Dr Reddy's sees India sales growing 20 pct on new product launches

By Zeba Siddiqui

MUMBAI (Reuters) - Dr Reddy's Laboratories Ltd, India's second-largest drugmaker, expects domestic sales to grow nearly 20 percent this financial year, helped by the launch of nearly two dozen products, a senior executive said.

The forecast tops one of 15 percent growth for the generic drugmakers domestic sales by analysts at brokerage Ambit Capital.

India is Dr Reddy's second-biggest market after the United States and accounted for 15 percent of its total sales last year.

The new product launches would come on top of 25 last year, Alok Sonig, the company's India business head, told Reuters in an interview.

Dr Reddy's also said last week it had agreed to buy about 23 established products in South Asia from Belgium drugmaker UCB SA for about $128 million.

 

While some analysts said the deal value was too high, Sonig said it was optimally priced given that it adds a dozen significant products to the company's existing portfolio of respiratory, dermatology and pediatric medicines.

The UCB acquisition also gives Dr Reddy's an entry into the neurological medicines, an area in which the company is already developing some products for sale in India, Sonig added.

Dr Reddy's continues to selectively explore deals that would add to its existing domestic business portfolio, he added.

(Reporting by Zeba Siddiqui; Editing by Sumeet Chatterjee and Edwina Gibbs)