With the decline in revenues from the US market, Dr Reddy's Laboratories (DRL) is currently focusing on improving its geographical diversification in Europe and emerging markets. It is planning to enter new markets through partnerships and acquisitions, according to company's co-chairman and CEO G V Prasad.
The Hyderabad-based company has expanded in China by setting up its office. It is in the process of filing several oncology products, which will boost its revenues in this country over the next 3-5 years. It has also opened offices in many other emerging markets.
"We are planning to scale up our business across Europe and emerging markets. However, the US will still remain as the single largest market. The relative proportion of business from other markets will increase through geographic diversification," Prasad said.
With regard to the emerging market space, Dr Reddy's is already present in Latin American countries such as Columbia and Brazil. It is soon going to Chile and some other markets through partnerships. It has started offices in European countries like France, Italy and Spain.
"We have gone through significant period of lack of approvals from the US drug regulator. We are not expecting to get USFDA approvals from the next quarter onwards. It may take more time and may be another fiscal," he said.
The company's institutional business is led by oncology products and it wants to further strengthen its position globally through proprietary novel products, new chemical entities and formulations.
The US Food and Drug Administration (USFDA) has earlier issued warning letter to its two active pharmaceutical ingredients (API) manufacturing units at Miryalaguda in Telangana and Srikakulam in Andhra Pradesh along with oncology formulation facility at Duvvada in AP. Last month, the FDA has issued observations the Bachupally facility in Telangana.
According to the company, the USFDA observations at Miryalaguda and Srikakulam units were minimal in nature. Whereas, the observations at Duvvada plant and Bachupally unit were significant that requires more efforts.
