Dr. Reddy's looking to acquire pharmaceutical production in Russia
MOSCOW. Sept 19 (Interfax) - The Indian pharmaceuticals company Dr. Reddy's Laboratories, which specializes in the making of generic goods, intends to acquire production facilities in Russia, The Wall Street Journal writes, citing the company's financial director, Umang Vohra.
The company is also interested in the purchase of OTC brands, so as to take the proportion of such medicines in its Russian portfolio from under 30% to 40%-45%, reducing the number of RX medicines in its Russian portfolio from 72% currently. That will make the company less sensitive to price regulation on the Russian pharmaceuticals market.
It will take around three years for Dr. Reddy's to implement its plans for buying or building production facilities in Russia, Vohra said.
This past July, the company signed an agreement with JB Chemicals & Pharmaceuticals for the acquisition of a pharmaceuticals portfolio in Russia and the Commonwealth of Independent States. The deal involves the acquisition of the rights to twenty brands, key among them Metrogyl and Jocet, for $34.85 million.
Strategy for developing the Russian pharmaceuticals industry before 2020 involves increasing the proportion of product on the market that is made in Russia to at least 50% in terms of cost. It is now no more than 20%.
At the end of last year, Russian Prime Minister Vladimir Putin announced that the country would be gradually closing its market to imported pharmaceutical product, but would support the creation in the country of company's with 100% foreign capital.