DRIVIN G ROWTH - Dr. Reddy's
DRIVIN G ROWTH - Dr. Reddy's
DRIVIN G ROWTH - Dr. Reddy's
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THE LAUNCH OF FLUOXETINE HAS BEEN THE BIGGEST STORY OF<br />
FISCAL 2002. WITH SALES OF RS. 3,286 MILLION (US$ 67<br />
MILLION), IT CONTRIBUTED 21 PER CENT OF THE TOTAL<br />
TURNOVER.<br />
providers of medicine will be able to produce<br />
drugs that save much more expensive<br />
downstream, medical costs.<br />
INDIAN PHARMACEUTICAL<br />
MARKET<br />
AS SEEN IN CHART A, despite having<br />
a very large number of players, India<br />
accounts for only 1.3 per cent (2)<br />
of the<br />
global pharmaceutical market. Sales of the<br />
domestic industry is expected to exceed Rs.<br />
260 billion in 2001-02. Bulk drugs (Active<br />
Pharmaceutical Ingredients or APIs)<br />
business account for 21 per cent of this<br />
sales, while formulations account for the<br />
remaining 79 percent (2)<br />
in Indian<br />
Pharmaceuticals market.<br />
Over 20,000 registered pharmaceutical<br />
manufacturers exist in the country. The<br />
leading 250 pharmaceutical companies<br />
control 70 per cent of the market. The<br />
market share of multinational corporations<br />
has fallen from 75 per cent in 1971 to<br />
around 35 per cent today; while the share<br />
of Indian companies has increased from 20<br />
per cent to nearly 65 per cent.<br />
More than 60 per cent of India’s APIs<br />
production is exported. The balance is sold<br />
locally to other formulators. Over 85 per<br />
cent of the formulations produced in the<br />
country is sold in the domestic market,<br />
which makes India largely self sufficient in<br />
formulations.<br />
DR. REDDY’S PERFORMANCE IN<br />
INTERNATIONAL AND INDIAN<br />
MARKETS<br />
FOR THE FIRST TIME, 2001-02 saw<br />
<strong>Dr</strong>. Reddy’s international revenue outstrip<br />
domestic revenue. Table 1 gives the<br />
abbreviated data.<br />
Table 1<br />
|<br />
Revenue in Indian and<br />
international markets<br />
RS. MILLION<br />
2001-02 % 2000-01 %<br />
International 9,537 61% 4,479 46%<br />
India 6,041 39% 5,362 54%<br />
Total Revenue 15,578 100% 9,841 100%<br />
The 15 percentage point growth in the<br />
share of international revenue had much to<br />
do with two factors. First, sale of branded<br />
formulations to Russia grew by 100 per cent<br />
to Rs. 1,297 million, on the back of a strong<br />
showing by brands such as Ciprolet, Enam,<br />
Omez, Ketroloc and Exifine.<br />
Second, and much more important, is the<br />
sale of fluoxetine capsules 40 mg in the US<br />
generics market, with 180-day market<br />
exclusivity.<br />
The launch of fluoxetine has been the<br />
biggest story of fiscal 2002. With sales of<br />
Rs. 3,286 million (US$ 67 million), it<br />
DR. REDDY’S LABORATORIES LTD. | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2001-2002<br />
49
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