The investments in research and development (R&D) in biosimilars have been paying off for Dr Reddy's Laboratories Ltd, according to its Founder-Chairman, Dr K. Anji Reddy.
In a letter to the investors of the Hyderabad-based company, Dr Reddy said his company's ‘success' in biosimilars was an indication of the benefits of increased research and development expenditure of the company.
“The R&D spends are increasing — not just absolutely but also as a share of revenue. It shows up in the success of biosimilars,” he said.
In 2010-11, the company's investments in R&D grew by 33 per cent to over Rs 500 crore, a 7 per cent increase in overall sales compared with 5 per cent in the previous year.
Dr Reddy's entered into biosimilars segment three years ago with the launch of Reditux. Reditux is used in the treatment of certain lymphomas, leukemia and rheumatoid arthritis.
Subsequently, it rolled out Cresp for treating nephrology and oncology indications and Peg-grafeelfor patients undergoing chemotherapy.
So far, the company has sold some 1.4 million units of its biosimilars across 12 countries, Dr Reddy said.
With many innovator drugs going off patent in the years to come, the company should be able to leverage as many upsides as possible, he said, adding that: “Indications are that it should.”
Biosimilars are officially approved versions of innovator biologics that are off patent.
Dr Reddy's Laboratories has launched Amlodipine Besylate and Benazepril Hydrochloride capsules in the US market.
Anti-hypertension drug
The capsules are a bio-equivalent generic version of Lotrel capsules in the US market, the Hyderabad-based company said in a release. They are generally indicated for the treatment of hypertension.
The Lotrel brand had US sales of approximately $290 million for the most recent 12 months ending March 2011, according to IMS Health.