Dr Reddy's Laboratories expects its Indian generic market to grow by 8-10 per cent in the current financial year despite challenges such as price erosion due to new drug pricing policy, a senior official of the company said today.
Revenues of 15-20 drugs will be hit by the Department of Pharmaceuticals Price Control, which will lead to an overall impact of 5 per cent on company's Indian revenues, Dr Reddy's Laboratories (DRL) Senior Vice President and India Business Head (Generics) Alok Sonig said.
"We are facing pressure in growth terms given by the market terms post DPCO. Again we are on track for delivering growth rate which is around at 8-10 per cent for the year," Sonig told reporters in a press conference.
DRL today launched anti-hypertension drug 'Optidoz' -- a single pill combination of three anti-hypertensive drugs telmisartan, amlodipine and hydrochlorothiazide with optimal dose of individual drugs -- in the domestic market.
"For DRL the effect of NPPA (National Pharmaceutical Pricing Authority) overall has been 5 per cent to Indian revenue. There are nearly 15 to 20 products that have been affected by the price erosion," he added.
On May 15, 2013, the Department of Pharmaceuticals released Drugs (Price Control) Order, governing the price control mechanism for 348 drugs listed in the National List of Essential Medicines.
As per this order, the prices of each of the drugs are determined based on the average of all drugs having an Indian market share of more than 1 per cent by value.
DRL's revenues from generic sales in India stood at Rs 1,456 crore during 2012-13 accounting for 20 per cent of the company's total revenues.
During the first two quarters of the current year, India revenues stood at Rs 770 crore.
Replying to query on the industry trends, he said the pressure on the Indian pharma industry this year is mainly price erosion and reduced number of new product launches besides slowdown of overall economy.
The new product launches by the industry in India was reduced by 25 per cent during the current year, he said.
