China Operations Build Up

Dr Reddy’s also remains upbeat on its operations in China, where it has a long-standing presence.

The company recently received approvals for sevelamer, sitagliptin and carboprost in China and expects to keep the filings momentum strong there.

Dr Reddy's CEO, branded markets (India and emerging markets), M V Ramana, told Scrip that the company was focusing on certain important KPIs [key performance indicator], including tracking how the firm could increase the number of filings amid the drive of the Chinese government towards the Group Purchasing Organization (GPO) program - trying to get to the first round of the GPO is important, he emphasized.

In 2019, Dr Reddy’s became the first Indian generic firm to bag a win for the supply of olanzapine under China’s new centralized drug procurement program. (Also see "Dr Reddy’s Pressing On In Russia, China Approvals Add Spark" - Scrip, 23 May, 2022.)

The second KPI is how many product approvals the firm is clocking. While the company used to log around four products a few years back, today it competes head on with the best Chinese firms in terms of the number of filings, with about 14-15 a year.

The third element, Ramana referred to was ensuring the “supply chain and go-to-market both from India as well as in China”; the firm’s facility in China especially for oncology, among other products, is ready. Peer Cipla Limited too has referred to facility readiness in China over the recent past.(Also see "Cipla's Advair Generic US Debut May Be Pushed Out But 'Value Intact'" - Scrip, 17 May, 2023.)

Morgan Stanley referred to the three product approvals for Dr Reddy's in China, also noting that about 20 products had been filed. “Revenue visibility should begin from FY24, accelerating in FY25-26, as per management,” it added in an update on 11 May.

Dr Reddy’s also has an alliance with Sunflower Pharma. in China for paediatric orphan diseases. The partners had earlier indicated that they hope to provide drugs for paediatric rare diseases from among officially-listed medicines required urgently in China.

Dr Reddy’s CEO: We’re In ‘Great Dialogue’ With The Innovation Industry In China

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