DRL Plans Expansion In Canada, Europe

Hyderabad, December 24: | Updated: Dec 25 2002, 05:30am hrs
After gaining enough strength in the US generic market, Dr Reddys Laboratories (DRL) plans to expand its presence in other key markets including Canada, South Africa besides the UK and Europe, according to Mr G V Prasad, executive vice chairman and chief executive officer of the company.

Responding to the questions by the global consultants Ernst & Young, Mr Prasad said the company has acquired the UK-based BMS Laboratories to have a foothold in the UK and European generic markets. He said that the company has targeted to become one among the top 10 generic players in the US markets within the next five years. To achieve this, Dr Reddys has already developed the necessary competency and has built on-site infrastructure, including sales and marketing organisation, he added.

Mr Prasad is the only Indian pharma entrepreneur among 45 global contributors including Pfizer, Sun Microsystems Global Life Scineces, which contributed to the E&Ys first global pharma report Partners with Vision.

Revealing the global marketing strategy, Mr Prasad said that Dr Reddys has developed a strong pipeline and most of these drugs are going off patent over the next decade.

The company is already manufacturing most of these molecules in the less regulated markets, he added. Dr Reddys had acquired BMS Laboratories and Meridian Healthcare, a subsidiary of BMS, during April 2002. Both the companies engaged in manufacture of oral solids, liquids and packaging located in London and Beverley. While Meridian markets over 30 generic products and has about 70 licences in the pipeline, to which Dr Reddys can have direct access, the sources said.

The company has reported a turnover of Rs 406.6 crore for the year 2001-02, as against Rs 30.4 crore in the previous year. The 81 per cent jump is due to fluoxetine in the US markets. BMS Laboratories has already completed one quarter sales in UK generic markets, the company sources said.