Pharmaceutical giant Dr. Reddy’s Laboratories has been bolstering its business and growth prospects through strategic collaborations and acquisitions in key therapeutic areas.
In both the first quarter of the current fiscal year and throughout 2023-24, the company has actively pursued industry partnerships to bring advanced treatments to the market.
This approach, regarded by the company’s leadership as a ‘value addition’ to its core operations, is seen as a crucial driver for future growth. These strategic alliances have significantly contributed to the introduction of next-generation treatments in the domestic market.
In the first quarter ending June 30, Dr. Reddy’s acquired Nicotinell and related brands in the Nicotine Replacement Therapy segment from Haleon plc for £500 million, excluding the US market. Furthermore, the company formed a joint venture with Nestle India to expand the reach of science-backed nutritional products in India, with the JV expected to commence operations in the second quarter of the fiscal year.
Additionally, Dr. Reddy’s partnered with Novartis Pharma LLC to distribute the anti-diabetes drugs Galvus and Galvus Met in the Russian retail market. It also collaborated with Alvotech for the exclusive commercialization of the Denosumab biosimilar candidate in the US, Europe, and the UK.
In another strategic move, Dr. Reddy’s secured exclusive rights from Ingenus Pharmaceuticals to commercialize Cyclophosphamide Injection in the US.
In the 2023-24 fiscal year, Dr. Reddy’s entered a partnership with Sanofi to enhance the distribution of Sanofi’s vaccine portfolio across India, contributing to combined sales of over ₹426 crore as of February 2024. This partnership has solidified Dr. Reddy’s position as a significant player in the vaccine segment.
The collaboration with Bayer to market Vericiguat in India introduced a new class of heart failure management drugs, enhancing Dr. Reddy’s existing portfolio. The partnership with Pharmazz Inc. allowed the company to market Centhaquine in India, a novel treatment for hypovolemic shock.
A pivotal step in strengthening Dr. Reddy’s nutrition and OTC business in India was the joint venture with Nestle India, aimed at bringing Nestle Health Science’s global range of nutritional health solutions to the Indian market.
As reported by thehindubusinessline.com, Dr. Reddy’s is expected to continue its strategy of strategic collaborations and inorganic growth isn the current fiscal year.