DRL launches key kidney ailment drug

Dr Reddy’s Laboratories (DRL), on Friday, launched a low-competition kidney ailment drug Sevelamer Carbonate in the US, to grow its sales in the market.

The drug is sold by the innovator under the brand name Renvela and its current annual market size is $1.88 billion. DRL is the second Indian firm after Aurobindo Laboratories to launch generic version of Renvela in the US this year.

Low competition products offer drug makers better revenue and margins in the US market which is seeing a pricing pressure. This is DRL’s eight overall launch and fourth limitedin the US. Deepak Malik of Edelweiss Securities estimates the limited-competition products could generate over $120 million in sales for DR L by FY 19. “This launch represents Dr Reddy’s expertise and commitment to provide affordable alternatives for complex limited-competition products to the market,” said Alok Sonig, executive vice president and head of North America generics businessofDRL. Salesofgeneric drugs contributed to over 45 per cent of DRL’ revenue in first quarter FY18. Sales in the market declined by 4 per cent on a year on year basis to ~1495 core due to price erosion. The companylaunched four products in the US in the quarter including an anti-cholesterol drug acquired from Teva and a complex injectable. Both of them are limited-competition products and the company expects gradual pick up in their sales.

The launch of generic Renvela comes close on the heels of US Food and Drug Administration clearance to DRL’s Srikakulam plant leading to a positive uptick in the stock price.