SPARK OF THE CORPORATE
Dr.Anji Reddy is not just founder-Chairman of Dr. Reddy's Group of companies but a pioneer in pharmaceutical research in India. Dr. Reddy's is an integrated global pharma company. Its main objective is providing affordable and efficient medicines.
Dr. Reddy was born in 1940 in Tadepalli, Guntur, Andhra Pradesh. His father was a turmeric farmer who also made and administered herbal medicine free of charge. He did his B.Sc in Pharmaceuticals and Fine Chemicals from Bombay University. He completed his PhD in Chemical Engineering in 1969 from National Chemical Laboratory, Pune. He was employed with the PSU Indian Drugs and Pharmaceuticals Limited (IDPL) till 1975. At that time, IDPL was the only bulk drug manufacturer in India. All the other pharma companies used to import bulk drugs from Italy and manufacture the tablets at their sites. The Americans were averse to sharing technology. Though the Russians were willing, their technology was still crude. His stint at IDPL helped him refine his skills that later was utilized at his own plants. He left the job to start his own company Uniloids with partners. He was the founder-Managing Director of the company during 1976-1980. Giving up a government job was not easy and was not well-received by his family. He started another company Standard Organics Limited in 1980 and was Managing Director till 1984.
Birth of the Spark:
In 1984, Dr.Reddy set up Dr.Reddy Laboratories (DRL) with an initial capital of 25 lakhs. The idea could be traced to a visit to a Pfizer plant in 1965 while pursuing his PhD. It was here that the desire to build his own plant was sparked. According to him his inspiration is his father who used to treat locals with herbal medicines free of cost. He rues that he cannot afford free distribution of his drugs. But he always strives to develop affordable and efficient drugs through his unstinting research.
Dr. Reddy's – The Journey
Dr. Reddy's provides a diverse portfolio of products and services which include Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars, differentiated formulations and News Chemical Entities (NCEs).It conducts its operations through its three wings -- Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products. The company has made Indian pharma industry self-reliant. It has been transformed from import-dependent to self-reliant manufacturers.
The first Active Pharmaceutical Ingredients (API) manufacturing facility was commissioned in June 1985 in Bollaram. In 1986, the company went public with listing on the Bombay Stock Exchange. DRL began its first commercial production of API in 1985. It produced Methyldopa, a hypertension drug which was not available in the Indian markets. Methyldopa was supplied to Merck, Sharp, Dhome (MSD), and was exported to West Germany, Yugoslavia, Bangladesh, Kenya and Canada. The formation of Stangen Pharmaceuticals signals the beginning of Formulation Operations in 1987. Cheminor Drugs obtained its first USFDA approval for Ibuprofen API in the same year and the company started exporting the drug to USA. Its subsidiary, Globe organics also started operations in that year. DRL obtained USFDA approval for Methyldopa. It acquired Benzex Laboratories, which started manufacturing active ingredients of Ampicillin and Cephalexin.
In 1990, DRL exports Norfloxacin and Ciprofloxacin to Europe and Far East. It becomes the first Indian pharmaceutical company to do so. Diltiazem and Famotidine were introduced by Cheminor Drugs for the first time in Indian markets. In the same year, it commenced First formulation exports to Russia with a field force in Moscow.
On 22nd April 1991, DRL's brand of Omeprazole, Omez, was launched. It was DRL's first 100-crore brand. It revolutionized the treatment of acid-peptic disorders. Today, Omez is the top brand of Omeprazole in 11 countries. On 28th December 1991, commercial production started at Pydibheemavaram API plant.
In 1993, Dr. Reddy's Research Foundation (DRF) was established jointly by DRL and Cheminor Drugs. It was the first company to initialize drug discovery programs. The Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India has recognized DRF as a scientific and industrial research organization. In the same year, they launched an anti-emetic drug, Domperidone. The launch of Reddy - Cheminor SA at Paris gave a focused thrust on European markets.
In 1996, a finished dosages facility was constructed at Bachupally, Hyderabad. This was to facilitate expansion of its generic business and entry into highly regulated US markets. A cargo aircraft of Uzbekistan Airways was chartered to airlift 18,000 kgs of life saving medicine worth US$ 1.25 million. This was a first for DRL.
