Oct. 27, 2009 (The Hindu Business Line) --
G. Naga Sridhar
M. Somasekhar
The Hyderabad-based company sees huge opportunities and feels it is in the forefront among the few global players in this space. “Having made a mark in the global generics business, it is time to focus in this area,” said the founder-Chairman, Dr K. Anji Reddy.
“In the generics business, the price erosion after the expiry of exclusivity is almost 90 per cent of the original innovator’s price, which means that margin could be much lower for the industry over a period of time. We want to repeat in biologics what we had achieved in the generics segment, in both price and quality,” Dr Reddy told Business Line.
Revenues from global generics formed a huge chunk (Rs 1,271 crore) of the consolidated revenues of Rs 1,837 crore at the end of September 30, 2009, for Dr Reddy’s Laboratories, which is into its silver jubilee year.
The magnitude of price erosion in biologics would be about 20 per cent. “I don’t think the price of biologics will be brought down below 50 per cent at any point,” he said.
Dr Reddy’s is getting ready to launch its second biosimilar product in this financial year. In 2007, it had launched Reditux, a brand of rituximab, a mono-clonal antibody used in the treatment of Non-Hodgkin’s Lymphoma.
The focus on biosimilars, of which 25 per cent is driven by mono-clonal antibodies, would help Dr Reddy’s globally.
“In Europe, the biosimilar processes are very clear now. We hope to be one of the leaders in this segment,” he added.
Biosimilars or follow-on biologics are terms used to describe officially approved new versions of innovator biopharmaceutical products, following patent expiry.
Pipeline
On the diabetes front, its most promising molecule, Balaglitazone, has nearly completed the phase III trial. “The first 400 patients’ trials are over. There will be one more trail which will be followed by filing of new drug application,” he said.
On the possibility of the drug hitting the market, he said though a prediction was not possible, he was confident that it would reach the market in two-three years.
The pipeline of drugs includes a CETP inhibitor (a class of drugs that inhibit cholesterylester transfer protein). Only three companies – Roche, Merck (NYSE:MRK) and Dr Reddy’s – were working on this front, he said, adding: “Our Phase I trails should be completed in three months.”
