North America

On the onset of 1990s Dr Reddys was becoming ready to venture into the western
markets, but for that they needed to develop new drugs which had to be complied
with the stringent legislative requirements of the western market. With the mission
of becoming a global player they founded their own R&D in India in 1992 which was
operational in 1993. To make this R&D facility appropriate for the western market
and for the technological transfer the firm opened their own subsidiary in New
Jersey (USA) in 1994. In the similar year they made a GDR issue of $48 million. The
research landed with a success for an anti-diabetic drug, but because of paucity of
money they couldnt afford the clinical trials in USA, therefore they adopted the
licensing strategy in 1997. They licensed the newly developed drugs (insulin
sensitizer Balaglitazone and Ragaglitazar) to Novo Nordisk in 1997 and 1998. This
marks Dr Reddys expansion in American continent.
In later parts of 1990s US FDA has approved few new rules in order to encourage
growth of generic drugs in USA itself, eyeing on the future market potential and
mission of global player, in 1999 the firm opened its another subsidiary Reddy
US Therapeutics in Atlanta Georgia, USA. In next two years they acquired an Indian
company American Remedies Limited which had a very high formulation capacity
and Cheminor Drugs Limited which made them the third largest drug
manufacturer in India.
In 2001 they took a huge step by listing themselves in NYSE, this made them the
first Asian pharmaceuticals company apart from Japan to be enlisted on NYSE. In
that similar year there one of the generic drugs anti-depressive Prozac made a
huge profit of $56 million in US market. And they were also continuing with their
licensing business for their other products, as in 2001 they licensed a second
generation anti-diabetic molecule to Novartis.
By 2002, Indian government has taken few steps to ramp up the pharma companies
and Dr Reddys emerged as one of those companies who were capable of
Independent research. This prompted them to open up one more subsidiary in US
Aurigene Discovery Technologies Inc. dedicated to biotechnology sector. In the
similar year they won a lawsuit which enabled them to market their own variant in
US market. Through this they were determined to enter the more profitable branded
generic category market. To enhance their presence in American market the firm
had an exclusive strategic alliance with an US based firm Leiner Health Products
for product development and marketing.
By 2004 Dr Reddys had become a global pharma company with its 36% of revenue
from overseas operations. During the same period its largest overseas market was
North America with 41% of the total overseas revenue. The very next year they had
set up Branded Marketing organization (BMO) in North America.
In 2005 to enhance the manufacturing in North America they went for an acquisition
in Mexico. They acquired Roches Active Pharmaceutical Ingredients (API) business
and a state of art manufacturing facility in Cuernavaca, Mexico.

On 2nd February 2006, they underwent a strategic alliance with an US based firm
Merck in order to sell and distribute generic version of Proscar and Zocor in India.
This alliance made them the first Indian firm to become an authorized generic
manufacturer for a multinational company.

South America
The company adopted the ways of licensing and subsidiaries to enter North
American market whereas to enter Latin America they relied on joint ventures. By
1997 Dr Reddys was becoming quite familiar with the US market, in the same year
they targeted Brazil in South American market. To enter in Brazil they had a joint
venture with a Brazilian based firm Biochemico, the JV name was Aurantis
Pharmaceuticals. Through other JV they enter in Venezuela and launched their
various products.
During the second half of 2004, the recovery of the Brazilian economy helped the
Indian company to grow in that market. This opportunity was comprehended was
many Indian pharma firms to change their product mix and also to launch the new
drugs in Brazilian market. To fully grasp the opportunity Dr Reddys had established
a subsidiary named DR Reddys Farmaceuticado Brasil in 2005.