Dr Reddy’s enters trade generics business, aims to be among top players

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Dr. Reddy’s Laboratories (DRL) on Friday announced its entry into the generic drug business in India, with an aim to rank it among the top 5 players in the market. DRL has launched a dedicated division called RGenX for this.

Commercial generics are drugs that are not sold through a doctor’s prescription, but are sold directly in commerce.

“The new business will further the company’s goal of reaching more than 1.5 billion patients by 2030,” said DRL, adding that it aims to provide a wide range of products at affordable prices.

The Hyderabad-based company said it will roll out commercial generic medicines in cities, towns and rural areas and will work closely with channel partners to ensure availability of its products.

“India is a key focus market for us. Today’s announcement is a continuation of our efforts to build an inclusive business in India,” said MV Ramana, CEO (Chief Executive Officer), India & Emerging Markets, DRL.

“We continue to strengthen our branded generics business in India by growing brands, launching new products, enhancing productivity through digital analytics, and selecting strategic acquisitions.” The company is exploring strategic collaborations in India and investing in innovative healthcare, he said. .

First of all, DRL will focus on sharp segments products. It will be a channel partner-driven model where the retailer pushes non-prescription drugs (instead of HCP’s prescription-based sales). Products will be branded under Dr. Reddy’s own brand name of medicines.

This move will help DRL expand its reach from Tier 1 cities to smaller locales.

Cipla operates the largest generic drug franchise in India, covering tier 2 and smaller cities with a network of 5,500 stores and serving 15,000 PIN codes. Cipla Managing Director and Global CEO, Umang Vohra, recently said on an analyst call after its fourth-quarter results in FY23 that the multinational pharmaceutical company has eight brands in the generic business that generate sales in excess of Rs.50 crore.

Sun Pharma also has a large generic drug business.