Dr Reddy - North America

North America

On the onset of 1990s Dr Reddy’s was becoming ready to venture into the western markets, but for that they needed to develop new drugs which had to be complied with the stringent legislative requirements of the western market. With the mission of becoming a global player they founded their own R&D in India in 1992 which was operational in 1993. To make this R&D facility appropriate for the western market and for the technological transfer the firm opened their own subsidiary in New Jersey (USA) in 1994. In the similar year they made a GDR issue of $48 million. The research landed with a success for an anti-diabetic drug, but because of paucity of money they couldn’t afford the clinical trials in USA, therefore they adopted the licensing strategy in 1997. They licensed the newly developed drugs (insulin sensitizer ‘Balaglitazone and ‘Ragaglitazar’) to Novo Nordisk in 1997 and 1998. This marks Dr Reddy’s expansion in American continent.

In later parts of 1990s US FDA has approved few new rules in order to encourage growth of generic drugs in USA itself, eyeing on the future market potential and mission of global player, in 1999 the firm opened its another subsidiary “Reddy US Therapeutics” in Atlanta Georgia, USA. In next two years they acquired an Indian company “American Remedies Limited” which had a very high formulation capacity and “Cheminor Drugs Limited” which made them the third largest drug manufacturer in India.

In 2001 they took a huge step by listing themselves in NYSE, this made them the first Asian pharmaceuticals company apart from Japan to be enlisted on NYSE. In that similar year there one of the generic drugs “anti-depressive Prozac” made a huge profit of $56 million in US market. And they were also continuing with their licensing business for their other products, as in 2001 they licensed a second generation anti-diabetic molecule to Novartis.

By 2002, Indian government has taken few steps to ramp up the pharma companies and Dr Reddy’s emerged as one of those companies who were capable of Independent research. This prompted them to open up one more subsidiary in US “Aurigene Discovery Technologies