How Erez Israeli revived Dr Reddy’s by focusing on costs and non-US markets

Erez Israeli who took over as chief executive officer of DRL in 2019 sharpened its focus on costs and execution. Its recovery holds a lesson or two for major drug firms

R. Sree Ram
July 08, 2021 / 09:17 AM IST
How Erez Israeli revived Dr Reddy’s by focusing on costs and non-US markets

Representative image

K Satish Reddy, chairman, and G V Prasad, co-chairman and chief executive officer (CEO) of Dr. Reddy’s Laboratories, did not mince words about the company’s financial performance, while presenting the FY18 annual report. “Frankly, these are disappointing results-especially coming after a financially difficult year in FY17,” the duo said referring to FY18 headline numbers. Consolidated revenue grew just 1 percent in FY18. Net earnings halved from FY16 and return on capital employed (RoCE) plunged to 8.2 percent from 22.4 percent. Fast forward to...