Dr Reddy's draws up specialty drugs plan

Dr Reddy's Laboratories is once again setting its sights on specialty pharmaceuticals business, and has mapped out a new strategy for the segment.

The move, says the company, is a part of its long-term plan to transform itself from a generics majot to a specialty pharmaceuticals company. The speciality pharmaceuticals business involves development of novel drugs in niche areas through innovation.

The drug major's entry strategy into the speciality drugs business with amlodipine maleate, a cardiovascular drug, had faced a major setback.

Recently, a US Court of Appeals for the Federal Circuit had overturned a lower court's ruling permitting Dr Reddy's to sell amlodipine maleate under the brand name AmVaz "" a different chemical version of Pfizer's blockbuster carduiovascular drug Norvasc. This had dented its bottomline significantly.

In a shift from its earlier strategy of establishing the speciality business through focus on the primary care segment of cardiovascular, it has now decided to put thrust on products for which the markets are niche and with low entry barriers.

Accordingly, the company has identified dermatology as an area with an attractive risk-reward profile. Trigeneses Thrapeutics, a US based-dermatology company that it acquired in May this year will drive it's entry into speciality business.

"Trigenesis gives us access to certain niche products. Other opportunities such as product-based alliances and strategic acquisition will drive growth in this segment," a company spokesperson said.

Through Trigenesis, the company now has access to proprietary technology platforms and certain niche products.

In his address to the shareholders in the company's annual report, K Anji Reddy, chairman of Dr Reddy's Laboratories, said: "While the medium-term outlook is favourable for generics industry, some of the large players in this segment have already started their transition from generics line to a sustainable speciality pharmaceutical business. Dr Reddy's has also started making this transition and this will take the company a step closer to realising its vision of becoming a discovery-led global pharmaceutical company."