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Dr Reddy's bets big on drug discovery

July 23, 2008 10:33 IST
Dr Reddy's Laboratories hopes to become a true drug discovery company in the near future, said chairman K Anji Reddy and chief executive officer GV Prasad at the 24th annual general body meeting in Hyderabad on Tuesday.

The company has two molecules under clinical development and one in the pre-clinical development stage. Balaglitazone (DRF 2593) is a diabetic drug undergoing Phase 3 clinical trials along with Rheoscience of Denmark.

The company has four drugs under development in the areas of diabetes, atherosclerosis, reverse cholesterol transport and direct disease modifying rheumatoid arthritis, said Anji Reddy.

"We expect many of these molecules under development to move into clinical development stage in the next four years," he said.

Dr Reddy's has announced that it would buy back the shares of Perlecan Pharma, an innovative drug discovery company formed two years ago in association with ICICI Ventures and Citi Group. It will also develop biologics drugs in the future.

A few months ago, the company had entered into collaboration with 7TM Pharma for drug discovery on select targets in the area of metabolic disorders.

The company's performance in the domestic market has not been true to expectations. "We look forward to improve the performance with new launches and campaigns in the domestic market," Reddy said.

Dr Reddy's is planning to set up a speciality dermatology business in the US. The pharma giant consolidated its global presence by making three acquisitions in 2007-08, according to company executives.

Dr Reddy's had acquired the small molecules business of Dowpharma in the UK, Jet Generici Srl, a generic marketing company in Italy, and the pharmaceutical manufacturing business of BASF in Shreveport, US. The company invested Rs 630 crore (Rs 6.3 billion) in manufacturing, research and development facilities during the period.

This is the largest investment in a single financial year in the annals of the company.

BS Reporter in Hyderabad