Dr Reddy's Laboratories has boosted its ability to serve Western pharmaceutical markets with an increase in its manufacturing capacity for drug formulations.
Dr Reddy's has invested $100 million to increase its capacity within formulations, active pharmaceutical ingredients (APIs) and custom pharmaceutical services. This will fit in well with the firm's expansion of its manufacturing capacity meant for the EU and US market.
India-based Dr Reddy's has expanded its existing units in Hyderabad and in Vishakaptnam and may open two more in Hyderabad and Srikakulam district of Andhra Pradesh.
To help fund these expansions, Dr Reddy's will use cash raised via a recent placement of American Depository Shares (ADS) that brought in around $250 million.
"The sum will be used for corporate purposes which include geographic expansion, potential acquisitions of, or investments in, companies and technologies that complement our business, capital expenditures for increasing production capacities, addition of new capabilities and so on," said Mythili Mamidanna, as spokesperson for Dr Reddy's.
The 18-month expansion period will see the company having a robust manufacturing presence in the area. Although, the two new units are still at the planning stage, Dr Reddy's has received in-principle approval from the Indian Government to acquire the necessary land (100 hectares) to qualify as a Special Economic Zone Plan.
Dr Reddy's has 15 sites globally, such as six facilities of active pharmaceutical ingredients Andhra Pradesh, two technology development centers for custom pharmaceutical services (CPS) in India, one CPS in Cuvernavaca, Mexico, six finished dosage units in India and one biologics facility in India.