Dr Reddy's expands sales in Russia & CIS through licensing deals
25 Oct 2010
Dr Reddy's Laboratories Ltd (DRL) has entered into an agreement with Cipla Ltd, under which DRL will have exclusive marketing rights to the latter's OTC and prescription products in the Russian and Ukranian markets.
In a filing with the Bombay Stock Exchange (BSE), DRL said it has already started promotion and sales of the products from the second quarter of the current financial year.
DRL has also entered into an agreement with UK-based Vitabiotics for exclusive marketing rights of a range of neutraceutical products for Russia and the CIS markets. The agreement provides DRL exclusive marketing rights for two of Vitabiotics' leading products - Jointace and Dietrim - on a long-term basis, the company said in the filing.
"The agreement gives us access to a good number of Rx (prescription) products and OTC brands with existing sales that would immediately add to our revenues from the Russian and CIS markets. We see long-term synergies as Dr Reddy's has a strong sales and marketing network and our partners have a basket of products already registered and distributed in these markets. With strong brands increasing market in the Rx, OTC and hospital segments and our association with top-tier distribution partners, the agreement will only add to our growth ambitions in the Russia and CIS markets", said Satish Reddy, managing director and COO.
"The agreement with Cipla will enhance Dr Reddy's presence in the OTC space and the therapy areas of gastroentrology, dermatology and oncology in both Russia and Ukraine. Besides, this will complement Dr Reddy's product offering in pain management and will help increase our presence in the neutraceutical space while Dietrim will mark our entry into the weight management area", added M V Ramana, head of Russia and CIS regions of DRL.
Dr Reddy's reported a 32 per cent year-on-year growth in its fiscal second quarter profit, at Rs20 crore. Renenues grew 2 per cent year-on-year to Rs1,870 crore. EBDTA rose 12 per cent and stood at Rs420 crore during the quarter.
Dr Reddy's Laboratories Ltd on Friday announced its unaudited financial results for the quarter ended 30 September 2010 under International Financial Reporting Standards (IFRS).
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