Dr Reddy’s Laboratories has entered into an agreement with Cipla limited for exclusive marketing rights of a portfolio of OTC and prescription products in the Russian and Ukraine markets. As per the agreement, Dr. Reddy’s has initiated the sales and promotion of the portfolio of products from Q2 FY11 in select therapy areas in Russia. Launch in Ukraine to take place next calendar year.
The company has also entered into an agreement with UK based Vitabiotics Ltd. for a range of nutraceutical products for Russia and select CIS countries. The agreement provides Dr. Reddy’s exclusive marketing rights to two of Vitabiotics leading products- Jointace and Dietrim. Vitabiotics will supply these products on a long term basis from its facilities in Europe.
Commenting on the developments, Satish Reddy, Managing Director and COO, Dr Reddy’s said,” The agreements give us access to a good number of Rx products and OTC brands with existing sales that would immediately add to our revenues from the Russian and CIS market. We see long term synergies as Dr. Reddy’s has strong sales & marketing network and our partners have a basket of products already registered & distributed in these markets. With strong brands, increasing growth in the Rx, OTC and Hospital segments and our association with top tier distribution partners, the agreements will only add to our growth ambitions in the Russia & CIS markets”.
MV Ramana, Head of Russia & CIS region, Dr Reddy’s said, “The agreement with Cipla will enhance Dr Reddy’s presence in the OTC space and in therapy areas of Gastroenterology, Dermatology & Oncology in both Russia & Ukraine. Besides this we will also be promoting Cipla’s existing respiratory care range in Ukraine”. “The Jointace range will complement Dr Reddy’s product offering in pain management and will help increase our presence in the nutraceutical space while Dietrim will mark our entry into the weight management area,” he added.