DR REDDY’S Laboratories plans to buy brands in Russia and introduce new products in India as it plans to scale up businesses in key emerging markets, a top company executive said.
“In India, we were among the top 10 pharma companies a few years ago and we expect to be back there,” Satish Reddy, MD and COO of Dr Reddy’s told reporters during an interaction with company executives last weekend. He added the slip in the market ranking was due to the management’s lack of focus in the country’s operations and limited drug launches.
Russia is one of its key markets and contributed Rs 180 crore ($38 million) in its second quarter’s sales. The company is also open to marketing alliances with other companies in the Russian market, including those from India, he said.
At present, Dr Reddy’s is ranked 13th with about 2.7% share in the Rs 37,000-crore domestic drug retail market, as per research firm ORG IMS. The company also has a limited presence North and East India.
The Hyderabad-based company has set itself a target to become a $3-billion company by 2013. Following its recent agreements with UK-based GlaxoSmithKline (GSK), several of its drugs would be marketed by GSK in those developing markets where Dr Reddy’s is not present or exited recently. The deal would allow the Indian company to focus its attention in the few countries where it will market its drugs on its own such as India and Russia. At present, about 80% of it’s about $1.5-billion annual sales comes from international markets.
In the US, the world’s largest market, the company aims to be among top generic companies such as Watson and Teva in the next 5-6 years, its vice-chairman and CEO G V Prasad added. It expects to launch the generic version of Pfizer’s anti-cholesterol drug Lipitor immediately after rival Ranbaxy completes its 180 day marketing exclusivity.
Following an agreement, Ranbaxy will launch the low-cost version of the Lipitor ($13-billion market) in November 2011. However, he declined to quantify the sales upside either from the launch of its copycat version of Lipitor or marketing alliance with GSK.
Meanwhile, its chairman Anji Reddy said the company has completed the phase I trials of a cholesterol ester transfer protein, or CETP inhibitor drug. Two global drug companies US-based Merck and Roche are also developing similar medicines.