Dr. Reddy’s (betapharm) Receives Preliminary Results on AOK Tender in Germany

Dr. Reddy’s Laboratories (NYSE:RDY) today announced that betapharm AG, its wholly owned subsidiary, has received complete information on the preliminary result of the tender by the Allgemeine Ortskrankenkassen (AOK) for discount agreements for 47 of the 48 products pertaining to betapharm, pursuant to § 130a SGB V. betapharm has been tentatively offered 8 products in different regions of Germany covering the AOK-insured persons.

The tender procedure is yet to be concluded and is expected to face potential legal objections by several companies. On signing the final contracts with AOK, betapharm will be the sole supplier for AOK-insured persons for these 8 products in the awarded regions.

VS Vasudevan, President, European Operations, Dr. Reddy’s, said, "The preliminary results of the AOK tender establish betapharm’s competitiveness in the tender segment of the market in Germany. For the 8 products offered, we expect a significant increase in volume though at relatively lesser margins and for the balance portfolio, we expect the competitive intensity to continue.”

"Over the last few years, betapharm has aligned its sales force to strengthen relationships with doctors, pharmacies as well as channel partners. We leveraged Dr. Reddy’s vertical integration and global supply chain capabilities to strengthen the supply chain for this market. beta institute (the groups’ non-profit organization) complements these capabilities with the long-term goodwill it has built with the medical community through several years of Corporate Social Responsibility programmes. We believe that betapharm is well positioned to leverage all these strengths to continue to build a competitive business in all segments of the generics market in Germany,” said Satish Reddy, MD and COO, Dr. Reddy’s.

About Dr. Reddy’s

Established in 1984, Dr. Reddy's Laboratories (NYSE:RDY) is an emerging global pharmaceutical company with proven research capabilities. The Company is vertically integrated with a presence across the pharmaceutical value chain. It produces finished dosage forms, active pharmaceutical ingredients and biotechnology products and markets them globally, with focus on India, US, Europe and Russia. The Company conducts research in the areas of cancer, diabetes, cardiovascular, inflammation and bacterial infection. www.drreddys.com

Disclaimer

This press release includes forward-looking statements, as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such factors include, but are not limited to, changes in local and global economic conditions, our ability to successfully implement our strategy, the market acceptance of and demand for our products, our growth and expansion, technological change and our exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future.