Hyderabad
Pharma major Dr Reddy’s Laboratories has been adding significant value to its business and future growth prospects by scaling up strategic collaborative deals and acquisitions in key therapeutic areas.
A concerted effort by the Hyderabad-based drug-maker in forging industry tie-ups with an aim to bring a slew of latest generation treatments to market was clearly visible not only in the first quarter of the current financial year but also in the year 2023-24. The company leadership sees this approach as a ‘value addition’ to its current core business as well as future growth drivers. Strategic collaborations played an important role in helping us introduce the latest generation of treatments in the domestic market of late.
Q1-FY25
During the first quarter of current financial year ended June 30, 2024, the company acquired Nicotinell and related brands in the Nicotine Replacement Therapy category in markets outside the US from Haleon plc for a total consideration of £500 million.
There were more. It entered into a joint venture agreement with Nestle India to bring science-backed nutritional portfolio to more consumers in India. The JV is expected to become operational in the second quarter of current fiscal.
It teamed up with Novartis Pharma LLC to distribute two of their leading anti-diabetes brands, Galvus and Galvus Met, in the Russian retail market.
There was another collaboration with Alvotech for commercialisation of their Denosumab biosimilar candidate in the US on an exclusive basis, as well as in Europe and UK.
Further, it received exclusive rights from Ingenus Pharmaceuticals to commercialise Cyclophosphamide Injection in the US
LAST YEAR
In FY24, It signed a partnership with Sanofi in India to take the latter’s well-established vaccines portfolio to more people all over India. With combined sales of over ₹426 crore (as per industry estimates for February 2024), the vaccine portfolio also significantly contributed Dr Reddy’s to become one of the key players in the segment.
The collaboration with Bayer in India to market their second brand of the molecule Vericiguat, allowed Dr Reddy’s to bring a new class of drugs in heart failure management to patients in India apart from bolstering its heart failure management portfolio.
The collaboration with Pharmazz Inc. enabled it to market the first-in-class molecule Centhaquine in India, a potential add-on drug in the management of hypovolemic shock.
It’s joint venture with Nestlé India to bring the well-known global range of nutritional health solutions as well as vitamins, minerals, herbals and supplements of Nestlé Health Science (NHSc) to India was another significant move to strengthen Dr Reddy’s nutrition and OTC business in India.
The company is expected to continue its collaborative strategy and its inorganic growth path in the current financial year as well.