Speciality drugs to fuel growth in 3-4 years at DRL

Dr Reddy's Laboratories (DRL) expects significant revenue from speciality drugs after they get launched in three-four years, said G V Prasad, vice chairman and chief executive officer of Dr Reddy's Laboratories.

The company plans to launch patented speciality drugs in dermatology and oncology segment in both regulated and semi regulated market in three-four years. Speciality drugs are modified versions of existing molecules that are patentable, as they differ in the manner of delivery or the process of action. Regulatory bodies in most regulated countries uphold these patents.

Dr Reddy's entry into this segment holds significance in light of the Madras High Court's rejection of Novartis' plea for a patent for a modified version of its cancer drug Glivec.

Dr Reddy's also has eight biosimilar drugs on the anvil, as part of its research oriented growth plans.

The company is investing $20-30 mn to set up a biosimilar manufacturing facility in Hyderabad, which will be commissioned in 2008-09.

The pharmaceutical major is in talks with regulators to launch its biosimilar product Reditux in Europe.

The US law does not permit the launch of generic versions of biological drugs, but there is pressure on the U.S. government to accept some of them, Prasad said.

Prasad expects the active pharmaceutical ingredient and generic formulations business to grow at 30 per cent per year, similar to 2006-07.

The company sees a significant opportunity in the Japanese market, which is now opening up to generic drugs.

It is eyeing the joint venture route to penetrate this market, Prasad said.

"We have not firmed up our plans for Japan, but we will not go (into the market) alone. We are looking for a partner," he said. Shares of Dr. Reddy's were trading at Rs 632 on the National Stock Exchange, up 0.4 per cent from previous close.