Dr Reddy's Laboratories has set its eyes on the Canadian, UK, European and South African markets, going by the interview given by G V Prasad, Executive Vice-Chairman and Chief Operating Officer of the company, to Ernst & Young, the global leader in professional services. Prasad is the only Indian to be featured in Ernst & Young's first global pharma report, Partners with Vision. The report offers the insights of more than 45 global contributors, including the chiefs of Pfizer, Wyeth Research, Sun Microsystems' Life Sciences and former New York Governor Rudolph Guiliani.
Answering questions from Ernst &Young, Prasad said, "Dr Reddy's plans to increase its presence in other key generic markets, especially in Canada and South Africa, as well as the UK, Germany, France and other European countries. Our recent acquisition of BMS Laboratories in the UK provides us with a window to reach out to a larger European market." The company had acquired BMS Laboratories and Meridian Healthcare, a subsidiary of BMS, in April this year. According to a source in Dr Reddy's, Meridian markets over 30 generic products and has about 70 licences in the pipeline.
Asked how will the expiration of a significant number of patents in the US impact Dr Reddy's Laboratories, Prasad said, "This second Golden Age of Generics provides a significant opportunity for Dr Reddy's. We are all positioned to enhance our presence in the US market because we have developed the necessary competencies and have built an on-site infrastructure, including a sales and marketing organization. Significant investments in intellectual property management, R&D, and manufacturing have enabled us to develop a strong pipeline, which targets a significant portion of the drugs going off patent over the next decade. These factors will allow us to become a top 10 generic player in the US in the next five years."
Responding to another question on what drives Dr Reddy's success in the current and future market, Prasad said, " Dr Reddy's is a fully integrated company, which gives us the unique advantage of having control over the entire supply chain. There are cost advantages for operating in India - we are able to operate state-of-the-art manufacturing facilities and hire a skilled workforce at a lower cost. We also possess strong process chemistry skills. We are already producing many of the molecules in less-regulated markets. This provides us with the advantage of access to process knowledge that already has been developed."