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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