Indian pharma company looks to CIIE for expansion

India-based pharmaceutical enterprise Dr. Reddy's Laboratories debuted at this year's China International Import Expo, with CEO Erez Israeli stressing the company's commitment to tap into the vast Chinese market through active participation in the event he described as "a global platform that brings together like-minded people from diverse industries".

"We are delighted to make our debut at the CIIE this year and hope to meet and establish potential partnerships with local pharmaceutical companies to collaborate," Israeli said in an exclusive interview with China Daily at the sixth CIIE, which took place in Shanghai from Nov 5-10.

Founded in 1984, Dr. Reddy's has a portfolio of over 400 products and operates in more than 70 countries. Since entering the Chinese market in 2000, the company has been providing cost-effective medications for treating a wide range of ailments, including oncology (tumors), diabetes, disorders of the central nervous system and cardiovascular diseases.

The company's initial entry into the Chinese market happened through a joint venture with Kunshan Rotam Reddy Pharmaceutical in 2000. In 2010, Dr. Reddy's established a representative office in Beijing and became the first foreign-invested pharma company in the capital to obtain a manufacturing license (B) for Lyo — lyophilized powder for injection. It was also the first global generics company to be included in China's volume-based procurement program, covering multiple therapeutic areas such as oncology and the central nervous system.

Over the past few years, the Indian company has forged partnerships with several Chinese counterparts, including Shanghai-based Junshi Biosciences and Jiangsu-headquartered Hengrui Pharmaceuticals, for innovative product development.

"Our recent collaborations with Chinese companies symbolize the potential opportunities in the market for innovative products. Through events like the CIIE, we continue to build on these opportunities to serve more patients," Israeli said. "Through our existing footprint, manufacturing capabilities, patient reach and meaningful partnerships with China-based innovator companies, we plan to do more in this market."

The CEO emphasized that given China's substantial progress in innovation, the company intends to drive innovation in India and emerging markets by collaborating with Chinese companies. Regarding Dr. Reddy's development here, Israeli expressed optimism and revealed that the company expects meaningful revenue visibility from its operations starting from the next fiscal year, thanks to the increasing number of product approvals it has gained in China since April.

"We are currently filing for more than 15 products a year, and that number could increase to 18 if everything goes well," he said.

Dr. Reddy's is not the only foreign company that is optimistic about its prospects in China. According to a survey recently released by the China Council for the Promotion of International Trade, nearly 90 percent of foreign companies expect their profits to remain stable or increase over the next five years, with a large number identifying technological innovation as the primary growth opportunity in the Chinese market.