Pharma major Dr. Reddy’s Laboratories is making a foray into the trade generics business in India and has formed a new division RgenX to focus on the segment.
The aim is to roll out its trade generics across the country, including in rural areas, by working closely with channel partners to ensure availability, it said.
“India is a key focus market for us and today’s announcement is a continuation of efforts to build a well-rounded business in India. This foray into trade generics will add to our reach and depth by making high-quality medicines of Dr. Reddy’s accessible to more patients in the country,” CEO - India and Emerging Markets M.V. Ramana said.
The company continues to strengthen its branded generics business in the country by growing brands, new product launches, productivity enhancement through digital and analytics and select strategic acquisitions. “We are exploring strategic collaborations in India, and investing in innovative healthcare spaces that we see as future growth drivers,” he said in a release.
Dr. Reddy’s move to focus on pushing its products through the trade channels comes in the backdrop of the Centre’s growing emphasis on government doctors prescribing generics.
To begin with, the Hyderabad-based drugmaker will be focusing on acute segment products in the trade generics business. Each product will continue to have a product brand name and Dr. Reddy’s logo. Under the model, driven by channel partners, the retailer pushes the medicines not dependent on prescription. This will be a shift away from healthcare provider (HCP) prescription-based sales.
Trade generics business will help the company give patients access to a wider range of medicines and increase affordability, while being assured of the highest quality, sources said. The key will be working with channel partners to ensure availability of the stock with retailers. The move is expected to help increase the reach across the country for Dr. Reddy’s, which is pursuing an ESG goal to serve over 1.5 billion patients globally by 2030. The company also aspires to break into top five players in the domestic market.
On Friday, the company’s shares closed 1.92% higher at ₹4,993.60 each on the BSE.
Published - June 23, 2023 09:15 pm IST