On March 1st 1997, DRL licenses its discovery DRF 2593 (Balaglitazone) to Novo Nordisk A/s of Denmark. It is one of the most potent glitazone. DRL is the first Indian pharma company to out-license an original molecule. In December 1997, the US Patents and Trademarks Office granted the first patent to DRF for the discovery of Troglitazone Polymorphs, a molecule with anti-diabetic properties. Dr. Reddy's files its ANDA with the United States Food and Drug Administration for Ranitidine. DRL expands its global outreach by starting Reddy Biomed Ltd in Moscow in March 1997; Joint venture in Brazil in September 1997 and Reddy Pharmed a joint venture in Tashkent In October 1997. In 1999, DRL acquired American Remedies Limited (ARL) which enhanced DRL's focus on improving efficacy of co-prescribed drugs. ARL's brands like Mucolite, Antoxid, BioE, Becozinc, GLA and Optisulin have become part of DRL's portfolio. On December 11, 2000, with the merger of Cheminor Drugs (CDL), DRL became the third largest pharma company in India. On April 11, 2001, DRL became the first Asia Pacific pharma company outside Japan to be listed on the New York Stock Exchange with the symbol "RDY". DRL kicks off by having its stock oversubscribed, and becoming the best performing IPO for the year.
DRL launched Fluoxetine 40 mg capsules on August 3rd 2001. It became the first Indian pharma company to obtain 180-day exclusive marketing rights for a generic drug in the US market.
In 2002, DRL acquired BMS Laboratories Limited and Meridian Healthcare (UK) Limited. These companies have fully-integrated manufacturing facilities for oral solids, liquids and packaging in London and Beverly. Dr. Reddy's new Technology Development Centre (TDC) became operational on 6th May 2002. In January 2003, DRL launched Ibuprofen in the US. It became the first generic product marketed under the "Dr. Reddy's" label in the US. It also facilitated the company to strengthen and sustain US generic business. On September 15th 2003, DRL released its "Corporate Safety, Health & Environment (SHE) Report for the year 2002 - 2003". It became the first Indian pharma company to release an SHE report.
In 2005, DRL acquired Roche's API business at Cuernavaca, Mexico. The site has state-of-the-art manufacturing facilities and is approved by USFDA and other international regulatory agencies. DRL has added unique steroids manufacturing capabilities to its already existing APIs.
DRL acquired Betapharm in 2006, the fourth largest generic pharma company in Germany. This is the largest acquisition at a value of € 480 million in cash. Dr. Reddy's ANDA gets USFDA final approval for Ondansetron Hydrochloride Tablets, 4 mg, 8mg, 16 mg and 24 mg. Dr.Reddy's revenues touched USD 1 billion mark in December 2006 making it the fastest Indian pharma to do so.
On 27th April 2007, Dr. Reddy's launched Reditux™, their brand of rituximab. It is also the world's first monoclonal antibody (MAb) biosimilar used in the treatment of Non-Hodgkin's Lymphoma. Over a 100 leading oncologists from the country attended the launch. Dr.Reddy's revenues for the financial year 2006-07 were USD 1.5 billion. Dr. Reddy's and Rheoscience commence the Phase II clinical trials of Balaglitazone (DRF 2593). It is a new TZD for treatment of diabetes mellitus. This trial will investigate the safety and efficacy of the drug.
Dr.Reddy's acquires a share of Dow Pharma Small Molecules business which is an associate of its UK sites in April 2008. The Cambridge site has chiral and biocatalysis technology facilities. The highly specialized knowledge of Chemocatalysis and Biocatalysis is proving valuable for innovator companies globally.
Dr. Reddy's acquired BASF's Shreveport facility in Louisiana in 2008. It is a pharmaceutical contract manufacturing business that manufactures and packages prescriptions and OTC pharma products. This acquisition helped Dr. Reddy's to expand its activities to North America and also its ability to supply generic products to US government agencies. Dr. Reddy's announced its wholly-owned subsidiary, PromiusTM Pharma, LLC in Bridgewater, NJ on 22nd September 2008. The unit will focus on US branded dermatology market. A strategic alliance with GlaxoSmithKline plc (GSK) was announced in 2009. This was done to facilitate developing and marketing select products across emerging markets outside India.
