Generic drugmakers step up presence in Russia, with Dr Reddy's and Teva planning expansions

Indian pharmaceutical manufacturers are accelerating their expansion into the Russian market. Following a recent announcement of Aurobindo Pharma to establish of a joint venture with the Russian Diod firm (The Pharma Letter September 9), another Indian major Dr Reddy's Laboratories (NYSE: RDY) declared its intention to expand its portfolio of over-the-counter (OTC) drugs and to acquire a pharmaceutical plant in Russia.

However, according to the Russian media reports, the Indian company had not yet decided - whether to acquire an existing plant or to build from scratch.

In addition to the plant, Dr. Reddy's has also plans to expand its portfolio of OTC brands in Russia. In an interview with Wall Street Journal, Umang Vohra, chief executive of Dr. Reddy's said that the company intends to increase the share of such products to 40%-45% from the current 28%. An official representative of Dr Reddy's Russia declined to comment.