Dr Reddy’s Laboratories expects 20% growth in domestic sales

India-based pharmaceutical company intends to launch about 24 products this year

GV Prasad, chief executive of Dr Reddy’s Laboratories. India is the company’s second largest market after the US. Photograph: Prashanth Vishwanathan/Bloomberg

GV Prasad, chief executive of Dr Reddy’s Laboratories. India is the company’s second largest market after the US. Photograph: Prashanth Vishwanathan/Bloomberg

 

Dr Reddy’s Laboratories, India’s second-largest pharmaceutical company, expects domestic sales to grow nearly 20 per cent this financial year, helped by the launch of nearly two dozen products, a senior executive said.

The forecast tops one of 15 per cent growth for the generic drugmaker’s domestic sales by analysts at brokerage Ambit Capital.

India is Dr Reddy’s second-biggest market after the United States and accounted for 15 per cent of its total sales last year.

The new product launches would come on top of 25 last year, Alok Sonig, the company’s India business head, said.

Dr Reddy’s also said last week it had agreed to buy about 23 established products in south Asia from Belgian drugmaker UCB for about $128 million (€120.8m).

While some analysts said the deal value was too high, Mr Sonig said it was optimally priced given that it adds a dozen significant products to the company’s existing portfolio of respiratory, dermatology and paediatric medicines.

The UCB acquisition also gives Dr Reddy’s an entry into neurological medicines, an area in which the company is already developing some products for sale in India, he added.

– Reuters