Pharmaceuticals major Dr Reddy's Laboratories has raised its spending on research and development (R&D) by 41 per cent to Rs 199.2 crore in 2003-04 from Rs 141.3 crore in the preceding year. |
Currently, the R&D spend comprises 10 per cent of the drug major's revenues. The company, which is one of the highest R&D spenders in the industry, is planning to increase the expenditure this year too to 12 per cent of the revenues. |
In discovery research, which involves basic research and new drug discovery, the company increased the spending by 52 per cent from Rs 48 crore in 2002-03 to Rs 72.9 crore in 2003-04. This segment accounted for 37 per cent of Dr Reddy's total R&D expenditure. |
"Our strategy on investments in R&D is in line with our vision to become a discovery-led global organisation. This would mean the company having its own discovery pipeline and future revenues coming from our own new chemical entities (NCEs)," said a company spokesperson. |
"Our first NCE is expected to be commercialised in 2008-09, and thereafter we will have one NCE every two years." Dr Reddy's currently has eight molecules in its development pipeline in pre-clinical and clinical stages. |
These molecules cover therapeutic areas such as cancer, metabolic disorder, cardiovascular diseases and bacterial infection. |
The company's earlier strategy was to licence out a molecule at an early stage of development. But now it has decided to guide its promising molecules up to phase-II clinical trials and then pursue licensing opportunities. According to the company, the move helps in building in-house drug development capabilities and also enhances the value of its NCEs. |
Dr Reddy's NCE pipeline has three cancer compounds: DRF 1042 (topoisomerase inhibitor), in phase-II trials in India; DRF 1644 (topoisomerase-I inhibitor), in phase-I trials in India and; DRF 5265, in preclinical stage. |
It also has three metabolic disorder compounds: DRF 11605, in preclinical stage, DRF 10945 (for treatment of dislipidemia), in phase I trial in Canada; and DRF 2593 (insulin sensitizer), which is licensed to Novo Nordisk and has completed phase II trials. |
Its compounds for cardiovascular diseases and bacterial infections "" RUS 3108 and DRF 13792 respectively "" are in preclinical stages. |