Dr Reddy's to set up two SEZs

Dr Reddy's Laboratories is setting up two special economic zones -- one each at Hyderabad and Visakhapatnam in Andhra Pradesh. While one SEZ would be exclusively for active pharmaceutical ingredients, the other would develop pharmaceutical products.

"We have a capital expenditure programme of $100 million (over Rs 4,000 crore)," vice-chairman and chief executive officer, GV Prasad, said, adding that the company would continue its geographical expansion besides enhancing growth in oncology and biogenerics products.

Prasad said the company would be launching 10 new products in the current financial year.

In 2006-07, DRL filed 23 drug master files in the US, taking the total filings in the country to 104. The company also filed 11 DMFs in Canada, 9 DMFs in Europe, 6 DMFs in Japan and 5 in Turkey. It also has 69 abbreviated new drug applications (ANDAs) pending at the USFDA. DRL received 19 approvals, including tentative approvals, last year.

On the geographical front, DRL has wholly owned subsidiaries in the US, UK, Russia, Germany and Brazil apart from joint ventures in China, South Africa and Australia.

NewsWire18 adds: Dr Reddy's Laboratories is hopeful of seeing 1-2 products getting 180-day exclusivity by March 2008 out of 17 first-to-file products in the US market, GV Prasad, vice-chairman and chief executive officer, said. The exclusivity is subject to the ongoing litigations for these products in the US, he added.

The outstanding performance of Dr Reddy's Laboratories in 2006-07 (Apr-Mar) was a result of three products--simvastatin, finasteride, and ondansetron getting 180-day exclusivity. Prasad, however, declined to give names of the drug that could get 180-day exclusivity in 2007-08 nor did he mention the value of these drugs. The company will also go for appeal against Aciphex ruling in the next few weeks in US court and hopes an outcome on the appeal in few months.

The Japan-based Eisai & Co had won a favourable order against Dr Reddy's, which had applied to sell generic version of anti-ulcer drug Aciphex. The company is looking forward to this financial as a year of consolidation, with focus on its German subsidiary, Prasad said.