Sector News

Dr. Reddy’s shopping for deals up to $1B as it expands in injectable meds

March 26, 2015
Life sciences
Dr. Reddy’s Laboratories is eyeing deals as big as $1 billion to build up its portfolio of higher-end products, including generic injectable drugs, and expand its footprint in emerging markets.
 
The Hyderabad, India-based company is scouting for a range of products and buyouts–everything from dermatology and migraine treatments to new drug delivery systems and nanotech. It’s also eyeing deals that would build up its presence in Latin America, CEO G.V. Prasad told Bloomberg.
 
Dr. Reddy’s is up for a set of small acquisitions or bigger deals worth as much as $1 billion, Chief Financial Officer Saumen Chakraborty added. “I think in the next two years it will be very important for us to make some good moves on inorganic growth,” Chakraborty said.
 
Meanwhile, Dr. Reddy’s plans to ask the FDA to approve four or 5 complex injectables in the next 24 to 30 months, Chief Operating Officer Abhijit Mukherjee told Bloomberg. The Indian pharma already boasts complex products such as patches, eyedrops and topic medications, but expanding into injectables would give it some insulation against competition, plus the opportunity to charge higher prices.
 
If all goes to plan, the company will reap about 60% of its U.S. sales from complex products in three years, up from about 25% today, Chakraborty said.
 
Inking new deals and diving into injectables could also help Dr. Reddy’s weather trouble in its generic pill business. In November, the FDA slapped Dr. Reddy’s for manufacturing problems at a plant producing active ingredients for several drugs, including its knockoff version of AstraZeneca’s  heartburn med Nexium. Dr. Reddy’s has since transferred manufacturing to another site and is shooting to launch the Nexium generic by March 2016, Mukherjee said.
 
Dr. Reddy’s is not the only generics company with injectable-drugs ambitions. In 2013, Mylan snatched up Strides Arcolabs’ injectables unit Agila Specialties for $1.6 billion, adding another 200 products to its injectables portfolio and expanding its geographic footprint. Last year, Par Pharmaceutical shelled out $490 million for JHP Pharmaceuticals to beef up in generic injectables, and India’s Lupin scooped up Netherlands-based Nanomi to break into the market.
 
Jordan’s Hikma also jumped on the injectable bandwagon in 2014, paying Boehringer Ingelheim up to $300 million for injectable drugs once made at its shuttered Ben Venue plant. Hikma said at the time that it would reintroduce the products, addressing “critical supply shortages in the U.S. market” that stemmed from the plant’s quality problems.
 
By Emily Wasserman
 

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

November 27, 2020

AbbVie lifts insider Jeffrey Stewart to commercial chief as company veteran Carlos Alban retires

Life sciences

AbbVie will soon have a new chief commercial officer, who’ll assume the heavy responsibility of navigating the Illinois pharma’s marketing transition from megablockbuster Humira.

November 27, 2020

Belgium biotech argenx nabs Bayer speedy review voucher for a cool $98M

Life sciences

The biotech, which has a series of deals across Big Pharma, will use the voucher, which can speed up the regulatory process for a new drug, for its late-stage drug efgartigimod—but not in the indication you might think.

November 27, 2020

Galapagos sells off Fidelta as CRO activities ‘no longer fit with its strategy’

Life sciences

Galapagos is selling off its contract research organization Fidelta for $37 million to Polish life science company Selvita. Fidelta focuses on inflammation, fibrosis and anti-infectives, with 181 employees at the helm.

Send this to a friend