Dr Reddy's bets big on biosimilars, eyes regulated markets

Hyderabad-based Dr Reddy's Laboratories is betting big on the biosimilars segment and expects to enter developed markets soon, even as it awaits approvals for filings in 20 new countries.

"Soon, I expect to see Dr Reddy's biosimilars entering developed markets," Dr Reddy's Laboratories (DRL) Chairman K Anji Reddy said, addressing shareholders in the company's Annual Report for 2011-12.

As per the report, DRL's biosimilars business recorded revenues of Rs 125.8 crore in FY2012, a growth of 51 per cent over FY2011. The biosimilars portfolio in India grew by 33 per cent during the fiscal.

Biosimilars are approved similar versions of innovator bio-pharmaceutical products following patent and exclusivity expiry of the innovator product.

At present, DRL's biosimilars portfolio includes filgrastim, peg-filgrastim, rituximab and darbepoetin alfa, which have commercial presence in 13 countries among emerging markets.

"Additionally, filings in 20 new countries await approval, and progress is being made in pursuing the regulated markets," the company said.

DRL further said it has identified strengthening biosimilars portfolio as one of the main future course of actions.

"Original large molecule biologic products with US sales of over $22 billion are due to expire over 2015-20, giving rise to significant biosimilar development opportunities that would additionally complement stable small molecule growth," DRL said in its annual report.

A number of factors such as lower development costs compared to original biologic products and reduced risk of pipeline failure coupled with higher acceptability by patients have contributed to the consistent growth potential of biosimilars, it added.

DRL's annual report further said the US government was expected to save $25 billion by 2018 with 'genericisation' of original biologic products.

With 177 biosimilars and copy biologics, oncology is currently the largest target therapeutic area for development and marketing of biosimilars.