Upfront

Dr Reddy's strategic take over of Betapharm

Archana Ravikumar - Bangalore

The acquisition of Germany-based Betapharm is a step to ratify Dr Reddy's intention of building global generic business. Betapharm is the fourth largest generic pharmaceutical after Hexal, Ratiopharm and Stada. Prior to the acquisition, Dr Reddy’s had no presence in Germany. Speaking on the significance of the acquisition, GV Prasad, Vice-Chairman and CEO, Dr Reddy's Laboratories said, “In the near term, Betapharm has a growth platform based on its sales and marketing infrastructure. In the long run, Betapharm would provide opportunities to take its pipeline to other markets in Europe, as well as, leverage on Dr Reddy's product development capabilities. Given our significant API business portfolio in Europe, this partnership could also offer us strategic growth opportunities.”

Talking on the impact the acquisition will have on Dr Reddy's overseas frontier and also the domestic front, Prasad said, “All the key generic markets are facing market reforms, driven by the cost containment measure of the government. The impact of these reforms are common to all participants. Despite the presence of larger players, Betapharm has been the fastest growing generics player in the last five years, reflecting the strength of its sales and marketing infrastructure, and product portfolio. On the domestic front.” He added, “Dr Reddy's has built a brand equity and marketing organisations in key markets of India, Russia, US and UK. Betapharm has a strong brand equity and market presence in Germany, the second largest generic market globally. Coming together of these two companies is another step forward for Dr.Reddy's in building a global generic business, as well as, laying the foundation for creating a global commercial organisation with strong detailing capabilities.”