LCI - Is Dr. Reddy's Laboratories a Buy?
Generic drugs are crucial to our healthcare system, as they keep the costs of branded drugs down once their patents expire. Although there are many manufacturers of generic drugs globally, competition in this $340 billion global market can be quite intense. Fortunately, there is one company in this sector that has a unique advantage worthy of a look for potential investors in pharmaceutical stocks.
Compared to most U.S.-based manufacturers of generic drugs, the biggest advantage Dr. Reddy's Laboratories (NYSE: RDY) has is its geographical location. The company manufacturers its copycat medicines in India and exports them to all corners of the world, including the U.S. By doing this, it's able to save ample amounts of money in both labor and raw materials, as the cost of goods and services in India is far lower than in developed nations.
Image source: Getty Images.