Dr Reddy's may spend $400 million on R&D in 4 years

Dr Reddy's Laboratories may invest up to $400 million on R&D over 3-4 years in biologics and proprietary products where it sees a wave of big growth going forward.

"The R&D investments are likely to increase over the coming years. DRL may cumulatively invest in biologics in the range of $150 million to $200 million and proprietary products in the range of $150 to 200 million over next 3 to 4 years till these respective businesses become self- sufficient and cash accretive," said a company source.

DRL had 21 active products in the proprietary products pipeline, of which six were in clinical development stage as on March 31, 2013, as per a filing with the US Food and Drug Administration last year.

The company had said that drugs currently in clinical development stage are targeted in the areas of cardiovascular disorders, psoriasis, pain, anti-infective atopic dermatitis/ psoriasis and migraine.

It said the new drug research on metabolic disorders/ cardiovascular disorders is in Phase-II while the remaining five drugs are in the clinical stage.

DRL vice chairman and managing director K Satish Reddy, without putting a number, said the future R&D focus of the company would be in biologics and proprietary products and expects them to add significant portion of company revenues after five years.

"The bigger investments in R&D are going in to biologics and proprietary products, which is the next big wave. So this will start adding significant portion of our revenues five years hence," Reddy told PTI.

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