dr reddy lab - leveraging capabilities

7/31/2019 Dr Reddy Lab - leveraging Capabilities

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DRL CASE STUDYPrepared by

Astha Bishnoi

Ashutosh Ranjan

Diksha Uniyal

Nikhil SharmaNirankar Royal

Swimmi Alaska


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Basis of success of DRL prior tomid-90s

Reverse Engineering Variant of new drug at low cost Process innovation Speed

Looking at drug which have high growth and lesssensitive to price fluctuation like anti-ulcerants

Indian patent act, DCPO were favorable Two pronged approach towards export Exported to countries where patents had expired DRL adopted the route of exporting penultimate stage

intermediates for bulk drugs


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Contd:

Weak intellectual property rights which facilitatedreverse engineering

Methyldopa choice of product and timing of

entry Foreign exchange regulation act

Compare to US & Europe, production cost is lessin India

Produce bulk drugs where margin was good

In 1990, dropping of anti-dumping charges whichresulted in publicity

Exploitation of HW act (ANDA)


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Started research programs by investing 4% ofrevenue

Molecular restructuring

Set up new drug development research (NDDR)


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Post mid 90s

Focus on two different segments Capacity expansion Building brands

Manufacture generics going off patent and

innovator tie-ups Distribution system was reorganized Joint ventures in foreign markets Countries with high population

Per capita consumption of medicines is high Proximity to markets in near by countries e.g. Egypt,

Brazil Drug patent law not strongly in force


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Contd:

Acquisition of brands instead of company forshort-term growth

Tied-up with US firms for exporting drugs

Fully owned subsidiary in US

Marketing join ventures in Brazil

Co-marketing and development agreement

with Par Pharmaceuticals


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Contd:

Drug discovery focus on creating a leadmolecule (NCE) and selling it.

DRL acquired ARL because of which it got five

complementary brand, 3 manufacturing plants& 450 trained field staff.

Licensed to multi-nationals for clinical trials

and marketing Focused on areas of growing concern like

diabetes and cancer


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Contd:

Intermediateand BulkDrugSubstances

CommodityGenerics

ConventionalDosage Forms

Value added andBrandedGenerics

OTC and NDDS


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Post TRIPs Era

Should focus more on R&D for new chemicalentities (NCE)

U.S. FDI compliant to harness the growthopportunity in areas of contract manufacturing and

research as US$45 billion of drugs would go offpatent by 2007 in us alone Increase in U.S. ANDA fillings Exploring new markets

Tie-up with foreign companies to in-license drugs Acquisition to become big firmRoches API

business, Betapharm


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R & D expenditure of DRL

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009

number

n


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Patents granted in USPTA

0

10

20

30

40

50

60

UPTO 2004 2005 2006 2007 2008 2009

number

number


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ANDA Fillings

0

10

20

30

40

50

60

UPTO 2004 2005 2006 2007 2008 2009

ANDA fillings

number


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THANK YOU

dr reddy lab - leveraging capabilities

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