Dr Reddy's to tap Japan, Brazil

Dr Reddy's Laboratories is planning to tap the generic drug sales potential in Latin America and Japan aggressively. It also plans to focus on the US and European markets for speciality pharmaceutical products.

"We are actively looking at market opportunities in countries such as Turkey, Mexico, Brazil and South Africa. These emerging markets would contribute significantly to our revenues," said G V Prasad, the vice-chairman and chief executive officer of the company.

"This need not be through acquisitions alone and can be through product outlicensing and joint marketing opportunities," he added.

Dr Reddy's already has a subsidiary in Brazil and an acquired facility in Mexico, which focuses on contract manufacturing businesses.

The company would focus more on speciality generic products for the US market, considering the pricing pressure and competition there. In Europe, the strategy would be to sell more branded speciality products as done with the acquisition of Betapharm of Germany.

The company was likely to end up with total revenues of about $1.3 billion in 2007-08, he said.

The company posted its highest-ever income of about $1.5 billion in 2006-07 mainly due to revenues from two authorised generic products and a 180-day exclusivity for the generic version of GSK's Zofran.

So far, it has about 22 first-to-file abbreviated new drug applications (ANDA) "" an opportunity to launch a drug for the first time as an authorised generic or with exclusivity for 180 days on expiry of the drug patent "" with the US Food and Drug Administration.

"We look forward to get at least one authorised generic or six-month exclusivity every year," said Prasad.

In the US, Dr Reddy's is in the process of launching over-the-counter (OTC) drugs on its own, following the termination of its joint venture with Leineur Health Systems.

It will directly supply ranitidine 75 gm and 150 gm, naproxin, ibuprofen 200 mg and famostidine as private labels to super markets and drug chains in the US.

The company is also planning to enter the Japanese market in a big way through a joint venture with a major local pharma player.

"We are talking to some of the players in Japan and hope to enter that market by the end of this year," said Prasad.

He said another major emerging business area would be to focus on generic versions of biotech drugs and modified forms of such drugs (bio-variants). The company has launched two biosimilars in the local market and plans to take these drugs to international markets.