Dr. K. Anji Reddy, the founder of Dr. Reddy's Laboratories Ltd. (DRL), had a fascination for drug discovery. However, his desire to take a new molecule from discovery to commercialisation stage has remained unfulfilled. He mentions this in his memoirs which have been published as a book titled — “An Unfinished Agenda: My life in the pharmaceutical industry”. Nevertheless, DRL Chief Operating Officer Abhijit Mukherjee says in an interview that the company is focused on fulfilling this agenda and its biotech research arm had taken the initiative.
Excerpts:
Are you confident of finishing the unfinished agenda of Dr. Anji Reddy? If so, how?
Yes, the company is certainly focused on fulfilling the unfinished agenda of Dr. Anji Reddy- that is to take a new molecule to the world from discovery to commercialization stages. Full clinical development of a molecule is a long, high-risk and expensive process, which most Indian companies have not been able to do, or have not engaged in. Having said that, Aurigene, our biotech research arm, has taken the initiative and has recently started working on development of novel drugs (anti-infective drugs to start with) and is looking for ways to commercialize them on its own. The company plans to bring more of its compounds to the market.
Of late, you seem to be focusing on the domestic market. What are your strategies in this regard?
Our domestic formulations business is certainly one of our focus areas and has grown on a very consistent manner over the past few quarters. The aim of our India business is to make a difference to the lives of patients in the chosen therapy areas, through differentiated launches and an enriched portfolio. We believe that this will enable us deliver industry leading growth in the coming years. Partnerships such as the one with Amgen is a good example of addressing significant unmet needs of patients. We have also integrated UCB’s acquired business and announced a number of business development deals which help broaden our portfolio. We continue to look at companies that would be strategic fit for our business and where we will be able to add value through our commercial excellence efforts.
Do you feel that so far you had missed the Indian growth story. If so, how did this happen?
While we had built large brands through scientific detailing in Indian market, some of our launches were not on time. One of the key needs of the branded generics market is to bring the products on time to the patients. However, we brought in several initiatives aimed at timely launches, focused sales and marketing, broad basing through institution channel, focused growth in chronic and super-specialty areas, enabling growth of the business, we now feel quite confident on the future trajectory. Indian pharmaceutical market is still fragmented and presents a lot of headroom for growth, given the poor diagnosis and treatment rates. Most diseases are highly under-diagnosed and under-treated as a result. We are seeing investments in health care infrastructure, expansion of retail chemists, and patients becoming more aware as a result of rising incomes and improving socio economic trends. For companies like ours, this is a great opportunity to make a difference in accelerating access to high quality medicines and impacting health care in the country.
You are also reportedly focusing on startups. Do you think this is a safe bet compared to expanding your R&D activities?
This is a nascent stage thought process and too early to comment on.
Are you in talks with U.S., European and Japanese firms for forging licensing agreements to market their products in India? What kind of revenues do you expect from such initiatives in the short-term and long-term?
We are constantly evaluating partnerships that complement our strategy and help us address unmet needs. In line with this objective we are exploring several possible agreements, some of which have already fructified. As an Indian company with a fairly global presence and having established ourselves as a partner of choice through trustworthiness and reliability, we will continue to look at similar value accretive opportunities in the future.
Have USFDA concerns over your Srikakulam plant been addressed to?
We have put in enormous amount of focus and resources in addressing to the issues and have periodically updated USFDA on our progress. We are waiting to hear back from the agency. It’s very difficult for us to comment on it.
You have recently tied-up with Mumbai-based Arogya Finance for marketing in rural areas. Do you plan to have more such tie-ups?
We have tied up with Arogya Finance for Resof and a couple of more brands to increase access to a larger section of patients.
For many years now, we have been running a strong patient assistance programme called Sparsh for our oncology products. For the rural markets, we will continue to increase our sales and distribution reach for our popular brands, forge strong distribution partnerships to ensure better product availability, launch products specifically designed for the rural markets, and facilitate better access through patient assistance and financing programs. The program is in the early stages.
We are aspiring to make sure every eligible patient is made aware about the financing choice available to them and that cash flow issues don't restrict access to medical treatment.
