The product approvals are for the US market with two new drug applications (NDA) in dermatology and one in neurology.
Hyderabad-based drug maker Dr Reddy's (DRL) on Wednesday said it would start monetising its proprietary products in the US in the next two years.
G V Prasad, co-chairman and CEO, DRL, said during a press conference, “The first launch of this product will happen in 12-18 months' time and this is in existing dermatology business. After that, we should have more products every year. So monetisation will start two years down the line, but will become sizeable in 4-5 years.”
The product approvals are for the US market with two new drug applications (NDA) in dermatology and one in neurology.
Prasad said in the next 3-4 years, revenues from this segment could be in several million dollars.
“The foray into the proprietary market establishes the business model of identifying the unmet medical needs, innovating and addressing that as well as launching the products. That will increase the size of the assets as we go forward. So in 5-7 years, this will be a significant business for us,” he said.
The Hyderabad-based company, which recently underwent a rebranding exercise, is looking at assets both within country and outside as part of its expansion plan. The company plans to expand in France, Italy and Spain in the next couple of years, its chief operating officer Abhijit Mukherjee said. Europe currently accounts for only 6%.
Prasad said that one of key priorities for Dr Reddy's would be to increase its reach and presence globally both directly and through partnerships. The company is looking at relevant credible trustworthy partners and would seek assets from other companies. Hinting on this, its COO said that the company is involved in active discussions in many things.
Dr Reddy's has recently completed the acquisition of select portfolio of established brands of Belgian firm UCB in India, Nepal, Sri Lanka and Maldives for Rs 800 crore.
On integration, chairman Satish Reddy said, “We have already integrated and a got a full month sales last month. We have just finished and are perfectly on track. It is too early to say whether the growth we have estimated will all be there but the initial indications are very good. Important thing is there need to be convergence of culture of the company when we integrated and I think we have that.”
Reddy said UCB has a less focus on consultant physicians and GPs. “We are trying to increase the reach a little bit. We think we can make the geographical expansion better and take the growth ahead. UCB acquisition also strengthen our therapeutic areas like dermatology, respiratory, etc.,” he said.
On its Srikakulam facility which last year came under the US drug regulator's scanner, the company said there is no update. However, the company has been able to shift the active pharmaceutical ingredient for esomeprazole or Nexium from that facility. Dr Reddy's is still awaiting approval on the product from the US FDA.
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