India's Dr Reddy's collaborates with Russia's R-Pharm; gas leak at Bollaram API plant

India’s second largest drugmaker Dr Reddy’s Laboratories (NYSE: RDY) has entered into a licensing, technology transfer, manufacturing and marketing agreement with R-Pharm of Russia. The collaboration is in the area of high-technology and works on a profit sharing model.

Hyderabad-based Dr Reddy’s is already the largest Indian Pharmaceutical company in Russia and also the fastest growing international branded generic company by volume, the firm claims. The accord will entail licensing of manufacturing know-how of products by Dr Reddy’s, local manufacturing of products in Russia, co-development of high technology products and knowledge sharing between both parties at regular intervals.

Russia’s pharmaceutical market is one of the largest in the world with total revenues of $15.3 billion in 2009, which is anticipated to remain on a path of dynamic growth due to multiple initiatives by the Russian government. The 2020 pharmaceutical program by the government aims to strengthen domestic manufactures which ensures that 50% of pharmaceuticals in circulation are of Russian origin by 2020.