The Hindu Business Line : Dr Reddy’s eyes acquisitions in speciality business

Dr Reddy’s Laboratories Ltd’s (DRL) appetite for overseas acquisitions does not seem to be completely satiated, as the Hyderabad-based drug company is looking for opportunities in the speciality business and the custom pharmaceutical services (CPS) segments, DRL’s top management said.

With plans to launch its speciality initiative in the dermatology sector in the US later this fiscal, DRL is scouting for small brands or companies with marketed products that would bolster this foray, DRL’s Vice-Chairman and Chief Executive Officer Mr G.V. Prasad said. But on the generics side, the company has hit a pause, he added.

The speciality initiative involves taking an existing molecule and looking at better delivery systems, he explained. The dermatology segment is being targeted, though it is a small segment, because it involves focussed targeting of sales and there is less competition, he indicated.

The company has also in-licensed three molecules in this space, from two US companies and one European company, he said.

DRL’s Managing Director and Chief Operating Officer, Mr Satish Reddy, said that the company is also looking at inorganic opportunities in the CPS segment.

Acquisition targets

The acquisition targets are in the $10-50 million bandwidth, he indicated.

Without getting into specifics, he said that acquisition targets which are “available (at any point in time), is part of our strategy and we will be there.” DRL had effected the largest acquisition in the pharmaceutical space when it acquired Germany’s Betapharm for $572 million in 2006.

Oncology

Meanwhile, the company is also looking at taking its India-focussed oncology pipeline into the global market, Mr Prasad said. At present, DRL has about 17 cancer products in the pipeline, of which two are biologics. DRL’s consolidated revenue from oncology is nearly $30 million.

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