Dr. Reddy’s Laboratories (DRL) is a leading generics manufacturer, and one of the leading branded formulations players in the domestic and the Russian markets. DRL's key strength has been vertical integration, which made it a leading Indian pharma company in the US generics business, clocking USD 430 million sales in FY11 despite intense competition and pricing pressure. It has launched nine products in the US generics market so far in FY12, of which five  have limited competition. These factors, along with US generics sales led by limited competition and niche product opportunities are likely to post robust growth going forward. The branded formulations sales in India and Russia too will maintain progressive growth. The company has enhanced its business focus in domestic formulations to penetrate deep in the rural Indian markets. One can look at the stock from a medium to long-term perspective.