 "DRL enters trade generics, aims to be among top five players in market")
Dr Reddy’s Laboratories (DRL) on Friday announced entering the trade generics business in India, aiming to rank among the top 5 players in the market. DRL launched a dedicated division called RGenX’ for this.
Trade generics are medicines not sold via the doctor’s prescription route, but pushed directly to the trade.
“The new business will further the company’s goal of reaching over 1.5 billion patients by 2030,” said DRL, adding it aims to provide a wide range of affordable products.
The Hyderabad-based company said it will roll out its trade generics in cities, towns and rural areas and work closely with channel partners to ensure availability of its products.
“India is a key focus market for us. Today’s announcement is a continuation of our effort to build a well-rounded business in India,” said M V Ramana, chief executive officer (CEO), India and Emerging Markets, DRL.
“We continue to strengthen our branded generics business in India by growing brands, new product launches, productivity enhancement through digital and analytics, and select strategic acquisitions." The company is exploring strategic collaborations in India and it is investing in innovative healthcare, he said.
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To begin with, DRL will focus on acute segment products. It will be a model driven by channel partners wherein the retailer pushes medicines not dependent on prescription (rather than HCP prescription-based sales). The products will be branded under the Dr Reddy’s trade generics brand name.
The move will help DRL expand its reach from Tier 1 towns to smaller places.
Cipla operates India’s largest trade generics franchise, covering tier II and smaller towns with a network of 5,500 stockists and serving 15,000 pin codes. Umang Vohra, Cipla’s MD and global CEO, recently said in an analyst call after the FY23 fourth-quarter results that the pharma multinational has eight brands in its trade generics business that clock more than Rs 50 crore in sales.
Sun Pharma too has a sizable trade generics business.