compared to March 2021.

The company said that the sales of these drugs would have been higher if they wouldn’t have faced challenges regarding the supply of the drugs. 1mg reported that the demand for the Covid-19 related products was 5 times more in the month of April 2021 compared to the previous month March 2021.

Wellness Forever Medicare

Wellness Forever which is an omnichannel pharmacy chain has said that their orders have increased due to the second wave by around 25 %. The company has said that they have seen an increased demand for medical devices such as thermometers and oximeters, medicines and FMCG products.

Gulshan Bhaktiani who is the co-founder of Wellness Forever Medicare said that the company has seen a similar rise in order over different mediums such as walk-ins, app and calls. The company’s revenue had seen an increase of around 25 % for the year ended March 2021.

Indian pharmaceutical sector growth

Other E-pharmacy companies

Pharmeasy which is backed by Prosus and the leader of the online pharmacy market in India said that the company is looking forward to provide vaccination for around 30 million people. The company wants to become the largest private player in the vaccination drive in India.

It is planning to work with Corporates, healthcare providers and resident welfare associations.

Even the healthcare booking platform Practo has said that it is planning to largely work with corporates in order to provide vaccination to around 10 million people. The company has already confirmed that around 500 corporates have shown interest and have an employee strength of 1 million.

The company said that it is looking forward to work with around 1,000 companies for the first round of the vaccination drive.

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Reason for the order surge

The increase in the cases due to the second wave in most of the metro cities and this leading to lockdown and strict curfews have made the consumers to order the medicines and the Covid related items online rather than visiting offline pharmacies and diagnostic centers.

According to the company executives and industry experts, this is the major reason for the increase in sales by up to 25 – 65 % for online pharmacies.

Demand for Covid-19 related products

Prashant Tandon who is the co-founder of 1mg said that there is an unlimited need by the consumers currently and the company is investing on an active basis to ensure the supply chains can reach the demand of the consumers.

He added that the consumers are very anxious and fearful about exposure as they get their lab tests and medicines.

The demand for Covid-19 related products such as pulse oximeters, oxygen cans, masks, PPE kits, supplements such as Zincovit and Limcee is similar in all the major online pharmacies according to experts.

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FAQ

How do online pharmacies operate?

Customer requests for products on an online platform. The request is sent to an off line brick and mortar store. The prescription is validated and verified by pharmacists and only then the order is accepted for fulfilment.

Does online pharmacy require drug license?

Yes, online pharmacy businesses require drug license.

What is an online prescription?

Online prescription enables people to compare treatment prices, find a healthcare provider, and schedule an appointment all in the comfort of their own home.

Conclusion

The second wave of the Covid-19 pandemic is the main reason for the growth of the e-pharmacy business around the country. We may be able to see an increase in the growth of industries in the coming years.

May 8, 2021