Dr Reddy’s Laborites (DRL) is working to increase its reach in the world’s second largest pharmaceutical market, China. Other major drug manufacturers like Cipla and Lupin are also exploring possible avenues in China.
The Chinese market is worth an astonishing $100-billion today, with local drug manufacturers and a number of multinationals, enjoying complete control over the market. India’s pharmaceutical exports of around $160 million are a fraction of the companies’ sales.
New regulations now allow quicker product approvals and represent a great opportunity to exporters. This has been a result of the Chinese Food and Drug Agency acknowledging foreign trial data and hiring more employees to hasten the drug approval processes.
.“While Indian companies have traditionally focused on the US and Europe, new regulations in China, which could fast-track approvals for products cleared by the US Food and Drug Administration, could help Indian companies secure a foothold in the market,” said Sriram Shrinivasan, global emerging markets leader, lifesciences, EY.DRL said it was planning to introduce anti-cancer drugs, while Cipla and Wockhardt are planning to launch core therapies such as antibiotics and respiratory drugs in China.
“A strong pipeline is in place and this will continue to be strengthened along with the expansion of our field force. Oncology is an area of focus. We are also looking at partnerships to expand our commercial footprint in the China market,” said DRL Executive Vice-President M V Ramana.
DRL is partnered with the Rotam Group of Canada, with whom they sell pharmaceutical drugs in China, as a joint venture. DRL is estimated to be selling products worth $20 million in China, according to global health care services firm IQVIA.