Dr Reddy’s is looking to more complex products–particularly biosimilars–to drive future growth. In addition to the traditional, highly regulated markets, the India-based company is looking to emerging markets in South America and the Middle East to drive biosimilars sales. In its financial statement published on 3 February 2012, the company noted that its biosimilars portfolio in India grew 25% during 2011 compared with 2010.

Dr Reddy’s has been making some major investments in research and development (R & D) in biosimilars. During the period 2010–11, the company’s investments in R & D grew by 33% to over Rs crore 500, a 7% increase compared with the previous year.

Indian companies such as Dr Reddy’s, Ranbaxy, Wockhardt, Biocon, etc.; with their already low-cost manufacturing capabilities and strengths in small molecule generics, are well positioned to enter the biosimilars field. With manufacturing costs estimated at being 40% lower than those for European or US companies, they could have a big advantage [1].

Dr Reddy’s entered into the biosimilars market back in 2008 with the launch of Reditux (biosimilar rituximab), a treatment for certain lymphomas, leukaemia and rheumatoid arthritis. The company now has a total of three biosimilars on the market in India and several other countries: Cresp (biosimilar darbepoetin alfa), Grafeel (biosimilar filgrastim), and Reditux (biosimilar rituximab).

Dr Reddy’s also has a strong pipeline of biosimilars and intends to launch at least one biosimilar a year, according to its Vice Chairman and CEO, Mr GV Prasad [2]. The company’s pipeline of biosimilars includes a pegylated molecule in late-stage clinical trials, two monoclonal antibody products in late-stage development, which are scheduled to enter clinical trials, and several others in early-stage development [2].

The European biosimilars market is expected to reach almost US$4 billion by 2017, with a compound annual growth rate of a staggering 56.7%, according to researchers at Frost & Sullivan [3], while the Indian biosimilars market was worth about US$200 million in 2008 and is expected to reach about US$580 million in 2012. So the future looks bright for biosimilars and it is no wonder that generics manufacturers are moving in this direction.

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References

1.  GaBI Online - Generics and Biosimilars Initiative. Biotech growth and biosimilar opportunities in India [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2012 Mar 23]. Available from: www.gabionline.net/Biosimilars/General/Biotech-growth-and-biosimilar-opportunities-in-India

2.  GaBI Online - Generics and Biosimilars Initiative. Dr Reddy’s launches biosimilar Aranesp [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2012 Mar 23]. Available from: www.gabionline.net/Biosimilars/News/Dr-Reddy-s-launches-biosimilar-Aranesp

3.  GaBI Online - Generics and Biosimilars Initiative. European biosimilars market to reach almost US$4 billion by 2017 [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2012 Mar 23]. Available from: www.gabionline.net/Biosimilars/News/European-biosimilars-market-to-reach-almost-US-4-billion-by-2017