Dr Reddy's Tussles with Pfizer
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Code : COM0020
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Region : India
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Background Dr. K.Anji Reddy established Dr Reddy's in 1984 with $40,000 cash in hand and $120,000 bank loan. The company commenced its operations as a manufacturer of Active Pharmaceutical Ingredients8 (APIs) and went ahead not only to master the technology to make APIs but also to launch branded formulations at 50% of the current prices. Since its inception, Dr. Reddy's had reverse engineered10 many popular drugs under patent to expand its therapeutic presence, and by 1985 it became the first Indian company to export a drug to Europe... Dr. Reddy's US Battle In 1997, the US FDA, created a lucrative incentive for generic companies to fight branded drug makers in court. To create competition, the FDA supported the US-based Barr Laboratories (Barr) in suing Eli Lilly's anti-depressant drug, Prozac. Barr won the lawsuit against Eli Lilly and gained exclusive rights to sell the generic version of the drug for six months. Though the exclusivity of sixmonthswas a temporary bonanza, Barr still registered $366 million in revenues in 2001 (May 2001 to November 2001). Dr Reddy's first success in the US market came with the same drug... The Road Ahead for Dr. Reddy's Analysts expected that by 2004, the health care cost savings to the US consumers would work out to $60 billion. The conflicts between Indian and global drug makers were on the rise, as firms in developing countries were capable of producing generic copies of patented drugs with a lesser investment. The Norvasc dispute was one of the battles being fought between Indian leading generic companies and global companies who fiercely protected their wealth. The patent holders in the US were busy filing lawsuits to battle these generic companies... |
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