Dr Reddy's Laboratories Ltd, the second largest pharmaceutical company India in terms of sales, will continue marketing its over the counter/ nutraceutical products through ethical route. The company, which currently enjoys a very strong prescription market support, believes that pushing the products through direct-to-customer (DTC) route will not help credible pharmaceutical companies to increase the volume significantly.
Speaking to Pharmabiz.com, Dr Anji Reddy, chairman, Dr Reddy's Labs, said that floating a separate marketing network to promote nutraceutical and non-prescription brands has not ever considered by the company. "We have drug brands in the non-prescription category and also in the nutraceutical segment. But, as long as the medical profession strongly recommends these products, we need not divert the market attention to an unconventional route." Dr Reddy asserted.
"Until the consumer awareness is convincingly high in regard to self-medication in the country, it is going to be difficult to push the products through direct-to-customer route," he said.
At present, DRL has three reputed brands in the nutritional supplement market. These brands include Becelac capsule, a B complex combination with vitamin C and lactobacillus, Becozinc, a multivitamin capsule, and Becozinc syrup. In the OTC segment the company has a host of products in the analgesic, pain management and GI segments.
Dr Reddy's currently has a leading presence in India and the world market for value-added branded finished dosages. It has over the years, acquired a strong reputation for quality branded formulations. This year, the company's third quarter revenues are up by 70 per cent to Rs 40 billion and net profits are at Rs 1.6 billion. At present the company has got eight strategic business units such as Branded Finished Dosages, Generic finished Dosages, Bulk Actives, Custom Chemicals, Biotechnology, Diagnostics, Critical Care, Discovery Research.
The Generic Finished Dosages business, which is operational since 1998, will target over 60 per cent of the drugs going off patent between 2002-2008. Hence its pipeline of Generic Finished Dosages makes this a viable proposition for the company. Same way, since the innovator products of worth US$ 60 billion are likely to go off patent in the next 8-10 years in the regulated markets. The company recognizes this opportunity for further expansion.