Dr Reddy's Laboratories which crossed $ 500 million revenues, is at an 'inflection point' now. The company as part of its growth plan, is planning to set up several new facilities with an investment of $ 100 million. The company will be setting up four new units in the coming 12-15 months. It plans to set up a finished dosage forms unit, API facility, CPS units and an integrated product development centre. These facilities will probably come in Hyderabad and Visakhaptnam, GV Prasad, vice chairman and chief executive officer, Dr Reddy's Laboratories, said.

It was a complete turnaround last year for the company as it struck major overseas acquisition deals and improved its product pipeline. The full impact of the measures taken in the last fiscal could be seen in the current fiscal. The major challenges for the company at present are building dominant position in the global generics business and innovative business, he added.

Dr Reddy's is eyeing a series of acquisitions. It has acquired Betapharm, a German generic company, in February, 2006. Betapharm is expected to contribute $ 200 million to Dr Reddy's revenues in 2006-07. Dr Reddy's has acquired Roche's API business in Mexico for $ 61.5 million, last year. Both the acquisition deals were concluded within a period of six months. The company has also concluded authorised generic alliances with Merck for Proscar and Zocor and co-development deals with Rheoscience for Balaglitazone and Agenta.

US generics business has been challenging, while North America offers enormous opportunities and is currently moving towards profitability and self sustainability. The company has built a strong product pipeline for North America. It will launch products in the dermatology segment in the region, soon. The company will also maximize the potential of business in the APIs and branded formulations segments. It will focus on extending the product pipeline and foraying into new geographies in the current fiscal.

Prasad said, in the coming years, Dr Reddy's will look at the possibilities of in-licensing and acquiring brands in the specialty business. In the innovation front, the company is developing seven new chemical entities (NCEs) and several at lab level. Carcinogenic studies of Balaglitazone are completed and it will soon enter Phase III trials.

Satish Reddy, managing director and chief operating officer, said, the company has so far filed 81 DMFs and 25 EDMFs. It has obtained 12 US FDA approvals including tentative approvals. Customs Pharmaceutical Services (CPS) segment has been growing well. The segment will generate up to $ 100 million in 2006-07.

Dr Reddy's will continue its emphasis on the existing therapeutic categories such as metabolic disorders, cardiovascular and cancer. The company hopes to launch about 6-8 new products in the US.

VS Vasudevan, chief financial officer and head of EU operations, said, Dr Reddy's is acquiring a small company in Spain which has a sales of 1.8 million euros to put its base in the country. It is also planning to set up operations in France and Italy.