DRF, Hyderabad merged with Aurigene Dr. Reddy's wholly-owned drug discovery subsidiary in Bangalore. This resulted in a reorganization of drug discovery operation effective from 1st June 2009. The company will operate from two sites – Hyderabad and Bangalore.
Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products – Dr. Reddy’s offers a portfolio of products and services including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars, differentiated formulations and News Chemical Entities (NCEs).
Dr. Anji Reddy believes in giving back to society. He has given away the remuneration of Rs. 2 crore p.a. he received as salary from his company. Now that he has resigned himself from the company’s day-to-day activities, he spends part of his leisure time in philanthropy. He is totally involved in all the causes he espouses and supports. In 1996, he founded the Reddy Foundation which is involved in creating livelihoods through an initiative Livelihood Advancement Business School (LABS). The other goal is to provide quality education to all by setting up neighborhood schools in and around Hyderabad.
A sign outside a bathroom in Tokyo that he read about 10 years back -- "This water is perfectly potable." – set him thinking. The irony hit him. The water in a hotel bathroom was potable while many people in India could not access potable even for just drinking. In 2005, he invested $ 1 million in WaterHealth International, a US-based company with patented technology in providing pathogen-free water. It was his dream to provide pure potable water to the poor in India. He is a strong believer in the power of technology and feels it is the true connector.
In 1999, he started Naandi Foundation, a non-profit organization with several corporate heads as its members. The success of potable water programme in Andhra Pradesh encouraged them to expand it to other states. Along with Tata Projects, it includes treatment of flouride, arsenic, pesticides and chemicals. Besides handling issues of hunger, drinking water, education and livelihood, the foundation also provides mid-day meals to children in government schools. These schools in Andhra Pradesh Madhya Pradesh and Rajasthan are supplied meals from 14 centralised kitchens. A Comprehensive Healthcare Programme for school going children covers all diagnostic, medical and surgical costs at just 50 paise per day per child. The success of this programme in Andhra Pradesh is being replicated in Rajasthan.
Dr. Reddy has started the Institute of Life Sciences (ILS) to promote the study of science in the country. His dream is to enable independent India to produce a Nobel laureate in one of the pure sciences. Chemists and biologists work together on the interface between chemistry and life sciences. The objective is to create unique intellectual property and commercialise it while collaborating between industry and other entities. A state-of-the-art neo-natal care hospital, Nice Hospital, is being built at a cost of Rs.15 crore. While the Reddy family is the main contributor, the Government of Andhra Pradesh and two other non-profit organizations are supporting this project.
Dr. Reddy has pledged to contribute 10 crore p.a. for 10 years starting 2006 to L.V. Prasad Eye Institute. This is the only institute in India (and one of the few in the world) to have perfected the use of stem cells for corneal reconstruction to restore eyesight. In addition to the committed amount, Dr. Reddy is a regular contributor to the Institute’s various programmes and initiatives. As a token of respect and gratitude, the institute’s board decided to name its Hyderabad campus after him -- Kallam Anji Reddy Campus.
Most of these philanthropic projects have been funded by Dr.Reddy’s family. They have sometimes been supplemented by contributions Dr.Reddy’s Group of companies and other companies, corporates and individuals. In order to make them sustainable, Dr. Reddy has plans to put up a corpus fund. He also plans to set up Kallam Anji Reddy Foundation (KAR Foundation), and transferring all or part of his 10 percent stake in Dr. Reddy’s, which is valued at 1,000 crore. This will bring his dream to fruition – of making key healthcare needs accessible to all. What is noticeable is that all of these ventures are not only successful but are being replicated in other states as well. His family has been involved in all his efforts. His daughter, G. Anuradha Prasad is the Managing Trustee of Dr Reddy’s Foundation. His son-in-law,G.V. Prasad, Vice Chairman & CEO of Dr Reddy’s and his son, Satish Reddy, MD & COO of Dr Reddy’s Laboratories are part of his philanthropic ventures.
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