Dr Reddy's Laboratories Ltd, India's second largest drug maker by revenue that is broadening its focus on innovative products and services in the larger healthcare market, said on Wednesday (25, May) that it has acquired a range of consumer health or over-the-counter brands from the US-based Ducere Pharma Llc for an undisclosed sum.
The Indian drug maker said the acquisition of this eminent portfolio of over-the-counter brands is mainly in the cough-and-cold, pain and dermatology categories. The key six brands include Doan’s, Bufferin, Nupercainal, Ointment, Cruex nail Gel, Comtrex, and Myoflex.
“These legacy products enjoy strong brand equity built over several decades,” said Alok Sonig, executive vice president and head of Dr Reddy’s in the US.
“We are extremely excited to be entering the branded consumer health arena through these brands and embarking upon the next avenue of growth for our OTC business in the US,” he added.
According to Sonig, Dr. Reddy’s will build upon the sales and marketing efforts for these brands and continue to focus on their expansion into existing and new market channels.
“We think Dr Reddy’s is well-positioned to continue the successful growth of these brands,” says Samuel F. Hines of Casla Capital Management LLC, which owns Ducere. “We feel confident that our brand-loyal consumers will be well-served by the deal,” he added.
Dr Reddy's Lab, which last year changed its logo and corporate identity to reflect its broad-based healthcare focus, had acquired and in-licensed various innovative technologies and products to add to its existing portfolio to expand the market cover and reach.The company is also talking about valued added services to patients under new corporate slogan of "Good Health Can't Wait."
The new strategies of Indian pharmaceuticals companies to get into a broader healthcare play is considered buy analysts as an insulation from the highly challenging market environment due to competition, tightened regulatory atmosphere and narrowing margins in global markets, especially in the prescription business.
BW Reporters
Unnikrishnan is currently Senior Associate Editor with BW Businessworld at its Mumbai Bureau. During his two decades long journalistic career, he has received several media awards and recognitions. His articles on healthcare, life sciences and intellectual property rights (IPR) have been republished by several international blogs and journals.
