DRIVIN G ROWTH - Dr. Reddy's
DRIVIN G ROWTH - Dr. Reddy's
DRIVIN G ROWTH - Dr. Reddy's
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48<br />
management discussion<br />
and analysis<br />
products compete with each other in mass<br />
consumer markets with powerful<br />
underlying growth. And, while generics<br />
constitute a very large and rapidly growing<br />
market throughout the world, it is occupied<br />
by distinctly different pharmaceutical<br />
players. There are hardly any international<br />
companies that are strong in both new drug<br />
discovery and in generics.<br />
Not surprisingly, therefore, the global<br />
pharmaceutical industry continues to<br />
remain one of the largest creators of<br />
shareholder value.<br />
The five major universal drivers to the<br />
growth of the pharmaceutical industry over<br />
the short to medium term are:<br />
A NALYSIS in progress at diagnostics division on Chromatograph<br />
■ DEMOGRAPHICS Increased life span<br />
has begun to show up in the growth of old<br />
age diseases and concomitantly greater<br />
pharmaceutical spends in some OECD<br />
countries such as Japan, Italy and Spain. This<br />
is bound to spread to the rest of the world.<br />
■ DIET AND LIFESTYLE The change to<br />
high-refined carbohydrate-based diets<br />
coupled with relatively sedentary, low-activity<br />
lifestyle are leading to a significant growth in<br />
the risks of cardio-vascular, diabetic and<br />
oncological and other life-style related<br />
diseases — which are increasing the demand<br />
for certain categories of medicine.<br />
■ DIAGNOSTICS Greater testing of risk<br />
factors (prognostic testing) and sophisticated<br />
diagnostics testing based on genetics,<br />
proteomics and molecular cell biology will<br />
explode over the next decade, and are likely<br />
to become a major driver for the<br />
pharmaceutical industry.<br />
■ NEW DRUG DISCOVERY The pace of<br />
new drug discovery is not expected to abate<br />
in the near future. Innovative drugs will<br />
continue to command attractive prices even in<br />
markets where cost-containment is an issue,<br />
and they will be able to create new markets.<br />
■ HEALTHCARE COST CONTAINMENT<br />
The need to contain costs is often mentioned<br />
as threat to the healthcare industry. This need<br />
not be so for pharmaceuticals. R&D-driven<br />
DR. REDDY’S LABORATORIES LTD. | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2001-2002
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