The betapharm Acquisition: DRL's Inorganic Growth Strategy in Europe

Strategic Management|Management Strategy |Business Strategy Case Study|Business Strategy|Case Study|Case Studies

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR249
Case Length : 19 Pages
Period : 2002 - 2006
Pub Date : 2007
Teaching Note : Available
Organization : Dr. Reddy's Laboratories Ltd.
Industry : Pharmaceutical
Countries : Germany, Europe, India

To download The betapharm Acquisition: DRL's Inorganic Growth Strategy in Europe and Growth Korea case study (Case Code: BSTR249) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


Buy With PayPal

Amount to be paid:

Prefer to pay in another currency ?
Select Currency for Payment

Exchange Rates: Click Here
Delivery Details: Click Here


For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Shipping & Handling Charges extra

Business Strategy Case Studies
Case Studies Collection
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

Excerpts Contd...

A Risky Acquisition?

Some analysts opined that DRL had taken a big gamble by acquiring betapharm. The acquisition had resulted in the depletion of DRL's cash reserves and made the company incur a large debt. This could be risky, especially in the context of DRL's declining sales in the US generic market and the litigation costs it was incurring in the US. Further, DRL's domestic market in India was viewed as not being large enough to generate enough profits that would compensate for the decline in revenues from the US generic market and the litigation costs. Therefore, any problem in the German market could have a considerable impact on DRL's bottom line. On May 1, 2006, the Economic Optimisation of Pharmaceutical Care Act (AVWG) took effect in Germany.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

This act changed the pricing and reimbursement system in Germany. Though this act increased the scope of using generic drugs, there was also pressure on generic drug companies to reduce their prices. An analyst at a leading securities company commented, "Price cuts on generics in Germany have ranged between 20-30% at a time when the overall European pharma market itself has remained stagnant..."


Exhibit I: Major Markets for Generics in Europe
Exhibit II: DRL's Overseas Acquisitions
Exhibit III: DRL's Revenue Mix by Region
Exhibit IV: DRL's Transactions with Foreign Companies in Research
Exhibit V: DRL's Value Pyramid
Exhibit VI: A Brief Note on DRL's CSR Initiatives
Exhibit VII: DRL's Income Statement
Exhibit VIII: DRL's Balance Sheet
Exhibit IX: betapharm's Product Portfolio
Exhibit X: Top Four Generic Drugs Companies in Germany
Exhibit XI: Key Figures for betapharm
Exhibit XII: A Note on the Generic Pharmaceutical Sector in Europe and its attractiveness to Indian Pharmaceutical Companies

Custom Search

Economics for Managers Textbook
Textbooks Collection

Economics for Managers Workbook
ICMR books Collection

Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection


Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.