Dr Reddy's aims at $1-bn yearly revenue for 3 yrs

Pharma major Dr Reddy’s Laboratories aims to earn revenue of $1 billion per year from branded generics for the next three years, said K Anji Reddy, its founder-chairman.

The second-largest Indian drug maker sold generics to the tune of $600 million globally in the nine months of this financial year ended December 31.

“While analysing our global generics segment recently, I have told our people that we will be able to sell a billion dollar worth of generics in next three years,” Reddy said while speaking at the inaugural session of a national conference on ‘Regulatory challenges — global pharmaceutical market’. The company’s flagship brand, Omez, alone brings in Rs 700 crore revenues to the company, he said.

The company had filed 141 abbreviated new drug applications (ANDAs) to the US FDA till December 2010. The company is awaiting approval for 62 ANDAs. Of these, 35 were filed with Para IV; and 13 are first-to-file products. Analysts say the key trigger for the company for future growth will be the opportunity arising due to off-patent of some of the blockbuster drugs worth $80 to $100 billion in the next five years.

“Some of the drugs like Pfizer’s Lipitor will be off patented in the next three to four years. Dr Reddy’s as a generic drug maker, is well positioned to take the opportunities. Though the market size in terms of value comes down after the patent expiry, generic players will have sizable opportunity,” Satish Kanteti of Zen Securities said. It also expects a big boost to generic sales from the proposed launch of generic Allegra-D in the US market and the first shipment of drugs under the GSK tie-up.